Form Cert-122 - Refund Of Tax Paid On Purchases Of Meals Or Lodging By Exempt Entities

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Department of Revenue Services
State of Connecticut
Taxpayer Services Division
25 Sigourney Street
Hartford CT 06106-5032
CERT-122
(Rev. 01/05)
Refund of Tax Paid on Purchases of Meals or Lodging by Exempt Entities
General Purpose: Exempt organizations, qualifying governmental agencies,
Who Should File This Certificate: If the exempt entity did not receive prior
nonprofit charitable hospitals, nonprofit nursing homes, nonprofit rest homes,
approval of exemption from DRS, either because it was reimbursed in whole or in
and nonprofit residential care homes must use this certificate to request a
part, for certain meals or lodging (although not reimbursed in whole or in part for
refund of tax paid on a qualifying exempt purchase of meals or lodging. (Any
other meals or lodging) or because it did not submit a properly completed CERT-
reference to tax in this document includes sales and use taxes and room
112 at least three weeks before the event, the exempt entity must pay the tax to
occupancy tax, as applicable.) These organizations, governmental agencies,
the retailer at the time of the purchase of the meals or lodging. It may then
hospitals, and homes will be referred to as exempt entities throughout this
request a refund of tax paid on the particular meals or lodging for which it was not
certificate. Use this certificate only if all four of these conditions are met:
reimbursed, in whole or in part, by submitting this certificate to DRS.
1. The retailer directly invoices and charges the exempt entity for the meals
Events That Qualify for Refund Only: If the exempt entity will be paying
or lodging; and
(and will not be reimbursed, in whole or in part) for the meals or lodging of some
2. The exempt entity directly pays the retailer with a check drawn on its own
of the attendees, but will be reimbursed in whole or in part for the meals or
account or with a credit card issued in its own name; and
lodging of others, a preapproved exemption will not be issued. The exempt
3. The exempt entity is not reimbursed, in whole or in part, by donation or
entity must pay tax on all the meals or lodging at the time of purchase. However,
otherwise, for its payment for the meals or lodging by those consuming the
if the exempt entity files CERT-122, and DRS approves the certificate, DRS will
meals or lodging; and
refund the tax on those meals or lodging paid by the exempt entity and not
4. This certificate is filed with the Department of Revenue Services (DRS)
reimbursed in whole or in part. The exempt entity is not eligible for a refund of
within three years from the last day of the month after the period for
the tax paid on meals or lodging for which it received full or partial reimbursement
which the sales tax was paid.
other than for meals sold under the five one-day fundraising events per calendar
year exemption. See Policy Statement 2003(4), Purchases of Meals or Lodging
Statutory Authority: Conn. Gen. Stat. §12-412(1)(A), (5), (8), and (94);
by Exempt Entities, for more information.
§12-425.
Example 1: B, an exempt organization, sponsors a dinner to honor one of its
Credit Card Purchases: If a credit card is used to pay the retailer of meals
members. The restaurant charges B $50 per meal and B sells tickets for $50
or lodging, the card must be issued in the name of the exempt entity. The
per person. The honoree and members of the immediate family attend as
credit card must be used exclusively to make purchases for the use of the
guests of the organization. B must pay sales tax on all meals purchased. It
exempt entity (not for the convenience of its officers, employees, or members).
may, however, complete and file CERT-122 to claim a refund of the taxes paid
The credit card charges must be paid by a check drawn on the exempt entity’s
only on meals consumed by the honoree and members of the immediate family.
own checking account.
Example 2: C, an exempt organization, sponsors a retirement dinner to honor
Nonqualifying Purchases: This certificate may not be used (and tax will
one of its employees. The restaurant charges C $60 per meal. C sells tickets
not be refunded) on the purchase of meals or lodging not meeting all four
for $50 per person and pays the $10 difference to the restaurant from its own
conditions above. Nonqualifying purchases include fundraisers where those
funds. C must pay sales tax on the full price of all meals purchased. Because
who attend are charged or are required to make any payment and seminars or
the organization received partial reimbursement for all of the meals, C is not
conferences where meals or lodging are included in the conference or seminar
eligible for a refund of any of the tax paid.
registration fee except as described below.
Instructions for the Purchaser: An officer of an exempt entity must
An exempt entity may purchase meals tax exempt using CERT-113, Purchases
complete and sign this certificate to request a refund of taxes paid on the
of Tangible Personal Property and Services by a Nonprofit Charitable Hospital,
qualifying exempt purchase of meals or lodging. If the purchaser is an exempt
Nonprofit Nursing Home, Nonprofit Rest Home, or Nonprofit Residential Care
organization, it must attach either a copy of its I.R.C. §501(c)(3) or (13)
Home; CERT-119, Purchases of Tangible Personal Property and Services by
determination letter issued by the U.S. Treasury Department or, if it was issued
Qualifying Exempt Organizations; or CERT-134, Exempt Purchases by
an exemption permit by DRS, enter its exemption permit number on
Qualifying Governmental Agencies; when it will resell the meals at one of five
CERT-122. If the purchaser is a qualifying governmental agency, no attachment
fundraising or social events per year that is exempt from tax under Conn. Gen.
is required. If the purchaser is a nonprofit charitable hospital, nonprofit nursing
Stat. §12-412(94) including meals resold at conferences and seminars. If a
home, nonprofit rest home, or nonprofit residential care home, it must attach a
qualifying exempt entity pays tax on meals and later resells them at these
copy of a valid and active license issued by the Department of Public Health
events, the organization may request a refund from DRS without using
under Chapter 368v of the Connecticut General Statutes and either a copy of its
CERT-122. See Special Notice 98(11), Exemption From Sales and Use Taxes
I.R.C. §501(c)(3) or (4) determination letter issued by the U.S. Treasury
of Sales by Nonprofit Organizations at Fundraising or Social Events,
Department or, if it was issued an exemption permit by DRS, enter its exemption
Informational Publication 2002(11), Nonprofit Hospitals, Nonprofit Nursing
permit number on CERT-122. If DRS concludes a qualifying exempt purchase
Homes, Nonprofit Rest Homes, and Nonprofit Residential Care Homesand
was made, the tax paid will be refunded to the purchaser. Keep a copy of this
Policy Statement 98(5), Sales and Use Tax Refund Policy.
certificate and records that substantiate the information entered on this
Government Purchases Not Requiring Preapproval: The federal
certificate for at least six years from the date it was issued. The following
government has implemented the “GSA SmartPay” program, which uses four
items must be included with CERT-122:
categories of credit cards: Fleet, Purchase, Travel, and Integrated cards. Federal
1. A copy of an itemized bill directly invoicing and charging the exempt
employees may purchase meals and lodging tax exempt by using certain GSA
entity for the meals or lodging. The bill must separately state the amount
SmartPay credit cards when the purchases are billed to and paid by the federal
of sales tax charged on meals and lodging; and either
government. U.S. government agencies making tax-exempt purchases of meals
2. A copy of the cancelled check(s) (front and back), including the initial
and lodging using GSA SmartPay cards are not required to get preapproval for
deposit, drawn on the exempt entity’s checking account, directly paying
these purchases from DRS and are not required to provide the retailer with
for the meals or lodging; or
CERT-112, Exempt Purchases of Meals or Lodging by Exempt Entities. See
3. If payment is made by credit card, a copy of the exempt entity’s credit card
Policy Statement 2000(1.1), Retailer’s Acceptance of U.S. Government “GSA
statement showing the purchase of the meals and lodging and a copy of the
SmartPay” Credit Card for Exempt Purchases.
cancelled check(s) (front and back) drawn on the exempt entity’s checking
account that paid the credit card bill.

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