By Gabrielle Lessard, Esq. The IRS has published Notice 2011-43, which provides transitional relief for certain small organizations that lost their tax-exempt status because they failed to file an annual electronic notice for three consecutive tax years beginning in 2007.  Qualifying organizations will be able to file for reinstatement of their tax-exempt status, retroactive to the [...]

In the past, California nonprofits with $25,000 or less in gross receipts did not have to file any California tax return. For tax years beginning on or after January 1, 2010, California tax-exempt organizations with gross receipts normally equal to or less than $25,000 (except churches) are now required to electronically file FTB 199N, California [...]

Small businesses can claim the credit for 2010 through 2013 and for any two years after that. For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small businesses and 25 percent of premiums paid by eligible tax-exempt organizations.  Beginning in 2014, the maximum tax credit will increase [...]

For the 2010 tax year, nonprofits need to comply with the following: 1.     If your organization’s gross receipts are normally $50,000 or less, you can file a Form 990-N – a simple filing (this threshold has been increased from $25,000 – thank you IRS!) 2.     If your organization’s gross receipts are greater than $50,000 but [...]

The recently passed federal Small Business Jobs Act allows a taxpayer to exclude from taxable income any gain realized on small business stock acquired after September 27, 2010 and before January 1, 2011 and held for at least five years.  This applies even to those taxpayers subject to the Alternative Minimum Tax. The business must [...]

In California, business personal property (which means any kind of property that is not real estate) is subject to an annual tax.  Business owners must file Form 571-L with the county in which they are located every year.  Business owners must file this property statement which details costs of all supplies, equipment and fixtures at [...]

Guest Post by Gabrielle Lessard, Esq. The recently enacted health insurance reform legislation includes a tax credit that helps many small businesses provide coverage for their employees.  Many tax-exempt non-profit organizations can also receive the health care tax credit, although at a reduced level. To qualify, small businesses and exempt organizations must: Have fewer than  [...]

When you are located in California and you buy something from outside of California (for example via the internet) that would have been subject to sales tax if purchased within California, you may think – cool – I avoided California sales tax!  No such luck!  Such purchases are subject to California “use tax” – which [...]

For taxable years beginning on or after January 1, 2009, the California LLC gross receipts fee must be estimated and paid by the 15th day of the 6th month of the current taxable year. LLCs will use new form FTB 3536, Estimated Fee for LLCs, to remit the estimated fee. A new penalty in the [...]

Guest post by Cecily Jackson, Esq. In Garnett v. Commissioner, the U.S. Tax Court reversed a longstanding IRS practice of applying the Limited Partner (LP) passive loss deduction limitation to owners of Limited Liability Partnerships (LLPs) and Limited Liability Companies (LLCs). The Tax Court ruled that LLP and LLC owners that are legally permitted to [...]