Section 7-323. COLLECTION PROCEDURES

 

323.1At any time after an employer fails to file reports or pay contributions required by the Act, the Director shall inform the employer of such failing by mailing written notice of such failing to the employer's last known address. Such notice shall be on forms of general applicability and shall include information regarding the quarters for which reports were not filed and the amount of contributions, interest, and penalties owed. Such notice shall demand filing of unfiled reports and payment of all sums owed within ten (10) calendar days from the date of mailing of the notice.

 

323.2If the employer fails to respond to the notice by filing reports and paying contributions, interest, and penalties, the Director may file liens, bring civil actions, or otherwise take any lawful action to compel the filing of reports and the payment of contributions, interest, and penalties.

 

323.3In cases where the Director determines that collection by levy, distraint, or other extraordinary process may be necessary, a Notice of Delinquency shall be served in person by the Director's designee or by registered mail, return receipt requested, at the employer's last known address. In the case of a Notice served by mail which is refused or otherwise not deliverable, the Director shall serve a second Notice of Delinquency by first class mail, postage prepaid, at the employer's last known address. Such Notice of Delinquency shall be in addition to the general notice set forth in §323.1.

 

323.4The Notice of Delinquency shall contain the following:

 

(a)A statement of the amount due for contributions plus interest and penalties;

 

(b)A demand for payment of the amount due;

 

(c)A statement that the employer has ten (10) calendar days from the date of the receipt of the notice to respond to the Director as provided in this section; and

 

(d)A statement that at the end of the ten (10) calendar day period, the Director may attempt to collect the amount due by any means authorized by the Act and without further demand or notice to the employer.

 

323.5Within ten (10) calendar days from receipt of the Notice of Delinquency, the employer shall pay in full the amount due for contributions plus interest and penalties unless the employer agrees in writing to a payment schedule, approved by the Director, by which the employer will pay the amount due, together with interest and penalties, in regular installments.

 

323.6The ten (10) calendar day period during which an employer must respond to a Notice of Delinquency shall be computed as follows:

 

(a)The period shall begin to run on the day after the receipt of the notice by registered mail, return receipt requested; or on the fourth (4th) day after mailing of the notice by first class mail, postage prepaid;

 

(b)Saturdays, Sundays, and legal holidays shall be counted except that if the last day for responding to a notice falls on a Saturday, Sunday, or legal holiday, the time period shall end on the next day which is not a Saturday, Sunday, or legal holiday; and

 

(c)Responses which are mailed shall be deemed timely if postmarked before the expiration of the ten (10) day period.

 

323.7The Director may authorize an employer to pay delinquent amounts by regular monthly installments of such duration as will liquidate the delinquency in the shortest amount of time deemed reasonable by the Director. In determining whether to enter into an installment agreement, the Director shall consider:

 

(a)The amounts owed and age of the debt;

 

(b)The employer's past history of payment and compliance with any prior installment payment plans;

 

(c)The employer's financial condition and, particularly, the prospects that the employer will be able to fulfill its obligations under the installment plan; and

 

(d)Any other factors which may be brought to the Director's attention which might impact upon the employer's ability to meet its installment obligations.

 

323.8In any installment payment agreement, the employer shall acknowledge that default in any installment payment or in any future filing of required reports or payment of contributions voids the agreement and the Director may institute any collection procedure permitted by the Act without further notice or demand to the employer.

 

323.9The Director may renegotiate an installment payment schedule if the Director determines that changed circumstances of the employer warrant changes to the plan. However, renegotiation of an installment schedule may not extend the time period beyond twenty-four (24) months from the conclusion date of the original agreement.

 

323.10If an employer fails to respond to the Director's Notice of Delinquency and demand for payment of delinquent contributions, interest, and penalties, or if an employer fails to make a scheduled installment payment, the Director, without further notice or demand to the employer, may attempt to collect the overdue payments by any method authorized by the Act.

 

323.11The Director may levy an employer's bank account(s) by serving a Notice of Levy on the appropriate officer of the bank.

 

323.12The Director may levy an employer's contract(s) with any agency of the Government of the District of Columbia by serving a Notice of Levy on the official of said agency authorized to accept said Notice.

 

323.13The Director may levy upon property belonging to an employer by serving a Notice of Levy on the custodian of said property. Failure of the custodian to honor the levy shall result in the custodian's liability for the delinquent contributions, interest, and penalties, as generally set forth in D.C. Code §47-1704 (1987).

 

323.14The Director shall cause the examination of any property seized pursuant to §323.13 to determine its condition, and shall keep records of condition, storage location, and any other actions necessary to maintain the property prior to sale.

 

323.15An employer whose property has been seized pursuant to §323.13 may redeem the property prior to the time it is sold by paying the Director the full amount of delinquent contributions, interest, and penalties owed and any costs incurred by Director in seizing and storing the property.

 

323.16No earlier than ten (10) calendar days following seizure of property pursuant to §323.13, the Director shall commence the process to sell the property, as generally set forth in D.C. Code §47-1702 (1987). If the Director determines that adjournment of the sale will best serve the interest of the District Unemployment Fund (as defined by section 6 of the Act), the Director shall have the power to adjourn the sale until such time as the Director determines that the best interest of the District Unemployment Fund would be served by continuation of the sale of the property.

 

323.17The proceeds of any sale of property under §323.16 shall be allocated as follows:

 

(a)Costs of the sale, including costs of seizing, storing, advertising, and auctioneer fees;

 

(b)Delinquent penalties, interest, and contributions in that order; and

 

(c)Any excess funds remaining after the two foregoing provisions have been complied with shall be forwarded to the employer from whom the property was seized.

 

323.18The Director shall issue a Certificate of Sale to the purchaser of property at the sale and shall prepare ownership documents for property conveyed by sales made pursuant to §323.16. All property shall be sold "as is" and "where is" without any guarantee or warranty express or implied. The Director shall sell only the right, title, and interest of the delinquent employer in the property, and the employer's interest will be offered subject to any prior outstanding mortgages, encumbrances, or other liens.

 

source

Notice of Final Rulemaking published at 35 DCR 8833 (December 23, 1988)