On June 14, 2013, the District of Columbia Office of Tax and Revenue (OTR) issued Prop. D.C. Mun. Regs. 9 §176.1, which provides calendar year and fiscal year combined reporting filers a seven-month extension to file their D.C. returns for tax years beginning on or after December 31, 2010. However, taxpayers must request the seven-month extension on or before the due date of the return and still must pay the tax on original due date.
The purpose of this extension is to provide taxpayers, many of whom are filing their first combined return, with additional time to submit accurate combined returns. Many taxpayers have struggled with D.C.’s introduction of combined reporting, particularly with the application of the unincorporated business franchise tax and the apparent inconsistencies between the combined reporting statute and other regulations promulgated by OTR.
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