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CGCPA
CGCPA, CPA
Category: Tax
Satisfied Customers: 3820
Experience:  over 40 years experience in tax matters
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I have a 501 c 6 formed in Delaware and operationg out of NYS.

Customer Question

I have a 501 c 6 formed in Delaware and operationg out of NYS. Up until now they have only file a federal 990 per year. In 2012 they organization started receiving contributions and unrelated business income in addition to their membership dues. Are they subject to registering and filing in NYS
Submitted: 4 years ago.
Category: Tax
Expert:  CGCPA replied 4 years ago.

Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.

Yes, the entity is considered a foreign entity and must register using form CT-245. Here is a short excerpt from the instructions for the form which can be accessed at www.tax.ny.gov:

Who must file Form CT-245

-

Any business incorporated outside New York State that is

authorized to do business in New York State and wishes to

disclaim tax liability.

- A

qualified subchapter S subsidiary (QSSS) incorporated

outside New York State and authorized to do business in

New York State that is included in the parent corporation's

return.

-

Any business incorporated outside New York State having an

employee (including any officer) in this state and disclaiming

tax liability. (Employees are considered to be working in this

state if they come into New York State on corporate business.)

Customer: replied 4 years ago.


I think you didn't answer what was asked. I spoke of a 501 c 6 entity which has been exempted from franchise tax but could be subject to not for profit reproting. Your answer is incorrect

Expert:  CGCPA replied 4 years ago.
All entities operating in NY which are formed elsewhere are considered foreign entities and are required to register in NY to conduct operations here. Additionally, a "foreign" tax exempt entity must apply for recognition of its tax exempt status as well. That is correct.