Notices of Proposed Dissolution mailed to Nonprofit Corporations October 2019 Tax News

We recently sent more than 8,500 proposed dissolution notices to certain nonprofit corporations.

As of January 1, 2016, California nonprofit public benefit, mutual benefit, religious, and registered foreign nonprofit corporations are subject to the FTB administrative dissolution (California nonprofit corporations) or administrative surrender (registered foreign nonprofit corporations) if the entity’s corporate powers have been suspended or forfeited by us at least 48 continuous months.

Once the administrative dissolution process is initiated by us, the nonprofit corporation has 60 calendar days to act before the corporation administratively is dissolved/surrendered permanently.

A searchable list of the 8,500+ nonprofit corporations was posted to the California Secretary of State’s (SOS) website on September 9, 2019, the same day the letters were mailed. The list includes the corporation name on record and corporation file number issued by the SOS. The website also provides information about how to avoid administrative dissolution or surrender.

If one or more of your clients are nonprofit corporations, and they have not been active for a while, it may be a good idea to check whether they are on the list.