otr | Office of Tax and Revenue
Office of Tax and Revenue
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Instructions for Form FR-127

Why file Form FR-127?

You must use Form FR-127 to request an extension of time to file a DC individual income tax return.

Use this form if you cannot file your individual income tax return by April 15, 2015. If the due date for filing a return falls on a Saturday, Sunday or legal holiday, the return is due the next business day. By filing this form, you can receive an extension of time to file until October 15, 2015.

Filing an extension is not an extension of the due date for paying any tax you may owe. Before filing for an extension, estimate the taxes you owe and pay in full that amount not covered by withheld amounts and/or estimated tax payments. Include your payment with the FR-127 voucher and file it by April 15, 2015.

Additional extension for DC residents living or traveling outside the U.S.

In addition to the 6-month extension, you may receive an additional 6-month extension. You must file for the first 6-month extension by April 15, 2015, before applying for the additional extension of time to file.

When is the Form FR-127 due?

You must submit your request for extension along with full payment of any tax due by April 15, 2015.

When is your individual tax return due?

You may file your tax return any time before the extension expires. When you file your return, attach a copy of the FR-127 that you filed.

How to avoid penalties and interest?

File and pay your tax liability on time.

OTR will charge -
  • A penalty of 5% per month if you fail to file a return or pay any tax due on time. It is computed on the unpaid tax for each month, or fraction of a month, that the return is not filed or the tax is not paid. It may not exceed an additional amount equal to 25% of the tax due;

  • A 20% penalty on the portion of an underpayment of taxes if attributable to negligence. Negligence is a failure to make a reasonable attempt to comply with the law or to exercise ordinary and reasonable care in preparing tax returns without the intent to defraud. One indication of negligence is failure to keep adequate books and records;

  • Interest of 10% per year, compounded daily, on a late payment;

  • A one-time fee to cover internal collection efforts on any unpaid balance. The collection fee assessed is 20% of the tax balance due after 90 days. Payment received by OTR on accounts subject to the fee are first applied to the fee then to penalty, interest and tax owed;

  • A civil fraud penalty of 75% of the underpayment which is attributable to fraud (see DC Code §47-4212).

Payment Options for FR-127 Extension of Time to File Income Tax Return

You can make online payments after your FR-127 is submitted.

To make paying taxes more convenient and hassle-free, the Office of Tax and Revenue (OTR) accepts the use of electronic checks and credit cards when paying for individual income taxes owed to the District.

OTR will receive the electronic check/credit card transaction from the vendor and apply it to the taxpayer’s account. DC's third party payment vendor will charge taxpayers a nominal fee for the credit card transaction based on an established percentage of the transaction amount.

If remitting payment by ACH Credit, please contact your financial institution. Reference the Electronic Funds Transfer (EFT) Payment Guide for payment reporting specifications.

    
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