Martin Silver, PS

Attorney at Law

Update on Washington State & FBA Nexus and Amazon Announcement to Start Collecting Washington Sales Tax on Third Party Online Sales

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We have received a lot of calls over the past few months from out of state online retailers who were contacted by Washington’s Department of Revenue (DOR).  DOR asserted that these retailers must start collecting Washington state sales tax (WSST) on their sales made to customers residing in Washington state if they owned inventory stored… CONTINUE

Careless Payments Cost Business Washington Sales Tax

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How the money runs can alter whether a payment that is ordinarily not subject to retail sales tax becomes subject to the tax.  Architecture and design fees, for example, are normally classified for B & O purposes under the service classification and service providers do not have to collect retail.  But where, for example, a… CONTINUE

Rare Taxpayer Win on Washington State Successorship Liability

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In a recent blog posted to this site (May 6, 2016) we discussed the risk in purchasing a business without understanding Washington’s successor liability law.  A new Department of Revenue appeals decision released June 24, 2016, is a surprising taxpayer success, and one which should be read and studied by anyone facing a possible successor situation.  While… CONTINUE

Buying or Selling a Small Business? Don’t Overlook Washington’s Iron Fisted Successor Liability

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Many years ago we represented several local waste disposal businesses that were bought out by large national firms.  The price was negotiated by the parties, and the contracts were largely written by national law firms and given to the seller and to me for review and comment.  When we got to the question of Washington… CONTINUE

How Washington Revenue Imposes Sales Tax on Architectural and Design Services

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Unlike the Federal income tax Washington’s tax system is not based on a uniform tax on net income derived from all sources:  it is a gross receipts tax with rates dependent on what classification an activity fits into.  Moreover, a business may perform several different activities which fall into different classifications, taxable at different rates,… CONTINUE

Washington “Zapper” Criminal Prosecution – Use of Zapper May Have Tipped off Auditors to Unreported Cash Sales

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The Department of Revenue announced on its website on February 5, 2016, that the state had filed charges against the owner of Facing East, a Bellevue restaurant, alleging among other charges the use of sales suppression software to hide cash transactions, and “pocketing  nearly $395,000 in sales tax collected from her patrons.” Revenue has for… CONTINUE

Washington State Seen as Prosecuting for Failure to Remit Smaller Amounts of Sales Tax.

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We reprint in full below a report of a criminal conviction published on the Department of Revenue’s website. We do so because the amount of restitution ordered, some $41,000,  indicates that the amount of sales tax collected but not remitted was fairly small (we have participated in audits where no criminal charge occurred even though literally… CONTINUE

2015 Washington Legislation Expands Nexus to Tax Out of State Wholesalers

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Washington has a confusing set of tests for determining whether an out of state business must pay B & O tax to this state on sales of tangible personal property delivered here or for services rendered.  First, a “physical presence” nexus standard has historically applied to  businesses engaging in sales of tangible personal property either at… CONTINUE

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