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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 9. TAXATION AND ASSESSMENTS |
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Chapter 9-1. INCOME AND FRANCHISE TAXES |
Section 9-150. OVERPAYMENT OF TAX AND REFUND SET-OFFS
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150.1If it is determined by the Deputy Chief Financial Officer that there has been an overpayment of any tax (whether as deficiency or otherwise), interest shall be allowed and paid upon that overpayment of tax at the rate of six per cent (6%) per annum from the date the overpayment was paid until the date of refund, except as otherwise provided in this section or the Act.
150.2That part of any overpayment which was not assessed and paid as a deficiency or as additional tax shall bear interest only from the date on which a claim for refund was filed:
150.3Interest on overpayments resulting from excessive withholding, excessive payments on declarations, or both, shall in no event begin to accrue prior to ninety (90) days after the overpayment is made or after the date of the filing of a final return, whichever is later.
150.4For the purposes of this section, any tax deducted and withheld during any calendar year and any amounts paid except as provided for in § 149.2 prior to the fifteenth (15th) day of the fourth (4th) month after the close of the taxable year as estimated tax shall be deemed to have been paid on the fifteenth (15th) day of the fourth (4th) month following the close of the taxable year.
150.5No interest may be paid unless a properly completed claim for refund is filed with the Deputy Chief Financial Officer.
150.6If the final return filed by an individual for the taxable year shows an overpayment resulting from excessive withholding or excessive payments on declarations, or both, an automatic refund of the overpayment shall be made; Provided, that all of the withholding statements supporting all of the withholding taxes claimed as a credit is submitted with the final income tax return. No interest on overpayments shall be allowed or paid on refunds made in this manner.
150.7If a final return shows an overpayment of less than two dollars ($ 2), it shall be refunded only upon application to the Deputy Chief Financial Officer.
150.8No refund of estimated tax previously paid shall be made except upon the filing of a final income tax return on Form D-40 after the close of the taxable year.
150.9Each claim for refund shall be in writing, under oath, and shall state the specific grounds upon which the claim is based.
150.10Forms to be used in filing a claim for refund may be obtained from the Deputy Chief Financial Officer, upon request.
150.11Notwithstanding any other provisions of this section, a refund due on the return of an individual may be intercepted by the Deputy Chief Financial Officer, Office of Tax and Revenue in accordance with the provisions of § 11(a) of Title XII of the Act (D.C. Code § 47-1812(a)(4)(4a)) as amended.
150.12For the purposes of this section, the term "set-off" shall mean the amount of a District of Columbia income tax refund intercepted from an individual who is in default on a National Direct Student Loan or a Nursing Student Loan or who is in arrears on court-ordered child support payments, or any combination thereof.
150.13For the purposes of this section, the phrase, "affected agency" means the following:
(a) The Department of Human Services for an arrearage of court-ordered child support payments; or
(b) The University of the District of Columbia for a default of a National Direct Student Loan or a Nursing Student Loan, or both.
150.14For the purposes of this section, the phrase "authorized official" shall mean, as it applies to the affected agency, the Deputy Director of the Department of Human Services or the Vice President of the Financial Management Division of the University of District of Columbia.
150.15The interception of a refund requested by married persons filing on a combined separate form (Columns A and B of Form D-40) shall be limited to the net refund attributable to the spouse who has a set-off. The following example illustrate the application of § 150.15:
Example A:
Husband
(Col A)
Refund
$ 200.00
Wife
(Col. B)
Refund
100.00
Total Refund
$ 300.00
The husband has a set-off. He is in arrears of child-support payments. Only two hundred dollars ($ 200.00) is subject to interception.
Example B:
Husband
(Col. A)
Refund
$ 200.00
Wife
(Col. B)
Balance
$ 250.00
Net Balance Due
$ 50.00
The husband is in arrears of child-support payments, a set-off, but no refund is due. Therefore, no interception can be made.
Example C:
Husband
(Col. A)
Balance Due
$ 100.00
Wife
(Col. B)
Refund
$ 150.00
Net Balance Due
$ 50.00
The wife is in default under the federal student loan program. A set-off is made. Although she computes a refund of one hundred and fifty dollars ($ 150.00), only the net refund of fifty dollars ($ 50) is subject to interception.
150.16The net refund on a joint return (where only Column B of Form D-40 is completed) shall be subject to interception.
150.17If the taxpayer contends that the intercepted refund is attributable in part to a spouse not subject to the set-off, the taxpayer shall submit a protest together with an amended Form D-40X utilizing the combined-separate filing status (Form D-40, Columns A and B) in accordance with the provisions of § 150.20 within the thirty (30) day period specified in paragraph (6) of § 11(a) of Title XII of the Act (D.C. Code § 47-1812.11(a)(5) and (6)).
150.18The Bureau of Paternity and Child Support Enforcement, Department of Human Services (hereinafter the "Bureau") or the Office of Financial Management of the University of the District of Columbia (hereinafter the "Division") shall afford any taxpayer aggrieved by the mandate of the Act the opportunity for a hearing to determine the existence and the amount of a child-support or loan default obligation within thirty (30) days of receipt of the notice of intent to intercept a part or all of the District tax refund.
150.19All taxpayer requests for a hearing under § 150.17 shall be made through the authorized official named in § 150.14, or his or her designee.
150.20The aggrieved taxapayer's protest shall be limited to the following:
(a) The existence or amount of the offset;
(b) The division of a joint return; or
(c) The existence of new facts, issues, or evidence not previously decided.
150.21Protests concerning the existence or amount of the set-off, or the existence of new facts, issues, or evidence not previously decided shall be reviewed by the affected agency.
150.22Protests concerning the apportionment of joint returns shall be reviewed by the Office of Tax and Revenue.
150.23The Office of Tax and Revenue or the affected agency shall maintain official records of each protest, including testimony and exhibits, regarding the interception of a refund when court-ordered child-support payments are in arrears, or when a Federal Student or Nurse Student Loan obligation is determined to be in default. Transcription of any proceedings shall not be required.
150.24The Office of Tax and Revenue or the affected agency shall notify the taxpayer in writing of any determination as a result of a protest. The notification shall set forth the reason(s) for the determination.
150.25Any person aggrieved by a determination of the authorized official of the Department of Human Services concerning the existence and the amount of a support obligation may request an adminsitrative review by the Chief, Bureau of Paternity and Child Support Enforcement.
150.26Any person aggrieved by a determination of the Office of the Comptroller of the University of the District of Columbia concerning the existence and the amount of a Federal Student or Nurse Student Loan obligation may request an administrative review by the Vice President of Financial Management of the University of the District of Columbia.
150.27The administrative review provided for in §§ 150.25 and 150.26 shall not include issues concerning the apportionment of joint returns. The determination of the Office of Tax and Revenue with respect to the apportionment of joint returns shall be final, and the determination shall not be subject to administrative review by the affected agency.
150.28If no protest or request for administrative review is filed within a thirty (30) day period, the decision of the affected agency shall be final.
150.29Any person aggrieved by a final determination of the Office of Tax and Revenue or an affected agency, made pursuant to the § 11(a) of Title 12 of the Act (D.C. Code § 47-1812.11(a)) may within six (6) months from the date of the determination appeal to the Superior Court of the District of Columbia, in the same manner and to the same extent as set forth in D.C. Code §§ 47-3303, 47-3304 and 47-3306-3308; Provided, that the person aggrieved shall have first filed a protest and request for hearing, and a request for administrative review as provided for in the Act and this chapter.