Fill Out Your Cert 119 Form

When filling out the Cert 119 form, people often make common mistakes that can lead to complications. One frequent error is not including the correct taxpayer identification information. This includes the CT Tax Registration Number and the Federal Employer ID Number. Double-checking these numbers is crucial to ensure that the form is valid.

Another common mistake is failing to check the appropriate box for the type of certificate being issued. It's important to specify whether it’s a blanket certificate or a certificate for one purchase only. This selection impacts how the exemption is applied, so take a moment to consider which option fits the circumstances.

Additionally, some individuals overlook the requirement to attach necessary documents. For instance, organizations need to provide a copy of their exemption permit or IRS determination letter. Forgetting these documents can result in the seller questioning the exemption status, which could lead to unexpected tax liabilities.

In some cases, people do not accurately list the number of prior fundraising or social events for the year. This information is critical, as it determines how many times the organization can use the exemption. Ensure that accurate records are maintained so that this section is filled out correctly.

Another mistake is not using the certificate correctly for meals and lodging purchases. Many believe that all expenses can go under Cert 119. However, specific approvals or other forms must be used for these purchases. Proper guidance from DRS can clarify this.

Moreover, an oversight occurs when individuals fail to sign the form. An authorized person from the qualifying organization must sign the certificate. A lack of signature can render the entire form invalid.

Sometimes, people forget essential details in the description of the items purchased. It’s important to provide a clear and accurate description of tangible personal property or taxable services. Vague entries can create confusion and invalidate the exemption.

Finally, many organizations mistakenly think they can use cash purchases under a blanket CERT-119. This is incorrect. Each cash purchase requires a properly completed form at the time of the transaction. Adhering to this rule helps maintain compliance with tax regulations.

The CERT-119 form is an important document used by qualifying exempt organizations in Connecticut to make tax-exempt purchases. However, this form often goes hand-in-hand with several other documents that help verify the organization's exempt status. The following is a list of eight related forms and documents commonly used in conjunction with the CERT-119.

• Exemption Permit: Issued by the Department of Revenue Services, this permit confirms the organization’s exempt status under specific state regulations. It must be attached to the CERT-119 form for purchases to be considered exempt.
• IRS Determination Letter: This letter is issued by the U.S. Treasury Department to confirm that an organization is exempt from federal income tax under specific sections of the Internal Revenue Code (I.R.C. §501(c)(3) or (13)). It is crucial for qualifying for tax exemptions.
• Group Exemption Letter: For organizations covered under a central organization's group exemption, this letter from the IRS confirms their membership in that group. It is essential for proving their exempt status.
• Written Consent to Central Organization: This document is needed when an organization requests to be included under a group exemption letter. It demonstrates that the organization has consented to be covered by that exemption.
• Written Notification from Central Organization: This letter must notify the IRS that the organization has consented to be part of the group exemption. It is important for compliance particularly for subordinate organizations.
• CERT-112: This form is specifically used for preapproval requests from qualifying exempt organizations wishing to purchase meals or lodging. It is essential for ensuring tax exemption for these types of purchases.
• CERT-123: A blanket certificate issued for exempt qualifying purchases of meals and lodging. This form allows exempt organizations broader leeway for tax-exempt transactions in these categories when properly authorized.
• Policy Statement 2003(4): While not a form per se, this policy statement outlines the tax exemptions for meals and lodging by exempt entities. It provides important guidance on the limitations and requirements for purchasing meals tax-exempt.

Understanding these additional forms and documents can help ensure that qualifying organizations make compliant and efficient use of the CERT-119 form. These documents together create a framework that supports the tax-exempt status and facilitates necessary purchases related to the organization’s mission. If you have any further questions, reaching out to the Taxpayer Services Division can provide clarity and guidance tailored to your specific needs.

The CERT-119 form is an important document for qualifying exempt organizations in Connecticut, allowing them to make tax-exempt purchases. Below are five documents that share similarities with CERT-119, each serving a particular purpose related to tax exemptions for exempt organizations.

• CERT-112: This form is used for exempt purchases of meals and lodging by exempt entities. Like CERT-119, it helps qualifying organizations avoid sales tax, but it specifically addresses situations involving food and accommodations, requiring prior approval from the Department of Revenue Services.
• CERT-123: The Blanket Certificate for Exempt Qualifying Purchases of Meals or Lodging functions similarly to CERT-119, allowing qualifying organizations to purchase meals and lodging without sales tax. However, it is specifically geared toward blanket exemptions and requires adherence to certain conditions set forth by the DRS.
• CERT-125: This document is a multi-use exemption certificate, used for various types of purchases, including supplies and equipment. It, too, enables qualifying exempt organizations to avoid tax on purchases, provided they adhere strictly to the guidelines that govern exempt organizations.
• CERT-126: The CERT-126 is utilized for sales and use tax exemptions specifically for educational institutions. Similar to CERT-119, it allows certain types of tax-free purchases, but its usage is limited to educational purposes, emphasizing the role of the institution’s primary activities.
• CERT-127: This form is designed for retail purchases made by certain exempt organizations for resale. It has similar purposes to CERT-119, allowing the organization to forgo sales tax but is mainly focused on retail operations as opposed to fundraising or social events.

Each of these documents plays a vital role in the operations of exempt organizations, ensuring they can effectively manage their resources while staying compliant with tax regulations. Understanding their specific usages can help organizations optimize their purchasing strategies.

• Verify Eligibility: Ensure that your organization qualifies as exempt under the applicable statutes before using the CERT-119 form.
• Gather Documentation: Have your exemption permit or IRS determination letter ready to attach to the certificate.
• Provide Accurate Information: Fill in all required fields with correct and current data to avoid delays.
• Sign the Certificate: An authorized person from your organization must sign the form to validate the exemption claim.
• Use Appropriate Payment Methods: Ensure purchases are made using a check or credit card issued in the organization’s name.

• Do Not Use for Ineligible Purchases: Avoid using CERT-119 for meals and lodging unless preapproved by DRS.
• Don’t Forget to Keep Copies: Retain a copy of the certificate and any accompanying documents for at least six years.
• Avoid Cash Payments: Refrain from using CERT-119 for cash purchases, except for purchases of $10 or less from your own funds.
• Do Not Check Both Boxes: If using it for one purchase or as a blanket certificate, only select one option on the form.
• Do Not Misrepresent Usage: Only declare that purchased items will be used for the organization’s exempt purposes when they truly will be.

Misconceptions about the CERT-119 form can lead to confusion among exempt organizations and retailers. Here are seven common misunderstandings, along with clarifications:

• Misconception 1: Any organization can use the CERT-119 form.

In reality, only qualifying exempt organizations can use this form. These organizations must either have an exemption permit from the Department of Revenue Services or be recognized as tax-exempt under specific federal regulations.

• Misconception 2: The CERT-119 form allows for unlimited purchases.

This is incorrect. The form can only be used for specific purchases that are for the organization’s exempt purposes. Additionally, it cannot be used for more than five fundraising or social events per year under the applicable statute.

• Misconception 3: Purchases of meals and lodging are always exempt if using CERT-119.

While qualified organizations can sometimes purchase meals for fundraising events without prior approval, general purchases of meals and lodging require separate documentation and may need preapproval from the Department of Revenue Services.

• Misconception 4: CERT-119 can be used as a blanket certificate for all types of purchases.

Not true. CERT-119 allows for blanket use, but it cannot be used to purchase items for resale at fundraising events. Each type of purchase must adhere to specific guidelines outlined in the regulations.

• Misconception 5: The seller is not responsible for verifying the validity of the CERT-119 form.

This is misleading. While sellers are relieved from tax obligations when accepting a valid CERT-119, they must still take it in good faith and ensure that the form is properly completed. Sellers should maintain records for at least six years.

• Misconception 6: Cash payments are not allowed under CERT-119.

Contrarily, cash payments can be made for purchases of $10 or less. However, a properly completed CERT-119 form must still be presented to the retailer, ensuring compliance with the required documentation.

• Misconception 7: Exempt organizations can ignore recordkeeping requirements.

This is a misconception. Organizations must keep a copy of the CERT-119 and any supporting documents for a minimum of six years. Failing to do so could lead to issues with tax compliance and accountability.

The CERT-119 form is used by qualifying exempt organizations in Connecticut to purchase tangible personal property or services without sales and use taxes.

• Eligibility: Only organizations with valid exemption permits from the Department of Revenue Services (DRS) or IRS determination letters can use CERT-119.
• Purpose of Use: This certificate is applicable for purchases made exclusively for the organization's purposes and allows for resale at certain fundraising or social events.
• Limitations on Purchases: Exempt organizations generally cannot use CERT-119 for meals and lodging without prior authorization from DRS.
• Documentation Required: A copy of the exemption permit or IRS letter must be attached when submitting the certificate.
• Retention of Records: Both the purchaser and seller must keep a copy of the completed CERT-119 and associated documents for six years.
• Payment Methods: Purchases must be paid using a check or credit card in the organization's name, except for cash purchases of $10 or less.
• Single vs. Blanket Certificate: The form can be issued for a single purchase or as a blanket certificate, which lasts for three years unless revoked.
• Good Faith Requirement: Sellers must accept the certificate in good faith and ensure it is properly completed to avoid tax liabilities.
• Violation Penalties: Providing false information on the certificate may result in significant fines or imprisonment.

For further assistance, organizations may contact the Taxpayer Services division at the provided phone numbers or visit the DRS website to access additional resources.