TaxZerone adds California Form 109 filing support for exempt organizations

TaxZerone has added California Form 109 to its e-file platform, giving nonprofits and tax professionals a way to handle unrelated business income filings alongside federal exempt-organization returns. The update expands the company’s support for organizations with California tax obligations and is available now.

Why it matters: - California exempt organizations with unrelated business income now have another online filing option for state reporting. - Tax professionals can handle federal and California exempt-organization returns through one platform instead of switching tools. - The update matters for organizations that must report unrelated business income and calculate state tax liability.

What happened: - TaxZerone announced support for California Form 109, the California Exempt Organization Business Income Tax Return. - The platform already supports the federal Form 990 series and other exempt-organization forms. - California Form 109 support is available now. - New users can create an account at TaxZerone’s website.

The details: - California Form 109 is used by qualifying tax-exempt organizations to report unrelated business income and calculate California tax liability. - Organizations with California tax-exempt status generally must file Form 109 if gross income from an unrelated trade or business is more than $1,000. - The filing generally applies to tax-exempt organizations and certain nonexempt charitable trusts with California unrelated business taxable income. - Eligible filers include 501(c)(3) public charities, private foundations, trade and professional associations, employee trusts, and other tax-exempt organizations. - Some trusts described in IRC Section 4947(a)(1) may also need to file. - Organizations that conduct unrelated business activities inside and outside California must apportion income. - An organization is not required to file Form 109 if it was formed to carry out a function of the state, is carrying out that function, and is controlled by the state. - Exempt homeowners’ associations and exempt political organizations with taxable income exceeding $100 generally must file Form 100 instead of Form 109. - Most organizations must file Form 109 by the 15th day of the 4th month after the tax year ends, which is typically May 15 for calendar-year filers. - Certain employee trusts, IRAs and Coverdell Education Savings Accounts also follow the 15th-day-of-the-4th-month deadline. - California generally grants an automatic six-month extension to file, but the extension does not apply to payment. - Organizations must pay 100% of tax liability by the original due date to avoid late payment penalties. - Organizations that need an extension and owe tax can use FTB 3539, Payment for Automatic Extension for Corporations and Exempt Organizations. - If the return is not filed by the extended due date, a delinquent filing penalty is charged from the original due date. - TaxZerone says it offers California Form 109 filing for $69.99 per return. - Combo pricing is available for eligible customers filing multiple supported forms. - TaxZerone says its security practices are supported by AICPA SOC 2 Type II compliance. - The platform offers English- and Spanish-language support through live chat, email and phone.

Between the lines: - The move broadens TaxZerone’s pitch as a one-platform filing tool for exempt organizations with both federal and state obligations. - The addition could be most useful for nonprofits and preparers that regularly handle unrelated business income, sponsorship income, rental income or similar filing issues. - The pricing and support features suggest TaxZerone is targeting small organizations and CPA firms that want lower-friction filing workflows.

What's next: - Existing users can start a Form 990-T return and add Form 109 from the same platform. - Organizations should review California Franchise Tax Board instructions to confirm whether Form 109 applies to their activities. - TaxZerone said it will continue expanding form coverage for exempt organizations.