District of Columbia to Impose Penalties on Noncompliant Event Promoters

Beginning in November 2017, the District of Columbia Office of Tax and Revenue (OTR) plans to impose statutory penalties on special event promoters who fail to provide required vendor and exhibitor information to the OTR before and after the special event. A promoter is an individual who “arranges, organizes or sponsors vendors or exhibitors engaged in the business of retail sales to participate in a special event.” This rule will apply to events where there are at least 50 participating vendors. Special event promoters are obligated to inform the event participants of their individual tax collection and payment responsibilities for the OTR. The event promotor is not required to collect any sales tax that applies but just to provide the list of exhibitors/vendors to the OTR.

Promoters must provide a preliminary list of all participating vendors and exhibitors, their addresses, tax identification numbers, representatives, and telephone numbers to the OTR at least 30 days prior to the event. A finalized list of event participants must be submitted no more than 10 days after the final day of the special event. Beginning on November 1, promoters may provide this required information through MyTax.DC.gov, the OTR’s tax portal.

Failing to provide the preliminary list will result in a $1,000 penalty plus $50 for each day the list is late, up to $2,500. The penalty for failing to provide the finalized list is also $1,000 plus $50 for each day the list is late, but the maximum penalty is up to $10,000. (District Tax Code § 47-2002.04 and Press Release, District of Columbia Office of Tax and Revenue, July 27, 2017)

Posted on August 23, 2017