Business And Occupation Tax Audits
All parties that do business in the State of Washington are required to pay Business And Occupation taxes, including Tax Exempt Non-Profit Organizations. The rate paid varies according to the type of activity performed by the business, and the taxable base is ALL revenue earned by the company. This creates a situation where even an unprofitable business is still liable for B & O Tax, despite not being required to pay income based taxes. Manufacturing and sales activities are generally taxed at a low rate in relation to revenue, and services are taxed at a much higher rate.
If you are being audited by the Washington State Department of Revenue, contact a Tax Attorney today, and do not risk being railroaded from the beginning. Generally, once an audit is complete, the taxpayer has often lost their only opportunity to establish their case. Appeals can be made if timely, but this can be far more expensive and difficult than obtaining a favorable outcome during an audit. The State of Washington tends to give more leeway during audits, but less during the collection process.
There are far few collection alternatives for State of Washington taxes than there are with Federal Taxes. In many ways, it is more important to have representation early in the audit process. The State of Washington can levy heavy penalties such as the 50% evasion penalty, and having a qualified tax attorney can make a big difference.
Even if you have a business and have not been paying B & O Taxes, do not wait for the Department of Revenue to discover this. Programs exist that will limit the back payment of taxes to four years as opposed to seven years if the DOR discovers the non-payment of taxes. They will also abate the penalties, which can often times be a major percentage of the total. It is always better to retain a tax attorney, come forward, and disclose this information to the State of Washington to minimize overall tax liability. Call today for a free confidential consultation with one of our Seattle area tax attorneys.
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“I was hit with an unlawful tax assessment & I was in a panic. I contacted Chris & the minute I started talking to him he calmed me down & instantly started taking care of things. He was so knowledgeable & quick with his response that in no time we had things figured out and told me what steps will be needed. In no time step by step he helped me to a successful outcome. He is the best. I would recommend him to everyone.”
Terri J., Seattle, Washington