The 2024 D-2220, Underpayment of Estimated Franchise Tax By Businesses, is the form the District of Columbia Office of Tax and Revenue (OTR) provides for calculating interest on estimated franchise tax that a business did not pay on time. Businesses that file Form D-20 or Form D-30 use it to work out the interest and attach it to the return. It concerns business franchise tax, not real property tax. On FillingPDF you can fill out the form online and download or print the completed PDF; the original PDF is published by OTR.
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What is D-2220?
2024 D-2220, Underpayment of Estimated Franchise Tax By Businesses, is the Government of the District of Columbia, Office of Tax and Revenue (OTR) form that a business uses to compute the interest owed when its DC estimated franchise tax payments fall short of what the law requires for tax year 2024.
The form works period by period. You start from your 2024 franchise tax liability on Form D-20 or D-30 and, where you filed for 2023, from 110% of your 2023 liability. The lesser of 90% of the 2024 figure and the 2023 figure becomes your minimum estimated tax requirement, which is spread over four payment periods at 25% each. You then compare that requirement with the estimated tax you actually paid in each period, and the shortfall in each period is multiplied by the underpayment interest factor printed on the form. The total on Line 11 is the interest you pay.
The estimated payments themselves are made with the vouchers in Form D-20ES, Declaration of Estimated Franchise Tax for Corporations, or Form D-30ES, Declaration of Estimated Franchise Tax for Unincorporated Businesses. Form D-2220 does not replace those vouchers; it measures what happens when they were not paid in full or on time.
The form is also an annualized income option: if your income was not received evenly over the four periods, you can check the Annualized Income box and enter period amounts based on your income for each period.
OTR publishes this document in two versions on its site, an Official version and this Fill-in version.
Who needs to file D-2220?
The main group is businesses that file a DC franchise tax return on Form D-20 or Form D-30 and did not pay enough estimated franchise tax during 2024. DC law requires a business that expects its franchise tax liability to exceed the threshold in the instructions to declare and pay estimated tax with the D-20ES or D-30ES vouchers.
You may use the form in two situations:
- To calculate the underpayment interest yourself and attach the form to your return. If you prefer not to, OTR calculates the interest when your return is processed and notifies you of the amount due.
- If you believe the interest OTR assessed for underpayment of estimated franchise tax is incorrect.
Do not file the form if no underpayment interest is due. The form says this is the case if:
- your tax liability after DC credits and estimated payments is below the dollar threshold printed in item A of the form; or
- your required periodic DC estimated payments total at least 110% of last year's tax or 90% of the current year's tax. To use the 110% prior-year exception you must have filed a DC franchise tax return last year and been in business in DC for the entire year.
The instructions list further exceptions, including having no DC franchise tax liability for 2023 while doing business in DC for all 12 months, or having remaining tax due of less than 10% of your total liability for the year after credits and estimated payments.
When to file D-2220
The form has no due date of its own: it is completed with the 2024 Form D-20 or D-30 return, or afterward if OTR sends a notice of interest assessment. If you complete it before filing your return, attach it to the return. If you complete it after filing and receiving the notice, send it to OTR at the address given under how to submit.
The estimated payments the form measures are due in four periods. For a calendar-year business the due dates are printed above Line 6; a fiscal-year business uses the 15th day of the 4th, 6th, 9th and 12th months after the end of its fiscal year. Interest is measured against those dates, so the periods you enter on Lines 6 and 7 must follow your own tax year.
Documents you need
- Form D-20 or Form D-30 franchise tax return: attach the completed D-2220 to it when you complete the form before filing the return.
- Form D-20P or Form D-30P Payment Voucher: attach the D-2220 to it, with your payment, only when you file the D-2220 separately from the return.
- Check or money order payable to the DC Treasurer for the interest on Line 11, when you pay by check or money order.
- The notice of interest assessment from OTR: the form is sent in response to it only if you complete the D-2220 after filing and receiving that notice.
How to fill out D-2220
Enter business and contact details
At the top, enter the business name exactly as on your D-20 or D-30 return, your Taxpayer Identification Number (TIN), a contact person and a daytime telephone number.
Check whether you should file
Read items A and B at the top of the form. If either applies, no underpayment interest is due and the form should not be filed.
Enter the 2024 liability on Line 1
Enter your 2024 DC franchise tax liability from Form D-20 or D-30.
Calculate 90% on Line 2
Multiply the amount on Line 1 by 90% (.90). Your estimated franchise tax payments must be at least this amount.
Calculate 110% of 2023 on Line 3
Enter your 2023 DC franchise tax liability from Form D-20 or D-30 times 110%. If the 2023 return was amended or corrected, use the corrected amount.
Find the minimum on Line 4
Enter the lesser of Lines 2 and 3. If you did not file a DC franchise tax return for 2023, use Line 2 only.
Divide the minimum on Line 5
Multiply Line 4 by 25% (.25) to spread your liability evenly over the four periods.
Complete the required amounts on Line 6
Enter the Line 5 amount in each period, accumulating the earlier periods in the 2nd, 3rd and 4th columns. If income was uneven, use the annualized income method and check the Annualized Income box.
Enter estimated payments on Line 7
Enter the DC estimated taxes you paid in each period, cumulatively: the 2nd period includes the 1st, the 3rd includes the 1st and 2nd, and the 4th includes all.
Find each underpayment on Line 8
For each period, subtract Line 7 from Line 6. If Line 7 is larger, you have no underpayment interest for that period.
Apply the interest factors
Multiply each Line 8 amount by the factor printed on Line 9 and enter the result on Line 10. Add the Line 10 amounts and enter the total on Line 11.
Review and download the completed PDF
Check that Lines 6 and 7 are cumulative and that the totals agree. Download or print the completed PDF from FillingPDF, then enter the Line 11 amount on Line 44 of your D-20 or D-30 if attaching it.
How to submit D-2220
There are two ways to file Form D-2220: with your return, or separately.
- With your D-20 or D-30 return: attach the completed form to the return, enter the underpayment interest from Line 11 on Line 44 of the return, fill in the oval on Line 44 to show that the D-2220 is attached, and pay the total with the return.
- Separately, after a notice: if you complete the form after filing and receiving a notice of interest assessment, send it to Office of Tax and Revenue, 1101 4th St SW, 2nd Floor, Washington DC 20024.
- Separately, with payment: if you file the D-2220 apart from the return, pay the amount you owe and attach the form to the Form D-20P or D-30P Payment Voucher, using the applicable mailing address.
Make a check or money order payable to the DC Treasurer. Make sure your check or electronic payment will clear: OTR charges a fee if it is not honored and is returned. FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Filing the form when no underpayment interest is due, such as when your required estimated payments already meet the 90% or 110% test printed in item B.
- Using the 110% prior-year test without having filed a DC franchise tax return last year or without being in business in DC for the entire year.
- Using your original 2023 liability on Line 3 when the 2023 return was amended or corrected; the instructions say to multiply 110% by the corrected amount.
- Entering single-period amounts on Lines 6 and 7 instead of cumulative ones, where the 2nd, 3rd and 4th periods include the earlier periods.
- Using Line 3 when you did not file a 2023 DC franchise tax return; the instructions say you may then use only Line 2.
- Forgetting to check the Annualized Income box when Line 6 is based on income received unevenly over the four periods.
- Not filling in the oval on Line 44 of the D-20 or D-30 when the D-2220 is attached.
- Paying with a check that does not clear, which triggers a returned-payment fee from OTR.
Frequently asked questions
What is Form D-2220 used for?
Form D-2220 calculates the interest a business owes when its DC estimated franchise tax payments fall short of the required amount. Businesses filing Form D-20 or D-30 can use it to compute the interest, or to challenge an interest assessment OTR has already made.
Is Form D-2220 a DC property tax form?
No. The D-2220 deals with DC franchise tax paid by businesses that file Form D-20 or D-30. It measures underpaid estimated franchise tax, not DC property tax. Contact OTR for forms that cover other taxes.
Do I have to file Form D-2220?
Not necessarily. You may use it to calculate your own interest; if you do not, OTR calculates the interest when it processes your return and notifies you of the amount due. Do not file it if no interest is due, as items A and B on the form describe.
Where do I enter the interest from Form D-2220?
Enter the Line 11 total on Line 44 of Form D-20 or D-30 and fill in the oval on Line 44 to show the D-2220 is attached. Pay the total with the return. Attach the D-2220 to the return.
Where do I mail Form D-2220 after receiving a notice?
If you complete the form after filing and receiving a notice of interest assessment, send it to Office of Tax and Revenue, 1101 4th St SW, 2nd Floor, Washington DC 20024.
What is the annualized income method on Form D-2220?
It is an option for businesses whose income was not received evenly over the four periods. Divide each period's income by the full year's income, multiply Line 4 by that percentage, enter the cumulative amounts on Line 6 and check the Annualized Income box.
Can I use the 110% of last year's tax exception?
Only if you filed a DC franchise tax return last year and were in business in DC for the entire year. If you did not file a 2023 return, the instructions say you may use only Line 2, the 90% test.
Can I fill out Form D-2220 online on FillingPDF?
Yes. You can fill out the PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not file the form or pay the interest; you submit it to OTR through the channels described under How to submit.
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