Return Information Notice Explanation Page 3
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6corporation may be subject to an estimated tax
• Is not reorganizing solely for the purpose of
penalty when you file next year’s return.
avoiding payment of its minimum tax.
JC We applied the amount of overpayment from your
MB When you incorporated with the California
return to the next year’s estimated tax
Secretary of State, you paid a prepayment tax
as requested.
of $600 as a qualified new corporation. (See
KA We revised the refund amount on the return based
paragraph MA for the definition of a qualified
on the amount of payments and credits available.
new corporation.) Because your corporation
KB We may not allow a refund or credit beyond the
does not meet the requirement of a qualified new
later of:
corporation, its prepayment tax to the California
• Four years after the due date of the
Secretary of State should have been $800. We
original return.
have made the appropriate adjustment.
• Four years after the date the original return is
MC Under California law, corporations doing business
filed if filed by the extended return due date.
in California must pay the minimum tax of $800 on
• One year after the date of the payment.
or before the first estimate installment due date.
KC The amount of refund claimed on your return was
MD Information on your corporation’s return indicates it
partially or completely applied to prior balances due.
is a qualified new corporation. (See paragraph MA
MA We revised the prepayment tax because for taxable
for the definition of a qualified new corporation.)
years beginning in 1997 or 1998, the prepayment
A qualified new corporation must pay $600 to the
tax paid to the California Secretary of State is $600
California Secretary of State when it incorporates.
if the corporation meets the definition of a qualified
You paid $800.
new corporation. For corporations incorporated
ME We cannot grant your request for a $200 refund
on or after 01/01/1997, and before 01/01/1999, a
of the prepayment tax made to the California
qualified new corporation is defined as one that:
Secretary of State because your corporation
• Reasonably estimated its gross receipts, less
does not meet the definition of a qualified new
corporation. (See paragraph MA for the definition of
returns and allowances reportable to California,
to be $1 million or less for its first taxable year.
a qualified new corporation.)
• Reasonably estimated it will have a California tax
MF When you incorporated with the California Secre-
liability that does not exceed $800, based upon
tary of State, you paid a prepayment tax of $300
as a qualified new corporation. (See paragraph MA
its income, for the first taxable year.
• Has less than fifty percent of its stock owned by
for the definition of a qualified new corporation.)
another corporation.
Because your corporation does not meet the defini-
For taxable years beginning on or after 01/01/1999,
tion of a qualified new corporation, the prepayment
and before 01/01/2000, the prepayment tax paid
tax to the California Secretary of State is $800. We
to the California Secretary of State is $300 if the
have made the appropriate adjustment.
corporation meets the definition of a qualified
Mg Information on your corporation’s return indicates it
new corporation. For corporations incorporated
is a qualified new corporation. (See paragraph MA
on or after 01/01/1999, and before 01/01/2000, a
for the definition of a qualified new corporation.)
qualified new corporation is defined as one that:
A qualified new corporation must pay $300 to the
• Began operation on or after the date of
California Secretary of State when it incorporates.
its incorporation.
You paid $800.
• Reasonably estimated its gross receipts, less
Mh We cannot grant your request for a $500 refund
returns and allowances reportable to California,
of the prepayment tax made to the California
to be $1 million or less for its first taxable year.
Secretary of State because your corporation
• Reasonably estimated it will have a California tax
does not meet the definition of a qualified new
liability that does not exceed $800, based upon
corporation. (See paragraph MA for the definition of
its income, for the first taxable year.
a qualified new corporation.)
• Less than fifty percent of its stock is owned by
nB We issued this refund because we approved your
another corporation.
application for exempt status.
• Did not begin business prior to its incorporation
nC Organizations exempt under Revenue and Taxation
as a single proprietorship, partnership, or other
Code Section 23701d are not subject to a filing fee.
form of business entity.
These organizations are:
• An exclusively religious organization.
For taxable years beginning on or after 01/01/2000,
there is no prepayment tax due for the first taxable
• An organization that is controlled by a religious
year if the corporation:
organization.
• Incorporated or qualified through California
• A school.
• A public charity.
Secretary of State on or after January 1, 2000.
• Is not a Regulated Investment Company (RIC),
nD Filing fees are not due if gross receipts are
Real Estate Mortgage Investment Conduit
normally less than $25,000.
nE Political action organizations are exempt from the
(REMIC), Financial Asset Securitization Invest-
ment Trust (FASIT), or Qualified Subchapter
payment of the minimum franchise tax.
nF Your organization does not have to file California
S Subsidiary (QSub).
Exempt Organization Annual Information Return
(Form 199) or pay the associated filing fee.
FTB 5949 (REV 09-2006) PAGE
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