Washington Tax Decisions

A construction company appeals the assessment of the evasion penalty assessed after an audit discovered the business collected but did not remit sales tax over several years. It contends its actions were unintentional. The Department previously denied Taxpayer’s petition. On reconsideration, Taxpayer provides additional records as to intent and contends the Department made twenty-three legal errors regarding the evidentiary standard. The new records are insufficient to alter the determination. We do not find the evidentiary standard was improperly applied previously. Taxpayer’s petition is denied on reconsideration.

Husband and wife . . . who shared title with their daughter on a real estate parcel that was later transferred to their daughter alone, assert that they were on title only to help their daughter to get a mortgage, and intended to act solely as co-signors. Grantors assert they are entitled to a clearing or exiting title exemption from REET on the transfer. We grant the petition.

Two marijuana retailers protest the Department’s assessments to the extent the Department disallowed [exemptions] for sales of marijuana to customers made prior to the issuance of the customers’ patient recognition card ID numbers. Taxpayers contend that their point-of-sale software did not maintain a copy of the original ID number when customers got new recognition cards with new ID numbers. While marijuana products can be exempt from taxation under RCW 82.08.9998, Taxpayers did not follow the recordkeeping requirements. We deny the petition.

An aerospace manufacturing and R&D business protests denial of its request for refund based on a tax credit available for qualified aerospace product development expenditures. We deny taxpayer’s petition.

A business engaged in the custom construction and remodeling of residential real estate asks the Department to correct its assessment of taxes and penalties because, it argues, . . . the Department did not have the authority to audit it. The business also argues that the Department incorrectly estimated taxes after the business failed to produce adequate records to calculate an actual assessment. We deny the petition.