16. What are DC’s guidelines for determining whether a corporate taxpayer has nexus to the District for the purpose of filing franchise tax?
The District’s guidelines are enumerated under the provisions of § 47-1801(04)(6)(A) D.C. Official Code and Public Law 86-272.
     
17. What form(s) should a partnership, sole-proprietorship and other business taxpayers; other than a corporation file?
They must file Form D-30, (unless they are specifically excluded from filing by the Code) if their gross income is more than $12,000 from District sources.

18. What forms should I file for a deceased person in the District?
The personal representative of the decedent’s estate such as the executor, executrix, administrator, etc. must file an individual income tax return for income received by the decedent from January 1 until the date of death for the taxable year. 

Fiduciary returns (Form D-41) must be filed from the date of death to the end of the calendar year; unless an election is made to file until the end of the fiscal year.

Form FR-147 (Statement of Person Claiming Refund Due a Deceased Taxpayer) must also be filed for a claim of any tax refunds due the deceased taxpayer. 

19. Where do I find these forms?
These forms can be found online at http://otr.cfo.dc.gov/otr/site. 

20. How do I calculate the estate tax due?
There is an estate tax computation sheet at the rear of the booklet for IRS Form 706 (federal returns)and instructions provided. Please see the form on the District’s website.

21. What forms or paperwork do I need to close an estate in the District?  Also, what do I need to do in order to get a closing letter from the District?
Please provide a Letter of Administration, copy of the death certificate, and all applicable tax forms due to the District must be filed (forms D-40, D-41 or D-76 and D-76A, if necessary).  You must also submit a copy of the federal closing letter. Upon the receipt of all these documents, OTR will issue a District closing letter. Any outstanding tax liabilities have to be satisfied.

22. Do I have to file an estate tax return with the District if most of the decedent’s properties are in another state?
If the value of the decedent’s estate is greater than $1 million, then an estate tax return would have to be filed with the District. Please contact other jurisdictions for their filing requirements; however, in most cases, a return of some sort must be filed to close out an estate.

23. Do I have to file a form D-30 for a rental property?
Yes. You must file form D-30 If the gross receipt on the rental property from District sources is greater than $12,000.

24. Who can file Voluntary Disclosure?
Any taxpayer with an undisclosed tax liability may apply to remedy any tax obligation under voluntary disclosure, except for tax liability under the authority of the Real Property Tax Administration. You must not have been contacted by the District’s tax office or any of its agents regarding collection.

25. How many years can I look back?
Generally, OTR will agree to limit the look-back period to the lesser of three years or the date when the taxpayer established nexus with the District of Columbia. In certain circumstances, however, OTR may require a five-year, look-back period.

For sales, withholding, gross receipts tax cases, and any other trust fund, the look-back period imposed will be five years or the date nexus was established with the District of Columbia.

26. Do I have to pay all taxes owed immediately?
Yes. However, there may be instances where OTR may agree to a payment arrangement with the taxpayer, depending on the facts of the specific case.

27. Can nonprofits organizations use Voluntary Disclosure?                                        
For nonprofit organizations that already have their tax-exempt status approved by OTR, voluntary disclosure may be used to cover unreported Unrelated Business Income (UBI) from prior years. The UBI reported to the District of Columbia should be the same as the UBI reported or required to be reported to the US Internal Revenue Service (IRS).  Corporations report UBI to the District of Columbia using form D-20; all others use form D-30.

If a nonprofit does not already have their tax-exempt status approved by OTR, they must file form FR-164 (Application for Exemption), and report any prior-year UBI. Nonprofits can also use the voluntary disclosure process to report any prior-year taxes (i.e. franchise, personal property, sales, use, arena, etc.) that should have been paid.

28. Who must file and pay the Ballpark Fee?
Except as provided below, any entity that derived at least $5million in annual District gross receipts and who was subject to any of the following at any given point during that entity’s most recent calendar or fiscal year ending on or before June15,  must pay the Ballpark Fee:

• DC Corporation Franchise Tax (D-20);
• DC Unincorporated Business Franchise Tax (D-30); or
• The DC Unemployment Compensation Act.

29. What are Tax-Exempt Organizations?
Tax-exempt organizations are entities granted exemption from the DC Franchise Tax pursuant to DC Official Code §47-1802.01, unless they have Unrelated Business Taxable Income (UBTI). A tax-exempt entity with UBTI must pay the Ballpark Fee, if $5 million or more of its annual DC Gross Receipts are attributable to any UBTI for its most recent calendar or fiscal year.
 

30. How and when should I file the Ballpark Fee?
All Ballpark Fee returns must be filed electronically through the electronic Taxpayer Service Center (eTSC). If you have not registered for eTSC, see www.cfo.dc.gov/baseball or call (202) 727-4TAX(4829). The eTSC application for the Ballpark fee will walk you through the calculation.  Each person or entity subject to the Ballpark Fee must file and pay on or before June 15 each year.

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