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.

Attorney John Pontius

Pontius Tax Law, PLLC is a tax law firm that strives to resolve sensitive tax problems through trust, dedication and value. The law firm was founded by John Pontius with offices in Washington, DC,  Rockville, MD, Bethesda, MD, Fairfax, VA, and Alexandria, VA. Mr. Pontius represents individual and business clients with sensitive and serious tax matters before the Internal Revenue Service and state taxing authorities. His client base is local, national, and international.

Over the course of his career, Mr. Pontius has represented businesses and individuals with complex tax issues in the following areas: FBAR examinations, offshore and domestic disclosures, FATCA, FIRPTA, tax planning, unfiled tax returns, release of tax liens and levies, trust fund recovery penalty, IRS and state audit examinations, as well as appeals, penalty abatement, U.S. Tax Court litigation, along with defense of tax fraud and evasion. If you require assistance from a tax lawyer, contact Mr. Pontius to discuss your situation.

Client Reviews
John helped us with a DC tax audit and succeeded in getting us a "no change" final decision. The issues were related to two flow-through entities and the use of carry-forward operating losses -- something that the DC auditors struggled to understand and with which they did not have any...
Paul A
Mr. Pontius is extremely professional and was able to take care of my tax returns which includes international bank accounts quickly and at a very reasonable price. Would definitely recommend.
I received a fee this past November from the IRS for over $800 because of an error I made on my 2016 taxes. I called my cousin, John Pontius, and he immediately knew what steps needed to be taken. Thanks to him, the fee was cleared. A 10 minute conversation...
As an American citizen living in the Middle East my local banker informed me that I needed to file FBARs and report my worldwide income to the IRS. Through the recommendation of another attorney at an international law firm, I was introduced to John Pontius. Mr. Pontius efficiently and effectively...
Kareem S
John handled a difficult IRS lien for my client. He was excellent in getting the lien released so we could close on the property. I would highly recommend John .
Bobbie M
We were seeking tax advice with managing two properties, LLC, as well as some future financial planning. John responded to my call in a timely manner and was happy to answer our questions while referring us to specialists who can manage our accounts on a more regular basis.
Janelle M
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