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Oct18
Assembly Bill 897

The following is not meant to be legal advice.

 

The following was read from a publication by CT Corporation.  CT Corporation materials are designed to provide accurate and authoritative information with regard to the subject matter covered. Material is made available with the understanding that CT Corporation, WoltersKluwer Corporate Legal Services, or any of its subsidiaries, affiliates, or divisions is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. CT Corporation uses reasonable care in providing information but cannot guarantee accuracy or completeness. Information is provided with no warranty, express or implied, and all such warranties are hereby disclaimed. CT Corporation assumes no liability for any loss, damage, or expense from errors or omissions in the materials, whether arising in contract, tort or otherwise.

CT Corporation reports recently that Assembly Bill 897, effective January 1, 2008, deletes the requirement for religious, charitable, scientific, literary or educational nonprofit organizations to apply for tax exempt status with the California Franchise Tax Board. For those following nonprofit news, the bill may be of interest because it provides that a nonprofit organization is exempt from state taxes if it submits to the Franchise Tax Board a copy of the notification issued by the IRS approving the organization's tax exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code. If an organization's tax-exempt status under federal law is suspended and revoked, the organization must notify the Franchise Tax Board of the suspension or revocation. The bill applies to organizations requesting tax-exempt status in California from the Franchise Tax Board on or after January 1, 2008.

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