FAR 53.229—Taxes (SF’s 1094, 1094-A).
Plain-English Summary
FAR 53.229 is a very short prescription section that tells contracting personnel which standard forms are used to support tax-exemption claims in federal contracting. Specifically, it identifies SF 1094, U.S. Tax Exemption Form, and SF 1094A, Tax Exemption Forms Accountability Record, and states that these forms are prescribed for use in establishing exemption from State or local taxes when allowed under FAR 29.302(b). In practical terms, this section does not itself create a tax exemption; it points users to the proper paperwork and ties that paperwork to the substantive tax-exemption rule in Part 29. The section matters because contractors, contracting officers, and administrative staff need a consistent way to document and track exemption claims when purchases or contract performance may be subject to State or local taxation. It is also important for auditability and accountability, since one form establishes the exemption claim and the other records control and distribution of the exemption forms. Readers looking at this section will find the specific forms to use, the purpose of those forms, and the connection to the underlying tax-exemption authority in FAR 29.302(b).
Key Rules
Use the prescribed forms
SF 1094 and SF 1094A are the designated forms for this purpose. If a contractor or contracting office needs to establish a State or local tax exemption under the FAR, these are the forms to use unless another rule or agency procedure specifically applies.
Exemption depends on FAR 29.302(b)
This section does not independently grant tax relief. It only says the forms are used to establish exemption as specified in FAR 29.302(b), so the actual entitlement and conditions for exemption come from that separate provision.
SF 1094 documents the exemption
SF 1094 is the U.S. Tax Exemption Form used to present or support the claim that a purchase or transaction is exempt from State or local tax. It is the operative form for showing the exemption to the taxing authority or vendor when appropriate.
SF 1094A tracks accountability
SF 1094A is the Tax Exemption Forms Accountability Record. It is used to control, issue, and account for the exemption forms so the government can track their use and prevent misuse or loss.
Limited scope of the section
The section is procedural rather than substantive. It tells users what forms to use, but it does not explain tax law, eligibility standards, or how to resolve disputes with State or local tax authorities.
Responsibilities
Contracting Officer
Ensure the correct tax-exemption form is used when a State or local tax exemption is being established under FAR 29.302(b). Coordinate the issuance and proper documentation of SF 1094 and maintain or require accountability controls through SF 1094A as needed.
Contractor
Use the prescribed exemption form when claiming an applicable State or local tax exemption in connection with contract performance or purchasing, and provide the form only when the exemption is actually authorized under the applicable FAR rule and agency procedures.
Agency/Administrative Staff
Maintain control over the distribution, tracking, and retention of SF 1094A accountability records. Support proper form management so exemption forms are issued, used, and recorded in an auditable manner.
Taxing Authority or Vendor
Accept and evaluate the exemption documentation presented, consistent with applicable State or local law and the federal exemption basis referenced by FAR 29.302(b).
Practical Implications
This section is mainly a form-control rule, so the day-to-day task is making sure the right paperwork is used and tracked, not deciding tax policy from scratch.
A common pitfall is assuming the form itself creates an exemption; it does not. The underlying entitlement must exist under FAR 29.302(b) and any applicable State or local rules.
Another risk is poor recordkeeping. If SF 1094A accountability records are not maintained, agencies may lose track of issued forms, creating audit and misuse concerns.
Contractors should not use these forms casually or for convenience. They should confirm that the transaction actually qualifies before relying on the exemption documentation.
Contracting offices should coordinate closely with finance, property, and administrative personnel so exemption forms are issued consistently and retained for review if questioned later.
Official Regulatory Text
SF 1094 (Rev.12/96), U.S. Tax Exemption Form, and SF 1094A (Rev.12/96), Tax Exemption Forms Accountability Record . SF’s 1094 and 1094A are prescribed for use in establishing exemption from State or local taxes, as specified in 29.302 (b).