Form Ct-120 - Resale Certificate For Telecommunication Purchases (Page 2 of 2) in pdf

Instructions

Page 2 of 2 CT-120 (11/12)

General information

A resale certificate received on time that is not properly

completed will be considered satisfactory if the deficiency is

Form CT-120 is used by a reseller of telecommunication

corrected within a reasonable period. You must also maintain a

services to obtain telecommunication services that are exempt

method of associating an invoice (or other source document) for

from the excise taxes imposed under Tax Law, Article 9,

an exempt sale made to a reseller with the resale certificate you

section 186-e.

have on file from that reseller.

This certificate is only for use by a reseller of telecommunication

Invalid exemption certificates

services who:

• is registered as a New York State sales tax vendor ;

Sales of telecommunication services not supported by valid

resale certificates are deemed to be taxable excise tax sales.

• has a valid sales tax Certificate of Authority issued by the Tax

The burden of proof that the tax was not required to be

Department; and

collected is upon the provider.

• is making purchases of telecommunication services that will

be resold as such to the reseller’s customers.

Retention of exemption certificates

A properly completed certificate must be provided to

You must keep this certificate for at least three years after

the provider within 90 days after the provision of the

the due date of the return to which it relates, or the date the

telecommunication services. A certificate of resale is not

return was filed, if later.

properly completed if it does not include the reseller’s sales tax

Certificate of Authority number issued by the Tax Department.

Need help?

This certificate is valid only for purchases made on or after

January 1, 2009.

Visit our Web site at

To the reseller

• get information and manage your taxes online

Enter all the information requested on page 1. You may mark an

• check for new online services and features

X in the Blanket certificate box to cover all telecommunications

services purchased for resale as telecommunication services. If

Telephone assistance

you do not mark the Blanket certificate box, the certificate will

be deemed a Single-use certificate.

Corporation Tax Information Center: (518) 485-6027

If you intentionally issue a fraudulent exemption certificate, you

To order forms and publications:

(518) 457-5431

will become liable for penalties and interest, in addition to the

excise tax initially due. Some penalties that may apply:

Text Telephone (TTY) Hotline (for persons with

• 100% of the tax due

hearing and speech disabilities using a TTY): If you

• $50 for each fraudulent exemption certificate issued

have access to a TTY, contact us at (518) 485-5082.

If you do not own a TTY, check with independent

If you do not resell as telecommunication services the

living centers or community action programs to find

telecommunications services purchased with this resale

out where machines are available for public use.

certificate, report and pay the unpaid tax on Form CT-186-E,

Telecommunications Tax Return and Utility Services Tax Return.

Persons with disabilities: In compliance with the

To the provider of telecommunication

Americans with Disabilities Act, we will ensure

that our lobbies, offices, meeting rooms, and other

services

facilities are accessible to persons with disabilities. If

you have questions about special accommodations

If you are providing telecommunication services and you accept

for persons with disabilities, call the information

a resale certificate, you will be protected from liability for the tax

center.

if the certificate is valid. The certificate will be considered valid

if it was:

Privacy notification

• accepted in good faith;

The Commissioner of Taxation and Finance may collect and maintain

• in your possession within 90 days after the provision of the

personal information pursuant to the New York State Tax Law, including

service; and

but not limited to, sections 5-a, 171, 171-a, 287, 308, 429, 475, 505,

• properly completed (all entries were made).

697, 1096, 1142, and 1415 of that Law; and may require disclosure of

social security numbers pursuant to 42 USC 405(c)(2)(C)(i).

A certificate is accepted in good faith when a provider has no

knowledge that the resale certificate is false or is fraudulently

This information will be used to determine and administer tax liabilities

and, when authorized by law, for certain tax offset and exchange of tax

given, and reasonable care is exercised in the acceptance of the

information programs as well as for any other lawful purpose.

certificate.

Information concerning quarterly wages paid to employees is provided

You must get a properly completed resale certificate from the

to certain state agencies for purposes of fraud prevention, support

reseller no later than 90 days after the provision of the service.

enforcement, evaluation of the effectiveness of certain employment and

When you receive a certificate after the 90 days, both you and

training programs and other purposes authorized by law.

the reseller are subject to the burden of proving that the sale

Failure to provide the required information may subject you to civil or

was exempt, and additional documentation may be required.

criminal penalties, or both, under the Tax Law.

This information is maintained by the Manager of Document

Management, NYS Tax Department, W A Harriman Campus, Albany NY

12227; telephone (518) 457-5181.

Form Ct-120 - Resale Certificate For Telecommunication Purchases Page 2

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