4753114 Tax and Revenue, Office of - Notice of Proposed Rulemaking - Clarification of Electronic Filing and Payment Requirements

OFFICE OF TAX AND REVENUE

NOTICE OF PROPOSED RULEMAKING

The Deputy Chief Financial Officer of the District of Columbia Office of Tax and Revenue (OTR) of the Office of the Chief Financial Officer, pursuant to the authority set forth in the Tax Clarity Act of 2000, effective June 9, 2001 (D.C. Law 13-305; D.C. Official Code § 47-1335 (2012 Repl.)); Section 201(a) of the 2005 District of Columbia Omnibus Authorization Act, approved October 16, 2006 (120 Stat. 2019; P.L. 109-356, D.C. Official Code § 1-204.24d (2012 Repl.)); and the Office of the Chief Financial Officer, Financial Management and Control Order No. 00-5, effective June 7, 2000, hereby gives notice of the intent to amend Section 105.13 of Chapter 1 (Income and Franchise Taxes), Title 9 (Taxation and Assessments) of the District of Columbia Municipal Regulations (DCMR).

The amended rules will clarify references to the Tax Clarity Act and reflect the current dollar requirement for electronic submission of payments, as well as to remove the penalty.

Section 105 of 9 DCMR provides guidance to taxpayers regarding electronic filing and payment of franchise tax.  The dollar amount for which electronic payment is required has been changed by the Council several times during the last few years. This proposed regulation change in 105.11(3) reflects the current statutory requirement in D.C. Official Code § 47-4402 for electronic payments of greater than $5000.  This proposed regulation also eliminates the penalty for non-compliance in § 105.13.  

OTR also gives notice of its intent to take final rulemaking action to adopt these regulations in not less than thirty (30) days from the date of publication of this notice in the D.C. Register.

CHAPTER 1, INCOME AND FRANCHISE TAXES, of Title 9, TAXATION AND ASSESSMENTS, of the DCMR is amended as follows:

Subsection 105.1 is modified by deleting “Title 5 of the Act” between “under” and “shall” and replacing it with “Title 5 of the Tax Clarity Act of 2000 (hereinafter ‘the Act’).”

Subsection 105.10 is repealed in its entirety and replaced to read as follows:

105.10             Administration of Electronic [Internet] Filing: The following procedures and criteria are to be used by taxpayers in order to file and pay taxes by electronic funds transfer methods.

Subsection 105.11(a)(3) is modified by deleting “$25,000,”  between “exceed” and “and” and replacing it with “$5000”.

Subsection 105.11(f) is modified by inserting a period after the word “charged” in the last sentence and deleting “and penalties may apply as set out in paragraph 105.13.”

Subsection 105.13 is repealed in its entirety.

Comments on this proposed rulemaking should be submitted to Rosalie Alligood, Assistant General Counsel, Office of Tax and Revenue, no later than thirty (30) days after publication of this notice in the D.C Register.  Rosalie Alligood may be contacted by: mail at DC Office of Tax and Revenue, 1101 4^th Street, SW, Suite 750, Washington, DC 20024; telephone at [phone]; or, e-mail at [e-mail]. Copies of this rule and related information may be obtained by contacting Rosalie Alligood as stated herein.