Via recent legislation, and in an effort to raise revenues, the District of Columbia is offering tax amnesty for submissions made between August 2 and September 30, 2010. All civil penalties and collection fees will be waived upon payment of overdue DC taxes and interest. For taxpayers who are behind with their D.C. taxes and seek to come back into compliance, this may be a worthwhile opportunity.
Who is an eligible taxpayer?
Most taxpayers will be able to take advantage of the Amnesty Program, including individuals and businesses with unpaid DC tax obligations. The Amnesty Program will not apply to: (a) previously assessed fraud penalties; (b) any company with more than 500 employees in the United States as of September 1, 2009, either independently or part of a corporate group; (c) taxes for which a taxpayer received amnesty under the 2001 Maryland amnesty program; and (d) any taxpayer that was eligible for the Delaware Holding Company settlement period established by Chapter 557 of 2004, for corporate income tax settlements under Comptroller v. SYL, Inc. and Comptroller v. Crown Cork & Seal Co., Inc.
What taxes are eligible?
Taxes based on (i) individual income, (ii) corporate and unincorporated franchise, (iii) withholding, (iv) sales and use, (v) personal property, (vi) fiduciary income, (vii) motor fuel, (viii) special events, (ix) gross receipts, (x) estate, (xi) tobacco and (xii) toll communications, provided such taxes relate to returns bearing a due date prior to December 31, 2009 (i.e. taxes for the 2009 filing season are ineligible). The Program does not apply to real estate taxes or the D.C. ballpark fees.
Other important points:
All taxes and interest must be paid by the end of the Amnesty Program period, in full. No installment payment arrangements are allowed. Taxpayers seeking to find out how much they owe in back taxes may contact the Office of Tax and Revenue (OTR) at 202-727-4TAX or via email at firstname.lastname@example.org. Though there is no penalty for failure to take advantage of the Amnesty Program, the OTR will be instructing employers to increase withholding tax collections from taxpayers who remain delinquent after the cessation of the Program.
Where can I find out more information?
Further information, including an interest calculator, is available at https://www.taxpayerservicecenter.com/IC/.
If you are behind on your D.C. taxes and have the ability to pay them off in full, including accrued interest, give some consideration to this rare opportunity. If you have any questions about the program, please do not hesitate to contact us.