Cal. Code Regs. Tit. 18, § 23775 - Suspension of Exempt Corporate Status
(a) The corporate powers, rights and
privileges of an exempt domestic corporation may be suspended and the exercise
of corporate powers, rights and privileges of a foreign exempt corporation in
this state may be forfeited if the organization fails to--
(1) File an annual return (Form 199) required
under Section
23772 on or before the close of
the last day of the 12th month following the close of the income
year.
(2) Pay any amount due under
Section 23703 or
23772 on or before the close of
the last day of the 12th month following the close of the income
year.
(3) File a return or notify
the Franchise Tax Board of its annual accounting period within nine months
after its date of incorporation or qualification.
(b) Corporations will normally receive at
least one notice of their delinquency before suspension is effected. However,
there is no legal requirement that such notice be sent to or received by the
organization.
(c) A suspended or
forfeited corporation cannot exercise any of the corporate powers, other than
to set forth a new name by amending its articles of incorporation. Thus, a
suspended or forfeited corporation may not prosecute or defend an action at law
or in equity, but may obtain a continuance to permit revivor to be
accomplished. The exemption of a suspended corporation that continues to
operate (other than for winding up) may be revoked and the organization will be
subject to at least the minimum tax under Section 23303.
(d) Evidence of suspension or forfeiture is
in the form of a list issued by the Franchise Tax Board and transmitted to the
Secretary of State. The suspension or forfeiture is effective upon transmittal
of said list to the Secretary of State. Also, a notice of suspension is
normally mailed to the last known address of the corporation by the Franchise
Tax Board.
Notes
Note: Authority cited: Section 26422, Revenue and Taxation Code. Reference: Sections 23775, 23301.5 and 23302, Revenue and Taxation Code.
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