Settlement track created to settle tax disputes

The Department has created a settlement track to separately process a taxpayer’s offer to settle a tax dispute under informal administrative review by the Administrative Review and Hearings Division (ARHD).

WAC 458-20-100(7) permits the Department to settle tax disputes in certain circumstances. The Department will consider settling a tax dispute if:

• The issue is nonrecurring
• There is a conflict between a statute, rule, or written instructions to the taxpayer
• A strict application of the law would have harsh consequences
• There is uncertainty to the outcome of the decision if the dispute were presented in a court of law.

You may submit a written offer to settle at any time while your petition for administrative review is pending before ARHD. You may submit a written settlement offer to the Department using the form provided here.

The form will guide you through the information and legal basis needed to explain why you think settlement is permitted under the law and to present your proposed terms.

Submitting an offer to settle will not postpone the informal administrative review of your tax dispute, so it is important to be ready to proceed with the review process while settlement is being considered so there is no delay if the dispute is not settled.

When your offer is referred to the settlement track, it will be evaluated separate from the informal administrative review process. The ARHD’s settlement coordinator will schedule time to talk to you within 30 days of the date your offer is received by the settlement track coordinator.