PRESS RELEASE FOR IMMEDIATE RELEASE January 8, 2001 DC Office of Tax and Revenue Geared Up For More Customer-Friendly Filing Season Free DC Tax Preparation; Telefiling; Electronic Filing; Direct Deposit; Credit Card Payment Options WASHINGTON, DC - The District of Columbia Office of Tax and Revenue is staying true to its mission to provide a convenient and customer-friendly filing season for taxpayers. Innovations for the 2001 tax year include a new tax-break program for low-income, working DC residents; free DC tax return preparation; several alternative filing methods, including electronic and telephone filing and the ability to use credit cards to pay taxes; a one-stop Customer Service Center with extended hours; and education and outreach programs. "Our goal is to provide friendlier customer service and efficiency from the inside out in order to provide taxpayers with the information and services they need to meet their tax obligations," says Herbert J. Huff, deputy chief financial officer for Tax and Revenue. "Advances in technology are enabling us to process tax returns faster, more accurately and to issue refunds in a matter of days, which is parallel with the Mayor's agenda of making government work better." Earned Income Tax Credit The District of Columbia now offers an Earned Income Tax Credit (EITC) to city residents who work and earn less than $10,200 with no qualifying children, $26,928 with one qualifying child, or $30,580 with two or more qualifying children. The Office of Tax and Revenue has brochures, fact sheets and public service announcements available to explain the new credit, which will be available for the first time in 2001. A law establishing the EITC was approved by the DC Council, the Mayor and DC Financial Authority on July 24, 2000. The EITC could provide taxpayers a refund even if they do not owe any tax. The EITC is also easy to compute - DC taxpayers can take 10 percent of their federal Earned Income Credit. To be eligible, taxpayers must file jointly a D-40 and attach a copy of their federal EITC schedule. Taxpayers cannot claim the EITC on form D-40EZ. Federal Employer Identification Number The District of Columbia Office of Tax and Revenue has improved its registration policy for business taxpayers by simplifying identification requirements. Previously, businesses were required to provide both a Business Tax Number and a Federal Employer Identification Number (FEIN) when interacting with the Office of Tax and Revenue. As a result of improvements to the agency's processing systems, only the FEIN, an identifier issued by the Internal Revenue Service and used by many other taxing jurisdictions, will now be required for business tax processing. One-Stop Customer Service Center Located on the first floor of 941 North Capitol Street, NE, just a few blocks from Union Station, is the new, state-of-the-art Customer Service Center, where taxpayers can resolve all individual, real property, and business tax-related issues in one location. Customer service representatives are available to assist taxpayers during office hours, which are Monday through Friday, 8:15 am until 4:45 pm, except holidays. The center has 13 customer service windows, six public access terminals, and four hearing rooms for taxpayers needing to consult with a customer service representative regarding complex tax issues. The Center also has express service for land title and mortgage companies. A new customer service center was recently opened at the Penn Branch Shopping Center near Branch Avenue, SE. The hours of operation are Monday through Friday, 8:15 am to 4:30 pm. Free D. C. Individual Income Tax Return Preparation Services The Office of Tax and Revenue offers a free income tax preparation service to anyone needing help in preparing their District individual income tax returns. First, individuals must have prepared their federal tax return before coming to the walk-in Customer Service Center on the first floor at 941 North Capitol Street, NE. Taxpayers are requested to have all of their documentation with them, such as a copy of their federal tax return, supporting W-2 forms, and any other information required. The New Touch-Tone TeleFile Service for DC Residents: Single, No Dependents, Income less than $100,000 The Office of Tax and Revenue offers TeleFile, which allows taxpayers to use a touch-tone telephone to file their DC tax return free of charge. The TeleFile phone number is 1-800-743-3320. To qualify for TeleFile, taxpayers must be single, have no dependents, and have income that is less than $100,000 coming only from the following sources: wages, salaries, tips (no more than five Form W-2s), taxable scholarship or fellowship grants, interest and dividends ($400 maximum) or unemployment compensation. Taxpayers interested in using TeleFile should refer to the 2000 D-40 tax booklet for additional details. Going Online with Electronic Filing/Direct Deposit The District of Columbia is offering a full Federal/State Electronic Filing (E-File) program for individual income tax returns. There are two ways in which taxpayers can file electronically - through a tax practitioner or through a commercial online filing service, which allows taxpayers to transmit their DC and federal returns electronically from their home computer for a fee. DC taxpayers can access any of the five participating online filing services - www.intuit.com, www.taxslayer.com, www.taascforce.com, www.tax-engine.com and www.prosystemfx.com - via the Internet. The Quicken Tax Freedom Project (a service by Intuit) will also be offering taxpayers with income less than $20,000 the opportunity to file their DC and federal taxes online for free at www.qtfp.com. The DC E-File program had a return error rate of less than one percent last year. The Office of Tax and Revenue is committed to maintaining this level of efficiency as our program expands. Tips on Electronic Filing: The term "Federal/State" means that the DC return must be transmitted with the federal return to the IRS. Refunds: DC E-File will offer a direct deposit option for taxpayers receiving refunds. The refund will be electronically deposited into the taxpayer's account within      two weeks of return receipt. Direct deposit will not be available for paper returns. Payments: DC E-file will offer payment for balance due returns via the D-40 VE payment voucher. If the taxpayer chooses this option, he/she may electronically      file the return at any time during the tax season, then mail the voucher and payment in by April 16. E-File taxpayers with balance due returns may also use the      new credit card payment option. Paperless process: If you are a tax practitioner who has been accepted into the electronic filing program by the IRS, you no longer need to mail in a copy of your IRS approval to the Office of Tax and Revenue. Additionally, the Office of Tax and Revenue has eliminated the requirement for tax practitioners to mail in DC-8453, the signature document. Practitioners, however, must retain the DC-8453 for a period of three years. Contacting the Office of Tax and Revenue: We invite all eligible practitioners to participate this year. Interested practitioners may obtain E-File forms and publications via the Internet at http://cfo.washingtondc.gov. Practitioners who do not have Internet access or need additional information may contact the Electronic Filing Program Coordinator at (202) 442-6323. Paying Your Taxes by Credit Card In an effort to make paying taxes more convenient, the Office of Tax and Revenue allows the use of credit cards to pay individual income taxes owed for the 2000 tax-filing season or for past-due income taxes owed to the District. Taxpayers will be able to pay their taxes using a Discover/NOVUS, MasterCard, or American Express card. To do this, the taxpayer will be able to call the toll-free number, available seven-days-a-week, 24-hours-a-day, at 1-888-2PAY-TAX, then enter 6000, the District of Columbia's jurisdiction code, and complete the telephone transaction directly with the credit card processing vendor, Official Payments Corporation. The Office of Tax and Revenue will receive the credit card transaction from the vendor and immediately apply it to the taxpayer's account. Official Payments Corporation will charge taxpayers a fee for this service based on a sliding scale. For example, the fee for tax payments under $100 is $3.00; for $1,000, the fee is $25.00. The Problem Resolution Office Problem Resolution Office is designed to assist taxpayers that have been unable to get their problems satisfactorily resolved within a reasonable amount of time. Independent from all compliance functions, the Problem Resolution Officer serves within the Office of Tax and Revenue as an advocate for taxpayers by representing their interests and concerns. Examples of cases that the Problem Resolution Officer would consider include: the taxpayer has not received a response or action by the date promised, or at least 45 days have passed since the initial inquiry and the taxpayer has not received an acknowledgement or final response. For further information about this program, taxpayers may contact the Problem Resolution Officer at (202) 442-6348. The Office of Tax Appeals The mission of the Office of Tax Appeals is to provide District taxpayers an opportunity to resolve disputes with audit or collection determinations without litigation through an independent appeals process. Taxpayers that do not agree with an audit or collection determination must submit a written protest. A hearing will then be arranged to discuss the disputed issues. Within 30 days of the conclusion of the hearing, the Office of Tax Appeals will issue a decision either ordering the audit or collection division to grant the relief the taxpayer was seeking or affirming the examination or collection action. To request appeals consideration, write to Office of Tax Appeals, 941 North Capitol Street, NE, lst Floor, Washington, DC 20002, or call (202) 442-6945. The Voluntary Disclosure Program The Office of Tax and Revenue has established a Voluntary Disclosure Program that invites taxpayers that are not in full compliance with the District's tax laws to come forward on their own. If a taxpayer wants to participate in the Voluntary Disclosure Program, he or she must first contact the Assistant Audit Manager by telephone at (202) 442-6578 or by fax at (202) 442-6883. The taxpayer must then file all delinquent returns and pay any taxes due, with interest. The Office of Tax and Revenue will waive civil penalties, which may be up to 25 percent of the amount of taxes owed. It is important to note that the taxpayer must have come forward on his or her own free will - without first having been contacted by the Office of Tax and Revenue. The Office of Tax & Revenue is a phone call away: Taxpayers may contact the Customer Service Telephone Information Center at (202) 727-4TAX or visit our walk-in Customer Service Center at 941 North Capitol Street, NE. DC tax forms can be obtained at the following locations during January through April: Martin Luther King Memorial Library (10:00 am to 5:30 pm), 901 G Street, NW Municipal Center (6:30 am to 8:00 pm), 300 Indiana Avenue, NW One Judiciary Square (7:00 am until 7:00 pm), 441 4th Street, NW, 1st Floor Penn Branch (8:15 am to 4:30 pm), Penn Branch Shopping Center near Branch Avenue, SE Recorder of Deeds (8:30 am to 4:30 pm), 515 D Street, NW Reeves Center (7:00 am to 7:00 pm), 2000 14th Street, NW Union Square (8:30 am to 4:45 pm), 941 North Capitol Street, NE Individual D-40 Income Tax booklets are available at other DC Public Libraries. Please call (202) 727-4TAX if you need DC forms mailed to you or visit our Web site at http://cfo.washingtondc.gov.