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otr

Office of Tax and Revenue

Currently, there is a text message scam that is occurring in the District of Columbia. Taxpayers are receiving text messages that claim to be from the DC Office of Tax and Revenue asking them to update their banking information. If you get a text message stating it is from DC's Office of Tax and Revenue, please do not reply or click any link and delete it from your device. We will never send unsolicited text messages asking for personal information. If you have any questions, you can contact our Customer Service office at (202) 727-4829 or visit MyTax DC.

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Voluntary Disclosure Program

The Office of Tax and Revenue (OTR) encourages businesses and individuals who are not in current filing their District tax returns to come forward voluntarily to bring their accounts in compliance with the District’s tax laws. If a taxpayer or business has failed to pay District taxes or has transactions on which taxes should be paid, the taxpayer may contact the Voluntary Disclosure Unit in OTR to make satisfactory arrangements to clear their tax record.  

Taxpayers can remain anonymous during the initial application process, OTR will not assess any penalties or late fees on the disclosed periods, primarily all electronic processes. 

To submit a VDA application you will go to MyTax DC and select “Submit VDA” 

Note: If a taxpayer has been contacted by OTR or its representatives (i.e. Multistate Tax Commission or RSI Enterprises), has been filing intermittently, has unreported income on filed return, or is currently registered and has filed returns for the specific tax type, the taxpayer is not eligible for the Voluntary Disclosure Program. 

For Taxpayers that are ineligible, you may contact the Voluntary Disclosure Unit ([email protected]) for an alternative method to bring your account into compliance. 

The Audit Division of OTR's Compliance Administration administers the Voluntary Disclosure Program. A voluntary disclosure offer may be submitted to Voluntary Disclosure Unit at OTR, but approval authority is vested in the Audit Division Chief, Assistant Audit Division Chief, or Supervisory Tax Auditor. 

For any questions regarding the Voluntary Disclosure Program, please contact the VDA Division at [email protected]. 

 

Voluntary Disclosure Program – General Guidelines

The Office of Tax and Revenue (OTR) evaluates voluntary disclosure applications based on the specific facts and circumstances of each case. The following guidelines apply to most voluntary disclosure applicants:

  1. Eligibility

    • Any taxpayer may apply to resolve outstanding tax obligations through the voluntary disclosure process, except for liabilities under the authority of the Real Property Tax Administration and Qualified High Technology Company programs.

  2. Look-Back Period

    • In most cases, the OTR Voluntary Disclosure Unit will limit the look-back period to three years or to the date the taxpayer established nexus in the District of Columbia, whichever is later.

    • For sales or gross receipts tax cases, if the taxpayer collected sales tax or gross receipts tax reimbursements from customers but did not remit them to the District, the look-back period will be the greater of three years or the date nexus was established.

  3. Payment Arrangements

    • For substantial liabilities, OTR may allow a payment agreement through the Collection Division, provided an adequate upfront payment is made.

    • Missing a scheduled payment may result in the agreement being voided. In such cases, OTR reserves the right to assess additional penalties and interest on the remaining balance.

  4. Nonprofit Organizations

    • Nonprofits with approved tax-exempt status may use voluntary disclosure to report unreported Unrelated Business Income (UBI) from prior years. UBI reported to the District must match that reported (or required to be reported) to the Internal Revenue Service.

    • Corporations report UBI using Form D-20; all other entities use Form D-30.

    • Nonprofits without approved tax-exempt status must first file Form FR-164, Application for Exemption, and report any prior-year UBI.

    • The voluntary disclosure process may also be used to report prior-year taxes such as franchise, personal property, sales, use, and arena taxes.

  5. Remote Sellers and Marketplace Facilitators

    • Effective January 1, 2019, sellers without a physical presence in the District must collect and remit sales tax if, in the previous or current calendar year, they have:

    • Over $100,000 in gross receipts from retail sales delivered into the District, or

    • More than 200 separate retail sales delivered into the District.

    • Effective April 1, 2019, marketplace facilitators, as defined in D.C. Code § 47-2001(g-5), must collect and remit sales tax on all sales made through their marketplaces.