What IRS Form 990-PF (2025) Is For

Form 990-PF is the annual information return that all private foundations must file with the IRS. This form serves two main purposes: calculating and reporting the excise tax on investment income, and documenting charitable distributions and activities (IRS Instructions for Form 990-PF (2025)). All domestic private foundations, taxable private foundations, and section 4947(a)(1) nonexempt charitable trusts treated as private foundations must file this form annually, regardless of their size or income level.

When You’d Use Form 990-PF for 2025 (Late or Amended Filing)

You'll need to file a late or amended Form 990-PF for 2025 if you missed the original filing deadline (15th day of the 5th month after your accounting period ends), received IRS notices demanding the return, or discovered errors in your previously filed return. Common scenarios include foundations that lost track of filing requirements, those facing automatic revocation warnings (foundations that fail to file for three consecutive years automatically lose tax-exempt status), or foundations needing to correct reported information to avoid additional penalties (IRS Instructions for Form 990-PF (2025)). Late filing is also necessary when you owe excise taxes but haven't submitted the return, as the statute of limitations for refunds typically runs three years from the filing deadline.

Key Rules Specific to 2025

• Excise tax rate: 1.39% on net investment income.
  
  
• Electronic filing: Mandatory for all private foundations.
  
  
• Minimum distribution requirement: 5% of average fair market value of non-charitable-use assets annually.
  
  
• Penalty rates: $20 per day for small foundations, $105 per day for large ones.
  
  
• Net asset reporting: Must follow updated standards—“with donor restrictions” vs. “without donor restrictions.”
  
  

Step-by-Step (High Level)

• Gather your records: Obtain IRS transcripts with Form 4506-T and review financials.
• Complete correct-year form: Use the 2025 Form 990-PF with all applicable parts.
• Calculate required amounts: Complete Parts IX, X, and XI to determine compliance.
• Attach schedules: Include all supporting documents and required schedules.
• File electronically: Submit via an IRS-approved e-file provider.
• Maintain copies: Keep complete records for at least three years.

Common Mistakes and How to Avoid Them

• Misclassifying foundation type: Distinguish between operating and non-operating foundations.
  
  
• Incorrect excise tax calculation: Apply the correct 1.39% rate.
  
  
• Inadequate payout documentation: Keep complete records of 5% qualifying distributions.
  
  
• Attempting paper filing: Only electronic filing is accepted.
  
  
• Incomplete public inspection prep: Redact private data before disclosure.
  
  
• Poor grant records: Document all distributions with recipient and purpose details.
  
  

What Happens After You File

Processing typically takes 4–6 weeks for electronic submissions, though complex cases may take longer. If taxes are owed, the IRS issues payment instructions, and you may set up installment agreements using Form 9465. The IRS can request clarification of reported items, and failure to respond on time can add penalties. If you disagree with assessments, appeal rights are available.

FAQs

What are the penalties for filing Form 990-PF late?

Late filing penalties for 2025 are $20 per day for small foundations and $105 per day for larger ones with gross receipts over $1,067,000. Maximums are $10,500 and $53,000 respectively, or 5% of gross receipts if less. Additional penalties apply for unpaid excise taxes, calculated monthly at 0.5% until payment is made in full.

Can I get relief from late filing penalties?

Yes. Penalty relief is available if you can show reasonable cause and that you acted in good faith. Submit a written explanation with your return detailing why filing was delayed. Situations like serious illness, natural disasters, or reliance on professional advice often qualify as acceptable causes to support penalty abatement requests.

How do I get my foundation’s tax transcripts?

Request transcripts using Form 4506-T or through IRS online services if authorized. Transcripts provide past filing records, penalties, and payments, which are helpful before preparing late returns. Reviewing transcripts ensures you use correct figures, avoid duplication of payments, and properly complete your 2025 Form 990-PF or any necessary amended filings.

Is there a refund window for overpaid excise taxes?

Yes. Refund claims for overpaid excise taxes generally must be made within three years from the original return due date or two years from when the tax was paid, whichever is later. Filing amended returns within these timeframes ensures the IRS processes refund requests. Supporting documentation must also accompany any refund claim.

Do I need to file amended state returns if I amend my federal Form 990-PF?

Yes, most states require amended filings when a federal Form 990-PF is corrected. Check with state charity regulators or attorney general offices, as deadlines and requirements vary. Providing copies of amended federal returns ensures compliance with both federal and state nonprofit reporting obligations, helping avoid state-level penalties and registration issues.

What if my foundation hasn’t met the 5% payout requirement?

If your foundation doesn’t meet the 5% distribution requirement, it owes a 30% excise tax on undistributed income. Report this on Form 4720 and correct the shortfall promptly. If not resolved within 90 days of IRS notification, an additional 100% tax applies on the remaining undistributed amount, compounding compliance issues significantly.

Can I still lose tax-exempt status for late filing?

Yes. Private foundations automatically lose tax-exempt status after three consecutive years of non-filing. If revoked, the foundation must file as a taxable private foundation and may reapply for exemption through reinstatement procedures. Filing late returns and paying penalties immediately is essential to avoid revocation and minimize further compliance and financial consequences.

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