Not-for-profit organizations that claim tax-exempt status in the District of Columbia will likely receive a notice from the Washington, DC Office of Tax and Revenue (OTR) requesting that they renew their exempt status. Failure to comply with the request could lead to a reclassification of their organization as a taxable entity, effective on the date their current exemption expires.
This initiative is scheduled to roll out through 2019 though some CBM clients have already received a notice from the District of Columbia requesting the renewal application.
To reclassify your tax-exempt status, visit the DC OTR website at MyTax.DC.gov and log into your account. An informative and visually-friendly PDF guide is available on their website (click here to access) to walk you through the process.
Documents You Will Need to Reapply for Tax-Exempt Status
The exemption renewal process will require several documents including your not-for-profit organization’s IRS determination letter. In some cases, an IRS affirmation letter will also be requested. (To learn more about how to request an affirmation letter if you don’t have one, visit the “Exempt Organizations – Affirmation Letters” page on the IRS website by clicking here.)
Note: In late May 2019, OTR stated that it would not require letters of affirmation from all not-for-profit organizations participating in the re-registration process. It would only require these letters from tax-exempt entities it could not verify on its own through use of the IRS Tax Exempt Organization Search website.
You may also need a copy of the DC certificate of incorporation or certificate of registration, and documentation in support of your exemption request from sales and use tax and personal property tax.
OTR has also made available a printable application for exemption. Access the application by clicking here.
You may also contact the DC Office of Tax and Revenue directly at 202-759-1946 or via email at firstname.lastname@example.org. If you have received a notice about your upcoming exemption expiration, be sure to have your notice number handy when contacting the Office of Tax and Revenue.
Councilor, Buchanan & Mitchell (CBM) is a professional services firm delivering tax, accounting and business advisory expertise throughout the Mid-Atlantic region from offices in Bethesda, MD and Washington, DC.