Office of Tax and Revenue: Clean Hands

The Clean Hands Law (DC Official Code §§47-2861 through 47-2866) provides that an applicant for a license or permit cannot owe more than $100 to the District government. If an applicant for a license or permit has failed to file District tax returns, they are also subject to the Clean Hands Law and will be denied the license or permit. A Clean Hands certification form is required to be submitted with any application for a license or permit in the District of Columbia, including a Basic Business License.

The Office of Tax and Revenue (OTR) Collection Division receives Clean Hands certifications from various District agencies. The following steps are taken to research these certifications:

OTR researches each application through its computer system for any accounts receivables owed in aggregate of $100 or more and whether District tax returns have been filed.
Upon completion of this investigation, OTR may discover that the applicant is not in compliance with the filing requirements of the District of Columbia. A non-compliance list is then prepared and forwarded to the agency from which the applicant is seeking a license or permit.
The licensing/permitting agency makes the determination as to whether an applicant knowingly falsified this certification. If so, the District government shall:

Immediately revoke each license or permit requested by the applicant for which they submitted a falsified certification.
Fine the applicant $1,000 for each false certification.