Get DC OTR-368 2003

The purpose of a resale certificate--also known as a tax exemption certificate--is to allow you to buy goods through your business without paying local sales tax. ... Without a resale certificate, a business or individual is typically required to pay sales tax on all purchases.

Exemption certificates are a way for a business or organization to attest that you are a tax exempt entity, or that you are purchasing an item with the intent to use it in a way that has been deemed exempt from tax. In other words, sales tax exemption certificates are your proof that you can buy an item tax free.

Incorporate. ... Apply for an EIN. ... Provide a detailed business purpose. ... File Form 1023 with the IRS. ... Pay the necessary filing fees. ... When to file. ... Complete the state-level application (if applicable).

What Is a Tax Exempt Business? Some organizations that are not resellers of goods are are exempt from having to pay sales tax on products. or services. These are typically organizations that have been formed as not-for-profit corporations within a state and have earned federal nonprofit status through the IRS.

A tax exempt certificate is used by the Internal Revenue Service. It is completed by organizations that that are a tax exempt non-profit or charitable organization. ... To receive a tax exempt certificate, an organization must first complete the appropriate forms and have them approved by the IRS.

A Certificate of Resale is a statement signed by the purchaser that indicates the merchandise purchased is for resale purposes only, not a sale to an end user, and therefore no tax is due. A completed and signed Form CRT-61, Certificate of Resale, is a valid Certificate of Resale.

Resale numbers are issued by state governments. Typically, you apply for a number from your state's tax agency, which issues you a resale license, permit or certificate bearing the number. Then, when you make purchases that aren't subject to sales tax, you provide the merchant your license or certificate number.

Certificate of Resale. Illinois businesses may purchase items tax free to resell. Sales tax is then collected and paid when the items are sold at retail. ... Purchasers may either document their tax-exempt purchases by completing Form CRT-61, Certificate of Resale, or by making their own certificate.

A sales tax certificate may also be called a reseller's certificate, reseller's license, or a tax-exempt certificate, depending on your state. A sales tax certificate is for exemption from sales tax paid, not sales taxes you collect from customers.

Gather vital info like your EIN and other business identifying information. Visit your State's Department of Revenue website. Search or click on the Sales and Use Tax section of the website. Click the link to register your business.

A tax certificate is an enforceable first lien against the property for unpaid real estate taxes. ... The tax certificate sale allows investors to purchase certificates by paying the tax debt.

Exemption certificates are a way for a business or organization to attest that you are a tax exempt entity, or that you are purchasing an item with the intent to use it in a way that has been deemed exempt from tax. In other words, sales tax exemption certificates are your proof that you can buy an item tax free.

Your resale certificate is generally the same thing as your sales tax permit (sometimes called sales tax license.) However, in some cases, a state may issue a reseller a separate resale certificate number.

The quickest and easiest way to apply for your FEIN is on the Internet at www.brc.dc.gov (select Start a Business ). You may also fill out a copy of IRS Form SS-4 (Application for Federal Employer Identification Number) and apply by phone, fax or mail.

Online. Via Fax. Via Mail. Via Telephone (Domestic: 1-800-829-4933/ International: 267-941-1099)