Join OTR on Instagram Live on July 10

Join OTR’s Taxpayer Advocate Elena Fowlkes and Assistant General Counsel Elissa Borges on Instagram Live, @MyTaxDC this Friday, July 10 at 2:00 pm to get your tax filing and payment questions answered.

OTR_Live stream posts-instagram

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TAX DEADLINE ONE WEEK AWAY; 2019 TAX RETURNS AND PAYMENTS DUE JULY 15

(Washington, DC) – The District of Columbia Office of Tax and Revenue (OTR) reminds taxpayers that the deadline is one week away to file and pay their 2019 District of Columbia individual and fiduciary income tax returns (D-40, D-41, and D-40B), partnership tax return (D-65), and franchise tax returns (D-20, D-30). Due to the COVID-19 pandemic, the deadline for filings and payments was postponed from April 15 to July 15. No late charges will apply to filings and payments that are made on or before July 15, 2020.

For those who have yet to file, OTR recommends filing electronically. E-filing is faster, minimizes errors, and provides an electronic filing acknowledgement.

Payments

OTR’s tax portal, MyTax.DC.gov, provides the convenience of making online payments and payment arrangements, 24/7.

  • Payment Options

To remit a payment, taxpayers should log in to their MyTax.DC.gov account, which allows them to pay directly from their bank account for free or pay with their credit/debit card for a fee.

  • Online Payment Agreement

District taxpayers with an outstanding liability can apply for an online payment agreement by logging in to their MyTax.DC.gov account.

Additional Resources

OTR’s Taxpayer Advocate Elena Fowlkes and Assistant General Counsel Elissa Borges will host a live Instagram discussion at 2 pm Friday, July 10 to answer any District tax related questions that taxpayers may have. The discussion will be held on OTR’s Instagram page, @MyTaxDC.

Contact OTR

For assistance with MyTax.DC.gov and/or account-related questions, please contact OTR’s e-Services Unit at (202) 759-1946 or via email at e-services.otr@dc.gov.

See original release here: https://otr.cfo.dc.gov/release/tax-filing-deadline-one-week-away-2019-tax-returns-and-payments-due-july-15

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District Small Businesses Are Urged to Claim a $5,000 Tax Credit

The Office of Tax and Revenue (OTR) is reaching out to 2,500 small businesses that have not filed a District franchise tax return claiming the Small Retailer Property Tax Relief  Credit. If an eligible small retailer did not claim the credit on its 2018 District franchise tax return, it is not too late to file a return claiming the credit. For 2019, the deadline to file a return is July 15, 2020.

The credit, of up to $5000, is available for tax years 2018 and 2019 to eligible small retailers who had a sales tax account with the Office of Tax and Revenue and federal gross receipts of $2.5 million or less during those years and are current on all District tax obligations.

Deputy Chief Financial Officer for Tax and Revenue Keith Richardson said, “We recognize the many hardships that businesses are currently enduring and we are trying to get every eligible business to apply for the Small Retailer Property Tax Relief Credit.”

“Qualified retail sales corporations and unincorporated businesses engaged may claim a refundable franchise tax credit based on the amount of real property taxes or rent paid for a qualified retail location in the District,” Richardson added.
To broaden participation, OTR continues to promote the credit to filers through its business partners, civic, and elected leaders and social media platforms.

To learn more about the tax credit visit https://otr.cfo.dc.gov/page/small-retailer-property-tax-relief-credit-frequently-asked-questions-faqs, call OTR’s Customer Service Telephone Center at (202) 727-4TAX (4829) or email e-services.otr@dc.gov, 8:15 am to 5:30 pm Monday through Friday.

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Reminder: Small Businesses May Qualify for A Small Retailer Property Tax Relief Credit

The Office of Tax and Revenue (OTR) recognizes the many hardships that businesses are currently facing and would like to remind business owners of the tax relief programs offered through DC law, such as the Small Retailer Property Tax Relief Credit.

small-business-credit-1DC law allows qualified corporations and unincorporated businesses engaged in the business of making sales at retail to claim a refundable franchise tax credit of up to $5,000 based on the amount of real property taxes or rent that is paid for a qualified retail location in the District.

Below you will find some of the basic requirements:

  1. What is the Small Retailer Property Tax Relief Credit?

The Small Retailer Property Tax Relief Credit ( SR Credit) is a refundable franchise tax credit that was enacted in the Fiscal Year 2019 Budget Support Act, effective October 30, 2018 (D.C. Law 22-0168) and is codified in D.C. Official Code §§ 47-1807.14 and 47-1808.14. The SR Credit is available to qualified businesses based on either the amount of real property taxes or a percentage of rent paid on a qualified retail location. The amount of the SR Credit is the lesser of $5,000 or (a) the real property taxes paid by the qualified business or (b) 10% of the rent or paid by the qualified business.

  1. What businesses are qualified to receive the SR Credit?

A qualified business can either be a corporation or an unincorporated business. The federal gross receipts of the qualified business cannot exceed $2.5 million per year. The qualified business must be engaged in making sales at retail, must have a sales tax account with the Office of Tax and Revenue (OTR) and must file District sales tax returns reflecting its retail sales. The qualified business also must be current on all District tax filings and payments for all tax types.

  1. What does it mean for my business to be “engaged in the business of making sales at retail”?

Your business is engaged in the business of making sales at retail if your sales are “retail sales” as defined under D.C. Official Code § 47-2001(n1). Those sales include, but are not limited to, sales or charges for following:

  • All tangible personal property.
  • Food, drink and alcoholic beverages.
  • Digital goods.
  • Hotel room or any other transient lodgings or accommodations.
  • Admission to public events (except live performances of ballet, dance, or choral performances, concerts (instrumental and vocal), plays (with and without music), operas and readings and exhibitions of paintings, sculpture, photography, graphic and craft arts).
  • Parking and motor vehicle storage services.
  • Real property maintenance services.
  • Landscaping services.
  • Health club services.
  • Tanning studio services.
  • Data processing and information services.
  • Newspapers or publications.
  • Job seeking services.
  • Armored car, private investigation and security services.
  • Bottled water delivery services.
  • The storage of household goods.
  • Carpet and upholstery cleaning services.
  • Car washing services.
  • Bowling alley or billiard parlor services.
  1. What types of business are not eligible to claim the SR Credit?

Businesses that are not engaged in making sales at retail are not eligible to claim the SR Credit. Examples of businesses that are not engaged in making sales at retail are medical offices, law firms, accounting firms, insurance agents, tax preparation, engineering firms, architects, tattoo parlors, dry cleaners, consultants and other service providers.

  1. The gross receipts of my business are not subject to District sales tax. Can my business claim the SR Credit?

No. In order to qualify for the SR Credit, your business must be engaged in the business of making sales at retail and file District sales tax returns.

  1. What is a qualified retail location?

A qualified retail location can either be a building or part of building in the District of Columbia that is either leased or owned by the business. The qualified retail location must be classified as Class 2 Property and must have obtained a Certificate of Occupancy for commercial use and must be the primary place of the retail business of the qualified business. If the qualified retail location is rented by the qualified business, it also must be where the qualified business is engaged in selling tangible personal property or a service subject to District sales and use tax.

Learn more about the Small Retailer Property Tax Relief Credit by clicking here.

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Reminder – Important Tax Filing Due Dates

The Office of Tax and Revenue reminds taxpayers of important filing and payment due dates. The chart below reflects the new due dates for some tax types in response to COVID-19.
Taxpayers who are unable to timely remit payment(s) of amounts due, should visit MyTax.DC.gov to submit a request to be placed on a payment plan.

Tax Deadlines 05282020 v1

 

 

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Important Real Property Tax Filing Deadline Extensions

In order to assist those impacted by the COVID-19 pandemic, the Office of Tax and Revenue (OTR) is further extending three important deadlines for property owners in the District of Columbia. Please see below for the new deadlines for property owners who wish to appeal their TY 2021 real property tax assessment, file an Exempt Property Annual Use report, as well as file an Income & Expense (I&E) report:

Real Property Tax Deadlines 043020 fb

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Certificate of Clean Hands Application Now Available at MyTax.DC.gov

OTR _CleanHands_Poster

New process allows businesses and residents to receive their compliance status instantly.

The District of Columbia Office of Tax and Revenue (OTR) announced today that individuals and businesses can now complete the Certificate of Clean Hands application at OTR’s online portal, MyTax.DC.gov. Additionally, agencies or third parties can verify the status of an existing Certificate of Clean Hands on the portal.

“The changeover of the Clean Hands process to MyTax.DC.gov is an investment the District has made to improve services for all taxpayers,” said Keith J. Richardson, deputy chief financial officer for the Office of Tax and Revenue.

With the new process, a Clean Hands status can be provided in real‐time, with the last four digits of a taxpayer’s social security number, as well as the system generated Notice Number. Additionally, users will have the ability to upload other required documents using the portal.

The new web application supports the Clean Hands mandate which stipulates that individuals and businesses are to be denied District goods or services if there is a debt owed to the District of Columbia of $100.00 or more for fees, fines, taxes or penalties. This includes taxes, fines and other payments due to the city.

For additional information, please contact OTR’s Compliance Administration, Collections Division at (202) 724-5045 or email CleanHands.cert@dc.gov.

For technical support, contact OTR’s E-Services unit at (202) 759-1946.

Resources:

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OTR Tax Notice 2020 – 03: COVID-19 Emergency Income and Franchise Tax Extension

The District of Columbia has extended the deadline to file and pay all income, partnership and franchise tax returns until July 15, 2020. This extension applies to all D-20, D-30, D-40, D-41, D-40B, and D-65 tax filers, and includes combined return filers. This extension is automatic and does not require taxpayers to apply.

Taxpayers may continue to request an extension to file their income, partnership and franchise tax returns to October 15, 2020. All such extension requests must be made by filing the applicable extension form with OTR by July 15, 2020 and making all required payments for tax year 2019 by July 15, 2020.

The deadlines to file Forms D-20ES, D-30ES, D-40ES and D-41ES and to make estimated tax payments remains unchanged. The first quarter payments are due April 15, 2020, and the second quarter payments are due June 15, 2020.

For additional information, please contact OTR’s Customer Service Center at e-services.otr@dc.gov or (202) 759-1946.

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OTR Warns About Scams Involving Federal Payments For Individuals

(Washington, DC) – The District of Columbia Office of Tax and Revenue (OTR) urges taxpayers to beware of scams involving the new federal economic impact payments. On April 2, the Internal Revenue Service (IRS) issued a warning about coronavirus-related scams. The IRS reports seeing a significant increase in scams involving criminals trying to gather information needed for the payments.

The IRS, which is one of OTR’s partners in the Security Summit, is seeing phone calls, text messages, and e-mails that criminals are using to phish for information from individual taxpayers as well as tax preparers.

Taxpayers are reminded that scammers may:

  • Emphasize the words “Stimulus Check” or “Stimulus Payment.”
  • Ask the taxpayer to sign over their economic impact payment check to them.
  • Ask by phone, email, text or social media for verification of personal and/or banking information saying that the information is needed to receive or speed up their economic impact payment.
  • Suggest that they can get a tax refund or economic impact payment faster by working on the taxpayer’s behalf.
  • Mail the taxpayer a bogus check, perhaps in an odd amount, then tell the taxpayer to call a number or verify information online in order to cash it.

The criminals use the information they gather to raid taxpayer’s bank accounts or for other illegal purposes, such as identity theft or filing fraudulent tax returns. It is important to remember that government agencies, including the IRS and OTR, will not call, text, or email to request information about the federal payments.

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District of Columbia Estimated Tax Payment Deadlines Remain Unchanged

The Office of Tax and Revenue today announced that the deadlines for individual and business taxpayers to file their Tax Year 2020 estimated tax payments (Forms D-40ES, D-41ES, D-20ES, and D-30ES) remain unchanged. The first quarter payments are due April 15, 2020, and the second quarter payments are due June 15, 2020.

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