Charter Forfeited

[BillV]

Association client had their Charter forfeited because of failure to file Franchise Tax returns in Texas. Membership dues continued to be collected however. Since the corporate entity was non-exsisting does this mean that the Association becomes a partnership requireing a Form 1065 to be filed and K-1's distributed?

[Jiggers]

Association client had their Charter forfeited because of failure to file Franchise Tax returns in Texas. Membership dues continued to be collected however. Since the corporate entity was non-exsisting does this mean that the Association becomes a partnership requireing a Form 1065 to be filed and K-1's distributed?

You can get the charter reinstated in Texas. Just file the delinquent returns, pay any taxes and penalty due, and a reinstatement fee and you are good to go.

Are gross receipts less than a $1,000,000? If so, there is no tax due, no penalty. Just file the returns and pay the reinstatement fee. And you can go the short form.

Been there, done that!