Washington DOR Finds Construction Contractor’s Records Insufficient, Affirms B&O, Sales Tax Assessments

The Washington Department of Revenue (DOR), Administrative Review and Hearings Division Jan. 8 found that Taxpayer failed to maintain sufficient records to support a correction of business and occupation excise tax and sales and use tax assessments. Taxpayer, a general contractor, sought correction of an audit assessment, asserting that the amounts it received from an affiliated business weren’t taxable income. Taxpayer argued that the amounts were previously taxed as income to the affiliate, and therefore, the assessment represented a double tax on the same amounts. The hearing division noted that: 1) Taxpayer’s records didn’t demonstrate it was a separate entity ...