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Sales and Compensating Use Tax Documentation

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New York State Department of Taxation and Finance
Contractor Certification

ST-220-TD (12/11)
(Pursuant to Section 5-a of the Tax Law, as amended, effective April 26, 2006)

For information, consult Publication 223, Questions and Answers Concerning Tax Law Section 5-a (see Need help? below).

Contractor name

Contractor’s principal place of business City State ZIP code

Contractor’s mailing address (if different than above)

General information

Section 5-a of the Tax Law, as amended, effective April 26, 2006, requires certain contractors awarded certain state contracts valued at more than $100,000 to certify to the Tax Department that they are registered to collect New York State and local sales and compensating use taxes, if they made sales delivered by any means to locations within New York State of tangible personal property or taxable services having a cumulative value in excess of $300,000, measured over a specified period. In addition, contractors must certify to the Tax Department that each affiliate and subcontractor exceeding such sales threshold during a specified period is registered to collect New York State and local sales and compensating use taxes. Contractors must also file a Form ST-220-CA, certifying to the procuring state entity that they filed Form ST-220-TD with the Tax Department and that the information contained on Form ST-220-TD is correct and complete as of the date they file Form ST-220-CA.

All sections must be completed including all fields on the top of this page, all sections on page 2, Schedule A on page 3, if applicable, and Individual, Corporation, Partnership, or LLC Acknowledgement on page 4. If you do not complete these areas, the form will be returned to you for completion.

For more detailed information regarding this form and section 5-a of the Tax Law, see Publication 223, Questions and Answers Concerning Tax Law Section 5-a, (as amended, effective April 26, 2006). See Need help? for more information on how to obtain this publication.

Note: Form ST-220-TD must be signed by a person authorized to make the certification on behalf of the contractor, and the acknowledgement on page 4 of this form must be completed before a notary public.

Mail completed form to:
NYS TAX DEPARTMENT
DATA ENTRY SECTION
W A HARRIMAN CAMPUS
ALBANY NY 12227

Privacy notification

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).

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.

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.

Page 2 of 4 ST-220-TD (12/11)

Section 1 — Contractor registration status

The contractor has made sales delivered by any means to locations within New York State of tangible personal property or taxable services having a cumulative value in excess of $300,000 ... and is listed on Schedule A of this certification.

The contractor has not made sales delivered by any means to locations within New York State of tangible personal property or taxable services having a cumulative value in excess of $300,000 ...

Section 2 — Affiliate registration status

The contractor does not have any affiliates.

The contractor has one or more affiliates ... and each affiliate exceeding the $300,000 cumulative sales threshold ... is registered ... The contractor has listed each affiliate exceeding the threshold on Schedule A of this certification.

The contractor has one or more affiliates, and each affiliate has not made sales delivered by any means ... in excess of $300,000 ...

Section 3 — Subcontractor registration status

The contractor does not have any subcontractors.

The contractor has one or more subcontractors ... and each subcontractor exceeding the $300,000 cumulative sales threshold ... is registered ... The contractor has listed each subcontractor exceeding the threshold on Schedule A of this certification.

The contractor has one or more subcontractors, and each subcontractor has not made sales delivered by any means ... in excess of $300,000 ...

I, , hereby affirm, under penalty of perjury, that I am of the above-named contractor, and that I am authorized to make this certification on behalf of such contractor.

Sworn to this day of , 20 (sign before a notary public) (title)

Page 3 of 4 ST-220-TD (12/11)

Schedule A — Listing of each entity (contractor, affiliate, or subcontractor) exceeding $300,000 cumulative sales threshold

List the contractor, or affiliate, or subcontractor in Schedule A only if such entity exceeded the $300,000 cumulative sales threshold during the specified sales tax quarters. See directions below. For more information, see Publication 223.

A
Relationship to Contractor		 B
Name		 C
Address		 D
Federal ID Number		 E
Sales Tax ID Number		 F
Registration in progress

Column A – Enter C in column A if the contractor; A if an affiliate of the contractor; or S if a subcontractor.

Column B – Name - If the entity is a corporation or limited liability company, enter the exact legal name as registered with the NY Department of State, if applicable. If the entity is a partnership or sole proprietor, enter the name of the partnership and each partner’s given name, or the given name(s) of the owner(s), as applicable. If the entity has a different DBA (doing business as) name, enter that name as well.

Column C – Address - Enter the street address of the entity’s principal place of business. Do not enter a PO box.

Column D – ID number - Enter the federal employer identification number (EIN) assigned to the entity. If the entity is an individual, enter the social security number of that person.

Column E – Sales tax ID number - Enter only if different from federal EIN in column D.

Column F – If applicable, enter an X if the entity has submitted Form DTF-17 to the Tax Department but has not received its certificate of authority as of the date of this certification.

Page 4 of 4 ST-220-TD (12/11)

Individual, Corporation, Partnership, or LLC Acknowledgment

STATE OF }

COUNTY OF }

SS.:

On the day of in the year 20 , before me personally appeared , known to me to be the person who executed the foregoing instrument, who, being duly sworn by me did depose and say that _he resides at , Town of , County of , State of ; and further that:

[Mark an X in the appropriate box and complete the accompanying statement.]

(If an individual): _he executed the foregoing instrument in his/her name and on his/her own behalf.

(If a corporation): _he is the of , the corporation described in said instrument; ...

(If a partnership): _he is a of , the partnership described in said instrument; ...

(If a limited liability company): _he is a duly authorized member of LLC, the limited liability company described in said instrument; ...

Notary Public

Registration No.

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What Sales and Compensating Use Tax Documentation Is and why it matters

Sales and compensating use tax documentation records the tax treatment of tangible goods and certain services sold, transferred, or used in a jurisdiction. These documents include resale and exemption certificates, vendor invoices with tax calculation, and supporting worksheets that justify tax treatment to state departments of revenue and auditors. Proper documentation shows that tax was collected or that a valid exemption applies, and it creates an audit trail needed for compliance, penalties mitigation, and bookkeeping reconciliation across state and local jurisdictions.

Why accurate documentation reduces risk and supports compliance

Clear, complete sales and use tax documentation reduces audit exposure, supports correct tax remittance, and substantiates exemption claims for resale or other tax-free transactions.

Why accurate documentation reduces risk and supports compliance

Who prepares and relies on these tax records

Multiple roles prepare and rely on sales and compensating use tax documentation across finance, operations, and compliance teams.

  • Accounts payable and receivable teams responsible for invoicing and tax calculation.
  • Tax and compliance staff who collect, review, and retain exemption certificates.
  • Procurement and purchasing agents who must track use tax on out-of-state purchases.

Accurate records benefit external auditors, state revenue agents, and internal finance by simplifying reconciliations and substantiating tax positions.

Step-by-step: preparing and filing documentation correctly

Follow a consistent sequence to collect, verify, and file sales and use tax records to avoid omissions and to maintain audit-ready evidence.

  • 01
    Collect Documents: Gather invoices, exemption certificates, and purchase records.
  • 02
    Verify Identity: Confirm buyer details and TIN against official records.
  • 03
    Calculate Tax: Apply correct state and local rates for the transaction date.
  • 04
    File and Retain: Submit returns and store supporting documentation securely.

Configuring a digital workflow for these tax documents

Standardize digital fields and routing so each document is validated, signed, and archived in a consistent, auditable format.

Field Configuration
Signature Field Require printed name and signature date
Exemption Field Conditional required when exemption box checked
TIN Validation Enable automatic format checks and manual review flags
Routing Route to tax reviewer then to accounting

Typical eSubmission flow for tax documentation

An efficient eSubmission flow reduces manual handoffs and preserves an immutable audit trail for each signed document.

  • Upload Document: Import PDF or DOCX invoice or certificate
  • Place Fields: Add signature, date, and TIN fields
  • Send to Signer: Deliver via email or secure link
  • Archive: Store signed copy with audit trail

Technical requirements for eSigning and storage

Digital completion requires platform support for PDF, secure authentication, and reliable retention.

  • File Formats: PDF, DOCX supported
  • Authentication: Email, SMS, or advanced auth
  • Integrations: CRM and cloud storage

Key timing expectations and filing windows

Timing depends on the return type and state rules; meet filing windows to avoid escalating penalties and interest.

Provide W-9 on request:

No statutory filing deadline; supply upon payer request

1099-NEC to recipients and IRS:

Due January 31 for most payers

1099-MISC to IRS (paper):

Due February 28 if filed on paper

1099-MISC to IRS (electronic):

Due March 31 when e-filed

Individual return (Form 1040):

Due April 15, extension to Oct 15 with Form 4868

Penalties and compliance risks to be aware of

Late 1099 filing: Penalty tiers apply per IRC §6721
Intentional disregard: Higher uncapped penalties under IRC §6721
Incorrect TIN: Triggers 24% backup withholding
Missing exemption proof: Leads to tax assessment and interest
I-9 paperwork issues: Civil penalties $281–$2,789 per violation
Insufficient records: Increases audit exposure and fines

Common preparation errors to avoid

  • Applying the wrong jurisdictional rate because transaction date and nexus rules were not cross-checked, resulting in under- or over-collection and reconciliation discrepancies.
  • Accepting a resale or exemption certificate without validating the purchaser's name, TIN, or certificate form; unverified certificates are often challenged in audits.
  • Failing to retain supporting documentation for the full statutory period, which increases risk of disallowance during state audits and loss of defense.
  • Relying on handwritten or incomplete certificates with missing dates, which undermines the document's probative value and can trigger assessments.

Security and compliance controls to protect tax documentation

Encryption: TLS 1.2/1.3 in transit
Data at rest: AES-256 encrypted
Certifications: SOC 2 Type II and ISO 27001
Regulatory compliance: ESIGN, UETA, 21 CFR Part 11 supported
Privacy controls: HIPAA BAA available where required
Accessibility: WCAG 2.0 Level AA support

Practical tips for accurate, efficient documentation

Adopt consistent controls and validation checks to improve accuracy and to reduce the time needed for audits and reconciliations.

Standardize forms and fields
Use a single, approved exemption certificate template and enforce required fields across all intake channels so reviewers have consistent information to validate; reduce back-and-forth with vendors by rejecting incomplete submissions automatically.
Automate TIN and certificate validation
Integrate automated TIN format checks and, where available, vendor registration lookups to flag mismatches early; this decreases reliance on manual review and lowers the chance of backup withholding or audit exposure.
Centralize secure storage
Store signed certificates and invoices in a centralized, access-controlled repository with immutable audit trails to support state audits and to simplify retrieval for reconciliations and internal reviews.
Periodic reconciliation and review
Schedule quarterly reviews of exemption certificate coverage versus sales history to ensure certificates remain valid and to identify transactions requiring retroactive use tax reporting or corrective filings.

How organizations use e-signed tax documentation in practice

Real-world examples show how standardized, signed documentation reduces processing time and supports auditor requests across diverse teams.

Optica Ventures — COO

Optica standardized digital certificates to speed vendor onboarding and reduce paper handling.

  • Centralized repository improved retrieval times.
  • "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers."

Xerox — Director of NetSuite Operations

Xerox integrated signed tax forms into its ERP to automate posting and retention.

  • Automation reduced manual entries.
  • "airSlate SignNow provides us with the flexibility needed to get the right signatures on the right documents, in the right formats, based on our integration with NetSuite."

eSignature vendor comparison for completing tax documentation

Compare common vendor features and starting price points relevant to organizations that digitize sales and compensating use tax forms; signNow appears first for comparison clarity.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes (Business Premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently asked questions about sales and compensating use tax documentation

Answers address common legal and processing questions about signing, retention, and filing obligations for sales and use tax.


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