F990EZ-122-01: Total revenue on line 9 doesn't add up

What this rejection means

Line 9 of Form 990-EZ is total revenue. It must equal the sum of the revenue lines above it, give or take $100. On your return, it did not.

IRS business rule F990EZ-122-01: Form 990-EZ, Part I, Line 9, must equal the sum of Part I Line 1, Line 2, Line 3, Line 4, Line 5c, Line 6d, Line 7c, and Line 8, plus or minus 100. If a value is not provided for any of the lines involved in this rule, treat that line as having the value zero.

This is an arithmetic check. The figures on the return need to agree with each other.

Why it happens

The form adds these lines to reach line 9:

• line 1, contributions, gifts, grants and similar amounts;
• line 2, program service revenue;
• line 3, membership dues and assessments;
• line 4, investment income;
• line 5c, gain or loss from sale of assets other than inventory, which is line 5a minus line 5b;
• line 6d, net income or loss from gaming and fundraising events, which is lines 6a and 6b minus line 6c;
• line 7c, gross profit or loss from sales of inventory, which is line 7a minus line 7b;
• line 8, other revenue.

Common causes of a mismatch:

• Gross amounts used instead of net amounts. For example, the full sale price from line 5a, ticket sales from line 6b, or sales from line 7a added in place of 5c, 6d or 7c.
• A loss entered as a positive number. Lines 5c, 6d and 7c can show a loss, which reduces line 9.
• Line 9 typed in by hand from a bookkeeping report, and not recalculated.
• A line changed after line 9 was filled in.

How to fix it

1. Add the lines yourself. Use lines 1, 2, 3, 4, 5c, 6d, 7c and 8, and compare the result with line 9.
2. Check the net lines. Confirm that 5c equals 5a minus 5b, 6d equals 6a plus 6b minus 6c, and 7c equals 7a minus 7b.
3. Check signs. Lines 5c, 6d and 7c are labeled "gain or (loss)," "net income or (loss)" and "gross profit or (loss)" on the form, so a loss there reduces the total.
4. Correct line 9, or the line that is wrong, and send the return again.
5. Check the knock-on effects. Line 9 feeds the gross receipts total in Item L. That total is lines 5b, 6c and 7b added to line 9. It decides whether you can file Form 990-EZ at all.

This is a data fix. Correcting the figures and sending the return again is all that is needed. If your e-file software calculates line 9 for you and still produces this rejection, contact your e-file provider.

When to contact the IRS

You do not need to for this rejection. It is a math check on the return.

Related codes

• F990EZ-121-01: line 6d must equal line 6a plus line 6b minus line 6c, within $100.
• F990EZ-128-01: if lines 5b, 6c, 7b and 9 add up to $200,000 or more, Form 990 must be filed instead.
• F990EZ-127-01: end-of-year total assets of $500,000 or more require Form 990.