How to Fill Out New York Form CT-247: Eligibility, Questions, and Filing

New York Form CT-247 is the two-page application a not-for-profit corporation files with the Department of Taxation and Finance to claim exemption from the Article 9-A corporation franchise tax. The preferred way to file is by fax to 518-435-2995, with mail to Albany as an alternative. There is no filing fee, and the department takes roughly three months to process a complete application. Until an approved CT-247 is on file, the state can treat your organization as taxable: Article 9-A minimum taxes run from $25 to $200,000 based on New York receipts, with late-filing penalties of 5 percent per month up to 25 percent of the tax owed.¹²

Who Qualifies

The franchise tax regulation at 20 CRR-NY 1-3.4 exempts corporations that are organized and operated on a nonprofit basis, do not issue stock or share certificates, and direct none of their net earnings to any officer, director, or member.³ A corporation that issues stock, even a single class, is taxable under Article 9-A, with narrow exceptions for certain title-holding companies and collective investment entities.⁴

Federal status drives the state analysis. If the IRS has recognized your organization as exempt under Internal Revenue Code Section 501(a), New York presumes you qualify for the Article 9-A exemption. If the IRS has denied or revoked your federal exemption, the state presumes you are taxable.³ Question 4 on the form asks directly whether you meet the qualifications for federal exemption, and the instructions tell you to stop completing the form if the answer is no.⁴

The exemption is available to both New York corporations and foreign corporations (those incorporated in another state or country) that do business in New York. The form asks for your state or country of incorporation, so out-of-state nonprofits operating here file CT-247 the same way domestic ones do.⁴

What to Gather Before You Start

The form itself is short. The attachments do the real work, and a missing one is the fastest way to stall the review.

Your IRS determination letter recognizing exemption under 501(c). If you received a denial letter instead, the instructions say to include it; the department wants to see documents granting or denying federal exemption.⁴
Your full articles of incorporation, including any amendments, showing your stated purpose and the absence of authorized stock.
Your current bylaws. Reviewers look for a dissolution clause directing remaining assets to another nonprofit or a government entity.
Your federal Employer Identification Number.
The date your organization was incorporated or first began activities in New York.
Names, titles, and duties of officers, employees, agents, and representatives in New York, plus addresses and descriptions for every office or place of business in the state and a description of any real property owned here.

If your federal application is still pending, you can indicate the application date on the form and submit whatever alternative documentation you have showing your charitable purpose.

Walking Through the Form

Page one opens with identifying information: legal name, EIN, address, state or country of incorporation, date of formation, and the date from which you are claiming the exemption. Below that are eleven numbered questions.

Questions 1 Through 5: Core Eligibility

Questions 1 through 3 track the regulatory tests. Question 1 asks whether you are organized and operated as a not-for-profit. Question 2 asks whether you are authorized to issue capital stock; if yes, you mark which category applies (title-holding company, collective investment entity, or other) and list any shareholders. Question 3 asks whether any net earnings benefit an officer, director, or member. A qualifying nonprofit answers yes, no, and no.⁴

Question 4 asks whether you qualify for federal income tax exemption under IRC 501(a). A “no” ends the application; you do not qualify. Question 5 asks whether you actually applied for federal exemption and, if so, the date. Attach the IRS determination letter here.⁴

Questions 6 Through 11: New York Activities

Question 6 asks whether you engage in any unrelated business activity at a New York location. A yes answer does not disqualify your exemption, but it does mean you have a separate filing obligation on Form CT-13 for unrelated business income tax. Question 7 asks whether you operate as a trust under IRC 401(a) that is exempt under 501(a), which covers certain pension and retirement trusts.

Questions 8 through 11 are descriptive. Question 8 asks for the location and nature of each office or business site in New York. Question 9 asks you to list officers, employees, agents, and representatives by name, title, and duties. Question 10 asks about any real property you own in the state, including type and use. Question 11 is a catch-all for New York activities not already described. Additional sheets are allowed if you need more space.⁴

An authorized officer signs and dates the form.

How to Submit

Fax is the department’s preferred method. Send your completed CT-247 and all attachments to 518-435-2995. The mailing address is:⁴

NYS Tax Department
Corporation Tax Account Resolution
W A Harriman Campus
Albany, NY 12227-0852

Private delivery services are also accepted; see the department’s Publication 55 for designated carriers. There is no filing fee. Keep a copy of the complete packet, including the fax confirmation page if you fax it.

What Happens After You File

Plan for roughly three months of processing on a complete submission. If the department approves the application, you receive a letter of exemption. Keep that letter permanently; it is your proof that the organization is relieved of the Article 9-A franchise tax, and you will need it in an audit or any status verification.

If something is missing or inconsistent, the department sends a written request for additional information. Respond quickly. Unanswered requests lead to denial, which forces you to refile from the start.

What the Exemption Does Not Cover

CT-247 relieves you of the corporation franchise tax and nothing else. It does not exempt you from New York sales and use tax, and it does not relieve you of unrelated business income tax.⁴

To make tax-free purchases in New York, you file a separate application for an Exempt Organization Certificate on Form ST-119.2. The requirements go beyond CT-247: a statement of all current and proposed activities, a statement of receipts and expenditures for the most recent fiscal year, and a statement of assets and liabilities. Organizations claiming exemption under IRC 501(c)(3) also attach their federal determination letter.⁵ CT-247 and ST-119.2 go through different review processes, so approval of one does not guarantee approval of the other.

On the unrelated business side, if your nonprofit carries on any unrelated trade or business in New York (a gift shop, rental of office space, advertising revenue), you must file Form CT-13 regardless of how much gross income it produces. The filing threshold is zero.⁶ Because Question 6 on CT-247 flags this, the department already knows to expect a CT-13 if you reported unrelated business activity.

1
New York State Department of Taxation and Finance. Definitions for Article 9-A Corporations
2
New York State Senate. New York Tax Law Section 1085
3
New York Codes, Rules and Regulations. 20 CRR-NY 1-3.4 – Corporations Not Subject to Tax
4
New York State Department of Taxation and Finance. Application for Exemption from Corporation Franchise Taxes by a Not-for-Profit Organization
5
New York State Department of Taxation and Finance. Application for an Exempt Organization Certificate
6
New York State Department of Taxation and Finance. Instructions for Form CT-13 Unrelated Business Income Tax Return