Pre-Analysis Plan

Businesses in the District of Columbia must prove that they neither have outstanding tax filings nor owe more than $1,000 in debt to the District before they can renew their basic business licenses. This is demonstrated by receiving a Certificate of Clean Hands (CCH), from the Office of Tax and Revenue (OTR). In a given year, approximately one quarter of CCH requests are denied because the taxpayer is noncompliant. If a business license expires, businesses can experience business interruptions and late fees. To address this issue, The Lab will partner with OTR and the Department of Licensing and Consumer Protection (DLCP) to design and send messages to business owners and evaluate whether this proactive outreach increases the timeliness of Clean Hands tax compliance. These findings may inform how the District communicates with taxpayers and businesses about upcoming deadlines.