Dealing with state and local tax controversies can be difficult without the guidance of an experienced tax attorney. If you are facing an audit or collection enforcement from the DC Office of Tax and Revenue, a Washington DC state and local tax lawyer could defend your tax returns and protect you from tax levies.
DC Income Tax Return Requirements
Washington DC has a reciprocity agreement with Maryland and Virginia, which means someone who lives in one of those states but works in the District only has to pay the taxes of the place where they live.
Individuals who were residents of DC during the tax year in question must file an income tax return to the city. Anyone who lived in DC for at least 183 days at any point in the year must do this, even if their primary place of residence is in another state. There are also specific guidelines for part-year residents.
Many active-duty military members live and work in the capital region – however, even if those members are living in DC, they do not have to pay DC taxes if they have a home of record in Virginia or Maryland. Likewise, if the spouse of an active-duty servicemember earned income in DC while the servicemember was on military orders, the spouse is not taxed as a DC resident if their legal residence is in another state.
Given the proximity to other states and the high number of commuters that maintain homes in DC, it is not uncommon for individuals to have questions about where they need to file. This can occasionally lead to mistakes such as unfiled tax returns, especially for those who do their tax preparation alone. When a potential problem arises that might result in an IRS penalty or investigation, a state and local tax attorney in Washington DC might be able to help the taxpayer sort it out.
Resolving Tax Disputes in DC
An experienced attorney could help assess risk and resolve conflicts in several ways. Taxpayers with federal tax issues typically need help with one or more of the following local tax issues:
- Income tax
- Sale and use tax audits, and collections
- Employer withholding tax
- Unemployment tax (including confirming the proper Unemployment Insurance rate)
- Property tax
- Residency complications
- State-level audits and levy/lien resolutions
Every state – as well as the nation’s capital – has a separate legal system for assessing and collecting tax. With fewer resources as compared to the IRS, and less formal procedures, state tax departments can be much more complicated to navigate.
However, most states have an Offer in Compromise program, as well as payment plans. An Offer in Compromise involves a taxpayer offering to pay back a portion of their entire debt with the agreement that the rest is forgiven by the government. This option is primarily reserved for those who face financial hardships that make paying the full tax bill nearly impossible. A Washington DC state and local tax attorney works with taxpayers who have active issues from the DC Office of Tax and Revenue.
Talk to a Washington DC State and Local Tax Attorney Today
If you are facing local or state tax issues while residing in Washington DC, you could benefit from a discussion with a legal professional. Facing tax controversies alone could lead to mistakes which put you at risk of penalties. Discuss your options with a Washington DC state and local tax lawyer by calling today for your confidential consultation.
