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D.C. Will Not Seek Nexus Based on At-Home Employees

Dated Apr. 14, 2020

Citations: Tax Notice 2020-05

SUMMARY BY TAX ANALYSTS

The District of Columbia Office of Tax and Revenue issued a notice stating that it will not seek to impose nexus on businesses solely on the basis of employees working from home during the COVID-19 emergency.

OTR Tax Notice 2020-05 COVID-19 Emergency Income and Franchise Tax Nexus

Friday, April 10, 2020

On March 11, 2020, the Mayor of the District of Columbia declared a public emergency and a public health emergency caused by the coronavirus (COVID-19). See Mayor's Order 2020-045 dated March 11, 2020, and Mayor's Order 2020-46 dated March 11, 2020. The Mayor subsequently extended the declaration of a public emergency and a public health emergency through April 24, 2020. See Mayor's Order 2020-050 dated March 20, 2020.

The Office of Tax and Revenue will not seek to impose corporation franchise tax or unincorporated business franchise tax nexus solely on the basis of employees or property used to allow employees to work from home (e.g., computers, computer equipment, or similar property) temporarily located in the District during the period of the declared public emergency and public health emergency, including any further extensions by the Mayor.

For additional information, please contact OTR's Customer Service Center at e-services.otr@dc.gov or (202) 759-1946.

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