(Washington, DC) - With a little more than three weeks left in the DC Tax Amnesty, many taxpayers are taking advantage of the program to pay their delinquent tax bills and satisfy their debt. To date, $2 million has been collected from more than 2,900 delinquent individual and business taxpayers. Interest in the program is high. For the period of August 2-September 3, more than 14,000 telephone, web, email, and in-person contacts were made with the Office of Tax and Revenue (OTR) regarding the amnesty program.
"The DC tax amnesty is on track to reach its $20 million goal,” said Stephen M. Cordi, deputy chief financial officer for the District’s Office of Tax and Revenue. “The bulk of state tax amnesty receipts are typically received in the last few days of an amnesty. In Pennsylvania's highly successful tax amnesty which ended on June 18, 2010, for instance, 71 percent of its receipts were attributable to the last four days of the campaign."
Individuals who do not take advantage of the amnesty may find themselves with less money in their paychecks. The District will ask their employers to reduce withholding allowances to zero.
“These opportunities are infrequent, so taxpayers should take advantage of this one,” Cordi warned. The last time the District held an amnesty was 1995.
Businesses that take credit cards may want to review their past returns. Beginning next year, credit card companies will report sales revenues to the Internal Revenue Service which will share the information with states and the District. Discrepancies could trigger an audit. Businesses that have underreported sales are well advised to file amended returns.
The program, which waives all penalties and collection fees, began August 2 and ends September 30, 2010. To obtain amnesty, all outstanding taxes and interest must be paid in full. Real property taxes and the ballpark fee are not included in the amnesty.
More information on the DC Tax Amnesty program may be found at www.dctaxamnesty.com. Information is available in multiple languages. Taxpayers with questions regarding the Tax Amnesty program or amount owed should call OTR at (202) 727-4TAX (4829), via email at firstname.lastname@example.org or visit the Customer Service Center at 1101 4th Street, SW Suite W270, Washington, DC 20024. The center is open Monday to Friday from 8:15 am to 5:30 pm.