Filing Requirements - Form 199, Exempt Organization Annual Information Return


Who must file

R&TC Section 23772 sets the requirements as to which organizations should file Form 199. Most organizations must file Form 199 if their gross receipts normally exceed the filing threshold. Other organizations are required to file FTB 199N, California e-Postcard, or not at all.

The following organizations must file Form 199 every year regardless of gross receipts:

  • Private foundations.
  • Nonexempt charitable trusts described in IRC Section 4947(a)(1).

The following organizations do not file Forms 199 and 199N:

  • Churches, interchurch organizations of local units of a church, conventions or associations of churches, or integrated auxiliaries of churches.
  • Religious orders (such as Franciscan Friars or Sisters of Charity).
  • Organizations formed to carry out a function of a state or public body that is carrying out that function and is controlled by the state or public body.
  • Political organizations.
  • Pension trusts.
  • Coverdell Education Savings Accounts (ESAs), formerly called education IRAs.
  • Qualified state tuition programs.
  • Subordinate organization included in the parent's group return.

The filing requirement for all other organizations is based on the normal amount of gross receipts.

To determine if you gross receipts average, use the charts below.

Tax years 2012 and future

If your organization has existed: File Form 199 if the gross receipts threshold is:
1 year or less More than $75,000
More than 1 year, but less than 3 years More than $60,000 (average for current year and immediately preceding year)
3 years or more More than $50,000 (average for current year and immediately preceding 2 years)

Tax years 2011 and prior

If your organization has existed: File Form 199 if the gross receipts threshold is:
1 year or less More than $37,500
More than 1 year, but less than 3 years More than $30,000 (average for current year and immediately preceding year)
3 years or more More than $25,000 (average for current year and immediately preceding 2 years)

Fees

Generally, if you file Form 199, you pay a filing fee with the return. The amount depends on when you file, and when you make the payment.

The fee is $10 if:

  • You file and pay by the original due date.
  • You file and pay after the original due date, but on or before the extended due date.

The fee is $25 if:

  • You file by the original due date, but pay after that date.
  • You file and pay after the extended due date.

The following types of entities do not pay the filing fee if they check the box on Form 199 for the exemption to paying the filing fee:

  • Organization with exclusively religious activities of any religious order.
  • Exclusively educational organizations if the organization normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are regularly carried on.
  • Organizations for the prevention of cruelty to children or animals, if the organization is supported, in whole or in part, by funds contributed by the United States or any state or political subdivision thereof, or is primarily supported (50% or more) by contributions of the general public.
  • Organizations operated, supervised, or controlled by or in connection with an exclusively religious organization.

Penalties

Failure to File a Return - An organization that fails to file the return on or before the original due date, or extended due date, is assessed 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. The penalty may not exceed $40.

Organizations 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 assessed an additional filing fee of $15.

Failure to Furnish Information — In the case of a private foundation, we 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. The person who fails to file after such demand is subject to a penalty of $5 for each month, or part of the month (not to exceed $25), after the period expires. The penalty is in addition to the late filing penalty described above.

Extension of time to file

The extension allows you more time to file the return, not an extension of time to pay any taxes that may be due.

We will grant an automatic 7-month extension to file a return if both of the following conditions exist:

  • Your organization is not suspended on the original due date.
  • You file your organization’s return on or before the extended due date.

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