{"data":{"id":"us-dc/d.c.-code-47-4203","jurisdiction":"us-dc","citation":"D.C. Code § 47-4203","heading":"Underpayment of estimated tax by individuals.","body":"(a)\nAn individual shall pay 4 installments of estimated tax on the dates as provided in § 47-1812.08(i)(4) in the amounts provided under subsection (b) of this section.\n\n(b)\n(1)\nThe amount of each installment of estimated tax shall be the lesser of:\n(A)\nThe amount required under the annualized income method under paragraph (2) of this subsection, or\n(B)\nTwenty-five percent of the lesser of:\n(i)\nNinety percent of the tax shown on the return for the taxable year (or, if no return is filed, 90% of the tax for the taxable year);\n(ii)\n(I)\nExcept as provided in sub-sub-subparagraph (II) of this sub- subparagraph, 100% of the tax shown on the return of the individual for the preceding taxable year if the individual filed a return for the preceding taxable year consisting of 12 months; or\n(II)\nFor tax years beginning after December 31, 2011, 110% of the tax shown on the return of the individual for the preceding taxable year if the individual filed a return for the preceding taxable year consisting of 12 months; or\n(iii)\n(I)\nExcept as provided in sub-sub-subparagraph (II) of this sub-subparagraph, 100% of the tax computed on the basis of the facts shown on the individual’s return for the preceding taxable year if the individual filed a return for the preceding taxable year consisting of 12 months; or\n(II)\nFor tax years beginning after December 31, 2011, 110% of the tax computed on the basis of the facts shown on the individual’s return for the preceding taxable year if the individual filed a return for the preceding taxable year consisting of 12 months.\n(2)\n(A)\nThe required payments under the annualized income method shall be, on a cumulative basis, as follows:\n(i)\nOn the first installment date, 22.5% of the tax for the taxable year based upon the annualized income of the individual for the first 3 months of the taxable year;\n(ii)\nOn the second installment date, 45% of the tax for the taxable year based upon the annualized income of the individual for the first 5 months of the taxable year;\n(iii)\nOn the third installment date, 67.5% of the tax for the taxable year based upon the annualized income of the individual for the first 8 months of the taxable year; and\n(iv)\nOn the fourth installment date, 90% of the tax for the taxable year.\n(B)\nThe annualized income method shall not apply to individuals filing a return for part of a taxable year except under regulations as the Mayor may prescribe.\n\n(c)\n(1)\nExcept as otherwise provided in this section, in the case of an underpayment of estimated tax by an individual, there shall be added to the tax imposed under § 47-1806.03(a) an amount of interest determined by applying the underpayment rate set forth in § 47-4201 to the amount of the underpayment for the period of the underpayment.\n(2)\nFor the purposes of this subsection:\n(A)\nThe amount of the underpayment shall be the excess of the required installment, over the amount, if any, of the installment paid on or before the due date for the installment; and\n(B)\nThe period of the underpayment shall run from the due date for the installment to the earlier of the 15th day of the 4th month following the close of the taxable year or the date on which the amount of the underpayment is made; provided, that an underpayment that is unpaid during part of a month shall be considered to be paid at the end of the month.\n\n(d)\nFor the purposes of this section:\n(1)\nA payment of estimated tax shall be credited against unpaid required installments in the order in which the installments are required to be paid.\n(2)\nThe term “tax” means the tax imposed by § 47-1806.03, less the amount of credit allowed against the tax (other than the credit under § 47-1806.04(b) for withholding of wages).\n(3)\nThe amount of the credit allowed under § 47-1806.04(b) for withholding of wages shall be deemed a payment of estimated tax. An equal part of such amount shall be deemed paid on each due date for the payment of estimated tax for the taxable year unless the taxpayer establishes the dates on which all amounts were actually withheld, in which case the amounts withheld shall be deemed payments of estimated tax on the dates on which such amounts were actually withheld.\n(4)\nThe amount of a refund of a prior year’s tax applied against the tax during the taxable year shall be deemed a payment of estimated tax.\n\n(e)\nInterest shall not be imposed under subsection (c) of this section for a taxable year if:\n(1)\nThe tax shown on the return for the taxable year (or, if no return is filed, the tax), reduced by applicable credits and payments of estimated tax that are timely made, is less than $ 100;\n(2)\nThe individual did not have any liability for tax for the preceding taxable year;\n(3)\nThe Mayor determines that:\n(A)\nThe taxpayer retired after having attained 62 years of age or developed a disability in the taxable year for which estimated payments were required to be made or in the taxable year preceding such taxable year; and\n(B)\nThe underpayment was due to reasonable cause and not to willful neglect;\n(4)\nThe Mayor determines that, by reason of casualty, disaster, or other unusual circumstances, the imposition of the addition to tax would be against equity and good conscience; or\n(5)\nThe taxpayer dies during the taxable year.","path":["Title 47. Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title]","Chapter 42. Interest and Penalties.","Subchapter I-A. Underpayment."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/47-4203","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"6442c86a41da9045cb06ffd1b68a8b99e8b72235c388d7e2444425d7387106dc","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-47-4202","next":"us-dc/d.c.-code-47-4204"},"notice":"GroundRules: Original legal text. Not legal advice."}