D.C. Code § 47-4221
Waiver of penalty — reasonable cause.
# (a)
A penalty shall not be imposed with respect to a portion of an underpayment if the taxpayer shows that there was reasonable cause for the underpayment and that the taxpayer acted in good faith.
# (b)
Relief for reasonable cause is available for the following penalties:
# (1)
Accuracy-related penalty under § 47-4211;
# (2)
Failure to pay penalty under § 47-4213;
# (3)
Failure to file penalty under § 47-4213;
# (4)
Return preparer penalties under § 47-4217;
# (5)
Personal liability for failure to collect or pay tax under § 47-4491; and
# (6)
Failure to record timely a deed under § 47-1433.
# (c)
Reasonable cause generally exists if, based on all the facts and circumstances, the taxpayer exercises ordinary business care and prudence in determining his or her tax obligations, but was unable to comply with a prescribed duty within the prescribed time. Ordinary business care and prudence includes making provision for business obligations to be met when reasonably foreseeable events occur.
Source: official DC Code section page (code.dccouncil.gov)
In this chapter (14 sections)
- 47-4201 · Interest on underpayments.
- 47-4202 · Interest on overpayments.
- 47-4203 · Underpayment of estimated tax by individuals.
- 47-4204 · Underpayment of estimated tax by corporations, financial…
- 47-4211 · Imposition of accuracy-related penalty.
- 47-4212 · Imposition of fraud penalty.
- 47-4213 · Failure to file return or to pay tax.
- 47-4214 · Underpayment of estimated tax by individuals.
- 47-4215 · Underpayment of estimated tax by corporations, financial…
- 47-4216 · Frivolous returns.
- 47-4217 · Tax return preparers; aiding and abetting by others.
- 47-4218 · Penalties for Qualified High Technology Company.
- 47-4221 · Waiver of penalty — reasonable cause.
- 47-4222 · Abatements — tax, interest, and penalty.