District of Columbia: Sales Tax Handbook

How to appeal a sales tax audit or penalty in District of Columbia

In District of Columbia, the Office of Tax and Revenue will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.

If you disagree with a penalty or ruling made by the District of Columbia Office of Tax and Revenue, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Office of Tax and Revenue, to an administrative appeal body, and through the courts.

Sales Tax Statute of Limitations in District of Columbia

In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed District of Columbia sales tax return in the event of underpayment, incorrect reportings, etc. The Office of Tax and Revenue cannot begin an audit or issue a penalty after this timeframe.

The statute of limitations in the District of Comumbia is three years from return filing date. Three years becomes six if the tax was understated by more than 25%.

Appealing to the Office of Tax and Revenue in District of Columbia

If you do not agree with a penalty or decision made by the District of Columbia Office of Tax and Revenue, you have the right to file an appeal and ask for reconsideration. In the case of a department appeal, an official petition must be filed with the Mayor less than thirty days after notice of deficiency

Administrative Sales Tax Appeals in District of Columbia

This district has no administrative appeal body

Judicial Sales Tax Appeals in District of Columbia

If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the Superior Court within six months of the date of the final determination or denial of refund claim.

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