DISTRICT OF COLUMBIA OFFICE OF TAX AND REVENUE
BACK TAX RELIEF
Get started resolving your state tax liabilities using the information below. If you still need help, reach out to us using the contact form to the right of this page.
Here’s the DC Taxpayer Rights webpage. Take a look. You should definitely know your rights when it comes to back taxes. But, it explains very little about the steps necessary to resolve a tax liability with the District of Columbia.
DC-OTR Monthly Payment Plan
Here are the quick and simple guidelines to getting a monthly payment agreement to pay your back taxes.
Less than $5,000 owed.
- 24 months or less to pay
- No financial information required
More than $5,000 owed or if you need more than 24 months.
- Complete Financial Statement Form(s) PA-1 and/or PA-2 required
- Most recent income tax return required
- Current balance sheet and P&L required for businesses
- Expect tax lien to be filed
- The OTR may re-evaluate your payment agreement as they see fit
DC-OTR Offer in Compromise
If you are in a dire financial situation relative to the size of your tax liability, an Offer in Compromise may be something to consider. Some considerations to get you started.
- 20% of the amount you’re offering the OTR is due with your OIC.
- Monthly payments toward your remaining Offer amount are required while it is reviewed by the OTR.
- The remaining Offer amount must be paid within 12 months of the acceptance date.
- All payments made toward your Offer are not refundable, even if it is denied. The payments will be applied toward the tax liabilities.
- You must file and pay all tax obligations for 5 years after acceptance of the OIC or the OTR may reinstate and collect your original tax debt plus accrued penalties and interest.
- If you already have a monthly payment plan in place prior to submitting your OIC to the OTR, you will be expected to keep making the payments.
Like the IRS, the OTR may consider removing penalties for Reasonable Cause. So, the circumstances surrounding the accrual of your tax liability must have been out of your control. If you can prove that, you may have a shot.