Franchise Tax Board Announces Reporting Requirement for the Smallest Non-Profits
January 5, 2011

Effective January 1, 2011, California non-profit organizations with generally less than $25,000 gross income must file an electronic postcard with the Franchise Tax Board, Form FTB 199N. Previously, there was no California reporting requirement for the smallest organizations. Any not-for-profit entity with a tax year ending December 31, 2010 or later is subject to the new provision.

Form FTB 199N must be submitted on-line. Alternatively, organizations may choose to fully complete and file CA 199 "Exempt Organization Annual Information Return." Small non-profit organizations are already subject to the IRS federal E-Postcard, or Form 990-N, filing requirement. Both the federal and state submissions are due by the 15th day of the 5th month after the tax year end. There are no extensions.

The Franchise Tax Board website provides guidance on the information required and has a link to file Form 199N: http://www.ftb.ca.gov/businesses/bus_structures/Filing_Requirements_Form_199N.shtml

If you have any questions about this new reporting requirement, contact your BPM advisor or e-mail bpm@bpmcpa.com.

This publication contains information in summary form and is intended for general guidance only. It is not intended to be a substitute for detailed research nor the exercise of professional judgment. Neither BPM nor any member of the BPM firm can accept any responsibility for loss brought to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.