Section 23777 - Revocation of Exempt Status(a) The exemption granted to any organization or trust under Section 23701 may be revoked 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) Confine its activities to those permitted by the section under which the exemption was granted.(b) Corporations that fail to elect an accounting period, to file returns or statements on time or pay amounts due on time will normally be suspended under the provisions of Section 23775.(c) Unincorporated associations or trusts that are believed to be active that fail to file returns or statements on time or pay amounts due on time will have their exemptions revoked under Section 23777.(d) Where unincorporated associations or trusts become inactive or terminated prior to the due date of a report or a filing fee, the organization will normally be made inactive on the Franchise Tax Board files rather than being revoked and made a taxable organization. The organization or its parent (if there is one) must submit a notice of inactivity of the organization prior to the date the revocation is authorized.(e) Any organization that is revoked for the conduct of improper activities will be taxable as a taxable corporation or trust so long as exempt status is not reestablished.Cal. Code Regs. Tit. 18, § 23777
1. Amendment of subsection (a)(1) filed 8-25-88; operative 9-24-88 (Register 88,No. 36). Note: Authority cited: Section 26422, Revenue and Taxation Code. Reference: Section 23777, Revenue and Taxation Code.
1. Amendment of subsection (a)(1) filed 8-25-88; operative 9-24-88 (Register 88,No. 36).