New York Resale Certificate for Telecommunication Purchases

Resale Certificate for Telecommunication Purchases
Form CT-120:11/12: Resale Certificate for Telecommunication Purchases, ct120
CT-120

(11/12)

Single-use certificate 	

	New York State Department of Taxation and Finance

Resale Certificate for
Telecommunication Purchases
Blanket certificate 	

Date issued

Telecommunication services provider information — please type or print
Name
Address
City	

State	

ZIP code

Telecommunication services reseller certification
I, the reseller, certify that:
•	 I am a reseller of telecommunications services. My valid sales tax Certificate of Authority number issued by the Tax
Department is	
.
•	 I am purchasing telecommunication services for resale as telecommunication services.
•	 I understand I may not use this certificate to purchase telecommunication services that are not for resale as
telecommunication services.
•	 If I purchase telecommunications for resale as telecommunication services, but I use the services myself, or do not resell the
services as telecommunication services, I must report and pay the unpaid tax directly to New York State.
• 	 I understand I will incur tax liabilities, in addition to penalty and interest, for any misuse of this certificate.
I certify that the above statements are true and correct. I make these statements with the knowledge that knowingly making a
false or fraudulent statement on this document is a misdemeanor under Tax Law section 1817 and Penal Law section 210.45,
punishable by imprisonment for up to a year and a fine of up to $10,000 for an individual or $20,000 for a corporation. I
understand that the Tax Department is authorized to investigate the validity of the exemption claimed or the accuracy of any
information entered on this form.
Please type or print
Reseller’s name as it appears on the sales tax Certificate of Authority	
issued by the Tax Department

Name of owner, partner, or officer of corporation, authorizing the purchase

Street address	

Purchase authorizer’s signature

City	

State	

ZIP code	

Purchase authorizer’s title

Substantial penalties will result from misuse of this certificate.

Page 2 of 2  CT-120 (11/12)

Instructions

General information
Form CT-120 is used by a reseller of telecommunication
services to obtain telecommunication services that are exempt
from the excise taxes imposed under Tax Law, Article 9,
section 186-e.
This certificate is only for use by a reseller of telecommunication
services who:
•	 is registered as a New York State sales tax vendor ;
•	 has a valid sales tax Certificate of Authority issued by the Tax
Department; and
•	 is making purchases of telecommunication services that will
be resold as such to the reseller’s customers.
A properly completed certificate must be provided to
the provider within 90 days after the provision of the
telecommunication services. A certificate of resale is not
properly completed if it does not include the reseller’s sales tax
Certificate of Authority number issued by the Tax Department.
This certificate is valid only for purchases made on or after
January 1, 2009.

To the reseller
Enter all the information requested on page 1. You may mark an
X in the Blanket certificate box to cover all telecommunications
services purchased for resale as telecommunication services. If
you do not mark the Blanket certificate box, the certificate will
be deemed a Single-use certificate.
If you intentionally issue a fraudulent exemption certificate, you
will become liable for penalties and interest, in addition to the
excise tax initially due. Some penalties that may apply:
•	 100% of the tax due
•	 $50 for each fraudulent exemption certificate issued
If you do not resell as telecommunication services the
telecommunications services purchased with this resale
certificate, report and pay the unpaid tax on Form CT-186-E,
Telecommunications Tax Return and Utility Services Tax Return.

To the provider of telecommunication
services

A resale certificate received on time that is not properly
completed will be considered satisfactory if the deficiency is
corrected within a reasonable period. You must also maintain a
method of associating an invoice (or other source document) for
an exempt sale made to a reseller with the resale certificate you
have on file from that reseller.

Invalid exemption certificates
Sales of telecommunication services not supported by valid
resale certificates are deemed to be taxable excise tax sales.
The burden of proof that the tax was not required to be
collected is upon the provider.

Retention of exemption certificates
You must keep this certificate for at least three years after
the due date of the return to which it relates, or the date the
return was filed, if later.

Need help?
Visit our Web site at www.tax.ny.gov

•	 get information and manage your taxes online
•	 check for new online services and features

Telephone assistance
Corporation Tax Information Center:	 (518) 485-6027
To order forms and publications: 	

(518) 457-5431

Text Telephone (TTY) Hotline (for persons with
hearing and speech disabilities using a TTY): If you
have access to a TTY, contact us at (518) 485-5082.
If you do not own a TTY, check with independent
living centers or community action programs to find
out where machines are available for public use.
Persons with disabilities: In compliance with the
Americans with Disabilities Act, we will ensure
that our lobbies, offices, meeting rooms, and other
facilities are accessible to persons with disabilities. If
you have questions about special accommodations
for persons with disabilities, call the information
center.

If you are providing telecommunication services and you accept
a resale certificate, you will be protected from liability for the tax
if the certificate is valid. The certificate will be considered valid
if it was:
•	 accepted in good faith;
•	 in your possession within 90 days after the provision of the
service; and
•	 properly completed (all entries were made).

Privacy notification

A certificate is accepted in good faith when a provider has no
knowledge that the resale certificate is false or is fraudulently
given, and reasonable care is exercised in the acceptance of the
certificate.

This information will be used to determine and administer tax liabilities
and, when authorized by law, for certain tax offset and exchange of tax
information programs as well as for any other lawful purpose.

You must get a properly completed resale certificate from the
reseller no later than 90 days after the provision of the service.
When you receive a certificate after the 90 days, both you and
the reseller are subject to the burden of proving that the sale
was exempt, and additional documentation may be required.

The Commissioner of Taxation and Finance may collect and maintain
personal information pursuant to the New York State Tax Law, including
but not limited to, sections 5-a, 171, 171-a, 287, 308, 429, 475, 505,
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).

Information concerning quarterly wages paid to employees is provided
to certain state agencies for purposes of fraud prevention, support
enforcement, evaluation of the effectiveness of certain employment and
training programs and other purposes authorized by law.
Failure to provide the required information may subject you to civil or
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.