August, 2021. I have not seen DOR do a worse job of explaining any sales tax law than how the sales tax applies to federal construction contracts, especially contracts for military construction. And that can create traps for developers and contractors, especially sub contractors. This situation is particularly surprising… CONTINUE
PROVING WHOLESALES IN AUDIT WITHOUT RESELLER PERMIT
This is an UPDATE to the article I posted October 16, 2014, entitled “Taking a Washington State Reseller Permit not the Only Way to Qualify for Wholesale Reporting.” In that article I discussed that the DOR’s published rule, WAC 458-20-102, provides an alternative method for a seller to prove to DOR that sales… CONTINUE
Update on Washington State & FBA Nexus and Amazon Announcement to Start Collecting Washington Sales Tax on Third Party Online Sales
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
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
2015 Washington Legislation Expands Nexus to Tax Out of State Wholesalers
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
Settlement Options with IRS and Washington State When Your Business Closes
When a business fails and closes it often has unpaid federal and Washington State taxes. Usually there isn’t much in the way of federal income taxes (Washington State has no income tax) but even if there are unpaid income taxes those will not normally be a serious issue if the business has operated as an… CONTINUE