New Reporting Requirements Start in 2011 for Small Tax-Exempt Organizations
As stated in our July 2010 article, California will require small tax-exempt organizations with normal gross receipts of $25,000 or less, to electronically file an annual informational notice with us starting January 1, 2011. (California Revenue and Taxation Code Section 23772)
If the organization does not file on time, we will send a reminder notice. Although there is no monetary penalty for failure to file the notice, any organization that fails to file for three consecutive years loses its California tax-exempt status.
Under existing law, we may revoke an organization’s state tax-exempt status if the Internal Revenue Service suspends or revokes the organization’s tax-exempt status.
For more information on the new filing requirements, go to ftb.ca.gov and search for exempt organizations.