View FAQs on Payment Agreement on MyTax.DC.gov.
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 monthly installments.
Taxpayers may request an installment agreement from the Collection and Enforcement Administration (CEA) online via MyTax.DC.gov or by contacting the CEA by telephone at (202) 724-5045. In addition, an installment agreement can be requested through a CEA representative who is assigned to a particular case.
When making installment payments, taxpayers are expected to remain in compliance with their current taxes in addition to their agreed upon installment payments. 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, the OTR may collect the taxes owed by seizing wages or bank accounts.
Installment agreements involving amounts larger than $100,000.00 or lasting more than 48 months require the following documentation:
- Form PA-1 (for individuals) or PA-2 (for businesses) - These are found in the Tax Forms, Publications, and Resources section.
- Current federal income tax return of responsible individual(s) and the business (if applicable)
- Latest balance sheet and profit and loss statement (for businesses)
Once an installment agreement is established, 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.