Proof that your tax affairs are in order.
WHAT IT IS
A document confirming that taxes assessed for a period have been settled.
WHO ISSUES IT
The relevant tax authority: federal for companies, state for individuals.
WHY IT MATTERS
It is required for government contracts, some licences, certain transactions, and various applications.
WHAT IT TYPICALLY COVERS
A defined number of preceding years.
WHAT IS REQUIRED TO OBTAIN ONE
Returns filed for the relevant years Liabilities settled Any outstanding matters resolved
WHY IT TAKES TIME
The authority reviews the position before issuing.
WHAT COMMONLY DELAYS IT
Outstanding returns Disputed assessments Unremitted deductions
WHAT TO DO
Keep filings current, so it is a formality.
WHAT TO AVOID
Applying only when a contract requires it.
WHY
The process cannot be compressed to meet a deadline.
WHAT TO PLAN
Obtaining it annually, as routine.
WHAT TO CHECK ON RECEIPT
The years covered The company details The validity period
WHAT TO KEEP
Every certificate, permanently.
WHY
Historical certificates are requested in due diligence.
WHAT TO VERIFY
That a certificate presented by a counterparty is genuine.
HOW
Through the issuing authority, where verification is available.
