California State Filing Requirements
Nonprofits in California must comply with specific state requirements to maintain their good standing and tax-exempt status.
Required Non-profit Forms
| California State Forms | Federal Forms (Required for State Compliance) |
|---|---|
|
State Filing Requirements for Non-Profits
- Register with the California Secretary of State Upon formation, non-profits must file Articles of Incorporation or a Statement of Information.
- Apply for Tax-Exempt Status
- File Form 3500 for state-level tax-exempt recognition.
- File Form 3500A if already tax-exempt at the federal level (IRS determination). Complete, print, and mail your request with your federal determination letter to Exempt Organizations Unit
MS F120
Franchise Tax Board
PO Box 1286
Rancho Cordova CA 95741-1286 - Submit Annual Information Returns
- Non-profits must file California Form 199(Exempt Organization Annual Information Return) if their gross receipts exceed the filing threshold.
- Organizations with smaller receipts may qualify to file Form 199N (electronic postcard). Failing to comply with these requirements could result in fines or revocation of
tax-exempt status.
What happens after you apply?
- The FTB will review your information to verify if you qualify and it may take several months to process your application.
- If they need more detailed information, they’ll contact you
- If approved, you’ll receive a grant letter
Tax Exemption Requirements
- Apply for state income tax exemption using Form 3500 or 3500A with the Franchise Tax Board (FTB).
- Register as a nonprofit corporation with the California Secretary of State.
- Must register with the California Attorney General's Registry of Charitable Trusts before soliciting funds.
- File annual Form 199 and RRF-1 (charity renewal form) to maintain exemption.
- Sales and property tax exemptions require separate applications with CDTFA and county assessor, respectively.
Where to File State Taxes
Online Filing
Form 199N
You can complete your Form 199N filing online through the California e-Postcard system offered by the California Franchise Tax Board.
Form 199 and Form 109
CA Forms 199 and 109 can be filed either electronically or through paper filing.
Paper Filing
If you choose paper filing, you can complete the forms and mail them to the Franchise Tax Board.
Mail Form 199 and Form 109 with payment to:
Franchise Tax Board,
PO Box 942857,
Sacramento, CA 94257-0501
If case 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.
If filing the return without payment or paying electronically or requesting a refund for Form 109, mail it to
Franchise Tax Board,
PO Box 942857,
Sacramento, CA 94257-0500.
Filing Deadlines for Non-Profit Forms
Staying on top of deadlines is crucial for non-profits to avoid penalties or loss of good standing.
Below are the key deadlines for non-profit filings in California:
Timely submission of forms is crucial to avoid penalties. Here are the important deadlines:
| Form | Deadline |
|---|---|
| Form RRF-1 | Due four months and 15 days after the end of your fiscal year (e.g., if your fiscal year ends December 31, it is due by Apr 15). |
| Form 199 or Form 199N | Due on May 15 if your fiscal year ends on December 31. |
| Statement of Information (Form SI-100) | Due every two years in the month, your Articles of Incorporation were filed. |
| Form 3500/3500A | No set deadline but should be filed promptly after incorporation or before conducting business in California. |
| IRS Form 990 | Due by the 15th day of the 5th month after the fiscal year ends. Small organizations (gross receipts ≤ $50,000) must file Form 990-N by the 15th day of the 5th month. |
Penalties for Late Filing:
If your organization fails to file Form 199 on or before the due date, it may be subjected to a penalty of $5 per month or part of the month. The penalty cannot exceed $40.
Penalties for Non-Renewal:
If your organization fails to renew its registration, it will be listed as delinquent with the Attorney General's Registry of Charities and Fundraisers, resulting in the loss of its tax-exempt status with the California Franchise Tax Board.
Registration & Annual Filing (Non-Profits)
To operate legally as a non-profit in California, organizations must register with both the FTB and the Attorney General's office. This includes submitting initial formation documents and obtaining tax-exempt status.
Initial Registration
- File Articles of Incorporation to legally establish your nonprofit organization in California.
- Apply for an EIN from the IRS to identify your organization for federal tax and banking purposes.
- Submit IRS Form 1023 or 1023-EZ to obtain federal tax-exempt recognition under section 501(c).
- File the initial registration with the Registry of Charitable Trusts before soliciting donations.
- Register with the California Franchise Tax Board (FTB) to receive state income tax exemption.
Annual Filing Requirements
If your organization fails to renew its registration, it will be listed as delinquent with the Attorney General's Registry of Charities and Fundraisers, resulting in the loss of its tax-exempt status with the California Franchise Tax Board.
Extension of time to file
The extension of time to file applies to the following forms only:
An extension allows you more time to file the return, not an extension of time to pay any taxes that may be due.
The IRS will grant an automatic 6-month extension to file a return if both of the following conditions exist:
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Frequently Asked Questions
1. Is federal tax-exempt status enough for California compliance?
2. What is Form RRF-1?
This form ensures charities report their financial activities accurately each year. Filing this report helps organizations avoid penalties and maintain their tax-exempt status.
3. Can an organization request an extension for filing CA Form 199?
4. Are all non-profits required to file Form 199?
Most tax-exempt organizations are required to file Form 199 or FTB 199N. Some types of organizations do not have a filing requirement.
To be precise, form 199 is used by the following organizations:
- Organizations granted tax-exempt status by the FTB.
- Nonexempt charitable trusts as described in IRC Section 4947(a)(1).
