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Small Business

Online Filing Available for Tax-Exempt Organizations

Starting January 1, 2011, a new California law requires tax-exempt organizations, other than churches and church-related organizations, with average gross receipts of $25,000 or less to e-file with us or risk losing their tax-exempts status.

We are mailing notices to the more than 256,000 tax-exempt organizations meeting the criteria to file using FTB 199-N, also known as the e-postcard. Available online, the e-postcard asks the same basic information as the IRS Form 990-N. The due date is the same for state and federal purposes — by the 15th day of the 5th month after an organization’s tax year ends. For example, organizations whose calendar year ends December 31, 2010, must file by May 15, 2011.

A tax-exempt organization that fails to file the e-postcard for three consecutive years loses its tax-exempt status and may be liable for the $800 minimum franchise tax. Any organization losing its status will have to reapply for tax exemption.

For more information, go to ftb.ca.gov and search for exempt organizations, or call us at 916.845.4171.

Back to February 2011 Tax News