This article, about wholesales in audit, 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… 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
Buying or Selling a Small Business? Don’t Overlook Washington’s Iron Fisted Successor Liability
Washington State Small Business Attorney, Martin Silver Can Help. 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… CONTINUE
How Washington Revenue Imposes Sales Tax on Architectural and Design Services
Washington State Tax Lawyer, Martin Silver Can Help. 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… CONTINUE
Washington “Zapper” Criminal Prosecution – Use of Zapper May Have Tipped off Auditors to Unreported Cash Sales
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.
Washington State Tax Lawyer, Martin Silver Can Help. 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… 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
IRS Announces A New Payroll Tax Initiative
IRS recently announced a new “initiative” (July 31, 2015 e-mail for tax professionals), to make early contact with employers who are falling behind in their payroll taxes. According to the announcement, when it appears an employer may owe a balance at the end of the quarter, Revenue Officers will be in contact before the quarterly… CONTINUE
Big 2015 Penalty Increases for Late Filing of Washington State Business Taxes
The Washington State Legislature has just enacted substantial increases to payments for businesses that pay taxes late. Beginning August 1, 2015, if a return is not paid by the due date the 5% penalty is increased to a whopping 9%! If the tax is not paid by the end of the second month the penalty… CONTINUE