District of Columbia sales tax notices

Why you got it

• A sales tax return or extension was not filed by the due date
• The account was registered in error, or an exemption to file has expired

What to do

1. Check the period against your records. If you already filed, or the account has an active exemption, email OTR or call the Collection Call Center at (202) 724-5045. If the exemption has expired, renew it with Form FR-164. If the account was registered in error, email OTR a written statement signed by the officer or POA on the account.
2. If the return is missing, file it through MyTax.DC.gov. If the business has closed, file the last return and mark it final.
3. Pay the tax due. If you cannot pay, still file on time and request a payment agreement through MyTax.
4. If penalties are charged and the late filing had reasonable cause, send OTR a written penalty waiver request with supporting documents

Why you got it

• Tax was not paid in full by the due date

What to do

1. Check the periods and amounts against your returns and payments, and call the number on the notice right away if something looks wrong.
2. Within 15 days of the notice date, pay the tax, or ask for a payment agreement through MyTax.DC.gov if you cannot pay in full. OTR asks for the full amount by then, and an unpaid balance can lead to a Notice of Enforcement.
3. If the late payment had reasonable cause (for example an outside event such as a fire destroying your records), send OTR a written penalty waiver request with supporting documents. OTR says not receiving forms or notices is not grounds for waiving interest

Why you got it

• An audit proposed changes to your sales and use tax returns
• OTR estimated tax for periods you did not file
• Sales tax collected by the business was not remitted (officer assessment)

What to do

1. Review the proposed changes and the audit workpapers against your records.
2. If you disagree, ask the Audit Division for an informal conference as the notice explains, or file a written protest (form L&E-006) with OAH within 30 days and send a copy to OTR so collection is put on hold.
3. If you agree with the tax, pay it or set up a payment agreement. If you had reasonable cause, you can also ask OTR in writing to waive the penalties.

Why you got it

• Selection through methods such as prior audit results, the Nexus Audit Program, the Discovery Audit Program, IRS information or random selection

What to do

1. Read the letter to see what the audit covers and which documents are requested, and respond promptly to set up the appointment.
2. Gather purchase and sales invoices, general ledgers, sales journals, exemption certificates and canceled checks for the audit period.
3. Ask for a convenient time and place, and consider bringing a representative. Call the Audit Division at (202) 442-6582 with questions.

Why you got it

• Full payment was not received within 15 days of a Notice of Tax, Penalty and/or Interest Due

What to do

1. Call the number on the notice right away to pay or set up a payment agreement.
2. Pay within 30 days of the Notice of Enforcement Action to avoid the collection fee.
3. Act quickly. Next steps can include a tax lien, a levy on bank accounts or wages, seizure of property, or revocation of your sales tax certificate.
4. If you had reasonable cause, you can still send OTR a written penalty waiver request. If it is denied, you can ask Collection and Enforcement in writing to reconsider

Why you got it

• The tax was not paid within 10 days after a Notice of Tax Due and demand for payment

What to do

1. Contact OTR Collection and Enforcement at the number on your notice to confirm the balance, and pay it or arrange a payment agreement.
2. If you sell District real estate while the lien is in place, the taxes due are paid from the sale proceeds and the lien can then be released.
3. If the balance includes penalties and you had reasonable cause, you can still send OTR a written penalty waiver request.