4405854 Seven-month extension for combined reporting filers for tax years beginning after December 31, 2010

OFFICE OF TAX AND REVENUE

 

NOTICE OF PROPOSED RULEMAKING

 

The Office of Tax and Revenue (OTR), pursuant to the authority set forth in 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(10) ( 2012 Supp.)) of the Home Rule Act, and the Office of the Chief Financial Officer Financial Management and Control Order No. 00-5, effective June 7, 2000, hereby gives notice of its intent to amend Chapter 1, Income and Franchise Taxes, of Title 9, Taxation and Assessments, of the District of Columbia Municipal Regulations (DCMR), by amending subsection 176.1and by adding new subsection 176.2.

 

Legislation on combined reporting became effective on September 14, 2011 in the 2012 Budget Support Act of 2011 (L19-0021), which requires combined reporting in the District of Columbia.  The combined reporting provisions were incorporated into the Income and Franchise Taxes statutes, Chapter 18 of Title 47 of the District of Columbia Official Code. Through the following regulation, OTR will automatically grant a 7-month extension to file for all combined group members upon request.  

 

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

 

The regulations on Income and Franchise Taxes contained in Chapter 1 (Income and Franchise Taxes) of Title 9 (Taxation and Assessments) of the DCMR are amended as follows:

 

Subsection 176.1 is amended as follows:

 

176.1               Extension for combined reporting filers. Effective for tax years beginning after December 31, 2010, a calendar or fiscal year taxpayer that is a member of a combined group and that must report income derived from the activities of that group in a combined report, shall receive an automatic 7-month extension. This extension applies to all final zero returns. 

 

New subsection 176.2 is added as follows:

 

176.2               The request for an extension of time to file must be made on or before the due date of the return and shall not extend the date for payment of the tax due.

 

Prior Subsection 176.2 (Closing out separate entities), is amended and renumbered as 176.3, as follows:

 

176.3               Closing out separate entities.  If an entity filed a District return on a separate reporting basis or on a District consolidated basis for the tax year beginning prior to January 1, 2011, and that entity will now be filing on a combined reporting basis for the tax year beginning after December 31, 2010, that entity (or entities), except for the designated agent, shall file a separate final zero return along with the combined report.

 

Comments on this proposed rulemaking should be submitted in writing to Aaishah Hashmi, Corporate Tax Counsel, District of Columbia Office of Tax and Revenue, 1101 4^th Street, SW, 7th Floor, Washington, DC 20024, or via email at [e-mail], no later than thirty (30) days after publication of this notice in the D.C. Register.  Copies of this rule and related information may be obtained by writing to the person at the address stated above.