District of Columbia Administrative Code

154 FEDERAL ADJUSTMENTS TO RETURNS 154.1 The written notice referred to in § 10(e) of title XII of the Act (relating to changes or corrections to the taxpayers taxable income made by the Internal Revenue Service or a Court of the United States) shall be addressed to the Audit Div…

155 DISTRICT OF COLUMBIA COLLEGE SAVINGS PROGRAM 155.1 Program Administration and Management: The Program shall be administered by the Chief Financial Officer in compliance with Section 529 of the Internal Revenue Code (including the regulations and administrative guidance thereu…

156 COMBINED REPORTING: OUTLINE; PURPOSE; GENERAL RULE; EFFECTIVE DATE; AND DEFINITIONS 156.1 Outline. 156, et seq. is organized as follows: 156. Outline, Effective Date, Purpose; General Rule; Revocation of Election to File Consolidated Returns; and Definitions 157. Composition …

157 COMBINED REPORTING: COMPOSITION OF THE COMBINED GROUP 157.1 General rule. Where a person subject to tax under chapter 18 of title 47 of the D.C. Official Code is engaged in a unitary business with one or more other persons that are related by common ownership, the taxpayer me…

158 COMBINED REPORTING: DETERMINATION OF A UNITARY BUSINESS; COMMONLY CONTROLLED; AND UNITARY PRESUMPTIONS 158.1 Determination of unitary business. The term “unitary business” is defined in D.C. Official Code § 47-1801.04(55)(A) as a single economic enterprise that is made up eit…

159 COMBINED REPORTING: PASSIVE HOLDING COMPANIES 159.1 Passive holding companies. A passive holding company that is in a commonly controlled economic enterprise and holds intangible assets that are used by the enterprise in a unitary business shall be deemed to be engaged in the…

160 COMBINED REPORTING: STATUTE OF LIMITATIONS 160.1 Statute of limitations. If the statute of limitations applicable to refund claims and assessments is open with respect to a particular member of the combined group, the statute of limitations is open with respect to that partic…

161 COMBINED REPORTING: WATER’S-EDGE DETERMINATION 161.1 Water’s-edge determination. Absent an election to report based upon a worldwide unitary combined reporting basis, taxpayer members of a unitary group shall determine each of their apportioned shares of the net business inco…

162 COMBINED REPORTING: WORLDWIDE REPORTING AND INITIATION AND WITHDRAWAL OF ELECTION 162.1 Worldwide reporting. The member or members of the combined group engaged in a unitary business may elect to determine their apportioned share of the aggregate taxable net income or loss de…

163 COMBINED REPORTING: DETERMINATION OF TAXABLE INCOME OR LOSS USING COMBINED REPORT 163.1 The use of a combined report does not disregard the separate identities of the taxpayer members of the combined group. Each taxpayer member is responsible for tax based on its taxable inco…

164 COMBINED REPORTING: COMBINING SPECIAL APPORTIONMENT FORMULAS 164.1 Combined groups which include some members which are required to use the four (4)-factor apportionment formula and other members which are required to use a special apportionment method are subject to apportio…

165 COMBINED REPORTING: NET OPERATING LOSSES 165.1 Post-apportioned net operating loss carryforwards. A combined group member may carry forward its District apportioned net operating loss to the extent the carryforward and offset is consistent with the requirements and limitation…

166 COMBINED REPORTING: TAX CREDITS 166.1 Current year tax credits. A tax credit generated by a member of a combined group is an attribute of the member rather than of the combined group, and credits are to be computed for each taxpayer separately. Therefore, a tax credit earned …

167 COMBINED REPORTING: TAXABLE YEAR; PART YEAR MEMBERS 167.1 Taxable year of the combined group. The combined group’s taxable year is determined as follows: (a) If two (2) or more members of a group file a federal consolidated return, the group’s taxable year is the taxable year…

168 COMBINED REPORTING: DESIGNATED AGENT, LIABILITY 168.1 Designated agent. In the event that there are two or more taxpayer members of a combined group, as a filing convenience, and without changing the respective liability of the group taxpayer members, the taxpayer members of …

169 COMBINED REPORTING: APPORTIONMENT 169.1 The Joyce Rule. For apportionment purposes, the principle established in Appeal of Joyce, Inc. (Cal. SBOE 11/23/66) shall apply, in which each taxpayer member of the combined group is treated as a separate taxpayer and that taxpayer’s n…

170 COMBINED REPORTING: UNINCORPORATED BUSINESS ENTITIES / PARTNERSHIPS 170.1 General rule. Notwithstanding any other provision of chapter 18 of title 47 of the D.C. Official Code or the combined reporting regulations, if the combined group includes or any member owns an unincorp…

171 COMBINED REPORTING: MINIMUM TAX PAYABLE 171.1 The minimum tax payable as provided under D.C. Official Code §§ 47-1807.02(b) and 47-1808.03(b) (2005 Repl.), as applicable, applies to each taxpayer member of the combined reporting group that is subject to tax under chapter 18 o…

172 COMBINED REPORTING: ESTIMATED TAX PAYMENTS 172.1 Combined estimated tax payments. In general, only the designated agent of a combined group may make the estimated tax payments that must be made by the taxpayer members included in the combined report. Exception: When separate …

173 COMBINED REPORTING: REAL ESTATE INVESTMENT TRUSTS 173.1 Dividends-paid deduction. Under D.C. Official Code § 47-1803.03(a)(13) (2005 Repl.), a real estate investment trust shall be allowed a deduction from gross income of dividends paid by a real estate investment trust which…

174 COMBINED REPORTING: REGULATED INVESTMENT COMPANIES 174.1 Dividends-paid deduction. Under D.C. Official Code § 47-1803.03(a)(12) (2005 Repl.), a regulated investment company shall be allowed a deduction of dividends paid by a regulated investment company which qualify for the …

175 COMBINED REPORTING: FINANCIAL ACCOUNTING STANDARDS NO. 109 (FAS 109) DEDUCTION 175.1 Eligibility. If the enactment of combined reporting requirements for unitary businesses in the District results in an increase to a combined group's net deferred tax liability, the combined g…

176 TIME AND PLACE FOR FILING TAX RETURNS; EXTENSIONS; CLOSING OUT SEPARATE ENTITIES 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 rep…

177 RESERVED SOURCE: Final Rulemaking published at 59 DCR 10875, 10899 (September 14, 2012). AUTHORITY: DC-DCMR Unless otherwise noted, the authority for this chapter is § 1 of the District of Columbia Income and Franchise Tax Act of 1947, 61 Stat. 359, as amended by § 601 of the…

178 RESERVED SOURCE: Final Rulemaking published at 59 DCR 10875, 10899 (September 14, 2012). AUTHORITY: DC-DCMR Unless otherwise noted, the authority for this chapter is § 1 of the District of Columbia Income and Franchise Tax Act of 1947, 61 Stat. 359, as amended by § 601 of the…

179 RESERVED SOURCE: Final Rulemaking published at 59 DCR 10875, 10899 (September 14, 2012). AUTHORITY: DC-DCMR Unless otherwise noted, the authority for this chapter is § 1 of the District of Columbia Income and Franchise Tax Act of 1947, 61 Stat. 359, as amended by § 601 of the…

180 RESERVED SOURCE: Final Rulemaking published at 59 DCR 10875, 10899 (September 14, 2012). AUTHORITY: DC-DCMR Unless otherwise noted, the authority for this chapter is § 1 of the District of Columbia Income and Franchise Tax Act of 1947, 61 Stat. 359, as amended by § 601 of the…

181 RESERVED SOURCE: Final Rulemaking published at 59 DCR 10875, 10899 (September 14, 2012). AUTHORITY: DC-DCMR Unless otherwise noted, the authority for this chapter is § 1 of the District of Columbia Income and Franchise Tax Act of 1947, 61 Stat. 359, as amended by § 601 of the…

182 RESERVED SOURCE: Final Rulemaking published at 59 DCR 10875, 10899 (September 14, 2012). AUTHORITY: DC-DCMR Unless otherwise noted, the authority for this chapter is § 1 of the District of Columbia Income and Franchise Tax Act of 1947, 61 Stat. 359, as amended by § 601 of the…

183 RESERVED SOURCE: Final Rulemaking published at 59 DCR 10875, 10899 (September 14, 2012). AUTHORITY: DC-DCMR Unless otherwise noted, the authority for this chapter is § 1 of the District of Columbia Income and Franchise Tax Act of 1947, 61 Stat. 359, as amended by § 601 of the…

184 RESERVED SOURCE: Final Rulemaking published at 59 DCR 10875, 10899 (September 14, 2012). AUTHORITY: DC-DCMR Unless otherwise noted, the authority for this chapter is § 1 of the District of Columbia Income and Franchise Tax Act of 1947, 61 Stat. 359, as amended by § 601 of the…

185 RESERVED SOURCE: Final Rulemaking published at 59 DCR 10875, 10899 (September 14, 2012). AUTHORITY: DC-DCMR Unless otherwise noted, the authority for this chapter is § 1 of the District of Columbia Income and Franchise Tax Act of 1947, 61 Stat. 359, as amended by § 601 of the…

1000 GENERAL PROVISIONS 1000.1 The provisions of this chapter are adopted under authority of § 2 of D.C. Law 4-71, the "Cigarette Tax Amendment Act of 1981," effective March 10, 1982, D.C. Code §§47-2401 et seq. (1981 Ed.) (also referred to in this chapter as the "Act"); and Mayo…

1001 PURCHASE OF TAX STAMPS 1001.1 Stamps to evidence payment of tax may be purchased from the Deputy Chief Financial Officer by licensed wholesalers only. 1001.2 A wholesale licensee may not purchase cigarette tax stamps from any person other than the Deputy Chief Financial Offi…

1002 BOND TO SECURE DEFERRED PAYMENT FOR STAMPS 1002.1 The Deputy Chief Financial Officer may require the filing of a bond to secure the payment of any amount or amounts due the District from the purchaser in the event of failure by the purchaser to pay the amounts due within the…

1003 AFFIXING STAMPS TO CIGARETTES 1003.1 Except as provided in § 1004, tax stamps shall be physically affixed on the bottom end of original packages of cigarettes; except that when affixed to round or flat packages of fifty (50) cigarettes or more, the stamp must be so placed th…

1004 DISTRIBUTION OF FREE CIGARETTES 1004.1 A wholesale licensee, or the authorized agent of that licensee, who desires to distribute cigarettes without consideration in the District in packages containing more than five (5) cigarettes each shall not be required to affix stamps t…

1005 METERING MACHINES 1005.1 Instead of affixing stamps to packages, the Deputy Chief Financial Officer may permit the use of metering machines for imprinting tax stamps on original packages, in accordance with the provisions of this section. 1005.2 The privilege of using meteri…

1006 CANCELLATION OF TAX STAMPS 1006.1 All stamps shall be canceled in ink, with the license number assigned to each licensee clearly indicated, before the cigarettes to which the stamps are affixed are offered for sale. 1006.2 Stamps may be canceled before or after they are affi…

1007 TAXATION OF ODD-SIZED PACKAGES 1007.1 The tax rate imposed under §603 of the Act shall apply to all original packages, regardless of the number of cigarettes in each package. (Therefore, the entire tax rate would apply to packages of one (1) through twenty (20) cigarettes). …

1008 [RESERVED] AUTHORITY: DC-DCMR Unless otherwise noted, the authority for this chapter is §2 of the Cigarette Tax Amendment Act of 1981, effective March 10, 1982, the Cigarette Tax Amendment Act of 1981, D.C. Law 4-71, D.C. Code §§47-2401 et seq. (1981 Ed.), Mayor's Order No. …

1009 [RESERVED] AUTHORITY: DC-DCMR Unless otherwise noted, the authority for this chapter is §2 of the Cigarette Tax Amendment Act of 1981, effective March 10, 1982, the Cigarette Tax Amendment Act of 1981, D.C. Law 4-71, D.C. Code §§47-2401 et seq. (1981 Ed.), Mayor's Order No. …

1010 LICENSES TO SELL CIGARETTES 1010.1 Application for a license to sell cigarettes shall be made to the Director of the Department of Consumer and Regulatory Affairs on forms available from that office. 1010.2 Licenses shall take effect from the date of issuance. 1010.3 The lic…

1011 RETAILERS LICENSE 1011.1 A separate license shall be required for each location where cigarettes are sold. 1011.2 If the only cigarettes sold or offered for sale in a retail establishment are from a licensed cigarette vending machine, the retail establishment is not required…

1012 VENDING MACHINE OPERATOR'S LICENSE 1012.1 The Director (DCRA) is authorized to issue a blanket license to each operator of cigarette vending machines for all vending machines under the control of that operator. 1012.2 A blanket license shall be authority for the holder of th…

1013 WHOLESALE LICENSES 1013.1 Manufacturers, jobbers, subjobbers, and all others who sell or offer to sell cigarettes to licensees shall obtain a wholesaler's license. 1013.2 The Director (DCRA) authorized to issue a wholesale license to a person maintaining a place of business …

1014 SALES TO PERSONS NOT LICENSED UNDER THE ACT 1014.1 A wholesale licensee is authorized to sell to the following persons not licensed under the Act cigarettes which do not bear evidence of a payment of tax, in accordance with the provisions of this section: (a) An agency or in…

1015 PERMITS FOR THE PURCHASE OF UNTAXED CIGARETTES 1015.1 An applicant for a permit to purchase untaxed cigarettes shall present to the Deputy Chief Financial Officer for retention by the Deputy Chief Financial Officer an official permit from the jurisdiction in which the applic…

1016 SALES OF CIGARETTES OTHER THAN IN ORIGINAL PACKAGES 1016.1 Cigarettes may not be sold in numbers less than the number contained in the original package. 1016.2 The sale of loose cigarettes from opened or original packages is prohibited. SOURCE: Final Rulemaking published at …

1017 DOCUMENTS AND RECORDS 1017.1 Whenever a licensee obtains any cigarettes, that licensee shall, at the time of the delivery of the cigarettes, procure from the supplier of the cigarettes an invoice, bill of lading, bill of sale, or other documentary evidence of transfer (also …