Nonprofits and tax professionals can manage federal tax forms and California Form 109 filings for unrelated business income through TaxZerone’s platform.
SAN JOSE, CA, UNITED STATES, November 6, 2026 /EINPresswire.com/ — TaxZerone, an IRS-authorized e-file provider serving businesses, tax professionals, and tax-exempt organizations, today announced the addition of California Form 109, California Exempt Organization Business Income Tax Return, to its tax filing platform. This expansion builds on TaxZerone’s existing support for the federal Form 990 series, extending its filing solutions to eligible organizations with California unrelated business income tax filing requirements.
Tax exempt organizations may generate income from business activities that are unrelated to their exempt purposes. When these activities meet applicable filing requirements, organizations may need to report the income and calculate the associated tax at both the federal and state levels.
With the addition of California Form 109, TaxZerone aims to make it easier for eligible organizations and tax professionals to manage these related filing responsibilities through one platform.
One Platform, Multiple Exempt Organization Forms
Tax-exempt organizations may have different filing obligations depending on their structure, activities, and income. TaxZerone supports multiple exempt organization form families, including:
☑️ California Form 109: California Exempt Organization Business Income Tax Return.
☑️ California Form 199: California Exempt Organization Annual Information Return.
☑️ Form 990 Series: Forms 990, 990-EZ, 990-PF, and 990-T.
☑️ Form 5227: Split-Interest Trust Information Return.
☑️ Form 1120-POL: U.S. Income Tax Return for Certain Political Organizations.
With the addition of California Form 109, TaxZerone continues to expand its tax filing solutions to address the needs of eligible exempt organizations with different federal and state reporting requirements.
What Is California Form 109?
California Form 109 is used by qualifying tax-exempt organizations to report unrelated business income and calculate their California tax liability.
Tax-exempt status does not automatically exempt an organization’s unrelated business income from taxation. Income from a trade or business that is regularly conducted and unrelated to the organization’s exempt purpose may be subject to unrelated business income tax, depending on applicable rules and exceptions.
Organizations should review the California Franchise Tax Board’s instructions to determine whether Form 109 applies to their activities and circumstances.
Who Must File California Form 109
Every organization with California tax-exempt status must file Form 109 if its gross income from an unrelated trade or business is more than $1,000.
The return generally applies to tax-exempt organizations and certain nonexempt charitable trusts that have California unrelated business taxable income (UBTI).
✔️ Gross UBI threshold. More than $1,000 in gross unrelated business income (UBI) during the taxable year triggers the requirement.
✔️ Eligible organizations. These include 501(c)(3) public charities, private foundations, trade and professional associations, employee trusts, and other tax-exempt organizations.
✔️ Nonexempt charitable trusts. Some trusts described in IRC Section 4947(a)(1) may also need to file.
✔️ Multi-state operations. Organizations that conduct unrelated business activities both inside and outside California must apportion their income.
Exceptions
An organization with California tax-exempt status is not required to file Form 109 if all three of the following conditions apply:
✔️ It is formed to carry out a function of the state.
✔️ It is carrying out that function.
✔️ It is controlled by the state.
Exempt homeowners’ associations and exempt political organizations with taxable income exceeding $100 generally must file Form 100, California Corporation Franchise or Income Tax Return, instead of Form 109.
When Is California Form 109 Due?
The California Franchise Tax Board specifies the following general rules:
✔️ Most organizations: the 15th day of the 4th month after the tax year ends (For calendar-year filers, the deadline is typically May 15).
✔️ Certain employee trusts, IRAs and Coverdell Education Savings Accounts: the 15th day of the 4th month after the tax year ends.
Can Organizations Request an Extension for California Form 109?
California generally grants an automatic six-month extension to file Form 109 without requiring a separate written extension request, provided the organization meets the applicable requirements.
✔️ An organization that is suspended or not in good standing on the original due date does not receive the extension.
✔️ The extension applies to filing, not payment. To avoid late payment penalties, the organization must pay 100% of its tax liability by the original due date.
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.
Who may Benefits?
✔️ Charities and public foundations with advertising, sponsorship or rental income
✔️ Membership associations and trade and professional organizations
✔️ Educational institutions and their affiliated entities
✔️ Religious and cultural organizations that operate revenue-generating programs
✔️ Employee trusts and certain nonexempt charitable trusts
✔️ Tax professionals and CPA firms preparing returns for California-based exempt clients
Preparers who manage multiple exempt organizations can prepare and transmit both returns for each client without switching tools.
Availability
California Form 109 support is available now. Existing users can start a Form 990-T and add Form 109 from the single platform. New users can create an account at www.taxzerone.com
Affordable Pricing and Combo Options
TaxZerone offers California Form 109 filing at $69.99 per return.
Combo pricing is also available for eligible customers filing multiple supported forms. Organizations and tax professionals can review the available pricing options to determine the most suitable filing solution for their needs.
SOC 2 Compliant Security and Data Protection
TaxZerone prioritizes the security and protection of user information. Its security practices are supported by its AICPA SOC 2 Type II compliance, reflecting a focus on protecting sensitive information and maintaining appropriate controls.
Organizations handling tax and financial information can learn more about TaxZerone’s security practices at https://trust.taxzerone.com/.
Expert Support When You Need It
TaxZerone provides English- and Spanish-language support to assist users with technical questions and filing-related concerns. Users can contact the support team through live chat, email, or phone assistance throughout the filing process.
⭐ Live Chat: Get answers to questions while using the platform.
⭐ Email Support: Send detailed inquiries and receive follow-up assistance.
⭐ Phone Support: Connect directly with a support representative.
Simplifying Federal and California Tax Filing with TaxZerone
The addition of California Form 109 builds on TaxZerone’s existing tax filing capabilities for exempt organizations. By supporting a range of federal and state forms, TaxZerone aims to help eligible organizations and tax professionals manage their reporting responsibilities through one platform.
Organizations should maintain accurate financial records, review the filing requirements that apply to their activities, and ensure that all required returns and payments are submitted by the applicable deadlines.
About TaxZerone
TaxZerone is an IRS-authorized e-file provider offering electronic tax filing solutions for businesses, tax professionals, and tax-exempt organizations. Its platform supports a range of federal and state tax forms, helping users manage their tax filing requirements online.
With a focus on expanding form coverage, protecting customer information, and providing accessible customer support, TaxZerone continues to develop its tax filing solutions to serve organizations with different reporting needs.
For more information about supported forms and filing services, visit https://www.taxzerone.com/
Alexia Zepeda
TaxZerone LLC
support@taxzerone.com
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