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Page 2 of 2 CT-247 (8/12)

Instructions

General information

Refund of franchise taxes

Certain not‑for‑profit and religious corporations are

If the organization paid franchise taxes in error, request

exempt from the New York State (NYS) corporation

a refund by filing an amended return. A housing

franchise tax imposed by Tax Law Article 9‑A

development fund company must submit proof that it was

(Article 9‑A regulations, section 1‑3.4(b)(6)). You must file

organized under Private Housing Finance Law Article 11.

Form CT‑247 to apply for exemption.

Mail this application to:

Generally, a corporation or an organization treated as a

corporation must meet all of the following requirements to

NYS TAX DEPARTMENT

CORPORATION TAX

be tax exempt:

W A HARRIMAN CAMPUS

•

It must be organized and operated as a not‑for‑profit

ALBANY NY 12227

organization.

Private delivery services

•

It must not have stock, shares, or certificates for

See Publication 55, Designated Private Delivery Services.

stock or for shares. Not‑for‑profit corporations that

issue stock are taxable under Article 9‑A. However,

Signature

title holding companies as described in IRC

The application must be certified by the president, vice

section 501(c)(2), and collective investment entities as

president, treasurer, assistant treasurer, chief accounting

described in IRC section 501(c)(25), are exempt from

officer, or other officer authorized by the taxpayer

tax under Article 9‑A. For additional information, see

corporation.

TSB‑M‑87(9)C, Exemption for Title Holding Companies

The application of an association, publicly traded

(THC) and Collective Investment Entities (CIE).

partnership, or business conducted by a trustee or

•

No part of its net earnings may benefit any officer,

trustees must be signed by a person authorized to act for

director, or member.

the association, publicly traded partnership, or business.

•

It must be exempt from federal income taxation under

If an outside individual or firm prepared the application,

IRC section 501, subsection (a).

all applicable entries in the paid preparer section must

be completed, including identification numbers (see Paid

If the organization meets all of the above requirements,

preparer identification numbers in Form CT‑1). Failure

it will be presumed to be exempt from tax under Tax

to sign the application will delay the processing of any

Law Article 9‑A. An organization denied exemption from

refunds and may result in penalties.

taxation under the IRC will be presumed to be subject to

tax under Article 9‑A.

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An organization whose tax exempt status has been

See Form CT‑1, Supplement to Corporation Tax

revoked and later restored by the Internal Revenue

Instructions.

Service (IRS), must file a new application on Form CT‑247.

The new application must be approved before any

tax‑exempt status under Article 9‑A is restored.

Not‑for‑profit, nonstock organizations that are subject to

the federal tax on unrelated business income are taxable

under New York State Tax Law Article 13, if they pursue

those unrelated business activities in New York State. File

Form CT‑13, Unrelated Business Income Tax Return, to

report those activities.

Organizations required to file federal Form 1120 may be

taxable under Article 9‑A and may be required to file

Form CT‑3, General Business Corporation Franchise Tax

Return, or Form CT‑4, General Business Corporation

Franchise Tax Return Short Form.

When filing Form CT‑247, submit all documents

granting or denying exemption from tax by the IRS, the

corporation’s articles of incorporation, and its bylaws.

Promptly report any changes in the corporation’s federal

tax status to the NYS Tax Department.

Any exemption granted by the filing of Form CT‑247 is

strictly for New York State corporation franchise tax. For

federal exemption, contact the IRS.

Any inquiry on the taxable status of an organization must

be in writing, signed by an officer of the organization, and

mailed to the address under Mail this application to:.

Form Ct-247 - Application For Exemption From Corporation Franchise Taxes By A Not-For-Profit Organization Page 2

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