D.C. Mun. Regs. r. 27-3335

Current through Register Vol. 71, No. 24, June 14, 2024

Rule 27-3335 - TAXES

3335.1

Except as provided in § 3335.2, District, federal, state, and local taxes that are required to be and are paid or accrued in accordance with generally accepted accounting principles shall be allowable.

3335.2

The following costs shall not be allowable:

(a) District, federal, state, and local income taxes and federal excess profit taxes;

(b) All taxes from which the contractor could have obtained an exemption but failed to do so, except where the administrative cost of obtaining the exemption would have exceeded the tax savings realized from the exemption;

(c) Any interest, fines, or penalties paid on delinquent taxes unless incurred at the written direction of the contracting officer;

(d) Income tax accruals designed to account for the tax effects of differences between taxable income and pre-tax income as reflected by the contractor's books of accounts and financial statements;

(e) Taxes in connection with financing, refinancing, refunding operations, or reorganization;

(f) Special assessments on land that represent capital improvements;

(g) Taxes (including excise taxes) on real or personal property (or on the value, use, possession, or sale of personal property) which is used solely in connection with work other than on District contracts; and

(h) Taxes on accumulated funding deficiencies of, or prohibited transactions involving, employee deferred compensation plans pursuant to the Internal Revenue Code.

3335.3

Any taxes, interest, or penalties that were allowed as contract costs and are refunded to the contractor shall be credited or paid to the District in the manner the District directs. However, any interest actually paid or credited to a contractor incident to a refund of tax, interest, or penalty shall be paid or credited to the District only to the extent that the interest accrued over the period during which the contractor had been reimbursed by the District for the taxes, interest, or penalties.

3335.4

Direct government charges for services, such as water or capital improvements, are not considered taxes and shall not be allowable.

D.C. Mun. Regs. r. 27-3335

Final Rulemaking published at 35 DCR 1669 (February 26, 1988)