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Not filing returns for your California Non Profit Organization? Suspended? The Franchise Tax Board may shut you down!

Effective January 2016, Franchise Tax Board began to administratively dissolve qualified inactive nonprofit corporations.

Who is affected

Qualified nonprofit corporations that are suspended or forfeited by FTB for a period of 48 continuous months or more and are no longer doing business.

What will be done

FTB will mail a contact letter to identified qualified inactive nonprofit corporations informing them of the pending administrative dissolution to the last known valid mailing address. A list of the qualified inactive corporations that have been selected and contacted will be posted on the California Secretary of State (SOS) website. The nonprofit corporations posted on the list will have 60 days from the date of the notice to object in writing to the pending administrative dissolution.

What happens if the corporation objects

A nonprofit corporation that objects in writing during the 60 day notice period will have an additional 90 days to pay any owed taxes, penalties, and interest. It must also file any missing returns and a current Statement of Information with SOS, or it will be administratively dissolved/surrendered at the end of the additional 90 day period. (We are authorized to grant one 90 day extension.)

Send the objection to:

Email: ftbnonprofit@ftb.ca.gov

Mail:ATTN: DISSOLUTION

EXEMPT ORGANIZATIONS UNIT

FRANCHISE TAX BOARD

PO BOX 1286

RANCHO CORDOVA CA 95741-1286

Include the SOS file number (corporation number) and name of corporation with the objection.

Additional information is available on our Charities and Nonprofits webpage to provide guidance to nonprofit corporations on the administrative dissolution process.

For more information about tax requirements and/or applying for tax-exempt status, search our website for Charities, or contact our Exempt Organizations Unit at 916.845.4171, 7 AM to 4:30 PM weekdays, except state holidays.

For more information click here:

www.ftb.ca.gov/professionals/taxnews/Editions/2018/June.shtml#Article06

steve@stevesimsea.com