(a) Unless otherwise provided in subsection (d) of this section, the amount of a tax imposed under this title shall be assessed within 3 years after the return was filed (whether or not the return was filed after the date due) or, if the tax is payable by stamp, at any time after the tax became due and before the expiration of 3 years after the date on which a part of the tax was paid. A proceeding in court without assessment for the collection of the tax shall not commence after the expiration of such period. For purposes of this chapter, the term "return" means the return of tax required to be filed by the taxpayer (and does not include a return of tax of a person from whom the taxpayer has received an item of income, gain, loss, deduction, or credit).
(b) For purposes of this section, a return filed before the last day prescribed by this title, or by regulations promulgated under this title for filing, shall be considered as filed on the last day.
(c) The execution of a return by the Mayor shall not start the running of the period of limitations on assessment and collection.
(d)(1) In the case of a (A) false or fraudulent return with the intent to evade tax, (B) willful attempt in any manner to defeat or evade tax imposed by this title, (C) failure to file a return, or (D) filing a real property tax exemption application, the tax may be assessed, or a proceeding in court for the collection of the tax may begin without assessment, at any time.
(2) In the case of a tax imposed by Chapter 18 of this title, if the taxpayer omits an amount properly includible in gross income which is in excess of 25% of the amount of gross income stated in the return, the tax may be assessed, or a proceeding in court for the collection of the tax may be begun without assessment, at any time within 6 years after the return was filed. In the case of a trade or business, the term "gross income" means the amount received or accrued from the sale of goods or services (if the amounts are required to be shown on the return) before diminution by the cost of the sales or services.
(3) In the case of a return not under Chapter 18 of this title, if the taxpayer omits from the return an amount of tax properly includible on the return which exceeds 25% of the amount of the tax reported on the return, the tax may be assessed, or a proceeding in court for the collection of the tax may be begun without assessment, at any time within 6 years after the return is filed.
(e) If, before the expiration of the time prescribed in this section for the assessment of a tax imposed by this title, both the Mayor and the taxpayer have consented in writing to its assessment after such time, the tax may be assessed at any time before the expiration of the extended period. The period may be extended further by subsequent agreement in writing made before the expiration of an extended period.
(f) If the amount of taxable income for a taxable year (or portion of a taxable year) of a taxpayer as reported by the taxpayer, or his duly authorized agent, to the United States Department of Treasury for federal income tax purposes is changed or corrected by the Commissioner of Internal Revenue, by a court of the United States, or by a court of the District of Columbia, or if the amount of taxable income for a taxable year (or portion of a taxable year) of a taxpayer as reported by the taxpayer or his duly authorized agent, to the District of Columbia for District of Columbia income or franchise tax purposes is changed or corrected by a court of the United States or the District of Columbia, the taxpayer, or his duly authorized agent, shall, within 90 days after the change or correction is finally determined, report in writing the changed or corrected taxable income to the District of Columbia. The Mayor may, within 180 days from the date of the receipt of written notice from the taxpayer of the changed or corrected taxable income as finally determined, assess or reassess the amount of a tax imposed by this title; provided, that if the date of receipt by the District of Columbia of a notice from the taxpayer is more than 180 days before the expiration of the applicable period of limitation, the Mayor shall have until the expiration of the applicable period of limitation to assess or reassess the amount of the tax. Failure to report the changed or corrected taxable income as finally determined within the 90-day period shall suspend the running of the period of limitation for a period of 180 days after the date that the report from the taxpayer, or his duly authorized agent, is received by the District of Columbia.
(June 9, 2001, D.C. Law 13-305, § 404(b), 48 DCR 334; Apr. 4, 2003, D.C. Law 14-282, § 11(bbb), 50 DCR 896.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 14-282, in subsec. (d)(1), substituted "(C) failure to file a return; or (D) filing a real property tax exemption application" for "or (C) failure to file a return".
Temporary Amendments of Section
For temporary (225 day) amendment of section, see 12(kkk) of Tax Clarity and Recorder of Deeds Temporary Act of 2002 (D.C. Law 14-191, October 5, 2002, law notification 49 DCR 9549).
For temporary (225 day) amendment of section, see 12(kkk) of Tax Clarity and Related Amendments Temporary Act of 2003 (D.C. Law 14-228, March 23, 2003, law notification 50 DCR 2741).
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 12(jjj) of Tax Clarity and Recorder of Deeds Emergency Act of 2002 (D.C. Act 14-381, June 6, 2002, 49 DCR 5674).
For temporary (90 day) amendment of section, see § 12(kkk) of Tax Clarity and Related Amendments Emergency Act of 2002 (D.C. Act 14-456, July 23, 2002, 49 DCR 8107).
For temporary (90 day) amendment of section, see § 12(kkk) of Tax Clarity and Related Amendments Congressional Review Emergency Act of 2002 (D.C. Act 14-510, October 23, 2002, 49 DCR 10247).
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.
For Law 14-282, see notes following § 47-902.
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) If the assessment of a tax imposed by this title has been made within the applicable period of limitation, the tax may be collected by levy or by a proceeding in court, but only if the levy is made or the proceeding begun within 10 years after the assessment of the tax.
(b) If, before the expiration of the time prescribed in this section for the collection of a tax imposed by this title, both the Mayor and the taxpayer have consented in writing to its collection after such time, the tax may be collected at any time before the expiration of the extended period. The period may be extended further by subsequent agreement in writing made before the expiration of an extended period.
(June 9, 2001, D.C. Law 13-305, § 404(b), 48 DCR 334.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 13-305, see notes under § 47-4301.
The running of the period of limitation provided in §§ 47-4301 and 47- 4302 on the making of assessments or collection shall be suspended for the period during which the Mayor is prohibited from making the assessment or from collecting due to a proceeding in court, and for the period between the filing of a protest in the Office of Administrative Hearings pursuant to § 47-4312 and the issuance of a final order by the Office of Administrative Hearings, plus:
(1) For assessment, 60 days thereafter; and
(2) For collection, 6 months thereafter.
(June 9, 2001, D.C. Law 13-305, § 404(b), 48 DCR 334; Dec. 7, 2004, D.C. Law 15-217, § 4(k), 51 DCR 9126.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 15-217 substituted "court, and for the period between the filing of a protest in the Office of Administrative Hearings pursuant to § 47-4312 and the issuance of a final order by the Office of Administrative Hearings," for "court,".
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 3(k) of Office of Administrative Hearings Establishment Emergency Amendment Act of 2004 (D.C. Act 15-513, August 2, 2004, 51 DCR 8976).
For temporary (90 day) amendment of section, see § 3(k) of Office of Administrative Hearings Establishment Congressional Review Emergency Amendment Act of 2004 (D.C. Act 15-553, October 26, 2004, 51 DCR 10359).
Legislative History of Laws
For Law 13-305, see notes under § 47-4301.
For Law 15-217, see notes following § 47-1528.
(a) A credit or refund of an overpayment of a tax imposed by this title shall not be allowed unless the taxpayer files a claim within the later of 3 years from the due date of the return or 3 years from the date that the tax was paid.
(b) If, before the expiration of the period of limitation prescribed in subsection (a) of this section, both the Mayor and the taxpayer have consented in writing, the period of limitation may be extended. The period may be extended further by subsequent agreement in writing made before the expiration of the extended period.
(c) If the amount of taxable income for a taxable year (or portion of a taxable year) of a taxpayer as reported by the taxpayer, or his duly authorized agent, to the United States Department of the Treasury for federal income tax purposes is changed or corrected by the Commissioner of Internal Revenue, by a court of the United States, or by a court of the District of Columbia, or if the amount of taxable income for a taxable year (or portion of a taxable year) of a taxpayer as reported by the taxpayer, or his duly authorized agent, to the District of Columbia for District of Columbia income or franchise tax purposes is changed or corrected by a court of the United States or the District of Columbia, a claim for credit or refund shall not be allowed unless the taxpayer files a claim for refund or credit with respect to the correction or change in the amount of taxable income within 180 days after the date that the change or correction is made or ordered.
(d)(1) In the case of an individual, the running of the period of limitation specified in subsection (a) of this section shall be suspended during any period that the individual is financially disabled.
(2) For purposes of paragraph (1) of this subsection, an individual is "financially disabled" if the individual's ability to receive and evaluate information effectively or to communicate decisions is impaired to such an extent that he or she lacks the capacity to manage some or all of his or her financial resources. An individual shall not be treated as financially disabled during any period that the individual's spouse, domestic partner, or another person may act on behalf of the individual in financial matters.
(e) Notwithstanding subsection (a) of this section, there shall be no period of limitations if the taxpayer filed an application for a real property tax exemption on or before the date of recordation of the deed and paid the recordation tax.
(f) For the purposes of this section, the term "domestic partner" shall have the same meaning as provided in § 32-701(3).
(June 9, 2001, D.C. Law 13-305, § 404(b), 48 DCR 334; Apr. 4, 2003, D.C. Law 14-282, § 11(ccc), 50 DCR 896; Sept. 12, 2008, D.C. Law 17-231, § 41(p), 55 DCR 6758.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 14-282 added subsec. (e).
D.C. Law 17-231, in subsec. (d)(2), substituted "spouse, domestic partner," for "spouse"; and added subsec. (f).
Temporary Amendments of Section
For temporary (225 day) amendment of section, see 12(lll) of Tax Clarity and Recorder of Deeds Temporary Act of 2002 (D.C. Law 14-191, October 5, 2002, law notification 49 DCR 9549).
For temporary (225 day) amendment of section, see 12(lll) of Tax Clarity and Related Amendments Temporary Act of 2003 (D.C. Law 14-228, March 23, 2003, law notification 50 DCR 2741).
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 12(kkk) of Tax Clarity and Recorder of Deeds Emergency Act of 2002 (D.C. Act 14-381, June 6, 2002, 49 DCR 5674).
For temporary (90 day) amendment of section, see § 12(lll) of Tax Clarity and Related Amendments Emergency Act of 2002 (D.C. Act 14-456, July 23, 2002, 49 DCR 8107).
For temporary (90 day) amendment of section, see § 12(lll) of Tax Clarity and Related Amendments Congressional Review Emergency Act of 2002 (D.C. Act 14-510, October 23, 2002, 49 DCR 10247).
Legislative History of Laws
For Law 13-305, see notes under § 47-4301.
For Law 14-282, see notes following § 47-902.
For Law 17-231, see notes following § 47-802.
