Blank California 109 PDF Form

The California 109 form is a tax return specifically designed for exempt organizations in California, detailing their business income for the year. This form helps organizations report unrelated business taxable income and claim any applicable deductions or credits. To ensure compliance and accurate reporting, complete the form by clicking the button below.

The California 109 form serves as a crucial document for organizations that operate within the state and may have unrelated business income. This form is specifically designed for exempt organizations, enabling them to report their business income tax obligations. Key components of the form include sections for identifying the organization, such as its name, address, and federal employer identification number (FEIN). Organizations must indicate whether this is their first return, if they are under audit, or if they are claiming specific tax benefits related to enterprise zones or military base recovery areas. The form also requires detailed financial information, including unrelated business taxable income, deductions, and credits. Additionally, organizations must select their accounting methods and provide information on any unrelated business activities they engage in. Understanding the requirements and implications of the California 109 form is essential for compliance and effective tax management for exempt organizations operating in California.

Outline

Document Sample

TAXABLE YEAR			California Exempt Organization																								FORM
TAXABLE YEAR																											FORM
																							109
2021			Business Income Tax Return																				109

Calendar Year 2021 or fiscal year beginning (mm/dd/yyyy)													, and ending (mm/dd/yyyy)

Corporation/Organization name																					California corporation number

Additional information. See instructions.																					FEIN

Street address (suite/room no.)																					PMB no.

City (If the corporation has a foreign address, see instructions.)																State					ZIP code

Foreign country name							Foreign province/state/county														Foreign postal code

A First return filed?			. . . . . . . . . . . . . . . . . . . . . . . . . .	. . . . .	. . .		□ Yes		□ No			H Is the organization a non-exempt charitable trust as
B Is this an education IRA within the meaning of												described in IRC Section 4947(a)(1)? . . . .											. .	. . . . . . .		. . . • □ Yes		□ No
B Is this an education IRA within the meaning of
R&TC Section 23712?				. . . . .	. . .		□ Yes		□ No			I Is this organization claiming any former; Enterprise Zone
C Is the organization under audit by the IRS or has the IRS												(EZ), Local Agency Military Base Recovery Area (LAMBRA),
C Is the organization under audit by the IRS or has the IRS						•□ Yes						Targeted Tax Area (TTA), or Manufacturing Enhancement
audited in a prior year?				. . . . .		•□ Yes			□ No			Targeted Tax Area (TTA), or Manufacturing Enhancement
D Final return?												Area (MEA) tax benefits?								.	. . .	. .	. .	. . . . . . .		. . . • □ Yes		□ No
D Final return?
• □ Dissolved			□ Surrendered (Withdrawn)	□ Merged/Reorganized								J Is this organization a qualified pension, profit-sharing,
Enter date(mm/dd/yyyy)					.	•		/	/				or stock bonus plan as described in IRC													• □ Yes
Enter date(mm/dd/yyyy)				. . . . .		•		/	/																			□ No
E Amended return?					.	• □ Yes			□ No				. . . . . . . . . . . . . .Section 401(a)?							.	. . .	. .	. .	. . . . . . . . . .				□ No
E Amended return?				. . . . .		• □ Yes			□ No			K Unrelated Business Activity (UBA) code . .											.•
F Accounting method used: (1) □ Cash (2) □ Accrual						(3) □ Other						L Is this a hospital?													.			. . . • □ Yes		□ No
G Nature of trade or business _____________________________________												L Is this a hospital?							.	. . .	. .	. .	. . . . . .					. . . • □ Yes		□ No
												If “Yes,” attach federal Schedule H (Form 990)
												If “Yes,” attach federal Schedule H (Form 990)
	1	Unrelated business taxable income from Side 2, Part II, line 30												. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .		. •		1						00
Taxable	2	Multiply line 1 by the average apportionment percentage ________% from the Schedule R,																			. •
Corpora-		Apportionment Formula Worksheet, Part A, line 2 or Part B, line 5. See instructions																			. •		2						00
tion	3	Enter the lesser amount from line 1 or line 2. If the unrelated business activity is wholly in California																			. •
	3
		and Schedule R was not completed, enter the amount from line 1												. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .				3						00
Taxable	4	Unrelated business taxable income from Side 2, Part II, line 30																			. •		4						00
Trust	4											. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .				. •		4						00
	5	Unrelated business taxable income from line 3 or line 4								. .	.	. . . .		. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .		. •		5						00
	6	EZ, LAMBRA, or TTA NOL carryover deduction . .						. . . . . . . . . . .		. .	.	. . . .		. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .		. •		6						00
Tax	7	Net Operating Loss deduction. See General Information N							. . . .	. .	.	. . . .		. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .		. •		7						00
Computa-	8	Add line 6 and line 7		. . . . . .		. . .		. . . . . . . . . . .		. .	.	. . . .		. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .		. •		8						00
tion	9	Net unrelated business taxable income. Subtract line 8 from line 5																			. •		9						00
	9											. . . .		. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .		. •		9						00
	10	Tax ________% x line 9. See General Information J								. .	.	. . . .		. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .		. •	10							00
	11	Tax credits from Schedule B. See instructions				. . .		. . . . . . . . . . .		. .	.	. . . .		. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .		. •	11							00
Total	12	Balance. Subtract line 11 from line 10. If line 11 is greater than line 10, enter -0-																			. •	12							00
Total	13	Alternative minimum tax. See General Information O																			. •	13							00
Tax	13	Alternative minimum tax. See General Information O							. .	.	. . . .		. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .			. •	13							00
	14	Total tax. Add line 12 and line 13 . . . .		. . . . . .		. . .		. . . . . . . . . . .		. .	.	. . . .		. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .		. •	14							00
	15	. . . . . . . . . .Overpayment from a prior year allowed as a credit								. .	.	. •		15						00
	16	. .2021 estimated tax payments. See instructions						. . . . . . . . . . .		. .	.	. •		16						00
Payments	17	Withholding (Form 592-B and/or 593). See instructions								. .	.	. •		17						00
	18	Amount paid with extension (form FTB 3539)				. . .		. . . . . . . . . . .		. .	.	. •		18						00
	19	Total payments and credits. Add line 15 through line 18																			•	19							00
	19	Total payments and credits. Add line 15 through line 18							. .	.	. . . .		. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .			•	19							00
	20	USE TAX. See instructions		. . . . . .		. . .		. . . . . . . . . . .		. .	.	. . . .		. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .		. •	20							00
Use Tax/	21	Payments balance. If line 19 is more than line 20, subtract line 20 from line 19																			. •	21							00
Use Tax/	22	USE TAX BALANCE. If line 20 is more than line 19, subtract line 19 from line 20																			. •	22							00
Tax Due/	22																				. •	22							00
Overpay-	23	Tax due. Subtract line 21 from line 14. Pay entire amount with return. See instructions																			. •	23							00
ment	23																				. •	23							00
ment	24	Overpayment. Subtract line 14 from line 21. See instructions																			. •	24							00
	24											. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .				. •	24							00
	25	. . . . . . . . . .Enter amount of line 24 to be applied to 2022 estimated tax												. . . .	. . . . . . . . . . . .	. . . . .		. . .	. .		. •	25							00

3641213

Form 109 2021 Side 1

		26	. . . . . . . . . . . . . . . . . . . . . . .Refund. If line 25 is less than line 24, then subtract line 25 from line 24				•. . .	. . •	26
			. . . . . . . . .a Fill in the account information to have the refund directly deposited. Routing number				•. . .	26a
			b Type: Checking	•□	Savings	c Account Number	•	26c
Refund or				•□		•□	•
Amount		27	Penalties and interest. See General Information M				.	. . •	27
Due		27	Penalties and interest. See General Information M				. .	. . •	27
		28	• □ Check if estimate penalty computed using Exception B or C and attach form FTB 5806				. . .	. . . .
		29	Total amount due. Add line 22, line 23, line 25, and line 27, then subtract line 24				. . .	. . •	29
Unrelated Business Taxable Income
Part I	Unrelated Trade or Business Income

1	a	Gross receipts or gross sales______________ b Less returns and allowances______________ c Balance	• 1c		00
2	Cost of goods sold and/or operations (Schedule A, line 7)		•	2	00
3	Gross profit. Subtract line 2 from line 1c		•	3	00
4	a	Capital gain net income. See Specific Line Instructions – Trusts attach Schedule D (541)	• 4a		00

	b	Net gain (loss) from Part II, Schedule D-1	• 4b		00

	c	Capital loss deduction for trusts	• 4c		00

5Income (or loss) from partnerships, limited liability companies, or S corporations. See Specific Line Instructions.

	Attach Schedule K-1 (565, 568, or 100S) or similar schedule	•	5	00
6	Rental income (Schedule C)	•	6	00
7	Unrelated debt-financed income (Schedule D)	•	7	00
8	Investment income of an R&TC Section 23701g, 23701i, or 23701n organization (Schedule E)	•	8	00
9	Interest, Annuities, Royalties and Rents from controlled organizations (Schedule F)	•	9	00
10	Exploited exempt activity income (Schedule G)	• 10		00

11	Advertising income (Schedule H, Part III, Column A)	• 11		00

12	Other income. Attach schedule	• 12		00

13	Total unrelated trade or business income. Add line 3 through line 12	• 13		00

Part II Deductions Not Taken Elsewhere (Except for contributions, deductions must be directly connected with the unrelated business income.)

14	Compensation of officers, directors, and trustees from Schedule I	. . .	. . . . .	. . . . . . . . . . . . . . . . . . . . .	•	14	00
15	Salaries and wages	. . .	. . . . .	. . . . . . . . . . . . . . . . . . . . .	•	15	00
16	Repairs	. . .	. . . . .	. . . . . . . . . . . . . . . . . . . . .	•	16	00
17	Bad debts	. . .	. . . . .	. . . . . . . . . . . . . . . . . . . . .	•	17	00
18	Interest. Attach schedule	. . .	. . . . .	. . . . . . . . . . . . . . . . . . . . .	•	18	00
19	Taxes. Attach schedule	. . .	. . . . .	. . . . . . . . . . . . . . . . . . . . .	•	19	00
20	Contributions. See instructions and attach schedule	. . .	. . . . .	. . . . . . . . . . . . . . . . . . . . .	•	20	00
21	a Depreciation (Corporations and Associations – Schedule J) (Trusts – form FTB 3885F)	•	21a		00
	b Less: depreciation claimed on Schedule A. See instructions		21b		00	21	00
22	Depletion. Attach schedule	. .	. . . . .	. . . . . . . . . . . . . . . . . . . . . .	•	22	00
23	a Contributions to deferred compensation plans	. .	. . . . .	. . . . . . . . . . . . . . . . . . . . . .	. .	23a	00
	b Employee benefit programs. See instructions	. .	. . . . .	. . . . . . . . . . . . . . . . . . . . . ..	•. .	23b	00
24	Other deductions. Attach schedule	. .	. . . . .	. . . . . . . . . . . . . . . . . . . . .	•. .	24	00
25	Total deductions. Add line 14 through line 24	. .	. . . . .	. . . . . . . . . . . . . . . . . . . . . ..	•. .	25	00
26	Unrelated business taxable income before allowable excess advertising costs. Subtract line 25 from line 13				•. .	26	00
				.	•
27	Excess advertising costs (Schedule H, Part III, Column B)	. .	. . . . .	. . . . . . . . . . . . . . . . . . . . .	•	27	00
				.	•
28	Unrelated business taxable income before specific deduction. Subtract line 27 from line 26				•	28	00
				.	•
29	Specific deduction. See instructions	. .	. . . . .	. . . . . . . . . . . . . . . . . . . . .	•	29	00
30	Unrelated business taxable income. Subtract line 29 from line 28. If line 28 is a loss, enter line 28				. .	30	00

Our privacy notice can be found in annual tax booklets or online. Go to ftb.ca.gov/privacy to learn about our privacy policy statement, or go to ftb.ca.gov/forms and search for 1131 to locate FTB 1131 EN-SP, Franchise Tax Board Privacy Notice on Collection. To request this notice by mail, call 800.338.0505 and enter form code 948 when instructed.

Sign	Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and
Here	belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Here				Title		Date		• Telephone
	Signature	▶		Title		Date		• Telephone
	Signature
	of officer
	Preparer’s				Date	Check if self-		• PTIN
						Check if self-
		▶					▶ □
Paid	signature	▶				employed	▶ □
Paid								• Firm’s FEIN
Preparer’s								• Firm’s FEIN
Preparer’s	Firm’s name (or yours,
Use Only	if self-employed)		▶
	and address							• Telephone
	and address							• Telephone

May the FTB discuss this return with the preparer shown above? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • □ Yes □ No

Side 2 Form 109 2021

3642213

Get California 109

File Specifics

Fact Name	Details
Purpose	The California 109 form is used for reporting unrelated business income by exempt organizations.
Tax Year	This form is applicable for the calendar year 2020 or a fiscal year beginning and ending within that period.
Governing Law	California Revenue and Taxation Code (R&TC) Section 23701 and Section 23712 govern the use of this form.
Filing Requirements	Organizations must file the form if they have unrelated business taxable income exceeding $1,000.
First Return	Organizations must indicate if this is their first return by checking the appropriate box on the form.
Accounting Methods	Filing organizations can choose between cash, accrual, or other accounting methods.
Amended Returns	If an organization needs to correct a previously filed return, they must check the amended return box.
Net Operating Loss	Organizations can claim a net operating loss deduction on the form, which can reduce taxable income.
Signature Requirement	The form must be signed by an authorized officer of the organization, declaring the accuracy of the information provided.
Use Tax	Organizations must report any use tax owed on the form, which may arise from purchases made without paying sales tax.

How to Use California 109

Completing the California Form 109 requires attention to detail and accurate reporting of your organization’s financial information. Once you have gathered all necessary documents and information, you can begin filling out the form. Follow these steps to ensure you complete the form correctly.

Start by entering the taxable year at the top of the form. Specify if it’s for the calendar year or a fiscal year by indicating the beginning and ending dates.
Fill in the corporation or organization name, California corporation number, and Federal Employer Identification Number (FEIN).
Provide the street address, including suite or room number, PMB number, city, state, ZIP code, and any foreign address details if applicable.
Indicate whether this is the first return filed by checking “Yes” or “No.”
Answer the questions regarding non-exempt charitable trust status, education IRA, tax benefits, and if the organization is under IRS audit or has been audited in prior years.
Mark whether this is a final return or an amended return, if applicable.
Choose the accounting method used: cash, accrual, or other.
Describe the nature of the trade or business in the designated space.
Proceed to calculate the unrelated business taxable income as directed, starting with line 1.
Complete lines 2 through 12 by following the instructions for each line, ensuring to reference the necessary schedules as needed.
Calculate the total payments and credits by adding lines 15 through 18.
Determine the USE TAX amount and calculate the payments balance, tax due, or overpayment as applicable.
Fill in the refund details if applicable, including account information for direct deposit.
Complete the signature section, ensuring that the form is signed and dated by the appropriate officer or preparer.

After completing the form, review all entries for accuracy. Ensure that all required schedules and attachments are included before submitting your return to the appropriate tax authority. It’s essential to keep copies of the completed form and any supporting documents for your records.

Your Questions, Answered

What is the California 109 Form?

The California 109 Form, also known as the California Exempt Organization Business Income Tax Return, is a tax return specifically designed for organizations that are exempt from federal income tax under certain sections of the Internal Revenue Code. This form is used by these organizations to report any unrelated business income they may earn, which is subject to California state tax. Organizations must complete this form to ensure compliance with California tax laws and to calculate their tax liability on unrelated business income.

Who needs to file the California 109 Form?

Organizations that are classified as tax-exempt under specific sections of the Internal Revenue Code, such as charitable organizations, must file the California 109 Form if they have any unrelated business taxable income (UBTI). UBTI refers to income generated from activities that are not substantially related to the organization's exempt purpose. If the organization earns income from these unrelated activities, it must file this form to report that income and pay any applicable taxes.

What information is required to complete the California 109 Form?

To complete the California 109 Form, organizations will need to provide various pieces of information, including:

The organization's name, California corporation number, and federal employer identification number (FEIN).
The period for which the return is being filed, indicating whether it is for a calendar year or a fiscal year.
Details about any unrelated business activities, including gross receipts, expenses, and deductions related to those activities.
Information regarding any tax credits the organization is claiming.

Additionally, organizations must disclose if they are undergoing an audit by the IRS or if they have filed an amended return. Proper documentation and schedules must also be attached as required by the form's instructions.

What are the consequences of not filing the California 109 Form?

Failure to file the California 109 Form when required can lead to several consequences for organizations. These may include:

Penalties and interest on any unpaid taxes related to unrelated business income.
Potential loss of tax-exempt status if the organization fails to comply with filing requirements over multiple years.
Increased scrutiny from tax authorities, which may lead to audits or further investigations.

It is crucial for organizations to understand their filing obligations and to ensure timely submission of the California 109 Form to avoid these negative outcomes.

Common mistakes

Incorrect Information on the Organization Name: Many individuals mistakenly enter the wrong name of the organization. The name must match exactly with the records held by the California Secretary of State. Failing to do this can lead to delays or rejections of the form.
Missing or Incorrect Federal Employer Identification Number (FEIN): The FEIN is crucial for identifying the organization. A common error is providing an incorrect FEIN or leaving this section blank. This can result in complications with tax processing.
Improper Selection of Tax Benefits: Some filers incorrectly select tax benefits related to Enterprise Zones or other programs. It is essential to carefully read the instructions and ensure that the organization qualifies for any claimed benefits. Misunderstanding eligibility can lead to audits or penalties.
Errors in Reporting Unrelated Business Taxable Income (UBTI): Filers often miscalculate UBTI, which can lead to incorrect tax amounts. This includes mistakes in completing the apportionment percentage or misreporting income and deductions associated with unrelated business activities. Accurate calculations are vital to avoid issues with the California Franchise Tax Board.

Documents used along the form

The California 109 form is an essential document for exempt organizations in California, particularly for those reporting business income. Along with this form, several other documents may be required to ensure compliance with tax regulations. Below is a list of commonly used forms and documents that often accompany the California 109 form.

Schedule A: This schedule details the cost of goods sold and/or operations. It helps organizations report their inventory and calculate the expenses related to their production activities.
Schedule B: Used for reporting tax credits, this schedule allows organizations to claim various credits they may qualify for, which can reduce their overall tax liability.
Schedule C: This form is for reporting rental income from real property and personal property leased with real property. It helps organizations track their rental income and related deductions.
Schedule D: This schedule focuses on unrelated debt-financed income. It provides a framework for organizations to report income and deductions related to debt-financed property.
Schedule E: Organizations use this form to report investment income, detailing the income generated from investments and any related deductions.
Schedule H: This schedule addresses advertising income and excess advertising costs, allowing organizations to report income from advertising activities.
Schedule I: This document reports compensation for officers, directors, and trustees. It ensures transparency regarding the salaries and allowances provided to key individuals within the organization.

These documents work together with the California 109 form to provide a comprehensive overview of an organization's financial activities. Properly completing and submitting these forms is crucial for maintaining compliance with state tax laws and regulations.

Similar forms

The California Form 990 is similar to the California 109 form in that both are used by organizations to report their financial activities to the state. Form 990 is specifically for tax-exempt organizations, while Form 109 focuses on unrelated business income for exempt organizations. Both forms require detailed information about revenue, expenses, and any deductions. However, Form 990 includes additional sections that provide a comprehensive overview of the organization's mission, governance, and compliance with federal regulations, making it a more extensive reporting tool.

The California Form 199 serves as another comparable document. Like the 109 form, Form 199 is used by exempt organizations to report income. It is specifically designed for organizations that do not have unrelated business income. This form requires basic information about the organization, such as its name and address, and details about its activities. The primary difference lies in the fact that Form 199 does not require the reporting of unrelated business income, making it simpler for qualifying organizations.

The California Form 100 is also relevant, as it is the standard corporate income tax return. Corporations, including those that are tax-exempt, may need to file this form if they engage in unrelated business activities. While Form 100 requires a detailed account of all income and expenses, the California 109 form focuses specifically on unrelated business income, allowing exempt organizations to report only the income that is subject to taxation.

The California Form 541 is another document that shares similarities with the California 109 form. This form is used by fiduciaries of estates and trusts to report income. Both forms require a breakdown of income sources, deductions, and tax calculations. However, Form 541 is more tailored to the needs of estates and trusts, while the California 109 is designed specifically for exempt organizations with unrelated business income.

Form 990-T is closely related to the California 109 form as well. This federal form is used by tax-exempt organizations to report unrelated business income to the IRS. Similar to the California 109, Form 990-T requires organizations to calculate their unrelated business taxable income and any associated tax liability. The primary distinction is that Form 990-T is a federal requirement, whereas the California 109 form is specific to California state tax obligations.

The California Schedule K-1 (541) is another similar document, particularly for trusts. This schedule reports income, deductions, and credits from partnerships, S corporations, and estates or trusts. While it is not a standalone tax return like the California 109 form, it serves a similar purpose by detailing the income that beneficiaries must report. Both documents require careful tracking of income sources and can impact the overall tax liability of the entity involved.

Finally, the California Form FTB 3500 is relevant for organizations seeking tax-exempt status. This form is used to apply for exemption from California income tax. While the California 109 form is used for reporting income once an organization is established, Form FTB 3500 is the initial step for organizations looking to operate as tax-exempt. Both forms are crucial in ensuring compliance with state tax regulations, but they serve different stages in the organizational lifecycle.

Dos and Don'ts

When filling out the California 109 form, there are some important dos and don’ts to keep in mind. Here’s a straightforward list to guide you:

Do double-check all information for accuracy.
Do ensure that you use the correct tax year.
Do provide a complete and legible signature.
Do attach any necessary schedules or documents.
Don’t leave any required fields blank.
Don’t forget to indicate if this is an amended return.
Don’t use incorrect accounting methods without clarification.
Don’t submit the form without reviewing the instructions carefully.

Misconceptions

Misconception 1: The California 109 form is only for large organizations.

This is not true. The California 109 form is designed for various exempt organizations, regardless of their size. Small charities and nonprofits also need to file this form if they have unrelated business income.

Misconception 2: All organizations are exempt from taxes if they file the California 109 form.

Filing the California 109 form does not automatically exempt an organization from taxes. It is specifically for reporting unrelated business taxable income. Organizations must still meet certain criteria to maintain their tax-exempt status.

Misconception 3: The California 109 form is the same as the federal 990 form.

While both forms serve similar purposes, they are not the same. The California 109 form is specific to California tax regulations, whereas the federal 990 form is for federal tax purposes. Organizations must be aware of the differences and requirements for each.

Misconception 4: Filing the California 109 form is optional for exempt organizations.

This is incorrect. If an exempt organization has unrelated business income, it is required to file the California 109 form. Failing to do so can lead to penalties and loss of tax-exempt status.

Key takeaways

Filling out and using the California 109 form can seem daunting, but understanding a few key points can simplify the process.

Identify Your Organization Type: Before starting, determine if your organization is a non-profit, charity, or another type. This affects your tax obligations and potential benefits.
Complete All Required Sections: Ensure that every section of the form is filled out accurately. Missing information can lead to delays or penalties.
Keep Records: Maintain documentation for all income and deductions reported. This is crucial in case of an audit or if you need to provide further information later.
Review Before Submission: Double-check all entries for accuracy. An error could result in unexpected tax liabilities or missed deductions.