I run a small Non-Profit in California. It was set up as a "mutual benefit corporation" and the Secretary of State accepted our articles of incorporation. What I did not do (becase I didn't know it was needed) is file for an Exempt status (501 c3). I recently received a letter from the California Franchise Tax Board telling me that I have to file a return for 2006 and pay tax plus penalties and interest. Our corporation had only $65 in interest income for '06 and we took in about $9000 in donations. Our expenses are for legal services only. I thought that if a corporation made less than $25,000 a year that taxes were not due..... Any thoughts on this ?
My questions:
1. If I have to file a return, what form do I use
2. How do I figure how much tax, penalties and interest I owe the state
3. What else do I need to do

thanks very much for your help,

Tim Page