Reasons for Suspension. Associations can have their corporate status suspended for the following reasons:

• Failure to file tax returns (Rev. & Tax Code §23301).

• Failure to pay taxes (Rev. & Tax Code §§23301.5, 23775).

• Failure to file a "Statement by Domestic Nonprofit Corporation" with the Secretary of State.

• Failure to file a "Statement by Common Interest Association" with the Secretary of State.

Determine Corporate Status. Associations can check their s corporate status by typing in their name in the Secretary of State's website. To find out why an association has been suspended, contact the Secretary of State's office and the Franchise Tax Board:

Consequences of Suspension. Suspension of an association's corporate status means the association:

• loses the right to conduct business;

• could lose its corporate name if someone reserves their name during the suspension period;

• cannot initiate lawsuits, defend itself against lawsuits, or enforce contracts; and

• loses the right to get an extension to file a tax return.

Reviving Suspended Corporation. If your association's corporate status has been suspended for tax reasons, it can be revived by filing appropriate tax returns and paying delinquent tax balances, including penalties, fees, and interest. If the suspension is for failure to file statements of information with the Secretary of State, immediately filing the forms and paying any fees and penalties will revive the corporation. The state will issue a "Notice of Revivor" once the matter has been resolved.