California FTB Releases 2020 Instructions for Form 109, Exempt Organization Business Income Tax Booklet

The California Franchise Tax Board March 1 released revised 2020 instructions for Form 109, Exempt Organization Business Income Tax Booklet, for corporate income, individual income, and sales and use tax purposes. The instructions include: 1) tax-exempt organizations that regularly carry on a trade or business not substantially related to their exempt purpose may be required to pay tax on the unrelated trade or business income; 2) organizations must use the form to calculate the tax on their unrelated business income; 3) the filing of Form 109 doesn’t replace the requirement to file Form 199, California Exempt Organization Annual Information Return, ...