Office of Tax and Revenue: Installment Payments
DC Home Mayor DC Guide Residents Business Visitors DC Government Kids

Office of Tax and Revenue

CFO HOME
CFO HOME
TAXPAYER SERVICE
   CENTER

TAXPAYER SERVICE
CENTER

About OTR
ABOUT OTR
SERVICES
SERVICES
INFORMATION
INFORMATION
ONLINE SERVICE
   REQUESTS

ONLINE SERVICE
   REQUESTS

How to Reach Us
Ask the Director
FOIA Requests
FAQs
Helpful Links
News Room
Business Tax Center
Individual Income Tax
   Center

Real Property Center
Recorder of Deeds
Tax Forms/Publications
Tax Practitioner Center
Amnesty Programs
Audit Division
Baseball Fees/Taxes
Board of Real Property
Collection Division
Delinquent Taxpayers
EITC
Refund Status
Sales Tax Holiday
State or Municipal Bond
  Income for DC
  Individuals Q&A

Tax Fraud Hotline
Tax Law/Guidance
Tax Rates/Revenues
Tax Sale
Agency Directory

Installment Payments

District law requires that taxpayers pay their tax in full when filing a return. However, if a taxpayer cannot pay in full, the Office of Tax and Revenue (OTR) may allow them to pay in installments. Taxpayers may request an installment agreement from the Collection Division representative assigned to their case.

 

When making installment payments, taxpayers are expected to pay their current taxes as well. This means they must have the proper amount of withholding taken from their wages or make timely estimated tax payments. If installment payments are not made timely and for the agreed amount, OTR may collect the taxes due by seizing wages or bank accounts.

 

Installment agreements involving amounts larger than $5,000 or lasting more than 24 months require the following documentation:

  • Form PA-1 (for individuals) or PA-2 (for businesses) - These are found in the Miscellaneous Forms section.
  • Current federal income tax return of responsible individuals or the business
  • Latest balance sheet and profit and loss statement (for businesses)

Once an installment agreement is reached, a lien determination will be made, and a lien may be filed. State and federal refunds are subject to interception and will be applied to any outstanding tax liabilities. All payment agreements are subject to periodic re-evaluation.