News Release for Immediate Release May 14, 2003 District Requires Business Taxpayers to File Monthly Withholding Tax Returns and Payments Electronically (Washington, DC) The District of Columbia Office of Tax and Revenue (OTR) announced today that effective June 1, 2003, all business taxpayers filing monthly employer withholding tax returns are required to file and pay their taxes electronically, if the amount of the payment due for a period exceeds $25,000. This requirement also applies to third-party bulk filers that file withholding tax returns for businesses that must report withholding taxes for District resident employees, regardless of whether the third-party filer is located in the District. "Electronic filing is mandated because it allows for increased accuracy and faster processing of returns, and it ensures timely collection of the District's revenue," said Phil Brand, deputy chief financial officer for tax and revenue. Eligible business taxpayers will be mailed a letter notifying them of the electronic filing requirement.* The letter also describes filing and payment options and provides instructions on how to register for each option. Business taxpayers will have thirty (30) days from the date of the letter to register with OTR. Once registration is complete, each business taxpayer will receive a user ID and password that will allow them 24-hour access to the OTR electronic filing system to file and pay their monthly withholding tax returns (Form FR-900M). Business taxpayers that do not comply with this new requirement will be subject to penalties for failure to file and pay electronically. These penalties will apply after a business taxpayer has been notified in writing to comply and then fails to do so. The regulations for this requirement were published in the DC Register on April 11, 2003. For questions regarding this requirement or electronic access, please contact Lucy Murray, deputy director in the OTR Information Systems Administration, at (202) 442-6391 or (202) 442-6366. Businesses with a legal question regarding this requirement should contact William Bowie, attorney-advisor in the OTR General Counsel's Office, at (202) 442-6512. Learn About the District's Electronic Taxpayer Service Center (eTSC) eTSC Registration Application* Notice Regarding Electronic Filing Requirements* Electronic Filing and Payment Requirements: Final Rulemaking* * This document is presented in Portable Document Format (PDF) and a PDF reader is required for viewing. Download a PDF reader or learn more about PDFs.