What IRS Form 990-PF (2022) Is For

Form 990-PF (Return of Private Foundation) is an annual information return used by private foundations to figure the tax based on investment income and to report charitable distributions and activities (IRS Instructions for Form 990-PF (2022)). The form must be filed by exempt private foundations, taxable private foundations, section 4947(a)(1) nonexempt charitable trusts treated as private foundations, and organizations that agree to private foundation status while their exemption applications are pending.

When You’d Use Form 990-PF for 2022 (Late or Amended Filing)

You would file a late 2022 Form 990-PF if you missed the original due date of May 15, 2023 (or November 15, 2023 if an extension applied). Common reasons include IRS notices about unfiled returns, compliance issues identified during internal reviews, or errors discovered in prior filings. Late filers face penalties of $20 per day for smaller foundations and $105 per day for larger ones, with maximums reaching $54,500. While exempt returns don’t carry refund statutes of limitations, filing promptly is critical to avoid automatic revocation after three years of non-filing.

Key Rules Specific to 2022

• Excise tax rate: Net investment income was taxed at 1.39%, continuing the flat rate introduced in 2019.
  
  
• Mandatory e-filing: All private foundations were required to file electronically. Paper returns were no longer permitted except in limited circumstances.
  
  
• FASB standards: Reporting standards adopted the reclassification of net assets into “with donor restrictions” and “without donor restrictions.”
  
  
• Distribution requirement: Private foundations had to meet the 5% minimum payout obligation for charitable purposes.
  
  

Step-by-Step (High Level)

• Gather transcripts: Request IRS transcripts to confirm your filing history.
• Use the correct form: Complete the official 2022 version of Form 990-PF based on your foundation’s structure.
• Attach required schedules: Include Schedule B unless exempt, and complete Part XV if assets exceeded $5,000.
• File electronically: Submit through an IRS-approved e-file provider; paper filing is not permitted.
• Keep copies: Maintain full records of the return, schedules, and supporting documentation for compliance and state reporting.

Common Mistakes and How to Avoid Them

• Incomplete Schedule B: Either complete the schedule fully or mark the exemption certification—never leave it blank.
  
  
• Grant reporting errors: Part XV must list grants in detail when Part I shows disbursements.
  
  
• Distribution miscalculations: Errors in Parts IX and X create risks of excise taxes.
  
  
• Balance sheet mistakes: Larger foundations must complete all columns, while smaller ones file reduced reporting.
  
  
• Unsigned returns: A responsible officer’s signature is required.
  
  
• Mixing accounting methods: Ensure consistent reporting between cash and accrual methods.
  
  

What Happens After You File

Electronically filed 2022 returns typically take 3–6 months for IRS processing, with complex cases taking longer. You may receive acknowledgment of receipt and potential notices requesting clarification or corrections. If excise taxes are owed, payment options include EFTPS, credit card, or installment agreements using Form 9465. You also have appeal rights if you disagree with IRS assessments. Additionally, copies of the return may need to be furnished to attorneys general in states where your foundation operates.

FAQs

Can I still file my 2022 Form 990-PF even though it’s very late?

Yes. Filing late is always better than not filing, as penalties continue to accrue until submission. Filing now helps stop penalties from growing further and prevents automatic revocation of tax-exempt status after three consecutive years of non-filing. Even though late penalties can be significant, timely compliance demonstrates good faith effort.

How much will the late filing penalties be?

The penalties depend on your foundation’s size. For 2022 returns, smaller foundations faced $20 per day up to $12,000 maximum, while larger foundations with gross receipts over $1,094,500 faced $105 per day up to $54,500 maximum. These penalties accumulate quickly, making prompt filing and possible penalty relief requests very important.

Do I need tax transcripts before filing?

While not mandatory, transcripts are highly recommended. Requesting them ensures you know your filing history, any posted penalties, and IRS correspondence that may affect compliance. Transcripts also confirm whether previous filings were posted correctly. They are especially useful if you’re catching up on multiple late returns or filing amendments for corrections.

Can I get penalty relief for reasonable cause?

Yes. The IRS may grant relief if you demonstrate reasonable cause, such as reliance on professional advice, serious illness of responsible officers, natural disasters, or other events beyond your control. Relief requests require a detailed written explanation under penalty of perjury and supporting documentation. Interest on unpaid taxes, however, generally cannot be waived.

What’s the minimum distribution requirement for 2022?

Private non-operating foundations had to distribute approximately 5% of the average fair market value of their investment assets for charitable purposes. This requirement is calculated in Parts IX and X of the form. Failing to meet it can result in a 30% excise tax on undistributed income under Section 4942, making accuracy crucial.

Should I also amend my state returns?

Yes, in most cases. States that rely on Form 990-PF for charitable registration require copies of amended federal returns if corrections are made. Each state’s requirements differ, so consult the state attorney general’s office or charity registration division where your foundation is registered to ensure full compliance.

What if I discover I should have filed Form 990 instead of 990-PF?

If your foundation was misclassified, you should immediately file the correct form to avoid further compliance issues. Filing Form 990 instead of Form 990-PF may significantly change reporting obligations. Correcting this promptly reduces risk of penalties and regulatory problems, and the IRS may require amended returns for prior years as well.

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