Washington Tax Decisions

An employer of record disputes taxes assessed on amounts received from affiliates to compensate for the employer of record’s payment of the affiliates’ employee expenses. The employer asserts it met the requirements of RCW 82.04.43393, and alternatively that it was entitled to rely on written instructions from the Department. The petition is denied.

An automotive finance and insurance company contests the B&O tax reclassification of its commission income on two grounds. First, Taxpayer contends that its gross income from automotive financing and insurance was not correctly reclassified to the service and other activities B&O tax rate and, second, Taxpayer argues that it was entitled to rely on the results of an earlier audit when classifying its income. Taxpayer’s petition is denied.

An S corporation disputes an assessment REET on property transferred to one of its shareholders and asserts the transfer is exempt from REET under RCW 82.45.010(3)(p) (and WAC 458-61A-211) as a mere change in identity or form. Petition denied.

A retailer of recorded movies and music seeks a refund of use tax paid on services purchased from an application service provider. We deny the petition.

An individual protests REET assessed on the transfer of property to her son, claiming the transfer was exempt from REET as a mere clearing of title or addition of co-signor. We deny the petition in part and grant it in part.

A retailer selling roll-your-own cigarettes protests estimated assessments of tax on untaxed roll-your-own cigarette sales. The Taxpayer was provided the opportunity to provide records and detail to substantiate actual sales, but no records were received. We therefore sustain the assessments as issued and deny the Taxpayer’s petition.

A wholesale and retail print shop objects to the reclassification of its business activities to the Printing and Publishing B&O Tax Classification and the amount of its tax assessment [asserting that its main business activity is duplicating materials provided by customers]. Taxpayer’s petition is denied.

A payroll processing services provider protests the assessment of service and other activities B&O tax on amounts that Taxpayer claims are excluded from the measure of B&O tax. For a part of the relevant time period, Taxpayer also claims it is eligible to deduct those same amounts from its gross income. We deny the petition.