1. (a) Any organization that has been classified as a private foundation or informed that it will be treated as a private foundation under federal law must inform the Franchise Tax Board of this classification on its annual information return (Form 199).
2. (b) Section 23708 as well as Corporations Code Section 5260 and impose federal restrictions on private foundations. The enforcement of these restrictions is considered the responsibility of the Attorney General working in conjunction with the Internal Revenue Service. Therefore, if violators of the above restrictions are discovered by the Franchise Tax Board they will be called to the attention of the Attorney General rather than revoking the exemption as might otherwise be proper.

Note: Authority cited: Section 26422, Revenue and Taxation Code. Reference: Section 23708, Revenue and Taxation Code.

History

1. Amendment filed 9-3-82; effective thirtieth day thereafter (Register 82, No. 37).