1. (a) Any organization which receives or holds assets for charitable purposes must normally register with the Attorney General (Registry of Charitable Trusts) within six months after the receipt of assets for charitable purposes. Also the above described organization must file an annual report with the Registry of Charitable Trusts.
2. (b) Failure to register or file the annual report may cause the Attorney General (Registry of Charitable Trusts) to notify this department to disallow the exemption for the period involved. When such a notice is received, the department will notify the organization and make an assessment of the minimum tax, as provided by Section 23153, for each year or part thereof which is involved. Failure to pay the tax will result in the suspension (termination of the corporate status) or the current revocation of exempt status.
3. (c) To be reinstated, the organization must satisfy the requirements of the Attorney General and pay the taxes assessed. This department must receive notice from the Attorney General (Registry of Charitable Trusts) that the organization is now in compliance with these requirements. Also, if suspension or current revocation of exempt status occurred because the minimum tax was not paid, the organization must comply with the requirements of Section 23776 or 23778.

Note: Authority cited: Section 26422, Revenue and Taxation Code. Reference: Section 23703, Revenue and Taxation Code.

History

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