Tax Byte

Franchise Tax Board Announces New Online Revivor Application

Karen Brosi, CFP, EA

In late August, the Franchise Tax Board (FTB) introduced another new online service for tax practitioners and small business owners. Business representatives and business tax professionals can now submit a request to revive their business through the Certificate of Revivor online application or by logging into MyFTB Account.

Franchise Tax Board Suspension

When a business has been suspended or forfeited, it is not in good standing and loses its rights, powers, and privileges to do business in California. Generally, businesses are suspended when they fail to:

File a return
Pay taxes, penalties, fees, and/or interest

Business entities registered with Secretary of State (SOS) must file and pay at least $800 in franchise or annual tax from their registration date to their current date, regardless of business activity.

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Secretary of State Suspension

The SOS will suspend/forfeit a business for not filing the required Statement of Information. A business can be suspended/forfeited by SOS and FTB at the same time.

If the SOS suspends/forfeits a business, it may impose a $250 penalty that FTB collects.

Suspended Businesses Lose Rights and Powers

If a business is suspended it cannot:

Legally do business
Sell, transfer, or exchange real property
File with an automatic extension
Be issued a refund
Start or continue a protest
Legally close or dissolve the business
Bring an action or defend the business in court
File or maintain an appeal before the Office of Tax Appeals
Maintain the right to use its business name
- SOS will deny a revivor request if the entity name is no longer available
- SOS will require the business to choose a new name
Retain tax-exempt status
- FTB revokes an organization’s tax-exempt status as of the suspension date