Applying For State Tax Exemptions

Not for profit organizations typically ensure that they have completed the basics when it comes to formation. They check the box on the most significant steps: incorporating under state law, adopting internal governance policies, applying to the Internal Revenue Service for a federal income tax exemption, and registering with the Charities Bureau of the New York State Attorney General's Office. However, there are two further important, and often overlooked, steps that every New York State ("NYS") not for profit corporation should take as well.

State Income Tax Exemption

In addition to applying for an exemption for federal income tax purposes, a NYS not for profit must file for an exemption for state purposes by filing Form CT-247 along with copies of its articles of incorporation, its federal determination letter, and its bylaws. Generally, in order to be tax exempt for NYS income tax purposes, a not for profit must be organized and operated as a not for