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Changes in the Tax Exemption Process and Disclosure

Purpose of bulletin

To inform staff that beginning January 1, 2010, we clarified the usage of the form FTB 3500A, and what documents are disclosed to the public.

Background

AB 897 effective January 1, 2008, allows entities exempt under IRC 501(c)(3) to use the streamlined form FTB 3500A, Submission of Exemption Request and Instructions.

What's new

Beginning January 1, 2010, and with the passing of AB 404:

  • We clarified the usage of FTB 3500A.
  • When an organization submits form 3500A with an IRS Determination Letter under IRC 501(c)(3), we will send the organization an acknowledgment letter specifying the effective date of the organization’s exemption.
  • The exemption effective date will be no later than the organization’s federal income tax effective date.

Additional information

If we suspend or revoke the exemption of an organization, the entity must file FTB 3500, Exemption Application, for reinstatement of exempt status.

Once we send the acknowledgement letter, the documents submitted by the organization for exemption, the acknowledgement letter, or any other documents issued by us are required to be open to the public for inspection.