Instructions For Form 199 - 1998 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).

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General Instructions

Religious or apostolic organizations

Gross sales or receipts from business activi-

described in R&TC Section 23701k must

ties, including business activities unrelated to

In general, California law conforms to the IRC as

attach a completed Form 565, Partnership

the purpose of the organization;

•

of January 1, 1998. However, there are continu-

Return of Income, to Form 199.

The gross amount received from the sale of

ing differences between California and federal

assets before deducting the cost or other

C Exceptions

law. California has not conformed to the changes

basis of the property and expense of sale;

made to the IRC by the federal Internal Revenue

and

Except for a private foundation, organizations

•

Service (IRS) Restructuring and Reform Act of

The gross amount received as investment

with gross receipts that are normally less than

1998 (Public Law 105-206) and the Tax and

income such as interest, dividends, rents

$25,000 are not required to file Form 199. See

Trade Relief Extension Act of 1998 (Public Law

and royalties.

General Instruction E.

105-277).

Other organizations not required to file Form 199,

Normally less than $25,000 means:

Organizations that do not hold a current R&TC

regardless of the amount of gross receipts

Section 23701 tax-exempt status should not file

IF IN EXISTENCE

GROSS RECEIPTS/

include:

Form 199 except nonexempt charitable trusts

FOR –

PLEDGES EQUAL

•

Churches, interchurch organizations of local

described under General Instruction B.

association units of a church, conventions or

1 year or less

$37,500 or less

Exempt organizations are not required to attach

associations of churches, or integrated

a copy of federal Form 990, Return of Organiza-

$30,000 or less (average

auxiliaries of churches;

2 years

•

tion Exempt from Income Tax. However,

for 2 years)

Religious orders;

•

Form 990 may be attached to Form 199 in lieu of

Organizations formed to carry out a function

$25,000 or less (average

completing Part II of Form 199 unless otherwise

of a state, or a public body that is carrying

3 years or more

for current year and 2

provided in these instructions.

out that function and is controlled by the state

prior years)

or a public body;

A Purpose

•

Political organizations exempt under R&TC

F Payment of Filing Fee

Form 199 is used by organizations that have

Section 23701r;

•

been granted an exemption by the Franchise Tax

Stock bonus, pension or profit sharing trusts

Organizations required to file Form 199 must pay

Board (FTB), organized and operated under

exempt under R&TC Section 17631;

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

•

R&TC Section 23701, to provide the FTB with

Education IRAs exempt under R&TC

due date (including extensions), an additional

required information.

Section 23712; and

$15 is assessed for a total fee of $25.

•

Qualified state tuition programs exempt under

Exception. The filing fee does not apply to the

B Who Must File

R&TC Section 23711.

following organizations exempt under R&TC

Answer the following questions to determine if

Section 23701d:

D Homeowners’ Associations

the organization should file Form 199.

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Exclusively religious organizations;

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Homeowners’ associations exempt under R&TC

1. Have you received a letter from the FTB

An exclusively educational organization if

Section 23701t include condominium manage-

granting tax-exempt status to the

the organization normally maintains a regular

ment associations, residential real-estate-

organization?

Yes

faculty and curriculum and normally has a

management associations, cooperative housing

regularly organized body of students in

2. Are you a nonexempt charitable trust as

corporations and effective January 1, 1998, time-

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

attendance at the place where its educational

share associations.

activities are regularly carried on;

Yes

•

Gross receipts for a homeowners’ association are

An exclusively charitable organization, or

If the answer to both of these questions is ‘‘No’’,

defined as gross receipts from all sources before

an organization for the prevention of cru-

STOP HERE, DO NOT FILE THIS FORM.

deductions.

elty to children or animals, if the organiza-

If the answer to one of the questions is yes, then

tion is supported, in whole or in part, by funds

The taxable income for a homeowners’ associa-

the organization may be required to file a Form

contributed by the United States or any state

tion is defined as all income received during the

199 depending upon:

or political subdivision thereof, or is primarily

taxable year other than amounts received from

•

The type of exempt organization it is, see

supported by contributions of the general

membership fees, dues, or assessments.

below and General Instruction C; and

public; or

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Homeowners’ associations may also be required

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The amount of the organization’s normal

An organization operated, supervised, or

to file Form 100, California Corporation Franchise

gross receipts, see General Instruction E.

controlled by or in connection with an

or Income Tax Return if the homeowners’ associ-

exclusively religious organization.

Except for those organizations excluded from fil-

ation’s gross nonexempt function income

ing under General Instruction C, an annual return

Note: Organizations required to file Form 199 but

exceeds $100.

using Form 199 is required from every organiza-

not required to pay the filing fee must check the

For more complete details regarding filing

tion exempt from tax under R&TC Section 23701.

box at Question C on Form 199, Side 1.

requirements, get FTB Pub. 1028, Guidelines for

These organizations include:

•

Homeowners’ Associations.

G Miscellaneous Forms to File

Private foundations must file a completed

Form 199 and pay the applicable filing fee.

E Gross Receipts

1. Form 109, California Exempt Organization

However, they may furnish the following sub-

Business Income Tax Return, must be

Gross receipts are the total amounts received by

stitute information for Part II:

filed by:

the organization during the annual accounting

•

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

Exempt organizations, when gross

period from all sources without subtracting costs

with appropriate schedules, or

income derived from unrelated business is

or expenses. Gross receipts include but are not

2. A complete copy of the current

$1,000 or more. (Form 109 must be filed

limited to:

Form CT-2, Registry of Charitable Trusts

•

whether or not Form 199 is filed.)

The gross amount received as contributions,

Report (including federal Form 990).

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Exception. Political organizations (exempt

gifts, grants, and similar amounts before

Nonexempt charitable trusts described in

under R&TC Section 23701r), homeown-

deducting the expenses of raising and collect-

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

ers’ associations (exempt under R&TC

ing such amounts;

reporting requirements of private foundations.

•

Section 23701t) and organizations con-

The gross amount received as dues and

They are required to file Form 199, not

trolled by the state or other governmental

assessments from members or affiliated

Form 541, California Fiduciary Income Tax

municipalities are not required to file

organizations before deducting the expenses

Return.

Form 109.

attributable to the receipt of such amounts;

Form 199 Instructions 1998

Page 1

Instructions For Form 199 - 1998

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