(a) The Mayor shall determine, redetermine, assess, or reassess any tax imposed under this chapter, as follows:

(1) In the case of a fraudulent return or a failure to file a return, whether in good faith or otherwise, the tax may be assessed at any time.

(2) If the tax is determined to be due from any person other than a licensee under this title, the tax may be assessed at any time.

(3) In the case of an incorrect return, the tax shall be assessed within 5 years after the filing of such return.

(4)(A) If a return required by this title is not filed, if the return, when filed, is incorrect or insufficient, or if the tax has been determined to be due from a licensee or any other person, the amount of tax due shall be determined by the Mayor from such information as may be obtainable.

(B) Notice of the determination shall be given to the licensee or any person required to file a return or pay the tax.

(C) The notice shall state that the licensee or other person shall have not less than 30 days after the notice is sent within which to file a protest with the Mayor and show cause or reason why the amount of tax determined to be due should not be paid.

(D) If a protest is not filed within the 30-day period, the tax due, as determined by the Mayor, shall be final.

(E) If a protest is filed within the 30-day period, a hearing shall be conducted by the Mayor, a final decision thereon shall be made, and notice of the decision and a statement of taxes determined to be due shall be sent by registered or certified mail to the last known address of the person liable for the payment of the tax.

(b)(1) A licensee or other person required to file a return or pay the tax, who fails to file the return, fails to file a correct return, or fails to pay the tax to the District within the time required by this chapter, shall be subject to (A) a penalty of 5% of the tax due for each month or fraction thereof that the failure continues, not to exceed 25% in the aggregate, plus (B) interest at the rate of 1 1/2% per month on the amount of the tax for each month or fraction thereof during which the failure continues.

(2) If the Mayor determines that the delay was due to reasonable cause, the Mayor may waive all or any part of the penalty, interest, or both.

(3) Unpaid penalty and interest shall be collected in the same manner as the tax imposed by this chapter.

(4) The penalty and interest provided for in this section shall be applicable to any tax determined as a deficiency.

(c) The tax imposed by this chapter, and interest and penalties thereon, shall become, from the time due and payable, a personal debt of the person liable to pay the same to the District. For the purposes of this subsection, the term “person” shall include any officer, and any employee or former employee, of a corporation responsible for the payment of the tax and any member or former member of a partnership, limited liability company, or association, and any employee or former employee, of a partnership, limited liability company, or association responsible for the payment of the tax.

(Jan. 24, 1934, 48 Stat. 319, § 42; as added July 24, 1982, D.C. Law 4-131,§ 303, 29 DCR 2418; May 3, 2001, D.C. Law 13-298, § 101, 48 DCR 2959.)

1981 Ed., § 25-907.