Overview
This section prescribes the standard forms (SF 1094 and SF 1094A) used by the federal government to claim and track exemptions from state and local taxes in accordance with FAR Part 29.
Key Rules
- SF 1094 (U.S. Tax Exemption Form): This form is the official instrument used to document and establish the government's exemption from state or local taxes on specific purchases.
- SF 1094A (Tax Exemption Forms Accountability Record): This form is required for maintaining an administrative record of the issuance and tracking of SF 1094 forms.
- Regulatory Basis: The use of these forms is specifically governed by the policies and procedures outlined in FAR 29.302(b), which addresses state and local taxation.
Practical Implications
- Cost Control: Contracting officers use these forms to ensure the federal government does not pay prohibited state or local taxes, thereby reducing the total price of a contract.
- Administrative Oversight: Agencies must maintain strict accountability of tax exemption certificates to prevent unauthorized use and to provide a clear audit trail for financial reporting.