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Tax Reporting Requirements for Small California Nonprofits

By August 3, 2010Blog, Business Law

Starting January 1, 2011, tax-exempt organizations with gross receipts normally under $25,000 will be required to file an electronic annual information return with the California Franchise Tax Board (“FTB”).  The reporting is similar to the Internal Revenue Service requirement that has been in place since 2007.

FTB Form 199-N requires that organizations report:

1. The legal name;
2. Any other name under which it does business;
3. Mailing address;
4. Website (if there is one);
5. Federal and state taxpayer identification numbers;
6. Name and address of a principal officer;
7. Gross receipts for the year;
8. Tax year beginning and ending;
9. Name and phone number for a contact person; and
10.Whether or not the organization has gone out of business.

Starting January 1, 2010, tax-exempt organizations with gross receipts under $50,000 will be able to file Form 990-N with the IRS.  For organizations with gross receipts between $25,000 and $50,000 filing in California, they will be required to file Form 199 with the FTB, not the abbreviated 199-N.

Note the new FTB filing requirement is in addition to biennial statements filed with the California Secretary of State listing the organization’s officers and annual information forms (RRF-1) filed with the office of the California Attorney General.  More information on Form 1990F is available on the FTB website, here.

Anne E. Senti-Willis, Business Group