Instructions For Form 199 printable pdf download

Instructions for Form 199

California Exempt Organization Annual Information Return

References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 1998, and to the California Revenue and Taxation Code (R&TC).

General Instructions

Except for those organizations excluded from filing

E Gross Receipts

under General Instruction C, an annual return

Gross receipts are the total amounts received by

using Form 199 is required from every organiza-

In general, California law conforms to the IRC as of

the organization during the annual accounting

tion exempt from tax under R&TC Section 23701.

January 1, 1998. However, there are continuing

period from all sources without subtracting costs

These organizations include:

differences between California and federal law.

or expenses. Gross receipts include, but are not

California has not conformed to most of the

•

Private foundations must file a completed

limited to:

changes made to the IRC by the federal Internal

Form 199 and pay the applicable filing fee.

Revenue Service (IRS) Restructuring and Reform

•

The gross amount received as contributions,

However, they may furnish the following

Act of 1998 (Public Law 105-206) and has not

gifts, grants, and similar amounts before

substitute information for Part II:

conformed to any changes made by the Tax and

deducting the expenses of raising and

1. A complete copy of federal Form 990-PF,

Trade Relief Extension Act of 1998 (Public Law

collecting such amounts;

with appropriate schedules; or

105-277), the Miscellaneous Trade and Technical

•

The gross amount received as dues and

2. A complete copy of the current Form CT-2,

Corrections Act of 1999 (Public Law 106-36), and

assessments from members or affiliated

Registry of Charitable Trusts Report

the Ticket to Work and Work Incentives Improve-

organizations before deducting the expenses

(including federal Form 990).

ment Act of 1999 (Public Law 106-170).

attributable to the receipt of such amounts;

•

Nonexempt charitable trusts described in IRC

•

Gross sales or receipts from business

Organizations that do not hold a current R&TC

Section 4947(a)(1) must comply with the

activities, including business activities

Section 23701 tax-exempt status should not file

reporting requirements of private foundations.

unrelated to the purpose of the organization;

Form 199, unless the organization is a nonexempt

They are required to file Form 199, not

•

The gross amount received from the sale of

charitable trust described under General Instruc-

Form 541, California Fiduciary Income Tax

assets before deducting the cost or other basis

tion B, Who Must File.

Return.

of the property and expense of sale; and

Exempt organizations are not required to attach a

•

The gross amount received as investment

•

Religious or apostolic organizations

copy of federal Form 990, Return of Organization

income such as interest, dividends, rents, and

described in R&TC Section 23701k must attach

Exempt from Income Tax. However, Form 990 may

royalties.

a completed Form 565, Partnership Return of

be attached to Form 199 in lieu of completing

Income, to Form 199.

Normally less than $25,000 means:

Part II of Form 199 unless otherwise provided in

these instructions.

C Exceptions

IF IN EXISTENCE

GROSS RECEIPTS/

FOR –

PLEDGES EQUAL

Effective for years beginning on or after January 1,

Except for a private foundation, organizations with

2000, references to “income year” were replaced

1 year or less

$37,500 or less

gross receipts that are normally less than $25,000

with “taxable year” in all provisions of the Bank

$30,000 or less (average

are not required to file Form 199. See General

and Corporation Tax Law (B&CTL), the Administra-

2 years

for current year and

Instruction E, Gross Receipts.

tion of the Franchise and Income Tax Law (AFITL),

immediately preceding year)

and the Personal Income Tax Law (PITL).

Other organizations not required to file Form 199,

Therefore, all forms and instructions have been

regardless of the amount of gross receipts,

$25,000 or less (average

revised to replace the term “income year” with

3 years or more

for current year and

include:

“taxable year.” When referring to an income

immediately preceding 2

•

Churches, interchurch organizations of local

prior years)

measurement period beginning before January 1,

association units of a church, conventions or

2000, the term “taxable year” should be inter-

associations of churches, or integrated

Note: We will mail Form 199 and the instructions

preted to mean “income year” as that term applied

auxiliaries of churches;

to ALL organizations that MAY have a filing

for those periods prior to January 1, 2000.

•

Religious orders;

requirement. This is done for the convenience of

Private Mailbox (PMB) Numbers

•

Organizations formed to carry out a function of

the organization. If you are not required to file

If you lease a private mailbox (PMB) from a private

a state, or a public body that is carrying out

Form 199 because the gross receipts are normally

business rather than a PO box from the United

that function and is controlled by the state, or a

less than $25,000, you may

States Postal Service, enter your box number in

public body;

•· disregard the form if the codes above the name

the field labeled “PMB no.’’

•

Political organizations exempt under R&TC

of the organization on the mailing label are

Section 23701r;

A Purpose

either “040 330” or “040 350”, or

•

Qualified state tuition programs exempt under

•

write to us and include a copy of the mailing

R&TC Section 23711;

Form 199 is used by organizations that have been

label if the codes are any other combination.

•

Education IRAs exempt under R&TC

granted an exemption by the Franchise Tax Board

Section 23712; and

F Payment of Filing Fee

(FTB), organized, and operated under R&TC

•

Stock bonus, pension, or profit sharing trusts

Section 23701, to provide the FTB with required

exempt under R&TC Section 17631.

Organizations required to file Form 199 must pay a

information.

$10 filing fee. If the $10 fee is not paid by the due

D Homeowners’ Associations

B Who Must File

date (including extensions), an additional $15 is

assessed for a total fee of $25. (If the return is

Homeowners’ associations exempt under R&TC

Answer the following questions to determine if the

filed on or before the original due date, there is no

Section 23701t include condominium management

organization should file Form 199.

extension of time in which the fee may be paid.)

associations, residential real-estate-management

1. Have you received a letter from the FTB

associations, cooperative housing corporations,

Exception. The filing fee does not apply to the

granting tax-exempt status to the

and effective January 1, 1998, timeshare

following organizations exempt under R&TC

organization?

Yes

associations.

Section 23701d:

2. Are you a nonexempt charitable trust as

Gross receipts for a homeowners’ association are

•

Exclusively religious organizations;

described in IRC Section 4947(a)(1)?

defined as gross receipts from all sources before

•

An exclusively educational organization if the

Yes

deductions.

organization normally maintains a regular

faculty and curriculum and normally has a

If the answer to both of these questions is “No,”

The taxable income for a homeowners’ association

regularly organized body of students in

STOP HERE, DO NOT FILE THIS FORM.

is defined as all income received during the taxable

attendance at the place where its educational

year other than amounts received from member-

If the answer to one of the questions is “Yes,’’ then

activities are regularly carried on;

ship fees, dues, or assessments.

the organization may be required to file a Form 199

•

An exclusively charitable organization, or an

depending upon:

Homeowners’ associations may also be required to

organization for the prevention of cruelty to

file Form 100, California Corporation Franchise or

•

The type of exempt organization it is. See

children or animals, if the organization is

Income Tax Return, if the homeowners’

below and General Instruction C, Exceptions;

supported, in whole or in part, by funds

association’s gross nonexempt function income

and

contributed by the United States or any state or

exceeds $100.

•

The amount of the organization’s normal gross

political subdivision thereof, or is primarily

receipts. See General Instruction E, Gross

supported by contributions of the general

For more complete details regarding filing

Receipts.

public; or

requirements, get FTB Pub. 1028, Guidelines for

Homeowners’ Associations.

Form 199 Instructions 2000 Page 1

Instructions For Form 199

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