Section 9-151. PENALTIES FOR FAILURE TO FILE RETURNS OR PAY TAXES

 

151.1If any person fails to make and file a return within the time prescribed by law, (except in the case of an employer filing quarterly returns), unless it is shown that the failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as the tax on that return five percent (5%) of the amount of the tax (if the failure is for not more than one (1) month), with an additional five percent (5%) for each additional month or fraction of a month during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate.

 

151.2For purposes of this section the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed upon the return.

 

151.3With respect to declarations of estimated tax, for the purposes of this section, the amount and due date of each installment shall be the same as if a declaration had been filed within the time prescribed showing an estimated tax equal to the correct tax reduced by the amount of credit for tax withheld.

 

151.4In the case of any employer who is required to withhold taxes on wages, make a return of those taxes, and pay to the District the taxes required to be withheld, and who fails to withhold the taxes, make the return, or pay to the District the taxes required to be withheld, there shall be imposed on that employer a civil penalty (in addition to any criminal penalty provided by law) of five percent (5%) of the amount required to be shown as tax on the return if the failure is for not more than one (1) month, with an additional five percent (5%) for each additional month or fraction of a month during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate.

 

151.5If any corporation, financial institution, or unincorporated business fails to pay the amount of franchise tax within the time prescribed by law or by the Mayor or Council in pursuance of law, five percent (5%) of the tax shall be added to the tax for each month or fraction of a month that the failure continues, not to exceed twenty-five percent (25%) in the aggregate.

 

151.6The penalty for failure to pay the franchise tax within the time prescribed shall be, in addition to all other penalties, prescribed by the Act.

 

source

Commissioners' Order 56-1431 effective July 24, 1956, 16 DCR §§ 311.1 through 311.3; as amended by Commissioners' Order 67-579, 13 DCR 251 (May 1, 1967); by the Third Amendment to the Revenue Act of 1975 Act, D.C. Law 1-61, 22 DCR 4383 (February 12, 1976); and by Final Rulemaking published at 28 DCR 5393 (December 18, 1981), incorporating text of Proposed Rulemaking published at 28 DCR 4112 (September 18, 1981).