District of Columbia Reminds Delinquent Taxpayers of the Benefits of Its Voluntary Compliance Program

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

By Nadine Gjurich

Individuals and businesses that are not current in filing their district tax returns are urged to come forward voluntarily and bring their accounts into compliance, the District of Columbia Department of Tax and Revenue said in a news release. [D.C. Office of Tax and Rev., News Release, 3/10/09]

The department said the benefits of participating in the program include:

• anonymity while investigating whether the program is right for the taxpayer or its business;
• the potential for limiting the look-back period to the lesser of three years or the date when the taxpayer established business in the District;
• a waiver of penalties if the tax and interest is paid in full;
• the opportunity to negotiate a payment agreement with the Office of Tax and Revenue if an adequate amount is paid in full; and
• the ability to file returns in a spreadsheet format instead of filing a return for each period involved.

A taxpayer is not eligible for the voluntary disclosure program if the taxpayer has been contacted by OTR or its representatives, the Multistate Tax Commission, or MBIA MuniServices, the news release said.

The text of the news release is available on the Internet at http://newsroom.dc.gov/show.aspx/agency/otr/section/2/release/16384.