I transferred from DC to CA and submitted my change of address form for my office to process that I am now a CA resident, working and paying taxes in CA. However, they did not process my paperwork and I am still paying in DC, even though I don't live or work there. Can this be fixed before the end of the year? Or will I have to file for tax returns in DC even though I didn't actually live there.

Talk to your HR department and make sure they start withholding CA income tax ASAP. There is no reason why they can't start doing this with your next paycheck. However, they will probably NOT be able to fix what's already occurred. So you are indeed going to have to file a DC income tax return, and presumably will get a big refund. You will also have to file a CA return, and since you have no withholding for CA you will owe a big tax bill. You may be a bit cash strapped come tax time, likely having to pay the CA bill before you get your DC refund. And if this continues into 2012 you may be liable for interest charges from CA for underpayment of estimated taxes (you don't have to worry about underpayment penalties the first year you move into a state; only the second year and beyond).