Collections & Audit FAQs

How Do I Contact the Collection and Enforcement Administration?

Office Address:
 

Office of Tax and Revenue
Collection and Enforcement Administration
1101 4th Street, SW
Washington, DC 20024
Main Telephone: (202) 724-5045 or (202) 727-4829
Main Fax: (202) 442-6885

Mailing Address:

Office of Tax and Revenue
Collection and Enforcement Administration
PO Box 37559
Washington, DC 20013

How Do I Request Reconsideration of a Decision?

There are occasions when a taxpayer may disagree with a decision rendered by the Office of Tax and Revenue’s (OTR) Collection and Enforcement Administration (CEA). Such decisions could include denial of a request for waiver of penalty and/or interest, rejection of an Offer in Compromise (OIC), or an objection to a notice of refund intercept or offset for payment of student loans or child support.

The following information outlines how to file a protest:

• Prepare a written request that includes the following information:
• Your name, address, telephone and/or fax numbers.
• Your Social Security number or Federal Employer Identification Number;
• The name, address, telephone and fax numbers for your representative, if any. Please ensure the Power of Attorney (POA) is updated online via www.MyTax.DC.gov, or a copy of fully executed form (form D-2848) is included with your request;
• Type of tax(es) and period(s) involved.
• Statement of facts.
• Statement of applicable law.
• Nature of the relief requested.

Submit a request via a MyTax.DC.gov Web Message or mail the request to:

Government of the District of Columbia
Office of Tax and Revenue
Collection and Enforcement Administration
PO Box 37559
Washington, DC 20013
Attention: (Name of employee on collection decision notice)

Once OTR receives your request, a response will be issued to you within 30 calendar days.

If applicable, you have 30 days from the response date to request a reconsideration of the decision by providing supporting additional documentation. The decision on a reconsideration request can be submitted for additional review to the OTR Collection and Enforcement Administration (CEA) by either submitting a request through MyTax.DC.gov or by mail to the following address:

Government of the District of Columbia
Office of Tax and Revenue
Collection and Enforcement Administration
PO Box 37559
Washington, DC 20013
Attention: Deputy Director

You will receive a response to your reconsideration request within 120 days of the receipt date of the request.

If your reconsideration request is denied, you may have additional appeal rights with the Office of Tax and Revenue’s (OTR) Office of the Taxpayer Advocate (OTA). To appeal to the OTA submit a Taxpayer Advocacy Request online via MyTax.DC.gov. Alternatively, you can appeal your decision to the Superior Court for the District of Columbia within six (6) months from the date of the assessment. Please note: the tax, penalty and interest must be paid in full before the expiration of the six-month period. Find more information regarding filing a petition with DC Superior Court at the court’s website: Tax Matters | District of Columbia Courts

Please be advised: protest regarding Officer Assessments and Non-Filer assessments must be submitted the Office of Administrative Hearings (OAH) within the prescribed time outlined in your Notice of Proposed Assessment.

What Are My Rights?

When dealing with the Office of Tax and Revenue (OTR), you have the right to the District of Columbia Taxpayer Bill of Rights which are:

• The right to be informed
• The right to quality service
• The right to pay no more than the correct amount of tax
• The right to challenge the District’s position and be heard
• The right to have their dispute independently reviewed
• The right to finality
• The right to privacy
• The right to confidentiality
• The right to representation
• The right to a fair and just tax system

What is a delinquent account?

An account becomes delinquent when the due date for a tax return or other established liability has passed and the amount due remains unpaid.

What is a collection fee?

The Office of Tax and Revenue assesses a collection fee (also known as an O-Type Fee) of 10 percent on all unpaid balances that are owed for a period of 90 days or more.

Taxpayers may avoid the fee by paying amounts due within 30 days of a Notice of Enforcement Action.

What can I do to avoid becoming delinquent?
Know your tax responsibilities and plan for them. Pay careful attention to the due date on your tax return. Also remember to open and read correspondence sent to you by the Office of Tax and Revenue (OTR); it may contain reporting instructions, due dates, changes in laws or tax rates, or other important information that may affect your tax responsibilities.

What happens if my account becomes delinquent?

Penalties and interest begin to accrue on the unpaid tax until the entire balance is paid in full. If you do not respond to letters or notices and your account continues to be delinquent, it is assigned to a Revenue Officer or Tax Examiner for collection. These Collection and Enforcement Administration (CEA) representatives will contact you by telephone, by letter or in person to resolve the delinquency.

What happens if I do not respond or make satisfactory payment arrangements during the collection process?

The Office of Tax and Revenue (OTR) may file a tax lien covering all unpaid tax, fees, penalties, and interest. The lien is recorded at the District’s Recorder of Deeds (ROD) office, where the information becomes public record and appears as a tax lien on your credit report.

What are the effects of a filed lien?

A filed tax lien enables the District to seize property (e.g., bank accounts, wages, personal property, etc.) to pay the debt. The Office of Tax and Revenue (OTR) will also file the tax lien in county courthouse(s) throughout the country where assets are located and owned by an individual, business, or owners and officers of a business. Since tax liens become public record, they can appear in local newspapers and business journals that list all Superior Court filings, in addition to being displayed on the OTR’s website. 

Can payment due to me from the District be used to offset my tax liability?

Yes. Any money the District owes you for goods or services, or as a personal or business income tax refund, will be applied to unpaid tax balances.

How do I request a penalty waiver?

The Office of Tax and Revenue (OTR) may waive or cancel delinquent return penalties in limited circumstances if you show reasonable cause. Reasonable cause is broadly defined as your exercising ordinary business care and prudence in the discharge of your tax obligations, but some uncontrollable outside event (such as a fire destroying your records) prevented you from complying. A waiver request should be submitted in writing and include any supporting documentation. The request must explain the circumstances that led to the tax delinquency. (Note: failure of the OTR to mail tax forms or notices is not grounds for a waiver of interest).

Will filing for bankruptcy eliminate any business taxes owed?

Payment of your business taxes cannot be avoided through bankruptcy proceedings. Business taxes due the District are not discharged in bankruptcy. If a bankrupt business does not have enough assets to pay the District taxes, the owners and specified corporate officers are personally responsible for the taxes.

If I operate as a corporation, can I avoid personal liability for taxes?

No. The president, vice president, treasurer, and any of the officers who exercises direct control over a business’s fiscal management can be held personally liable for the company’s unpaid sales and withholding taxes, penalties, interest, and fees

Why did I receive an Information Request for a non-filed period from OTR?
If you have received an information request for a non-filed period, information the Office of Tax and Revenue (OTR) received from the Internal Revenue Service (IRS) suggests that you may have a filing obligation for the District of Columbia for the specified tax period.

What information did OTR receive from the IRS?
OTR receives federal tax data from the IRS. This data may consist of information reported on your federal tax return or your federal earning statements.

How can I get information from the IRS?
Copies of your federal tax information can be obtained by contacting the IRS at 1-800-829-1040.

Who is required to file a DC individual income tax return?

All individuals must file a Form D-40, Individual Income Tax Return with OTR if that individual is (a) a resident of the District and (b) required to file a federal income tax return for the tax year at issue.

(Note: Residents who are not required to file a federal income tax return must file a DC tax return to receive a refund of DC taxes withheld during the year, or to claim a refundable credit such as the DC Earned Income Tax Credit, the Schedule N, Non-Custodial Parent Earned Income Tax Credit, the Schedule H, Homeowner and Renter Property Tax Credit, or the Schedule ELC, Keep Child Care Affordable Tax Credit (formerly Early Learning Tax Credit).

How do I know if I am “domiciled” in DC?
You are considered to be domiciled in DC if you ever lived in or moved to DC with the intent to remain in DC indefinitely. You remain domiciled in DC, even if you leave DC, unless you can establish that you intended to abandon your domicile in DC permanently and that you established a new domicile in another jurisdiction.

Who is considered to be a DC resident?
An individual is a DC resident if that individual (a) was domiciled in DC at any time during the taxable year or (b) maintained a place of abode in DC for a total of 183 days or more during the year at issue (also known as a “statutory resident”).

If an individual is domiciled in DC, that individual remains domiciled in DC until such time as that individual abandons their domicile in DC permanently and establishes a domicile in another jurisdiction regardless of whether they maintained a place of abode in DC for any period of time during the tax year.

In addition, if an individual is domiciled in another jurisdiction, they must file a DC individual income tax return if that individual maintained a place of abode for a total of 183 days or more during the year at issue.

Are individuals who were residents of DC for only part of a year required to file a DC individual income tax return?
Yes. For more information, please review the instructions for Form D-40 for part-year residents.

Are there any exceptions to who is considered to be a DC resident?

Yes. The following individuals are not considered to be DC residents unless they are domiciled in the District at any time during the taxable year:

• Any elected officer of the United States government;
• An employee of a Senator or member of Congress if the employee is a bona fide resident of the same state of residence of the Senator or member of Congress;
• Any officer of the executive branch of the United States government whose appointment was made by the President and subject to confirmation by the Senate and whose tenure of office is at the pleasure of the President; or
• A Justice of the Supreme Court of the United States.

(Note: Spouses of any such officials are not included in these exceptions and must file a DC tax return if they are domiciled in the District or maintained a place of abode in DC for a total of 183 days or more.)

If you believe that you are not required to file a DC individual income tax return because you are an employee of a Senator or member of Congress, please provide proof of employment with US Congress for the tax year in question and proof of your legal state of residence.

Are members of the military on active duty stationed in DC required to file a DC income tax return?
Members of the armed forces on active duty are taxed on their military pay only by their legal states of residence (home of record). Generally, if an active duty service member is domiciled in DC, they must file a DC individual income tax return. If an active duty service member is stationed in DC but is domiciled in a jurisdiction other than DC, they are not required to file a DC individual income tax return.

In addition, spouses of active duty service members may be eligible for tax relief. Please see OTR Notice 2009-13 Taxation of Compensation of Military Members and Spouses, Revised - January 8, 2010 for more information.

If you believe that you are not required to file a DC individual income tax return base, please provide a copy of your military orders showing that you were required to be stationed in the area and proof of your legal state of residence.

Which form do I file if I was a part-year resident of the District of Columbia?
Use Form D-40 (visit Individual Income Tax Forms); however, you must prorate your standard deduction or itemized deductions and your personal exemptions.

I believe my District income tax return was previously filed. What should I do?
Provide a copy of your D-40 return along with your Form(s) W-2 and income tax return(s) filed with other states, if applicable. If you filed electronically, please provide any confirmation number or proof of submission as well. If you had a balance due and a payment was made to the DC Treasurer, include a copy of the front and back of your cashed check or other proof of payment.

I was not a District resident and did not have any District source income for the year referenced. What do I need to do?
If you are not required to file, please provide us with a letter of explanation addressing why you are not required to file and appropriate supporting documentation, such as a copy of the income tax return filed with another state or three other documents to prove residency to another state. Please ensure that your documentation corresponds to the tax year in question.

What type of supporting documentation can I submit and where should I send the requested documentation?
The following is examples of acceptable documents, but it is not an exhaustive list:

• State Tax Return
• State Issued ID/Driver’s License
• Voter Registration/Transcript
• Vehicle Registration
• Vehicle Insurance
• Leasing or Rental Agreement
• Mortgage Statement
• Homeowners/Rental Insurance
• Homestead Exemption
• Utility Bills
• Bank Statements
• Employment Verification Letter
• Death Certificate
• School Transcripts

Upon review, addition documentation may be requested. Please ensure that your documentation corresponds to the tax year in question. Documentation can be submitted through the MyTax portal, at MyTax.DC.gov or it can be mailed to the address below.

District of Columbia
Office of Tax and Revenue
Collections & Enforcement
P.O. Box 37559
Washington, DC 20013

What if I am not able to pay my tax bill in full?
If you are unable to pay your tax bill in full, file your tax return anyway, pay what you can, and then immediately contact OTR so we can help you meet your tax obligations. Call us at (202) 727-4TAX, write us, or visit our Customer Service Center to explain to us how you plan to pay the balance. If your plan is acceptable, we will extend the time for payment. If we do not hear from you, we must assume that you refuse to pay, and we will proceed to enforce the collection of the tax, plus any applicable penalties and interest.

I cannot locate my Form(s) W-2. Where can I obtain copies?
You must contact your employer or the Internal Revenue Service (IRS) to obtain copies of your Form(s) W-2. If you contact the IRS, you must specifically request that you need actual copies of your Form(s) W-2 showing your state withholding. The IRS can be contacted at 1-800-829-1040.

What if I fail to respond to the notice?
Failure to respond to this notice may result in a proposed assessment of tax, interest and penalties.

Can I appeal my Non-Filer case?
Yes. However, you cannot appeal until you have received a Notice of Proposed Assessment from the OTR. Once you have received a proposed assessment, you can appeal the proposed tax assessment through the Office of Administrative Hearings (OAH) or through DC Superior Court.

How can I appeal to the Office of Administrative Hearings?
To appeal the proposed assessment to OAH, you must file a written protest with OAH within 30 days of the date of the Notice of Proposed Assessment.

To obtain a protest form and the rules for filing a protest, contact the Office of Administrative Hearings, One Judiciary Square, 441 4th Street, NW, Washington, DC 20001, or access the OAH website at oah.dc.gov. A copy of your Notice of Proposed Assessment must be included with your protest. OAH will notify you of the time, date, and place of your hearing.

District law requires that you provide OTR with a copy of the protest filed. Once OTR receives a copy of your protest, a hold will be placed on your account to prevent the liability from progressing to collection. You MUST either email a copy of the protest to the Office of Tax and Revenue at [email protected] or mail the protest to Compliance Administration, Collections Division, P.O. Box 37559, Washington, DC 20013 or personally deliver the protest to the Office of Tax and Revenue Walk in Center, 1101 4th Street SW, Suite W270, Washington, DC 20024. Email is the preferred method of delivery.

Additional information on protesting a proposed tax assessment can be found at https://oah.dc.gov/publication/taxpayers-protest-proposed-assessment.

How can I appeal to the District of Columbia Superior Court?
Alternatively, you may file an appeal with the District of Columbia Superior Court once you have received a final assessment of tax deficiencies, including a statement of taxes, interest and penalties due from the Office of Tax and Revenue. The protest must be filed within 6 months of the date of the final assessment. Full payments of assessed tax, penalty and interest are required to appeal to the District of Columbia Superior Court. The District of Columbia Superior Court is located at 500 Indiana Avenue, NW, Washington, DC 20001. More information can be found at http://www.dccourts.gov/superior-court.

Audit Division FAQs

What is the meaning of statutory residency?
Statutory residency is the residency requirement imposed by DC law(s) for tax-filing purpose(s).
Section 47-1801.04(17) of the DC Official Code describes a statutory resident as any individual who maintains a place of abode within the District for an aggregate of 183 days or more during the taxable year, whether or not such individual is domiciled in the District.

An individual is a resident of the District if the individual is domiciled within the District at any time during the taxable year. DC Official Code, 2001 Ed. §47-1801.04(17).

Who is required to file?
Please see the provision(s) of § 47-1805.02(1) of the DC Official Code and § 47-1801.04(17).

What financial instruments are not taxable for the purpose of filing individual income tax?

Section 47-1803.02(2) of the DC Official Code lists the items that shall be excluded from the computation of District gross income; among which are “… interest and dividend income on obligations or securities of the United States, or its agencies or instrumentalities, to the extent that this income is included in federal gross income.” D.C. Official Code, 2001 Ed. § 47-1803.02(2)(A).

Also, for the purpose of filing individual and fiduciary income taxes, municipal bonds interest are not taxable.

Please refer to the above-referenced Code section for a complete listing of all items excluded from gross income.

Why was my return adjusted?
The return could be adjusted due to numerous reasons. The Office of Tax and Revenue (OTR) usually sends a notice of adjustment to taxpayers explaining why their return is being adjusted.

Why did I receive a tax assessment notice?

The reasons why a particular taxpayer may receive an assessment notice vary and are usually fact-specific to that taxpayer. You may have received an assessment notice due to an error in the computation of your tax liability to the District, or due to a missing document, under-reporting of income etc. However, prior to receiving an assessment notice, a taxpayer would have received a notice/letter of proposed adjustment from OTR.

How do I correctly file a “married filing separately” return with the District after filing a joint federal return?

Usually, a married taxpayer is required to file a joint-return pursuant to the provision(s) of § 47-1805.01(e). However, we recognize that there may be instances where a taxpayer may have to file as “married filing separately”.

In such a case, taxpayer may file “married filing separately” if the taxpayer is married or have a registered domestic partner and both spouses/partners have income. Taxpayers should include the spouse’s domestic partner’s name and social security number in the Personal Information section. Also, each spouse should report only that spouse’s income, exemptions, deductions and credits. Each spouse will report one-half of the income from any securities, bank accounts, real estate, etc. that are registered or titled in both names.

A taxpayer must file using this status if:

You and your spouse/registered domestic partner were part-year residents of the District during different periods of 2007.
You were a District resident and your spouse/registered domestic partner was one of the following:

• A member of the armed forces and not considered a District resident;
• A member of the U.S. Congress or an employee on the personal staff of a member of Congress who is considered a resident of the member’s state of residency;
• An officer of the U.S. Executive Branch whose primary residence was not in the District, who is appointed by the President, confirmed by the U.S. Senate and serves at the pleasure of the President; or
• A justice of the U.S. Supreme Court whose primary residence was not in the District.

How is the 183 days residency rule applied to tax returns?
Every day that a taxpayer is in the District of Columbia and maintains a place of residency for an aggregate of 183 days or more, including days of temporary absence is counted towards the 183 days residency rule. However, if a taxpayer is not domiciled within the District and only lived in the District for less than 183 days during the taxable year, then the taxpayer must indicate on his/her tax return in the “Filing Status” section.

Please see also the provision(s) of § 47-1805.02(1) of the DC Official Code (2001 Ed.).

What is the District’s capital gains tax rate for individuals?
District individual tax rates are based on the income level of the taxpayer. Moreover, the capital gains tax rates would have been included in the calculation of the Adjusted Gross Income (AGI) on a taxpayer’s federal tax return.

Where is my tax refund? How can I find out its status?
You may check on the status of your refund by visiting mytax.dc.gov, or you may contact the Customer Service Center (CSC) at (202) 727-4829.

Do I need to file a District tax return if my office is located in another state?
You will have to file a DC franchise tax return regardless of where your office is located, if your business “… is engaging in or carrying on of any trade, business, profession, vocation or calling, or commercial activity in the District of Columbia, including activities in the District that benefit an affiliated entity of the taxpayer, the performance of the functions of a public office and the leasing of real or personal property in the District of Columbia by any person whether or not the property is leased directly by such person or through an agent, and whether or not such person or agent performs any services in connection with the property; provided, however, that the term ‘trade or business” shall not include, for the purposes of this chapter, sales of tangible personal property whereby title to such property passes within or without the District, by a corporation or unincorporated business which does not physically have or maintain an office, warehouse, or other place of business in the District, and which has no officer, agent, or representative having an office or other place of business in the District, during the taxable year. (DC Official Code, 2001 Ed. § 47-1801.04).
What are District’s income tax rates for senior citizens and are there any income tax deductions and exemptions for senior citizens?
The District’s income tax rates for its senior citizens are the same as those for other citizens of the District as enumerated under the provisions of §47-1806.03(7)(A) of the DC Official Code. However, some senior citizens may be entitled to other tax deductions, exemptions, and credits. Senior citizens 65 years or older are allowed additional exemption amount. Please refer to the provisions of § 47-1806.06, etc.

Does the District allow credit to a taxpayer for income tax paid to another state?

The District allows credit on income and fiduciary tax returns for taxes paid to other states on income taxed by the District. However, the amount of the credit may not be equal to the amount of the tax paid by the taxpayer to the other states. For an explanation of the computation of the credit, see the instructions on Form D-40.
Is design work for magazines and mailings done out of District for a District company in which no material comes into the District subject to sales or use tax?
The transaction is not subject to District sales or use tax since the master copy does not come into the District, since both the printing and mailings are not done in the District.

How does a taxpayer obtain a copy of his/her tax return?
A taxpayer may obtain a copy of his/her tax return at the Office of Tax and Revenue’s (OTR) Customer Service Center (CSC) located at 1101 4th Street, SW, Suite W270, Washington, DC 20024 or contact the CSC by phone at (202) 727-4829 for instructions on how to obtain a copy.

Is a foreign corporation taxpayer out of California which does not conduct business in the District, but is registered and has an agent in the District required to file DC’s form D-20 for Corporation Franchise Tax?
No, unless they conduct business within the District of Columbia. Please see the provisions of § 47-1801(04)(6)(A) of the DC Official Code.

What are DC’s guidelines for determining whether a corporate taxpayer has a 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.
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.

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 to the deceased taxpayer.

Where do I find these forms?

These forms can be found online at the OTR’s website.

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.

What forms or paperwork do I need to close an estate in the District? Also, what do I need to do 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 receipt of all these documents, OTR will issue a District closing letter. Any outstanding tax liabilities must be satisfied.

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.

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.

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.

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.

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.

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.

Who must file and pay the Sports Facilities 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 Sports Facilities Fee:

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

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 Sports Facilities 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.

How and when should I file the Sports Facilities Fee?
All Sports Facilities Fee returns must be filed electronically through MyTax.DC.gov and must be filed and paid on or before June 15 each year.

What are my payment options?
All payments must be made electronically. Payment options are ACH debit, ACH credit, e-Check, and credit card.

How is my fee calculated?
Please see the instructions on Form FR-1500.

How can an organization be recognized as tax-exempt from the District’s franchise tax, sales tax or personal property tax?
The responsibility for establishing tax-exempt status with the District shall rest upon the organization. An organization recognized as tax- exempt by the Internal Revenue Service is not automatically recognized and accorded tax- exempt status under the laws of the District of Columbia. To establish a tax-exempt status with the District, an organization shall file Form FR 164 (Application for Exemption) with the Office of Tax and Revenue, Exempt Organizations, PO Box 556, Washington, D.C. 20044.

What type of exempt organizations may qualify for personal property tax exemption?

Semipublic institutions under the provisions of IRC § 501(c) (3) may qualify for personal property tax exemption.

What is the effective date of a personal property tax exemption?

The effective date for a personal property tax exemption shall be the July 1st following the date of the initial application request with the District.

What type of exempt organizations may qualify for sales tax exemption?
Semipublic institutions may qualify for sales tax exemption provided the organization has a location/office in the District of Columbia. The effective date for a sales tax exemption shall be the date the OTR issues the certificate of exemption.

What is a semipublic institution?

Semipublic institution means any corporation, community chest, fund or foundation, organized exclusively for religious, scientific, charitable, or educational purposes, including hospitals, no part of the net earnings of which insures to the benefit of any private shareholder or individual.

What type of exempt organizations may qualify for franchise tax exemption?
Generally, most organizations recognized as tax exempt by the Internal Revenue Service, except social clubs (IRC § 501(c) (7)).

What is the effective date of a franchise/income tax exemption?

The effective date for a franchise/income tax exemption shall be the date that OTR issues a letter of exemption.

What returns for tax-exempt organizations are to be filed with the District of Columbia?
If you file a form 990 or form 990-PF with the Internal Revenue Service, you are required to file a copy of the form with the District of Columbia. If you have unrelated business income and are required to file federal form 990-T, you must file Corporation Franchise Tax form D-20 on your unrelated business income. If you are required to file federal form 1120POL, you must file Corporation Franchise Tax Form D-20 on your taxable IRC Section 527 income. If you are subject to the DC personal property tax, you are required to file Personal Property Tax form FP-31.

Mail all exempt organization forms to District of Columbia, OTR, Exempt Organizations, PO Box 556, Washington, DC 20044.

Are exempt organizations required to collect the District’s sales tax on sales of tangible personal property?
Yes, even though the exempt organization is exempt from DC Sales and Use Tax on purchases of tangible personal property or services used in the promotion of their exempt activities.

If an LLC from Maryland or Delaware sells and delivers sod into the District, is it reportable to the District on its income tax return? Or since the entity is an agricultural entity, is it not subject to the reporting requirement or is there a threshold that it must fit under?
Unincorporated businesses are subject to tax for the privilege of carrying on or engaging in any trade or business with the District and of receiving income from sources within the District. Thus, an unincorporated business which has gross income of over $12,000 is required to file a form D-30: Unincorporated Business Franchise Return. Based on the description of the business activity, the nonresident LLC is receiving income from sources within the District and has a physical presence in the District (delivery of sod to the District via company truck). Therefore, these activities are not protected by PL 86-272. Thus, the nonresident LLC would be subject to franchise tax in the District.

What are the requirements for a company to qualify as a Qualified High Technology Company (QHTC)? What are some of the District’s tax credits and benefits available to a QHTC? How does a company obtain the applicable Certificate of Exemption as a QHTC?

Please refer to the District’s Publication FR-399.

Taxpayer sold a condo located in the District in 2006; he lives in Virginia and the condo was not rented or purchased as an investment – he used it as a “second home.” The condo was purchased in 1999. Does he have to report the capital gain on this condo as District income? If so, which return does he use?

Since the owner of the condo is a resident of Virginia and used the property for his personal use; and did not use it as a rental property, the owner would report any gain or loss from the sale of the condo on his Virginia tax return. Federal rules apply to the treatment of gains or losses on the sale of real property.

I am a foreigner from another country residing in the District, do I need to file a District return?

If you are required to file federal income tax Return, then, you should file a District return.

How can I determine if my parents, children, grandchildren, aunt, uncle, etc. are my dependents?

The District follows federal rules per the Internal Revenue Code (IRC) of 1986.

Doesn’t the District follow the same tax law(s) as Maryland and Virginia?

The District follows the District of Columbia Official Tax Code. In some instances, the results of the application of the various tax codes are the same.

For people who want to make a difference!

Email: [email protected]
Phone: (800) 380-3495
Mail: Government of the District of Columbia
Office of Tax and Revenue
Attn: Tax Fraud Hotline
1101 4th Street, SW
Washington, DC 20024

The purpose of the Tax Fraud Hotline is to encourage individuals to report information regarding tax fraud. All complaints and/or allegations will be thoroughly evaluated and, where appropriate, investigated in a timely manner. With this information, further tax fraud can be prevented.

All identity information of the reporter will remain confidential

What should be reported to the Tax Fraud Hotline?

Examples of tax fraud that should be reported include:

• Failure to file tax returns
• Failure to pay or correctly report taxes
• False Schedule H returns
• Claiming of false dependents
• Fraudulent DC employee withholding allowance certificate (Form D-4)
• Fraudulent employer withholding tax statement (Form W-2)
• Fraudulent returns and return preparation schemes
• Erroneous claims for real property and tax abatement programs
• Sale of Social Security numbers for dependents
• Tax evasion activity
• Unlicensed businesses
• Unrecorded payments to employees
• Unreported income
• Inappropriate actions by Office of Tax and Revenue employees

How can I report tax fraud or tax abuse to the District of Columbia?

To report tax fraud or tax abuse you can either:

• Call (800) 380-3495 to have a Tax Fraud Information Referral D-3949A mailed to you. The Office of Tax and Revenue no longer accepts alleged tax law violation referrals over the phone, or;
• You can use the link below to fill out the form online. In accordance with tax return confidentiality laws, individuals who report tax fraud will not receive status or progress updates.

In accordance with tax return confidentiality laws, individuals who report tax fraud will not receive status or progress updates.

Tax Fraud Referral Form

• D-3949A
• D-3949A (Fill-In)
• D-3949A Instructions

Who operates the Hotline?

The Criminal Investigation Division (CID) of the Office of Tax and Revenue (OTR) operates the Tax Fraud Hotline. CID will safeguard the identity of individuals who report tax fraud, and investigations into complaints/allegations will be handled by the appropriate OTR staff.

What is Tax-related Identity Theft?

Tax-related Identity Theft is the fastest growing area of fraud. Tax-related identity theft occurs when someone uses a taxpayer's stolen Social Security number (SSN) to file a tax return claiming a fraudulent refund. Below are common scams that are prevalent this year that are used to steal identifying information from taxpayers.

Common Scams:

Phishing Emails and Fake Websites - Scammers send emails posing as the IRS or other tax agencies, requesting personal or financial information. DC Office of Tax and Revenue will never send you an email requesting personal or financial information.

Phone Scams/ Text Message (Impersonating the IRS or State Tax Agency) - Fraudsters call taxpayers, claiming they owe taxes and must provide payment or personal information immediately. They may threaten arrest, deportation, or license suspension to pressure victims

Stolen Mail and Paper Documents - Thieves steal W-2s, tax forms, or financial statements from mailboxes. Un-shredded tax documents discarded in the trash can be retrieved and used fraudulently

Fake Tax Preparers - Some scammers pose as tax professionals to collect SSNs, bank details, and personal data. They may file fraudulent returns and redirect refunds to their own accounts.

What to do if you find that you are the victim of tax-related Identity theft?

Provide the following information to the Customer Service Administration (CSA):

• Taxpayer ID OR Driver’s License OR State Issued Picture ID
• A completed and signed D-3949A.
• The true return (if applicable)
• A copy of a Police Report. (optional)
• Fraudulent refund check (if applicable)
• Copy of returns filed in another jurisdiction (if applicable)
• IRS Transcript (if applicable)
• Any other supporting documentation to substantiate refund claim, such as schedules and statements, if applicable.
• If a taxpayer claims identity theft when their respective tax return is assigned to the Return Integrity Unit (RIU). The taxpayer should contact the Return Integrity Unit at (202) 741-8629 for further assistance. The specialist in the Return Integrity Unit (RIU) will work with the taxpayer to determine what actions are necessary to solve the Verification Response Case.
• Contact the Internal Revenue Service (IRS) to determine if your federal tax return was also affected by Identity Theft. The telephone number for IRS is (800) 829-1040. The IRS also provides information on identity theft at their Identity theft central website, https://www.irs.gov/identity-theft-central
• Contact the Federal Trade Commission (FTC) to report identity theft. Consumers can report identity theft at IdentityTheft.gov, the federal government’s one-stop resource to help people report and recover from identity theft. The site provides step-by-step advice and helpful resources like easy-to-print checklists and sample letters. For further assistance, individuals can also contact the FTC at (877) 438-4338.