Small California non-profits must now file an annual return with the Franchise Tax Board. Failure to file for three consecutive years will result in automatic revocation of state exemption.
Until this year, California non-profits with gross receipts that normally did not exceed $25,000 had no filing requirement. As of January 1, 2011, all California nonprofits must now file a state Information Return. However, those with revenue not exceeding $25,000 may file an electronic postcard (Form FTB 199N) – similar to the IRS electronic postcard – instead of the complete Form FTB 199. (Note that the IRS threshold for its electronic postcard, Form 990N, is gross receipts normally in excess of $50,000.) More information is available at the FTB website.
The new filing requirement is applicable to all tax years commencing after December 31, 2011. Forms 199 and 199N are due 4 months and 15 days after the end of the non-profit’s tax year. The FTB will grant an automatic 7-month extension if the organization is not suspended as of the original due date and the required return is filed on or before the extended due date.