Source: http://dccode.elaws.us/code?no=47-1812.08
Timestamp: 2019-11-12 13:31:31
Document Index: 181824744

Matched Legal Cases: ['§ 47', '§ 3402', '§ 3402', '§ 3402', '§ 47', '§ 47', '§ 8', '§ 11', '§ 8', '§ 4', '§ 502', '§ 116', '§ 105', '§ 2', '§ 2', '§ 2', '§ 2', '§ 406', '§ 2', '§ 41', '§ 2', '§ 7092', '§ 8092', '§ 7022', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 2', '§ 2', '§ 2', '§ 7092', '§ 7', '§ 2', '§ 2', '§ 2', '§ 2', '§ 7022', '§ 7022', '§ 105', '§ 2', '§ 47', '§ 47']

§ 47-1812.08. Withholding of tax.
(a) Income of foreign corporations or unincorporated business. -- Whenever the Council of the District of Columbia shall deem it necessary in order to satisfy the District's claim for a tax payable by any foreign corporation or unincorporated business, it may, by rules and regulations, require any person subject to the jurisdiction of the District to withhold and pay to the Mayor an amount not in excess of 5% of all income payable by such person to such foreign corporation or unincorporated business. After such foreign corporation or unincorporated business shall have filed all returns required under this subchapter, and the same shall have been audited, the Mayor shall refund any overpayment to the taxpayer.
(b) Wages; method of determination. --
(A) In accordance with a percentage method of withholding similar in principle to that under § 3402 of the Internal Revenue Code of 1986 (§ 3402 of Title 26, United States Code), to be included in regulations;
(B) In accordance with tables similar in principle to those contained in § 3402 of the Internal Revenue Code of 1986, to be included in regulations;
(c) Overlapping pay periods; multiple employers. --
(d) Included and excluded wages. -- If the remuneration paid by an employer to an employee for services performed during one-half or more of any payroll period of not more than 31 consecutive days constitutes wages, all the remuneration paid by such employer to such employee for such period shall be deemed to be wages; but if the remuneration paid by an employer to an employee for services performed during more than one-half of any such payroll period does not constitute wages, then none of the remuneration paid by such employer to such employee for such period shall be deemed to be wages.
(e) Exemptions. --
(10) If the conditions of paragraphs (9)(A), (B), and (C) of this subsection no longer apply, the employer may apply to the Mayor to authorize an increase in the number of withholding exemptions. Upon approval, the Mayor may authorize an increase in the number of withholding exemptions to the level at which they would not have resulted in an underpayment of taxpayer's most recent income tax return.
(f)(1) Any sum or sums withheld in accordance with the provisions of this section shall be deemed to be, and shall be, held in trust by the employer for the District of Columbia.
(g) Statement to be furnished employee. --
(B) The statement required to be furnished by this subsection in respect of any wages shall be furnished at such other times, shall contain such other information, and shall be in such form, as the Council of the District of Columbia may by regulation prescribe. A duplicate of such statement if made and filed in accordance with regulations prescribed by the Council of the District of Columbia shall constitute the return required to be made in respect to such wages.
(h) Liability for tax withheld. -- An employer shall be liable for the payment of tax required to be deducted and withheld under this section. Such tax shall be paid to the Mayor and shall not be paid to any other person.
(i) Declaration and payment of estimated tax. --
(4) The declaration required under paragraph (1) of this subsection shall be filed with the Mayor on or before April 15th of the taxable year, except that if the requirements of paragraph (1) of this subsection are first met:
(A) after April 1st and before June 2nd of the taxable year, the declaration shall be filed on or before June 15th of the taxable year;
(B) after June 1st and before September 2nd of the taxable year, the declaration shall be filed on or before September 15th of the taxable year; or
(C) after September 1st of the taxable year, the declaration shall be filed on or before January 15th of the succeeding taxable year; provided, that the declaration required to be filed during 1956 may be filed not later than October 15, 1956, if the requirements of paragraph (1) of this subsection are fulfilled at any time prior to October 1, 1956.
(j) Liability for 1956 tax. -- One-half of the liability for the income tax imposed by this chapter for the calendar year 1956, or the fiscal year of a taxpayer beginning during such calendar year, upon any resident of the District (other than fiduciaries) shall be discharged. The remainder of the total amount of the income tax due as shown on the taxpayer's return shall be paid to the Collector on the 15th of April, 1957, or if the return be made on the basis of a fiscal year the remainder of the total amount of such tax shall be paid on the 15th day of the 4th month following the close of the fiscal year.
(k) Rate of interest. -- Notwithstanding any other provisions of this chapter, interest shall be assessed on deficiencies and late payments of income tax withheld or required to be withheld at source by an employer as provided for in this section at the rate of one and one half percent per month or fraction thereof from the date prescribed for payment of the tax until paid.
(l) Withholding from lottery winnings. --
(A) "Constructive receipt" or "constructively received" means that payments of lottery winnings, although not actually within a taxpayer's possession, are deemed to be received by the payee and subject to District tax in the taxable year during which the lottery winner is determined by Powerball or other lottery drawing.
(B) "Lottery winnings" means winnings which are subject to withholding as defined in section 3402(q) of the Internal Revenue Code of 1986, whether as a lump sum or annuitized payment.
(C) "Payment" means the payment of lottery winnings.
(D) "Payor" means a person responsible to make a payment subject to withholding under section 3402(q) of the Internal Revenue Code of 1986.
(2) In making payments, whether actually or constructively received by the payee, of lottery winnings taxable under § 47-1803.02, 47-1807.02, or 47-1808.02, the District of Columbia Lottery and Charitable Games Control Board, or any payor, shall deduct and withhold from such payments an amount equal to the tax on such payments computed at the highest rate of tax under § 47-1806.03, 47-1807.02, or 47-1808.03, as applicable, in accordance with procedures to be established by the Chief Financial Officer.
(A) "Lump-sum distribution" means a payment from a payor to a resident payee of the resident payee's entire account balance, exclusive of any other tax withholding and any administrative charges and fees.
(B) "Retirement account" or "retirement plan" means:
(4) This subsection shall apply within 5 days of the effective date of the Targeted Retirement Distribution Withholding Emergency Act of 2012, effective February 24, 2012.
(July 16, 1947, 61 Stat. 353, ch. 258, art. I, title XII, § 8; Mar. 31, 1956, 70 Stat. 72-77, ch. 154, § 11; Sept. 6, 1966, 80 Stat. 632, Pub. L. 89-554, § 8(a); Mar. 6, 1979, D.C. Law 2-158, § 4, 25 DCR 7002; Sept. 13, 1980, D.C. Law 3-92, § 502(b), 27 DCR 3390; June 11, 1982, D.C. Law 4-118, § 116, 29 DCR 1770; July 24, 1982, D.C. Law 4-131, §§ 105, 108(c), (d), 29 DCR 2418; June 24, 1987, D.C. Law 7-9, § 2(n), 34 DCR 3283; Oct. 1, 1987, D.C. Law 7-29, § 2(l)(1)-(3), 34 DCR 5097; Sept. 21, 1988, D.C. Law 7-141, § 2(d), (e), 35 DCR 5398; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; June 9, 2001, D.C. Law 13-305, § 406(y), 48 DCR 334; Mar. 14, 2007, D.C. Law 16-292, § 2(e), 54 DCR 1080; Sept. 12, 2008, D.C. Law 17-231, § 41(m), 55 DCR 6758; Mar. 3, 2010, D.C. Law 18-108, § 2(c), 57 DCR 22; Sept. 24, 2010, D.C. Law 18-223, §§ 7092, 7152, 57 DCR 6242; Sept. 14, 2011, D.C. Law 19-21, §§ 8092, 8112, 58 DCR 6226; Sept. 20, 2012, D.C. Law 19-168, § 7022, 59 DCR 8025.)
1981 Ed., § 47-1812.8.
1973 Ed., § 47-1586g.
"(f) Failure to withhold or pay amounts withheld. -- (1) Every employer, who fails to withhold or pay to the Mayor any sums required by this section to be withheld and paid, shall be personally and individually liable therefor to the District of Columbia; and any sum or sums withheld in accordance with the provisions of this section shall be deemed to be, and shall be, held in trust by the employer for the District of Columbia."
D.C. Law 16-292 substituted "husband and wife (or domestic partner who filed under § 47-1805.01(f))" for "husband and wife".
D.C. Law 17-231 rewrote subsec. (i)(3), which had read as follows:
"(3) In the case of a husband and wife (or domestic partner who filed under § 47-1805.01(f)), a single declaration under this section may be made by them jointly, in which case the liability with respect to the estimated tax shall be joint and several. No joint declaration may be made if the husband and wife (or domestic partner who filed under § 47-1805.01(f)) are separated under a decree of divorce or of separate maintenance, or if they have different taxable years. If a joint declaration is made but a joint return is not made for the taxable year, the estimated tax for such year may be treated as the estimated tax of either husband or wife, or may be divided between them."
D.C. Law 18-108, in subsec. (i)(3), substituted "married individuals" for "a husband and wife" and substituted "the married individuals" for "the husband and wife".
D.C. Law 18-223 rewrote subsec. (e)(1); added subsecs. (e)(9), (10), and (11); and added subsec. (l). Prior to amendment, subsec. (e)(1) read as follows:
"(1) An employee receiving wages shall on any day be entitled to the withholding exemptions allowed under this chapter."
D.C. Law 19-21 rewrote subsec. (e)(8); and added subsec. (m). Prior to amendment, subsec. (e)(8) read as follows:
"(8) An employee shall be entitled to additional withholding exemptions under this subsection with respect to payment of wages equal to a number determined by dividing by $885 for taxable years beginning after December 31, 1986, $1,025 for taxable years beginning after December 31, 1987, $1,160 for taxable years beginning after December 31, 1988, $1,270 for taxable years beginning after December 31, 1989, and $1,370 for taxable years beginning after December 31, 1990, the excess of:
"(A) His or her estimated itemized deductions; over
"(B) The applicable standard deduction amount specified in § 47 1801.04(26)."
D.C. Law 19-168 rewrote subsec. (m), which formerly read:
"(m)(1) If a resident payee receives an early distribution from a retirement plan or account retirement account or retirement plan or pursuant to section 3405 of the Internal Revenue Code of 1986 and the payment is subject to mandatory withholding of federal income tax, District tax shall be withheld by the payor of that distribution at the highest District income tax rate as exists at the time of receipt of that distribution.
"(2) For the purposes of this subsection, the terms 'retirement account' or 'retirement plan' mean:
"(A) A qualified employee plan;
"(B) A qualified employee annuity plan;
"(C) A defined contribution plan;
"(D) A tax sheltered annuity plan;
"(E) A individual retirement account;
"(F) Any combination of the plans and account listed in subparagraphs (A) through (E) of this paragraph; or
"(G) Any similarly situated plan as defined by the Internal Revenue Code of 1986.
"(3) This subsection shall be applicable for periods beginning after December 31, 2011."
"(l) Withholding from lottery winnings.
"(1) For the purposes of this subsection, the term:
"(A) 'Constructive receipt' or "constructively received" means that payments of lottery winnings, although not actually within a taxpayer's possession, are deemed to be received by the payee and subject to District tax in the taxable year during which the lottery winner is determined by Powerball or other lottery drawing.
"(B) 'Lottery winnings' means winnings which are subject to withholding as defined in section 3402(q) of the Internal Revenue Code of 1986, whether as a lump sum or annuitized payment.
"(C) 'Payment' means the payment of lottery winnings.
"(D) 'Payor' means a person responsible to make a payment subject to withholding under section 3402(q) of the Internal Revenue Code of 1986.
"(2) In making payments, whether actually or constructively received by the payee, of lottery winnings taxable under § 47-1803.02, 47-1807.02, or 47- 1808.02, the District of Columbia Lottery and Charitable Games Control Board, or any payor, shall deduct and withhold from such payments an amount equal to the tax on such payments computed at the highest rate of tax under § 47- 1806.03, 47-1807.02, or 47-1808.03, as applicable, in accordance with procedures to be established by the Chief Financial Officer.
"(3) Except as provided in paragraph (4) of this subsection, the withholding required by this section shall apply to any of the following payments:
"(A) A lump sum payment in the year the payment is made; or
"(B) A payment of an annuitized amount in the year the payment is made by any payor to a payee.
"(4) The withholding required by this subsection shall not apply to a payment to a nonresident, corporation, partnership, or limited liability company if the individual, shareholder, partner, or member of such entities provides the payor with a statement and documentary evidence, subject to review and approval by the Chief Financial Officer, that the income earned is not subject to District tax.".
Section 4(b) of D.C. Law 18-43 provides that the act shall expire after 225 days of its having taken effect.
"(l) Withholding from lottery winnings. --
"(A) 'Constructive receipt' or 'constructively received' means that payments of lottery winnings, although not actually within a taxpayer's possession, are deemed to be received by the payee and subject to District tax in the taxable year during which the lottery winner is determined by Powerball or other lottery drawing.
Section 4(b) of D.C. Law 18-206 provides that the act shall expire after 225 days of its having taken effect.
"(E) For the method of withholding after December 31, 2011, no allowance for the standard deduction shall be permitted.".
; and rewrote subsec. (e)(8) to read as follows:
"(8) For periods beginning after December 31, 2011, an employee shall be entitled to additional withholding exemptions under this subsection with respect to payment of wages equal to a number determined by dividing by the personal exemption provided under § 47-1806.02(i) the excess of:
"(B) The applicable standard deduction amount specified in § 47-1801.04(26).".
"(n)(1) Beginning for statements due after December 31, 2011, each employer or payor required under this section to withhold income tax for an employee or a person who receives a payment subject to withholding ("payee") shall prepare a statement for each employee or payee that shows for the previous calendar year any information that the Chief Financial Officer requires by regulation or guidance.
"(2)(A) An employer or payor required to submit the statements pursuant to paragraph (1) of this subsection shall submit one copy of the statement for each employee or payee to the Chief Financial Officer by January 31 of each year.
"(B) Except as provided by subparagraph (C) of this paragraph, if the number of statements that an employer or payor is required to submit is 25 or more, the employer or payor shall submit the statements in an electronic format, as prescribed by the Chief Financial Officer.
"(C) The Chief Financial Officer may waive the requirement that an employer or payor submit statements in electronic format if the Chief Financial Officer determines that the requirement will result in undue hardship to the employer or payor.".
Section 4(b) of D.C. Law 19-90 provides that the act shall expire after 225 days of its having taken effect.
Section 2 of D.C. Law 19-100, in subsec. (m)(1), substituted "a distribution" for "an early distribution" and substituted "retirement account and the distribution is subject to" for "account retirement account or retirement plan or pursuant to section 3405 of the Internal Revenue Code of 1986 and the payment is subject to mandatory"; and amended subsec. (m)(3) to read as follows:
"(3) This subsection shall apply to distributions made after December 31, 2011.".
Section 4(b) of D.C. Law 19-100 provides that the act shall expire after 225 days of its having taken effect.
"(m)(1) Except as provided in paragraph (2) of this subsection, if a resident payee receives a payment from a retirement plan or retirement account that is a lump-sum distribution, District income tax shall be withheld on the lump-sum distribution by the payor at the highest District individual income tax rate that is in effect at the time of the distribution.
"(2) Paragraph (1) of this subsection shall not apply to:
"(A) Any portion of a lump-sum payment that was previously subject to tax;
"(B) An eligible rollover distribution that is effected as a direct trustee to trustee transfer; or
"(C) A rollover from an individual retirement account to a traditional or Roth individual retirement account that is effected as a direct trustee to trustee transfer.
"(A) 'Lump-sum distribution' means a payment from a payor to a resident payee of the resident payee's entire account balance, exclusive of any other tax withholding and any administrative charges and fees.
"(B) 'Retirement account' or 'retirement plan' means:
"(i) A qualified employee plan;
"(ii) A qualified employee annuity plan;
"(iii) A defined contribution plan;
"(iv) A defined benefit plan;
"(vi) An individual retirement account;
"(vii) Any combination of the plans and account listed in sub-subparagraphs (i) through (vi) of this subparagraph; or
"(viii) Any similarly situated account or plan as defined by the Internal Revenue Code of 1986.
"(4) This subsection shall apply within 5 days of the effective date of the Targeted Retirement Distribution Withholding Emergency Act of 2012, effective February 24, 2012 (D.C. Act 19-316; 58 DCR ___).".
Section 4(a) of D.C. Law 19-135 provides that the act shall expire after 225 days of its having taken effect.
For temporary (90 day) amendment of section, see § 2 of Withholding of Tax on Lottery Winnings Emergency Act of 2009 (D.C. Act 18-71, May 6, 2009, 56 DCR 3799).
For temporary (90 day) amendment of section, see § 2 of Withholding of Tax on Lottery Winnings Congressional Review Emergency Act of 2009 (D.C. Act 18-147, July 28, 2009, 56 DCR 6323).
For temporary (90 day) amendment of section, see § 2 of Withholding of Tax on Lottery Winnings Emergency Act of 2010 (D.C. Act 18-391, May 7, 2010, 57 DCR 4342).
For temporary (90 day) amendment of section, see §§ 7092, 7093, and 7152 of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).
For temporary (90 day) amendment of section, see § 7 of Revised Fiscal Year 2012 Budget Support Technical Clarification Emergency Amendment Act of 2011 (D.C. Act 19-157, October 4, 2011, 58 DCR 8688).
For temporary (90 day) amendment of section, see § 2 of Income Tax Withholding Statements Electronic Submission Emergency Act of 2011 (D.C. Act 19-226, November 15, 2011, 58 DCR 9934).
For temporary (90 day) amendment of section, see § 2 of Retirement Distribution Withholding Emergency Act of 2011 (D.C. Act 19-265, December 22, 2011, 58 DCR 11242).
For temporary (90 day) amendment of section, see § 2 of Income Tax Withholding Statements Electronic Submission Congressional Review Emergency Act of 2012 (D.C. Act 19-308, February 21, 2012, 59 DCR 1684).
For temporary (90 day) amendment of section, see § 2 of Targeted Retirement Distribution Emergency Act of 2012 (D.C. Act 19-316, February 24, 2012, 59 DCR 1709).
For temporary (90 day) amendment of section, see § 7022 of Fiscal Year 2013 Budget Support Emergency Act of 2012 (D.C. Act 19-383, June 19, 2012, 59 DCR 7764).
For temporary (90 day) amendment of section, see § 7022 of Fiscal Year 2013 Budget Support Congressional Review Emergency Act of 2012 (D.C. Act 19-413, July 25, 2012, 59 DCR 9290).
For temporary (90 day) amendment of section, see § 105 of Fiscal Year 2013 Budget Support Technical Clarification Emergency Amendment Act of 2012 (D.C. Act 19-482, October 10, 2012, 59 DCR 12478).
For temporary (90 day) amendment of section, see § 2 of Income Tax Withholding Statements Electronic Submission Emergency Act of 2012 (D.C. Act 19-506, October 26, 2012, 59 DCR 12770).
For legislative history of D.C. Law 3-92, see Historical and Statutory Notes following § 47-1803.03.
For legislative history of D.C. Law 7-141, see Historical and Statutory Notes following § 47-1801.04.
Short title: Section 7091 of D.C. Law 18-223 provided that subtitle J of title VII of the act may be cited as the "Withholding of Tax on Lottery Winnings Act of 2010".
Section 7093 of D.C. Law 18-223 provides:
"Sec. 7093. Applicability.
"Section 7092 shall apply as of April 24, 2010."
Short title: Section 7151 of D.C. Law 18-223 provided that subtitle P of title VII of the act may be cited as the "Withholding Tax Compliance Reform Act of 2010".
Short title: Section 8091 of D.C. Law 19-21 provided that subtitle J of title VIII of the act may be cited as "Standard Deduction Withholding Exclusion Act of 2011".
Section 8093 of D.C. Law 19-21 provides:
"Sec. 8093. Applicability.
"This subtitle shall apply as of January 1, 2012."
Short title: Section 8111 of D.C. Law 19-21 provided that subtitle L of title VIII of the act may be cited as "Withholding Tax on Distributions from Retirement Accounts Act of 2011".
Short title: Section 7021 of D.C. Law 19-168 provided that subtitle B of title VII of the act may be cited as "Targeted Retirement Distribution Withholding Act of 2012".