What is the Purpose of California Form 199?
California Form 199 is an Annual Information Return filed by the following organizations to report the income & expenses.
- Organizations granted tax-exempt status by the FTB.
- Nonexempt charitable trusts as described in IRC Section 4947(a)(1).
Click here to learn more about Form 199.
Who must file California Form 199?
The organization should file Form 199 if it answers “Yes” to the following questions:
- Did the organization receive a letter from the FTB granting tax-exempt status to the organization?
- Is the organization a nonexempt charitable trust as described in IRC Section 4947(a)(1)?
The requirement to file Form 199 is generally based on the normal amount of total gross receipts and pledges.
Organizations with gross receipts that are normally $50,000 or less may choose to electronically file FTB 199N. Organizations may voluntarily file Form 199 instead of filing FTB 199N.
Visit https://www.expresstaxexempt.com/state-nonprofits/california/ to learn more about Form 199 instructions.
| Gross Receipts | Form Required |
|---|---|
| Gross receipts more than $50,000 | Form 199 |
| Private foundations (regardless of gross receipts) | Form 199 |
| Nonexempt charitable trusts described in IRC Section 4947(a)(1) (regardless of gross receipts) | Form 199 |
When to File California Form 199?
Nonprofit Organizations must file Form 199 by the 15th day of the 5th month after the accounting period ends.
Click here to learn more about Form CA 199 Due Date.
How to Complete California Form 199?
Basic Information about your Organization:
- Enter the Organization Accounting period
- Entity information such as California corporation or organization number, FEIN, Organization’s legal name, Address, Private Mail Box (PMB), Foreign address, follows the country’s practice for entering the city, county, province, state, country, and postal code, as applicable, in the appropriate boxes.
Question C
IRC Section 4947(a)(1) trust
If you checked “Yes” on Question C, then you must attach IRS Form 990/990-EZ Schedules A or Form 990-PF or Section 4947(a)(1) Trust Treated as a Private Foundation.
Question E
Accounting method
Enter your Organization's accounting method (Cash, Accrual, Others). This must be the method used by the organization in maintaining its books and records.
Question G & H
If filing as a central organization that prepared a group return for its subordinates, check the “Yes” box and include the following information of all organizations included in the group return.
- Legal Name
- Mailing Address
- FEIN
- California corporation number if known
Question I
Changes in the organization activity
Attach copies of the revised documents if the organization had any changes in its activities, governing instrument, articles of incorporation, or bylaws that have not been reported to the FTB.
Question J
Influencing legislation
If the organization is exempt under R&TC Section 23701d and engaged in some political activities, then check the box J “Yes” and complete and attach Form FTB 3509, Political or Legislative Activities by Section 23701d Organizations.
Question K
Nonmember sources
Enter the details, if the Organization has income from nonmember sources.
Question L
Filing Fee Details
Enter the details if the Organization received an exemption from filing Fee.
Question M
LLC Details
Check whether the Organization categorized under Limited Liability Company.
Question N
Form 100 & 109
Check if the Organization filed Form 100 & 109 to report taxable income.
Question O
IRS Audit
If the Organization is under audit by the IRS for the current or prior year.
Question P
Federal Form 1023/1024 pending
The organization which is currently not tax-exempt with California but has filed for federal exempt status must check the box “Yes”.
Part I - Complete Part I unless not required to file this form
Part I consists of 17 Lines and divided into 4 sections. You must provide the income, expenses, filing fee details in Part I.
Section 1
Receipts and Revenues
Section 1 of Part I consists of 8 Lines to provide the value of receipts and revenues of the organization. industry's standard
- Enter the value of gross sales or receipts from other sources, contributions, gifts, grants, cost of goods sold, Cost or another basis, and sales expenses of assets sold. Finally, enter the gross income
Section 2
Expenses
Section 2 of Part I consists of 8 Lines to provide the value of expenses
- Enter the value of total expenses and disbursements
Section 3
Filing Fee
Section 3 of Part I consists of lines to provide the value of filing Fee
- Enter the total payments, use tax, tax balance, payments balance, penalties and interest, balance dueAfter completing the 3 sections, enter the signature of officer, title, date, & telephone number. If you are a paid preparer, enter the preparer’s signature, firm’s name, FEIN, PTIN, telephone number.
Part II - Organizations with gross receipts of more than $50,000 and private foundations regardless of amount of gross receipts
Part II is divided into 18 lines to provide the receipts from Other sources, expenses, and disbursements details of the organization.
Receipts from Other Sources
Enter the Gross sales or receipts from all business activities., interest, dividends, gross rents, royalties, Gross amount received from the sale of assets, Other income
Expenses and Disbursements
Enter the compensation, salary, rents, interest, taxes, Other Expenses, and Disbursements
Schedules for Form 199
Schedule L - Balance Sheet
Schedule L, Balance sheets should agree with the books of account. Any difference occurred should be restored on Schedule M-1, Reconciliation of income per books with income per return, of Form 199.
Enter the values of Cash, net accounts, inventories, Loans, assets, accounts payable, contributions payable, gifts, Capital stock or principal fund, other liabilities for the beginning of the year and end of the year.
Schedule M-1 - Reconciliation of income per books with income per return
Do not complete this schedule if the total assets are less than $50,000Enter the net income per books, federal income tax, income not recorded on books this year, Excess of capital losses over capital gains
Where to File California Form 199?
While filing the details, use a black or blue ink, and make all checks or money orders payable in U.S. dollars and drawn against a U.S. financial institution.
If payment is included with the completed form, mail it to:
FRANCHISE TAX BOARD,
PO BOX 942857,
SACRAMENTO CA 94257-0501
If the return is e-filed: Mail form FTB 3586, Payment Voucher for Corporations and Exempt Organizations e-filed Returns, with payment to:
FRANCHISE TAX BOARD,
PO BOX 942857,
SACRAMENTO CA 94257-0531.
Include the California corporation number and “2021 CA Form 199” on the check or money order.
If payment is not required with the completed form, mail it to:
FRANCHISE TAX BOARD,
PO BOX 942857,
SACRAMENTO CA 94257-0500.
Visit https://www.expresstaxexempt.com/state-nonprofits/california/ to learn more about Form 199 Mailing Address.
Extension of Time to File CA Form 199 for the State of California
If you need more time to file CA Form 199, the exempt organization has an additional six months to file without filing a written request for an extension.
Get form FTB 3539, Payment for Automatic Extension for Corporations and Exempt Organizations.
California Form 199 Penalties
Failure to File a Timely Return
If the organization fails to file the return on or before the original due date, or extended due date and fails to provide a proper explanation, then the IRS will impose a penalty of $5 for each month, or part of the month, the return is late.
If the return is not filed by the extended due date, the automatic extension will not apply.
Organizations that are exempt from the $10 filing fee are not exempt from this penalty.
Late Payment of Fee
An organization that fails to pay the $10 filing fee by the original due date, or extended due date, is imposed with an additional filing fee of $15.
Failure to Furnish Information
If a private foundation is filing Form 199, the FTB may make a written demand that a delinquent return or foundation report be filed within a reasonable amount of time after mailing a demand notice.
However, if a person fails to file the form after such a demand is subjected with a penalty of $5 for each month, or part of the month, (not to exceed $25) after the period expires.
