December 18, 2018
Starting January 1, 2019, the District of Columbia (DC) Office of Tax and Revenue (OTR) will begin to expire current DC tax-exempt status and require each tax-exempt organization to renew its exemption or be reclassified as a taxable entity. To ensure that your organization’s DC tax exemptions (including income, sales or property tax) do not expire, DC is advising organizations to log into their accounts at https://mytax.dc.gov/_/ and apply for renewal. DC has informed Gelman, Rosenberg & Freedman CPAs (GRF) that, as an added precaution, OTR will be sending notifications to organizations at least 30 days prior to the expiration of each exemption.
DC has indicated that some of the exemption renewal requests will require the following documents:
- A copy of the IRS Determination Letter approving the organization’s exemption from federal income tax. If the IRS Determination Letter date is older than four years, an IRS Affirmation Letter must be obtained and submitted along with the original IRS Determination Letter. Visit the IRS website at https://www.irs.gov/charities-non-profits/exempt-organizations-affirmation-letters for information about the process of requesting an affirmation letter.
- A copy of a DC Certificate of Incorporation or a DC Certificate of Registration (if the organization is not incorporated in DC).
- Sales and Use Tax Only: A signed copy of a lease, a District of Columbia Certificate of Occupancy permit issued to the organization, or other documentation to demonstrate proof of a physical location in DC.
- Personal Property Tax Only: Documentation to demonstrate proof of a physical location in DC.
Tax-exempt organizations should log onto their https://mytax.dc.gov/_/ account and renew applicable exemptions proactively. For questions about the updated renewal process, contact Richard J. Locastro, CPA, JD, Partner and Director of Nonprofit Tax at rlocastro@grfcpa.com or 301-951-9090.