Skip to content
  • There are no suggestions because the search field is empty.

How to Resolve IRS Rejection, Database Validation Error: ExemptOperatingFoundationsInd' checkbox is checked

IRS Rejection Reason Database Validation Error: If Form 990-PF, 'ExemptOperatingFoundationsInd' checkbox is checked, then the organization must have a foundation code "02" in the e-file database.

IRS Rejection Reason

Database Validation Error: If Form 990-PF, 'ExemptOperatingFoundationsInd' checkbox is checked, then the organization must have a foundation code "02" in the e-file database.

RuleNum: F990PF-902-01

Issue: The entity is not an “exempt operating foundation”. The foundation status should not be “02” which designates that it is exempt from paying excise tax on its investment income.

Resolution: 

  1. Navigate to Tax Forms -> Form 990-PF -> Part V, Line 1a
  2. Uncheck the box in Form 990-PF, Part V, Line 1a
  3. Click "Save" in the Tools Bar
  4. Resubmit the Form