Calif. Atty. Gen. New Filings

As I write this, the Calif. Attorney General's Registry of Chartiable Trusts is about to introduce a new annual return for smaller organizations (under $50K total annual revenue). First of all, Form RRF-1, which is required of all educational/charitable nonprofits, is undergoing some modifications (more in its wording than its actual content). Second of all, a new annual return is being introduced -- Form CT-TR-1 -- which will be required of the above-mentioned smaller organizations in addition to Form RRF-1.

Click here to see the proposed modified Form RRF-1.

And click here to see the proposed new form (CT-TR-1).

And click here to locate the instructions to the new, proposed forms. Scroll down and look for "Proposed Regulations" on the right.

New Fran. Tax Board Filings for Small Organizations

Here's a link to the new Calif. Franchise Tax Board Form 199N (e-postcard).

Here's a more detailed explanation:

Beginning January 1, 2013, California conforms to federal law that requires smaller tax-exempt organizations with annual gross receipts of $50,000 or less, other than churches and church-related organizations, to electronically file an annual informational notice with the FTB under R&TC Section 23772.

Annually, these smaller tax-exempt organizations must provide the following information in electronic form:

• 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.

Smaller tax-exempt organizations subject to this new filing requirement have the same due date for state and federal purposes — by the 15th day of the fifth month after an organization’s tax year ends. Therefore, calendar year organizations must file by May 15.

If the organization does not file on time, the FTB will send a reminder notice, but will not assess a penalty for late filing.

Although 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.

Under existing law, the FTB may revoke an organization’s state tax-exempt status if the IRS suspends or revokes the organization’s 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.