New Requirements for Renewal of Exemption Status in Washington, DC

Organizations exempt from income and franchise, sales and use and/or personal property taxes in the District of Columbia are subject to a new requirement to renew tax exemptions every five years. The requirement is effective for 2019.

A letter has already been sent by the DC Office of Tax and Revenue (OTR) to the address of record for all exempt organizations explaining the new requirement. If you have not received this notice, it is important to contact the OTR’s e-Services Unit by calling (202) 759-1946 or emailing e-services.otr@dc.gov to ensure future notices will be sent to the correct address.

A second letter will be sent 30 days before the renewal application is due. If the application is not filed by the end of the 30-day notice, the organization will face reclassification as a taxable entity.

The renewal application (Form FR-164) will be filed online. Access your account at MyTax.DC.gov and log on. A user-friendly guide to the form and other requirements can be obtained on the OTR website here.

Other requirements can include:

• The most recent copy of the IRS determination letter approving the organization’s exemption from federal income tax.
• A copy of the DC certificate of incorporation if incorporated in DC, or a copy of a Certificated of Authority or Certificate of Registration if not incorporated in DC.
• Proof of a physical location in DC for sales and use tax and personal property tax.

Please contact Patty O’Malley at 301-564-3636 with any questions you have about the new renewal requirements for maintaining your organization’s exemption status in DC.