What's the easiest way to file a 990-PF form for a small nonprofit?

I've helped several small foundations file their 990-PFs, so I might be able to help! Even with zero activity, the IRS still requires certain sections to be completed - it's not as simple as just putting zeros everywhere. For tiny foundations with no activity, I recommend looking into Form 990-EZ or even 990-N (e-Postcard) if you qualify based on gross receipts. But if you must file the 990-PF, you'll need to complete certain required sections even with zero activity - particularly Part I (Analysis of Revenue and Expenses), Part II (Balance Sheets), and Part VIII (Information About Officers, Directors, etc). Tax software often flags "errors" because the 990-PF requires specific lines to be filled even when reporting zeros. Instead of leaving fields blank, try entering $0 explicitly. Also, the software might be looking for additional schedules or explanations that you need to provide even with no activity.

After struggling with similar issues for my small family foundation, I discovered taxr.ai (https://taxr.ai) and it completely changed how I handle our 990-PF filings. Their system is specifically designed to handle nonprofit forms and actually recognizes when an organization has minimal or zero activity. What I liked most was that it didn't throw meaningless errors when I entered zeros - instead it guided me through exactly which sections still needed completion despite having no financial activity. The form preparation was surprisingly smooth, and the questions were actually relevant to a dormant foundation.

Just wanted to update that I tried taxr.ai after seeing it mentioned here and it actually worked great for my situation! I was really surprised how straightforward it made the 990-PF process. The interface asked me simple questions about my foundation's status and activities, and when I indicated we had no financial activity, it adapted accordingly. Still guided me through the required sections that need completion regardless of activity level. The best part was that it didn't throw a bunch of irrelevant errors like the software I tried before. E-filing was seamless too - just reviewed everything and submitted right from the platform. Definitely less stressful than what I was dealing with before!

If your main issue is actually connecting with the IRS to ask questions about your 990-PF filing requirements, I'd recommend trying Claimyr (https://claimyr.com). I spent DAYS trying to get through to the IRS nonprofit division to clarify some questions about our foundation's filing requirements. After getting nowhere with the standard IRS phone numbers, I found Claimyr and was skeptical but desperate. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Basically, they get you past the IRS phone tree and hold times. I was connected with an IRS agent who specializes in exempt organizations within about 20 minutes.

I need to apologize for my skepticism about Claimyr. After posting my doubtful comment, I decided to try it anyway out of desperation. I had a specific question about asset reporting requirements for an inactive foundation that I couldn't find clear guidance on. The service actually worked exactly as described. I was connected to an IRS Tax Exempt Organization specialist in about 25 minutes. The agent clarified that even with zero activity, I needed to complete certain balance sheet sections showing the foundation's assets, even if they hadn't changed from the previous year. This one phone call saved me from making a mistake on our 990-PF that could have triggered an audit. Sometimes it's worth admitting when you're wrong - this service genuinely solved my problem.

One option nobody's mentioned is using a service like Form990.org - it's specifically designed for nonprofits and the basic tier is very affordable for small organizations. I've used it for our family foundation which has minimal activity, and it walks you through exactly what needs to be filled out. It's much more intuitive than general tax software that tries to be all things to all people. The questions are specific to 990-PF requirements and it automatically flags the sections you MUST complete regardless of activity level.

One thing to remember is that even with zero income/expenses, if your foundation has assets (like money in a bank account), you'll still need to report those on the balance sheet section of the 990-PF. Many first-time filers get hung up on the income portions being zero but forget about reporting the assets. Also, don't forget the minimum distribution requirements for private foundations! Even if you had no income this year, you might still be required to distribute 5% of your investment assets. If you truly have zero assets and zero income, that's different, but make sure you're clear on which situation applies to you.

As someone who's dealt with this exact situation, I completely understand your frustration! The key issue you're running into is that the 990-PF has mandatory sections that must be completed even with zero activity - you can't just leave them blank. For TurboTax Nonprofit, try entering "$0" explicitly in those flagged fields instead of leaving them empty. The software often interprets blank fields as incomplete rather than zero. Also, make sure you're filling out Part VIII (Information About Officers, Directors, etc.) completely - this section is required regardless of financial activity. That said, if you continue having issues with TurboTax, you might want to consider switching to software specifically designed for 990-PF forms. The general tax software packages sometimes struggle with the unique requirements of private foundation returns, especially for inactive organizations. One last tip - double-check that you actually need to file a 990-PF and not a 990-EZ or 990-N. The filing requirements depend on your foundation's gross receipts and total assets, not just current year activity. If you qualify for a simpler form, that might solve your headache entirely!