Evening star. [volume] (Washington, D.C.) 1854-1972, 1942-01-05
District Orders
Tax Payment in
DonliiciIeCases
Supreme Court Ruling
Cited in Ceiling for
193o-40 Returns

1939-40 Returns
The Commissioners today ordered
an persons living in the District
on the last day Of the taxable years
1889 and 1910 who failed to file
income tax returns, or pay the tax,
in the belief they were exempt
through domicile elsewhere, to file
returns Immediately for those years
and pay the taxes due plus interest
and penalties.
The order follows the decisions
in the Supreme Court last month
that the question Of domicile Is one
of fact to be determined by the
Board of Tax Appeals.
The city heads said they would
waive penalties for late filing OF
returns for the two tax years in
the case of individuals whose fail
ure to file was due to their reliance
on q Court of Appeals decision
which held in effect that persons
holding voting residence in other
States were not domiciled in the
District. To escape penalties, how
ever, such persons must file returns
and pay the taxes and interest be-
fore February is.
District officials refused to esti-
mate how many persons would be
affected by the order but it was
considered likely that a number of
Government employees had withheld
payment of the levies pending the
Supreme Court decisions.
No General Rule Applies.
In their Interpretation of the
effect of the Supreme Court de-
eisions, the Commissioners said it
was clear that the President, Vice
President. members of Congress and
cabinet officers are not domiciled in
the District. In addition. certain
other onicials, such as those ap-
pointed for q definite tenure or
those temporarily in the District
performing special services or hav-
ing positions of emergency or war
time character, probably are domi-
ciled in the States from which they
came.
The Commissioners warned, how
ever. that no general rule could be
applied to exclude from imposition
Of the tax ANYBODY not clearlysin the
exempt group. They pointed out
that the liability depends on the
facts In each individual case
Persons wishing to contest the i'm
position Of the tax may do 80 by
filing claim for refund with Asses
sor5 Z. A. Dent within two years
from the date of any payment. Spe-
eiap forms have been prepared for
refund claims based ON domicile
outside the District.
II the assessor disallows all or
any part of . claim, he Is required
to notify the taxpayer by registered
mail. The taxpayer then has 80 days
to file appeal with the Board Of Tax
Appeals. From the boards decision
either the taxpayer or the District
may appeal to the Court of Appeals.
Plagued by Dsmicile Issue.
Since adoption of the District in
come tax as . successor to the old
property tax District
officials have been plagued by the
donnicile issue, since the tax is based
on residence here. They received 4
setback when the Court of Appeals
decided the so-called Sweeney case
in favor of the protesting taxpayer.
Although in the Sweeney case the
appellant, Justice Department en-
ploye, was seeking exemption from
the old intangible personal property
levy, the decision in his favor, based
on legal residence elsewhere. was
construed to apply to the income
tax.
On December Is, however, the
Supreme Court handed down opin-
ions in the income tax cases of the
District VS.. Henry C. Murphy and
the District VS.. Paul De Hart, which
denied the claims of those two Gov
eminent employees for exemption. -.
Proof Up to Taxpayer.
Under the Sweeney decision the
burden of proving domicile here for
tax purposes was placed on the Dis
trict. The Supreme Court decisions,
however, placed the burden on the
taxpayer to produce con-
elusive evidence of being domiciled
elsewhere by showing clear intent
to return there.
Under the District income tax law
are to be filed on or before
April Is Of each year. Half of the
tax is payable then and the re-
half on October Is. A PEN
atty of Is per cent of the tax is
assessed in case of failure to file
a return according to schedule and
in the event Of failure to pay the
tax or any installment due, interest
Is collected on the unpaid amount
at the rate of l per cent q month
until the amount is paid. In addi-
ton to these civil penalties, the act
also provides for the imposition of
criminal penalties for failure to