California Form 3500 is an integral form for any organization that wants to be seen as tax exempt by the State of California. It is imperative that this form is completed in its entirety. When submitting this form, you will also need to include documentation about the creation of your business, a copy of its bylaws, and certain financial data as outlined by California Revenue and Taxation Code.
A California Form 3500 will be used by an entity that wants to apply for California tax-exempt status. This could be a company or organization. Recognition as a tax-exempt entity requires that this form is approved by the State of California, so ensure you include all the requested information on this Exemption Application.
Information you’ll need includes details about the organization as well as its representative. Answer all the questions on the application honestly. In order for the application to be complete, a fee, a copy of the organization’s bylaws, and a copy of entity’s creating document will need to be included.
In order for the form to be accurate, you will need to know what type of entity the organization or company is. Otherwise, the application may be denied. If you have trouble understanding any of the information, contact a lawyer who is knowledgeable about taxes and state tax exemption status.
The Form 3500 is used to apply for tax-exempt organization status in California under the California Revenue and Taxation Code (R&TC) Section 23701.
You will need to complete the form in blue or black ink and submit it with a $25 check or money order payable to the "Franchise Tax Board." Mail form FTB 3500 to: EXEMPT ORGANIZATIONS UNIT MS F120, FRANCHISE TAX BOARD, PO BOX 1286, RANCHO CORDOVA, CA 95741-1286.
The effective date of an organization’s tax-exempt status for state income tax purposes shall be no earlier than the federal effective date.
If an entity’s tax-exempt status is revoked for failure to file a return, failure to pay a balance due, or for being suspended, there is an abbreviated process to have the entity’s tax-exempt status reinstated. To qualify for relief from revocation, the entity must be incorporated after 1968 and File FTB 3500, Exemption Application Side 1 through 8, complete the appropriate item listed for the R&TC section that the organization qualifies for, pay the $25 application fee.
An organization qualifies a rush exemption request if it:
Entities that do not meet the above criteria may be considered for a rush by the Central Office Exempt Unit. Any applicant that is approved for a rush will be charged an additional fee of $40 if not suspended or $56 if suspended.
