District of Columbia § 47-4211 Imposition of accuracy-related penalty.

District of Columbia Statutes

§ 47-4211 — Imposition of accuracy-related penalty.

District of Columbia § 47-4211

Title 47Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title]

Ch. 42Interest and Penalties.

Subch. IIPenalties.

This text of District of Columbia § 47-4211 (Imposition of accuracy-related penalty.) is published on Counsel Stack Legal Research, covering District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

D.C. Code § 47-4211 (2026).

Text

(a)For purposes of this section, the term:

(1)“Negligence” means a failure to make a reasonable attempt to comply with the provisions of this title or to exercise ordinary and reasonable care in the preparation of a tax return without the intent to defraud. A position with respect to an item is attributable to negligence if it lacks a reasonable basis. Negligence is indicated where:

(A)The taxpayer fails to include on an income tax return an amount of income shown on an information return;

(B)The taxpayer fails to make a reasonable attempt to ascertain the correctness of a deduction, credit, or exclusion on a return; or

(C)The taxpayer fails to keep adequate books and records or to substantiate items properly.

(2)“Gross valuation misstatement” means the reporting

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(a) For purposes of this section, the term:

(1) “Negligence” means a failure to make a reasonable attempt to comply with the provisions of this title or to exercise ordinary and reasonable care in the preparation of a tax return without the intent to defraud. A position with respect to an item is attributable to negligence if it lacks a reasonable basis. Negligence is indicated where:

(A) The taxpayer fails to include on an income tax return an amount of income shown on an information return;

(B) The taxpayer fails to make a reasonable attempt to ascertain the correctness of a deduction, credit, or exclusion on a return; or

(C) The taxpayer fails to keep adequate books and records or to substantiate items properly.

(2) “Gross valuation misstatement” means the reporting on any return for a tax imposed by this title of the value of a property or the adjusted basis of a property which is greater than or equal to 400%, or less than or equal to 25%, of the amount determined to be the correct amount of the valuation or adjusted basis.

(A) “Substantial understatement of income tax” means, for a taxable year, an understatement made by taxpayer in filing an individual or estate tax return if the amount of the understatement for the taxable year exceeds the greater of:

(i) Ten percent of the tax required to be shown on the return for the taxable year; or

(ii) $2,000.

(B) In the case of a taxpayer other than an individual or estate, subparagraph (A) of this paragraph shall be applied by substituting “$4,000” for “$2,000”.

(i) For purposes of this section, the term “understatement” means the excess of the amount of tax required to be shown on a return less the tax shown on the return.

(ii) The amount of the understatement under sub-subparagraph (i) of this paragraph shall be reduced by the portion of the understatement which is attributable to:

(I) The tax treatment of an item by the taxpayer if there is or was substantial authority for the treatment; or

(II) An item if:

(aa) The relevant facts affecting the item’s tax treatment are adequately disclosed in a statement attached to the return; and

(bb) There is a reasonable basis for the tax treatment of the item by the taxpayer.

(4) “Substantial valuation misstatement” means the reporting on any return for a tax imposed by this title of the value of a property or the adjusted basis of a property which is greater than or equal to 200%, or less than or equal to 50%, of the amount determined to be the correct amount of the valuation or adjusted basis.

(1) There shall be added to a tax imposed by this title an amount equal to 20% of the portion of an underpayment which is attributable to one or more of the following:

(A) Negligence;

(B) A substantial understatement of income tax; or

(C) A substantial valuation misstatement.

(2) There shall be added to the tax imposed by this title an amount equal to 40% of the portion of an underpayment which is attributable to a gross valuation misstatement.

(1) Subsection (b) of this section shall not apply to the portion of an underpayment on which a penalty is imposed under § 47-4212 .

(2) No penalty shall be imposed under subsection (b) of this section by reason of a substantial valuation misstatement or a gross valuation misstatement unless the portion of the underpayment for the taxable year attributable to the substantial valuation misstatement exceeds $5,000 ($10,000 in the case of a corporation).