(a)(1) Unless otherwise provided in this title, if any amount of tax imposed by this title (whether required on a return or to be paid by stamp or by some method) is not paid on or before the last date prescribed for payment, interest on the unpaid amount, at the underpayment rate set forth in subsection (d) of this section, shall be paid for the period from the last date prescribed for payment to the date paid.
(A) The last date prescribed for payment shall be determined without regard to any extension of time for filing a return required under this title.
(B) In the case of taxes payable by stamp and in all other cases in which the last date for payment is not otherwise prescribed, the last date for payment shall be the date that the liability for the tax arises.
(b)(1) Except as provided under paragraphs (1) and (2) of this subsection, interest shall be imposed at the underpayment rate set forth in subsection (d) of this section on an assessable penalty or addition to the tax only:
(A) If the assessable penalty or addition to the tax is not paid within 21 calendar days after the date of notice and demand, and
(B) For the period from the date of the notice and demand to the date of payment.
(2) Interest shall be imposed at the underpayment rate set forth in subsection (d) of this section on an addition to tax imposed under §§ 47-4201, 47- 4202, or 47-4203 for the period which:
(A) Begins on the date of the return of the tax with respect to which the addition to tax imposed is required to be filed (including extensions); and
(B) Ends on the date of payment of the addition to tax.
(3) Interest shall not be imposed on an underpayment of estimated tax required to be paid under § 47-4215.
(c) Interest imposed under this section on an unpaid tax, assessable penalty, or addition to tax shall be paid upon notice and demand, and shall be assessed, collected, and paid in the same manner as a tax.
(d) The underpayment rate shall be as follows:
(1) 13% per year, simple interest, from January 1, 2001 to December 31, 2002;
(2) 10% per year, compounded daily, beginning January 1, 2003.
(June 9, 2001, D.C. Law 13-305, § 403(b), 48 DCR 334.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
Law 13-305, the "Tax Clarity Act of 2000," was introduced in Council and assigned Bill No. 13-586, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on October 2, 2000, and November 8, 2000, respectively. Signed by the Mayor on December 13, 2000, it was assigned Act No. 13-501 and transmitted to both Houses of Congress for its review. D.C. Law 13-305 became effective on June 9, 2001.
Miscellaneous Notes
Section 410(b) of D.C. Law 13-305, as amended by section 36(b) of D.C. Law 14- 213, provides:
"Except as otherwise provided therein, sections 403 and 404 shall apply to taxes other than the real property tax imposed under Chapter 8 of Title 47, for all tax years or taxable periods beginning after December 31, 2000."
(a) Unless otherwise provided in this title, interest shall be allowed and paid on an overpayment of a tax imposed by this title at the overpayment rate set forth in subsection (c) of this section.
(b) Interest shall be allowed and paid as follows:
(1) In the case of a refund, from the date of the overpayment to a date (to be determined by the Mayor) preceding the date of the refund check by not more than 60 days, whether or not the refund check is accepted by the taxpayer after tender of the check to the taxpayer. The acceptance of the check shall be without prejudice to any right of the taxpayer to contest the amount of the overpayment and interest thereon.
(2) In the case of a return filed on or before the last day prescribed for filing the return (determined with regard to extension), interest shall not be allowed or paid before:
(A) The 91st day after the due date of an individual income tax return required under Chapter 18 of this title; or
(B) The 181st day after the due date of any other return required under this title.
(3) In the case of a return filed after the last date prescribed for filing the return (determined with regard to extension), an amended return, or a claim for refund or credit, interest shall not be allowed or paid before:
(A) The 91st day after an individual income tax return or claim is filed under Chapter 18 of this title; or
(B) The 181st day after any other tax return or claim is filed under this title.
(4) If an adjustment initiated by the Mayor results in a refund of an overpayment, interest on the overpayment shall be computed from:
(A) The 91st day after the date of the adjustment to the date of the payment in the case of an individual income tax return filed under Chapter 18 of this title; or
(B) The 181st day after the date of the adjustment to the date of the payment in the case of any other return filed under this title.
(c)(1) For overpayments on which interest is due on or before December 31, 2012, the overpayment rate shall be 6% per year simple interest.
(2) For overpayments on which interest is due beginning January 1, 2013, the overpayment rate for each annual period shall be one percentage point above the primary credit discount rate for the Richmond Federal Reserve Bank as of the previous September 30, rounded to the nearest whole number, but not exceeding 6% in the aggregate.
(June 9, 2001, D.C. Law 13-305, § 403(b), 48 DCR 334; Sept. 20, 2012, D.C. Law 19-168, § 7052, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 19-168 rewrote subsec. (c), which formerly read:
"(c) The overpayment rate is 6% per year simple interest."
Legislative History of Laws
For Law 13-305, see notes under § 47-4201.
For history of Law 19-168, see notes under § 47-355.01.
Miscellaneous Notes
Short title: Section 7051 of D.C. Law 19-168 provided that subtitle E of title VII of the act may be cited as "Overpayment Interest Rate Act of 2012".
