Spirits sales: Delinquency in reporting and remitting spirits taxes

If a taxpayer is more than thirty days delinquent in reporting or remitting spirits taxes, the Department of Revenue (department) may request that the Washington Liquor and Cannabis Board (LCB) suspend or deny the issuance or renewal of a taxpayer’s spirits license(s).

The department’s process for requesting a spirits license suspension

Seven days prior to requesting the LCB to take action, the department must provide the taxpayer with a written notice that includes:

• A listing of any unfiled tax returns.
• The amount of any unpaid spirits taxes, including penalties and interest.
• The contact information for inquiring about payment arrangements.
• The taxpayer’s right to seek an administrative review of the notice and the deadline for doing so.

To avoid having the spirits license(s) suspended, the taxpayer must take one of these actions:

• Submit any unfiled tax returns and pay the full amount owed. (Note: Payments are applied in the following order: interest, penalties, fees, other nontax amounts, non-spirits taxes, spirits taxes.)
• Submit any unfiled tax returns and negotiate a payment plan on all outstanding amounts. (Note: The department is not required to enter into a payment arrangement if the department determines the proposal is unsatisfactory.)
• Request an administrative review. (Note: Does not include the right to challenge the amount of spirits taxes due if the taxpayer previously requested, or could have requested, an administrative review of the assessment.)

If the taxpayer does not comply, the department may request that the LCB take the following actions:

• Suspend the taxpayer’s spirits license(s).
• Refuse to renew any existing license(s).
• Refuse to issue any new spirits license(s).