The District of Columbia has just announced that it will implement a voluntary disclosure program which encourages individuals and businesses that are not current in filing their District tax returns to come forward voluntarily and bring their accounts into compliance. According to Stephen M. Cordi, the District’s Deputy Chief Financial Officer “Any taxpayer can apply to remedy any tax obligation under the voluntary disclosure program, except for tax liabilities under the authority of the Real Property Tax Administration.”

Benefits of participating in the program include:

• Taxpayers can remain anonymous while investigating whether this program is right for them or their business
• In most cases, OTR will agree to limit the “look-back” period to the lesser of three years or the date when the taxpayer established business in the District
• Waiver of penalties if the tax and interest is paid in full
• OTR may agree to establish a payment agreement if an adequate amount is paid in full
• The ability to file returns in a spreadsheet format instead of filing a return for each period involved.

Please note that any taxpayer that has already been contacted by the District or its representatives, such as the Multistate Commission or MBIA MuniServices, is not eligible to participate in VDP.

If you have an outstanding tax obligation with the District, other than for real property tax, please contact the Aronson & Company Tax Services Group at 301.231.6200.