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

Search

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
   
   
   
   
   
   

Circular 230 Disclosure

To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this software (including any reports or downloads) is not intended or written to be used and cannot be used for the purposes of (i) avoiding penalties under the Internal Revenue Code or (ii) supporting, promoting, marketing or recommending to another party any transaction or matter addressed herein. This software is for informational purposes only and should not be regarded as tax advice. Please consult your tax advisor or attorney for guidance on your individual tax situation.

Related to

• rejection
• 990-PF
• 990PF

Was this article helpful?

Have more questions? Submit a request

Comments

0 comments

Article is closed for comments.

<% children.forEach(function(child, index) { %>
• <%= child.title %>
<% }); %>

<% blocks.forEach(function(block, index) { %>
• <% if (imageHeight) { %> <% var src = images.length > index ? images[index] : images[images.length - 1] %> <% } %> <% if (block.name) { %>

  <% if (block.html_url) { %> <%= block.name %> <% } else { %> <%= block.name %> <% } %>

  <% } %> <% if (block.description) { %>

  <%= block.description %>

  <% } %>
<% }) %>

<% if (block.html_url) { %> <%= block.name %> <% } else { %> <%= block.name %> <% } %>

<%= block.description %>