IT Contractor’s Services for Microsoft Require Washington Taxes

A Washington state information technology consultant mostly performed services for Microsoft Corp. there and so was subject to the state’s business and occupation tax, the Washington Court of Appeals, Division I, said.

The court’s opinion Monday affirms a Washington Board of Tax Appeals decision against Valente Solutions LLC, which argued it should instead be taxed where its customers received the benefit of its services.

But 85% of Valente’s business was performing localization services for Redmond, Wash.-based Microsoft, and the company only provided general testimony that it had a physical presence in other states, Judge Janet Chung wrote for the appeals ...