Chat with an FTB Representative

Tax News
What else is new with exempt organizations?

Last month (July 2008) we gave you an update on the streamlined process for organizations to obtain state tax-exempt status, resulting from passage of Assembly Bill 897 (Ch. 238, Stat. 2007) in September 2007. This month, we focus on FTB Form 3500A, which has a new name.

Beginning January 1, 2008, organizations that have obtained exempt status from the IRS under Internal Revenue Code Section 501(c)(3) became automatically eligible for state tax-exempt status by submitting a copy of the federal determination letter to us, along with FTB Form 3500A, which has was renamed April 2008. Form 3500A is now titled "Submission of Exemption Request: Exemption Based on 501(c)(3) Federal Determination Letter." Previously, it was "Affirmation of Internal Revenue Code Section 501(c)(3)."

We send an "Exempt Acknowledgement Letter" to organizations that receive state tax-exempt status. However, we will not acknowledge the state tax-exempt status unless a copy of the federal determination letter is attached to the Form 3500A. There is no filing fee.

Read more about AB 897 implementation – "Issuance of Exempt Acknowledgment" letter in Notice 2008-3, on our website. For more information on state exempt status and the "Exempt Acknowledgement Letter", go to our website and search for exempt, or call our Exempt Organization unit at 916.845.4171. And, don’t forget to search for form 3500A by its new name: "Submission of Exemption Request: Exemption Based on 501(c)(3) Federal Determination Letter."