California Form 199 Filing Fee Exception
California Form 199, California Exempt Organization Annual Information Return requires a $10 filing fee. Revenue and Taxation Code (R&TC) Section 23772(a)(4) contains provisions for a filing fee exception for organizations exempt under R&TC Section 23701d that are religious organizations, schools, or charitable organizations that are supported by the government or are primarily publicly supported. Organizations meeting the filing fee exception should check the box on California Form 199 indicating no filing fee is required.
Recently, clarification was requested on the filing fee exception requirements for charitable organizations that are publicly supported. Specifically, how public support is calculated, and whether the computation needs to be made on an annual basis.
The filing fee exception under R&TC Section 23772(a)(4)(C) applies to charitable organizations exempt under R&TC Section 23701d that are classified as public charities by the Internal Revenue Service or can be classified as public charities based on the public support test as defined in Internal Revenue Code Section 509(a)(2). As long as the organization continues to maintain its public charity status by meeting the public support test, the organization should check the exception box on California Form 199.
We will revise California Form 199 and instructions to provide further clarity on this issue.
EXEMPT ORGANIZATION UNIT MS-F120
FRANCHISE TAX BOARD
PO BOX 1286
RANCHO CORDOVA CA 95741-1286