Revoked Tax-Exempt Status-Suspended Corporation

Started by MichaelD17 • 4 replies • 2449 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

MichaelD17 (California)
Posts: 1

Posted:

I'm a volunteer for a 6 units detached home, self-manage HOA. I received a letter last month stating the tax-exempt status for the HOA is revoked for not filing SI-100 form the past few years. I did not know (newbie) that you must file SI-100 annually....and they don't send any a letter to notify if you forgot. Now they want me to file Form 100 for the each tax year from the revocation date. I had been filing Forms 199N and 1120H for the past years. I'm not familiar with Form 100 (non-exempt corporations). Do I have to pay taxes with Form 100?

What do I need to do to get my tax-exempt status back to good standing? I tried to call Secretary of State last week..but couldn't get in touch with anyone yet. I don't know if I need to file Form 3500 again or not.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By MichaelD17 on 02/02/2013 4:45 PM

I did not know (newbie) that you must ....

Michael,

I'm sorry that I can't assist you on how to get your tax exempt status back (perhaps you just need to reapply). However, I wanted to address the issue you eluded to that all Associations face: "I did not know."

My Association does not do staggered terms. Therefore, it is possible to lose all corporate knowledge from one board to the next. To try and minimize this I've created binders for each office position listing the minimum required things that must be done along with examples on how to complete the paperwork. Once you get your issue straightened out, I would urge you to do something similar for whomever takes your position in the future.

Tim

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By MichaelD17 on 02/02/2013 4:45 PM
I'm a volunteer for a 6 units detached home, self-manage HOA. I received a letter last month stating the tax-exempt status for the HOA is revoked for not filing SI-100 form the past few years. I did not know (newbie) that you must file SI-100 annually....and they don't send any a letter to notify if you forgot. Now they want me to file Form 100 for the each tax year from the revocation date. I had been filing Forms 199N and 1120H for the past years. I'm not familiar with Form 100 (non-exempt corporations). Do I have to pay taxes with Form 100?

What do I need to do to get my tax-exempt status back to good standing? I tried to call Secretary of State last week..but couldn't get in touch with anyone yet. I don't know if I need to file Form 3500 again or not.

It appears your problem is with the state of California and not the IRS. Although I work for an accounting firm and prepare taxes here in Connecticut, I am mostly familiar with state taxes here and in surrounding states. I am not familiar with California taxes.

However, I did find some useful information at: http://c3compliance.net/1.html

You might try copying and pasting that link in your URL bar on your browser, or searching for that site.

Also, I did come across the attached document. Maybe that will provide some help. You can also search on the Secretary of State's website for your state.

📎 Attachments (1):

⏸ Downloads temporarily unavailable

📄12365377371.pdf(63 KB)

LarryB13 (Arizona)
Posts: 4,099

Posted:

Michael,

In the past I have found that even just plain old bookkeeping services have a wealth of knowledge in dealing with state tax issues. While you are likely to get a sales pitch, you might see what you can find out from one of those firms. I doubt that you are the first person who overlooked filing and needs to restore a tax-exempt status.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Google says:

How to reapply for tax-exempt status

If an organization loses its California tax-exempt status, it must reapply using FTB 3500, Exemption Application and have it approved to regain its tax-exempt status. Any income received between the revocation date and renewed exemption date may be taxable.

Reinstatement of tax-exempt status may be retroactive if you can show that you had reasonable cause for not filing, and show that you were active and operating for your exempt purpose.

Hope this helps.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here