Resolving IRS e-file Error F990PF-905-01: Here’s How to Fix It

Error Code: F990PF-905-01

Error Message:
If Form 990-PF, Item G, “Initial return of a former public charity” checkbox is not checked, then the ‘EIN’ of the Filer in the Return Header must be established as a private foundation filer in the e-File database.

Understanding the Error:
You’ve encountered error F990PF-905-01 while e-filing your tax return. This error indicates that the IRS e-file system could not match your foundation’s EIN (Employer Identification Number) with a private foundation record in its database.

Common Causes:
EIN Not Classified as a Private Foundation:

• The IRS e-file system does not recognize your foundation as private because the EIN might not have been officially established. This can happen if your foundation was recently classified as a private foundation, and the IRS database has not yet updated the EIN status.

Not an Initial Return:

• If your organization was previously a public charity and recently changed its status to a private foundation, you need to check the box on Item G (“Initial return of a former public charity”) on Form 990-PF.
• If you did not check this box and this is the first time you’re filing as a private foundation, the IRS will not recognize your foundation’s new status.

Steps to Resolve:
Verify EIN:

• Carefully review your tax return and compare the EIN with those on your business records and any previous tax filings.

If converting from a Public charity to a Private Foundation:

• If this is your first return after converting from a public charity to a private foundation, make sure to check the box in Item G (“Initial return of a former public charity”) to indicate the change in status.

Contact the IRS:

• If you did not change your organization’s status recently and this isn’t the first return, the IRS might not have your EIN properly registered as a private foundation.
• In this case, you will need to contact the IRS e-help Desk at 866-255-0654 to update your EIN classification. The IRS Exempt Organizations Division can help confirm or update your foundation’s EIN status in their e-file database.

Enter the correct information and Retransmit:

• If you’ve made any corrections to the EIN, retransmit it.
• Please note that the retransmission is FREE with TaxZerone.