FTB CA Form 199 Instructions

Who must file CA Form 199?

Exempt organizations must answer the following questions to determine whether they should file Form 199.

1. Did the organization receive a letter from the FTB granting tax-exempt status to the organization?
2. Is the organization a nonexempt charitable trust as described in IRC Section 4947(a)(1)?

If the answer to both of these questions is “No,” your organization is not required to file CA Form 199.

If the answer to questions 1 or 2 is “Yes,” the organization may be required to file Form 199 depending upon the type of exempt organization.

Instructions for CA Form 199

Below, we have provided CA Form 199 filing requirements for each part.

CA Form 199 Part I

Line 1 – Gross sales or receipts from other sources

Enter in this line the amount from Side 2, Part II, line 8.

However, don’t include amounts for gross dues and assessments from members and affiliates or amounts from gross contributions, gifts, grants, and similar amounts received. These amounts are reported in Part I, line 2 and line 3.

Line 2 – Enter here the gross dues and assessments from members and affiliates

Line 3 -Gross contributions, gifts, grants, and similar amounts received

Attach an itemized schedule if money, securities, or other property aggregating $5,000 or more is received directly or indirectly from one person in one or more transactions during the year. The schedule must show the name, address, date received, and the total amount received from each person.

Line 4 - Total gross receipts for filing requirement test.

Add line 1 through line 3 and enter the sum value here. If the result is less than $50,000, see General Information B.

Line 5 – Enter in this line the cost of goods sold

Line 6 – Enter here the cost or other basis, and sales expenses of assets sold

Line 7 -Total costs.

Add line 5 and line 6 and enter the sum value in this line.

Line 8 - Total Gross Income

Subtract line 7 from line 4 and enter the difference here.

Line 9 - Total expenses and disbursements.

Enter the value from From Side 2, Part II, line 18

Line 10 - Excess of receipts over expenses and disbursements

Subtract line 9 from line 8 and enter the difference here.

Line 11 - Enter the Total payments in this line

Line 12 - Use Tax

The following businesses are required to report purchases subject to use tax directly to the California Department of Tax and Fee Administration and may not report use tax on their income tax return:

• Businesses that have, or are required to have, a California seller’s permit.
• Businesses that are not required to hold a California seller’s permit, but receive at least $100,000 in gross receipts.
• Businesses that are otherwise required to be registered with the California Department of Tax and Fee Administration for sales or use tax purposes.

An exempt organization that is not required to report purchases subject to use tax directly to the California Department of Tax and Fee Administration may, with some exceptions, report use tax on its California Exempt Organization Annual Information Return.

Line 13 - Payments balance

If line 11 is more than line 12, subtract line 12 from line 11 and enter the value in this line.

Line 14 - Use tax balance

If line 12 is more than line 11, subtract line 11 from line 12 and enter the value in this line.

Line 15 - Penalties and interest

Failure to File a Timely 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, if 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.

Failure to Furnish Information – In the case of a private foundation, the FTB 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.

Interest – Interest accrues on the delinquent penalty from the original due date of the return until the penalty is paid.

Line 16 - Balance due

Add line 12 and line 15. Then subtract line 11 from the result and enter that difference value here

CA Form 199 Part II

Line 1 - Enter in this line the gross sales or receipts from all business activities

Do not include amounts for gross dues and assessments from members and affiliates or amounts from gross contributions, gifts, grants, and similar amounts received. Report these amounts on Side 1, Part I, line 2, and line 3, respectively.

Line 2 - Enter the total Interest here

Line 3 - Enter in this line the Dividends

Line 4 - Enter in line 4 the total Gross rents

Line 5 - Enter here the total amount of Gross royalties

Line 6 - Gross amount received from the sale of assets

Enter the gross sales price on Side 2, Part II, line 6 and the total and enter the cost or other basis, expenses, etc. (less depreciation if applicable), on Side 1, Part I, line 6.

Line 7 - Other income

Attach a schedule showing other income not listed in line 1 through line 6.

Line 8 - Total gross sales or receipts from other sources

Add line 1 through line 7, and enter the sum value on line 8 and Side 1, Part I, line 1.

Line 9 – Contributions, gifts, grants, and similar amounts paid

Private foundations, regardless of gross receipts, and other organizations required to file Form 199, must attach a schedule to support contributions, gifts, grants, scholarships, etc., showing all of the following:

• Each class of activity.
• Separate totals for each activity.
• Name and address of the donee and the amount of the distribution to the donee.
• Relationship of the donee, if related by blood, marriage, registered domestic partnership, adoption, or employment (including children of employees) to any person or corporation having an interest in the organization (such as creator, donor, director, trustee, officer, etc.).

Line 10 - Enter the amount of disbursements provided to or collected for members.

Line 11 - Compensation of officers, directors, and trustees

Enter the total compensation paid to current officers, directors, trustees, and key employees for the organization’s taxable year.

Compensation includes all forms of income and other benefits earned or received in return for services rendered, including pension plan contributions, and other employee benefits, but does not include non-compensatory expense reimbursements or allowances.

Report all compensation amounts relating to such an individual, including those related to services performed in a capacity other than as an officer, director, trustee, or key employee.

Line 12 – Other salaries and wages

Enter in this line the total amount of employee salaries, wages, fees, bonuses, severance payments, and similar amounts not reported on line 10 or line 11.

Line 13 - Enter the value of interest in this line

Line 14 - Enter here the total taxes

Line 15 - Enter in line 15 the total rents.

Line 16 - Depreciation and depletion

For Corporations and associations

Complete form FTB 3885, Corporation Depreciation and Amortization. Enter the total from form FTB 3885, line 16, and line 20 on Form 199, Side 2, Part II, line 16. Attach form FTB 3885 to Form 199.

Trusts

Complete form FTB 3885F, Depreciation and Amortization. Enter the total from form FTB 3885F, line 6, on Form 199, Side 2, Part II, line 16, and attach form FTB 3885F to Form 199.

Line 17 – Other expenses and disbursements

Attach a schedule showing expenses and disbursements not listed in line 9 through line 16.

Line 18 - Total expenses and disbursements.

Add line 9 through line 17, and enter the sum value here and on Side 1, Part I, line 9

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• Provide Organization Details - Choose the tax year for which you want to file CA Form 199, and provide your organization’s details.
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