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 postca
rds 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.