Beginning January 1, 2011, California conforms to 2006 federal law that requires small tax-exempt organizations with gross receipts of $25,000 or less, other than churches and church-related organizations, to e-file an annual informational notice (Form 199N), similar to IRS Form 990‑N, known as the e-postcard. The due date for calendar year organizations is May 15th each year.
In its outreach efforts, the FTB is creating a Web application for the small tax-exempt organizations to file with FTB. The application will be ready for use by January 3, 2011. The FTB Charities and Nonprofit (Exempt Organizations) webpage provides information regarding the filing requirements for the small tax-exempt organizations. Within the next few months the full instructions for filing the California e-Postcard will be on the FTB website.
Here is the information that must be provided annually:
- Organization’s legal name.
- Any name under which the organization operates or does business.
- Organization’s mailing address.Internet website address, if applicable.
- Organization’s taxpayer identification number (both federal and state).
- Name and address of a principal officer.
- Total gross receipts for the year.
- Tax year begin and end dates.
- Contact person name and phone number.
- If the organization has terminated or gone out of business.
If the organization does not file on time, the FTB will send a reminder notice. While there is no monetary penalty for failure to file the notice, any organization that fails to file for three consecutive years automatically loses its California tax-exempt status. If an organization loses its California tax-exempt status, it must reapply using the FTB 3500, Exemption Application, and have approval to regain its tax-exempt status. Any income received between the revocation date and renewed exemption date may be taxable.