Section 17638 Of Article 1. General Rule From California Revenue And Taxation Code >> Division 2. >> Part 10. >> Chapter 7. >> Article 1.
17638
. Any organization described in Section 401(a) of the Internal
Revenue Code or a trust which is denied exemption under Section
17631 by reason of Section 17635, with respect to any taxable year
following the taxable year in which notice of denial of exemption was
received, may, under regulations prescribed by the Franchise Tax
Board, file claim for exemption, and if the Franchise Tax Board,
pursuant to such regulations, is satisfied that such organization
will not knowingly again engage in a prohibited transaction, such
organization shall be exempt with respect to taxable years after the
year in which such claim is filed.