Extensions for Sales and Use, Real Property, and Individual/Partnership/Franchise Taxpayers, and Guidance on the Franchise Tax Nexus

• District of Columbia
• Washington
• Business
• Tax

As part of the COVID-19 Response Emergency Amendment Act of 2020, the D.C. Office of Tax and Revenue (“OTR”) was granted expanded authority to extend deadlines and waive interest and late payment penalties to assist taxpayers, businesses, and property owners with the economic impact of the COVID-19 pandemic.

Real Property Tax Filers

In order to assist property owners, OTR announced on April 30, 2020 that it is further extending three important deadlines for property owners in the District of Columbia.

• First Level Assessment Appeals:

• Tax appeals due on April 1, 2020 will now be due on May 15, 2020 for District property owners who believe their proposed TY 2021 assessment does not reflect the market value of their property. Property owners can complete and submit their appeal form online at https://www.taxpayerservicecenter.com/Assessment_Appeal.jsp.

• Income and Expense:

• The April 15, 2020 due date to file the Income and Expense report has been extended to June 1, 2020. All filers must submit their TY 2021 Income and Expense report online at https://www.taxpayerservicecenter.com/income/.

• Exempt Property Annual Use Report:

• The April 1, 2020 deadline to file the Exempt Property Use Report has been extended to May 15, 2020. Filers may submit their Report online (preferred) or by mail.

Hotel Property Tax Filers

Although filing deadlines have not been moved, a hotel or motel tax filer may pay its first half tax year 2020 real property tax installment by June 30, 2020, and payment made by such date shall be timely, to the extent it brings the tax liability current. Penalties and interest owed for prior periods are unaffected by the Act.

For purposes of section 201(a) of the Act, the terms “hotel” and “motel” mean a real property any part of which is classified for tax year 2020 as Class 2 Property under § 47-813, is commercially improved and occupied, and is a hotel, motel, inn, or other place which is regularly used for the purpose of furnishing rooms, lodgings, or accommodations to transients.

Sales and Use Tax Filers

OTR will automatically waive interest and late payment penalties of sales and use tax for all businesses (except hotels and motels) for periods ending on February 29, 2020 and March 31, 2020 provided that payment of all taxes due for these periods are made in full by July 20, 2020. All businesses must continue to timely file their monthly and quarterly sales and use tax returns through OTR’s online portal, MyTax.DC.gov, to receive this benefit.

Any hotel or motel vendor registered with OTR with the NAICS code 72111, 721110, 72112, or 721120 is ineligible for waived interest and penalties for failure to timely pay sales and use tax due for the periods ending on February 29, 2020 and March 31, 2020.

Individual/Partnership/Franchise Tax Filers

The deadline for taxpayers to file and pay their 2019 District of Columbia individual and fiduciary income tax returns (D-40, D-41, and D-40B), partnership tax returns (D-65), and franchise tax returns (D-20, D-30) is extended to July 15, 2020. This extension is automatic and does not require taxpayers to apply. This means taxpayers will have an additional 90 days to file and pay from the original deadline of April 15, 2020.

The OTR encourages taxpayers who are able to file their returns electronically to do so.

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.

Franchise Tax Nexus

The OTR will not seek to impose corporation franchise tax or unincorporated business franchise tax nexus solely on the basis of employees or property used to allow employees to work from home (e.g. computers, computer equipment, or similar property) temporarily located in the District during the period of the declared public emergency and public health emergency, including any further extensions by the Mayor.

Government or Lead Agency

Office of Tax and Revenue

Dates Available

Effective immediately

Eligibility Requirements/Restrictions

Parties should consult eligibility resources and criteria provided by the OTR.

Application Deadlines (If Applicable)

See above for varying deadlines.

Contact for More Information

To contact OTR’s Customer Service Administration, please call (202) 727-4TAX (4829).

To contact OTR’s Customer Service Center, please call (202) 759-1946 Monday through Friday from 8:15 a.m. and 5:30 p.m. or email e-services.otr@dc.gov.

To contact OTR’s Customer Service Center for Individual, Partnership, and Franchise taxes, please call (202) 727-4TAX (4829).

To contact OTR’s Exemption Unit, please call (202) 442-7024 Monday through Friday from 8:15 a.m. and 4:45 p.m.

List of Additional Information

Please see this webpage for OTR’s Coronavirus Information and Guidance.

For more information about the filing and payment deadline extensions for business and real property taxpayers, please visit this webpage and this webpage.

For more information about abatement of interest and waiving of penalties for failure to timely pay sales and use tax due for the periods ending on February 29, 2020 and March 31, 2020, please visit this webpage.

For more information about the extended real property tax due date for hotels and motels, please see this notice and visit this webpage.

For more information about real property taxes, please visit this webpage.

Please see this webpage for the COVID-19 Real Property Tax Penalty & Interest Waiver Form.

For more information about the filing and payment deadline extensions for Individual, Partnership, and Franchise taxpayers, please visit this webpage and see this notice.

For more information about the Franchise Tax Nexus, please visit this webpage and see this notice.