FTB Annual Filing Requirements Just Got Easier for Small Nonprofits

October 12, 2012 Posted by The Law Firm for Non-Profits, P.C. in News, Taxes

Recently, the IRS changed its filing requirements to include a very simple option for organizations with gross receipts of not more than $50,000. But, until now, the Franchise Tax Board has only offered the simplified version of its annual filing to those organizations with gross receipts of not more than $25,000.

With the passing of AB 1677, effective January 1, 2013 (and operative for tax years beginning on or after January 1, 2012) the FTB will expand its standard for which small nonprofits qualify for the simplified filing to match the IRS. As such, nonprofit organizations with not more than $50,000 in gross receipts will be able to file electronic postcards for both the IRS and the FTB.

This will help small California nonprofits check off their annual requirements much more quickly next year! Speak with your tax professional if you’re unclear on the new law.

NOTE: The information contained herein is not intended to be legal advice and the reader should know that no Attorney-Client relationship or privilege is formed by the posting or reading of this article which is also not intended to solicit business.

Casey Summar, Partner, The Law Firm for Non-Profits, 4705 Laurel Canyon Blvd, #306, Studio City, CA 91607

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