What IRS Form 990-PF (2019) Is For

Form 990-PF is the annual information return filed by private foundations and section 4947(a)(1) charitable trusts. It reports financial activities, charitable distributions, and compliance with foundation rules while also calculating the excise tax on net investment income. All private foundations—whether exempt, taxable, or nonexempt charitable trusts treated as foundations—must file this form each year, regardless of income or asset levels (IRS Instructions for Form 990-PF (2019)).

When You’d Use Form 990-PF for 2019 (Late or Amended Filing)

You would file a late 2019 return if:

• You missed the original May 15, 2020 due date (or extension).
  
  
• You received IRS notices for delinquent filings (e.g., CP-series letters or Letter 2695C).
  
  
• You risk automatic revocation of exempt status after three consecutive missed filings.
  
  

You would file an amended return if:

• You discovered errors in reported investment income, excise taxes, or distributions.
  
  
• You omitted required schedules like Schedule B or failed to meet state reporting obligations.
  
  
• You need to correct information that impacts compliance or public disclosure.
  
  

Unlike income tax returns, Form 990-PF does not provide refund claims for most filers, but late or amended filing is necessary to resolve penalties, avoid further compliance issues, and preserve exemption.

Key Rules Specific to 2019

• Excise tax rates: 2% on net investment income, or a reduced 1% rate if enhanced distribution requirements under §4940(e) were met.
  
  
• Flat rate update: Starting after December 20, 2019, the rate changed to 1.39% flat under the Taxpayer Certainty and Disaster Tax Relief Act of 2019.
  
  
• Minimum distribution requirement: 5% of non-charitable use assets, with failure triggering additional excise taxes.
  
  
• Penalties:
  
  
  
  • $20/day for small foundations (gross receipts < $1,067,000).
    
    
  • $105/day for large foundations, capped at $10,500 and $53,000 respectively, or 5% of gross receipts if smaller.
    
    
• E-filing: Mandatory for filers of 250+ returns; others could still paper file.
  
  

Step-by-Step (High Level)

1. Gather records: Request transcripts using Form 4506-T to confirm any prior filings and IRS assessments; compile financial records and grant distributions.
   
   
2. Prepare correct-year form: Use the official 2019 version of Form 990-PF, not later editions.
   
   
3. Calculate excise tax: Apply the 2% or 1% rate based on distributions and investment income.
   
   
4. Verify minimum distributions: Ensure the 5% payout requirement is met using correct asset valuations.
   
   
5. Attach required schedules: Include Schedule B for substantial contributors and any explanatory statements.
   
   
6. File return and pay: Submit electronically if eligible, or mail to the Ogden, UT IRS center. Pay any taxes, penalties, or interest owed.
   
   
7. Retain documentation: Keep complete copies for at least three years for public inspection and state filing requirements.
   
   

Common Mistakes and How to Avoid Them

• Using wrong tax rate: Don’t apply the post-2019 flat 1.39% rate; 2019 still used the 2%/1% system.
  
  
• Minimum distribution errors: Misreporting or failing to meet the 5% requirement results in a 30% excise tax under §4942.
  
  
• Poor grant documentation: Grants to individuals or foreign organizations require detailed due diligence.
  
  
• Public inspection noncompliance: Ensure returns are available for public inspection as required by law.
  
  
• Missed estimated taxes: Failure to make quarterly estimated payments on excise tax can add penalties.
  
  
• Schedule B confusion: Understand when to attach or certify that it is not required.
  
  

What Happens After You File

• Processing time: Typically 6–8 weeks for paper returns, though late or amended filings may take longer.
  
  
• IRS correspondence: Expect notices about discrepancies, excise tax underpayments, or missing data.
  
  
• Penalties: Accrue daily until filing; additional penalties apply for unpaid excise taxes.
  
  
• Resolution options:
  
  
  
  • Request installment agreements with Form 9465.
    
    
  • Seek penalty abatement for reasonable cause (e.g., illness, natural disasters, reliance on bad advice).
    
    
• Appeal rights: Disagreements with IRS findings may be elevated to the Appeals Office.
  
  
• Public disclosure: Returns are publicly available and must be shared with state regulators if required.
  
  

FAQs

Q: What penalties apply for late 2019 Form 990-PF?
A: $20/day for smaller foundations (capped at $10,500) or $105/day for larger ones (capped at $53,000), or 5% of gross receipts if lower.

Q: Can I still seek penalty relief for late 2019 filing?
A: Yes. Apply for reasonable cause abatement or first-time abatement if your compliance record for the past three years is clean.

Q: How do I get IRS transcripts for 2019?
A: Request using Form 4506-T or through the IRS online portal, specifying Form 990-PF, tax year 2019.

Q: Is there a statute of limitations on 2019 assessments?
A: Generally, three years from filing. Extended to six years if 25% or more of excise tax is omitted. No limit for fraud or non-filing.

Q: What changed in excise tax law after 2019?
A: The two-tier 2%/1% system ended. Starting with tax years after Dec. 20, 2019, all foundations pay a flat 1.39% excise tax.

Q: Do amended federal filings require state amendments?
A: Yes, many states require copies of amended returns for charitable solicitation compliance.

Q: What if I missed the 5% payout in 2019?
A: A 30% excise tax applies to undistributed income, though corrective distributions and penalty relief may still be available.

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