Cal. Code Regs. Tit. 18, § 23776 - Relief from Suspension Imposed Under Section 23775

(a) Any corporation that was suspended under the provisions of Section 23775 may be relieved therefrom upon the filing of:

(1) A new application for exemption and payment of the ten-dollar ($10) application fee; and

(2) An application for revivor; and

(3) Any information returns, notifications, or amounts due under Sections 23772 or 23775 which was not previously submitted or paid and which resulted in the suspension or forfeiture; and

(4) Any information return and amounts specified under Section 23772 for each year or part thereof during the period of suspension in which the organization conducted any activities or received income, grants, gifts, or other assets. Where the exemption of the corporation was also revoked the minimum franchise tax will be due under Section 23303, unless there was reasonable cause for the deficiency which resulted in the revocation.

(b) Any corporation that was suspended or forfeited under Section 23775 may be revived as indicated in (a) above:

(1) For corporations formed in the last year and suspended for failure to elect an accounting period only a certificate of revivor, the front page of the exemption application (FTB 3500) with the $10.00 revivor fee is normally required. However, if a return or statement is overdue or will be due within two weeks, it must be enclosed, with appropriate filing fee and penalties.

(2) For other corporations formed or granted exemption in 1968 or subsequent years, abbreviated information may be furnished to support the exemption application. (Include application for revivor.)

(A) Complete page one of the exemption application and the appropriate question number 11 through 21.

(B) Do not include a copy of the articles of incorporation, but include any amendments made after the exemption letter was issued. A xerox copy is satisfactory so long as Secretary of State's endorsed stamp is shown.

(C) Include a copy of current by-laws.

(D) Furnish a statement of all significant activities conducted by the organization during the last three years.

(E) Submit any returns, reports, or statements for accounting periods ending in 1970 and subsequent years that have not previously been filed. Also include filing fees or fees resulting from Registrar of Charitable Trusts actions that have not previously been paid.

(i) Any time a Form 199 is submitted late or was submitted on time without filing fees the filing fee is increased from $10.00 to $25.00. Therefore, any old returns or reports submitted should normally include a $25.00 fee. If a return or report was submitted without a fee or a minimum tax assessment was made under Section 23703, the organization should have notice of the amount due.

(ii) Where a Form 199 is due for December, 1971, or subsequent, a penalty of $5.00 a month not exceeding $40.00 is due unless there is reasonable cause for the late filing of the report.

(3) Corporations formed or granted an exemption prior to 1968 must furnish any additional information required by page two of the exemption application in addition to a copy of the articles of incorporation. An exception can be made to submission of articles of incorporation if they have been furnished to the Franchise Tax Board subsequent to the granting of exemption.

Notes

Cal. Code Regs. Tit. 18, § 23776

1. Amendment filed 8-25-88; operative 9-24-88 (Register 88, No. 36).

Note: Authority cited: Section 26422, Revenue and Taxation Code. Reference: Section 23776, Revenue and Taxation Code.

1. Amendment filed 8-25-88; operative 9-24-88 (Register 88, No. 36).