CA AB2503

Domestic corporations and limited liability companies with corporate powers suspended by the Franchise Tax Board for 60+ continuous months may be subject to administrative dissolution or cancellation starting January 1, 2019.

The Franchise Tax Board must notify entities of pending dissolution/cancellation and transmit names to the Secretary of State, who posts 60-day notice on its website; entities may submit written objections within 60 days.

Entities with valid objections receive an additional 90 days (extendable once for 90 days) to file returns, pay taxes/penalties/interest, file current Statement of Information, and apply for revivor to avoid dissolution/cancellation.

Upon administrative dissolution or cancellation, entities' liabilities for qualified taxes, interest, and penalties are abated; the Franchise Tax Board must release all collection actions and cannot pursue further administrative or civil action.

The Franchise Tax Board may abate unpaid qualified taxes, interest, and penalties for entities that certify under penalty of perjury they were never doing business or ceased doing business with no remaining assets, conditioned on prior dissolution or cancellation with the Secretary of State.