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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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Rules about a Private Foundation

Customer Question

CLient set up a private foundation in 2001 and filed form 990PF for 2001 through 2005 showing none at every question with no activity etc. For one reason or another she has never used it. Not too familiar with these rules but need to file 2006 & 2007 the same way as before. Are there any rules or regs. I should be aware of ?? I'm fairly positive that she never actually received an exemption from the IRS since no activity has ever happened.
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.



In order for your client to retain her organization as a private foundation, she needs to continue filing Form 990PF every year, regardless of whether or not the organization has ever had activity. If the form is not filed, her qualification as a private foundation would be revoked. She would then have to reapply for private foundation status if at some point in the future she decided to actively participate in transactions.


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Customer: replied 8 years ago.
Thanks for the answer. I still need to know if she hasn't filed 06 or 07 yet is she already in danger of losing the status???
Expert:  Merlo replied 8 years ago.

Hello againCustomer


Since she actually had no transactions to report for those years then her status should still be retained, but the returns do need to be filed as soon as possible.