Law Firm Loses Appeal of $600,000 Washington Business Tax Bill

A law firm is liable for about $600,000 in business and occupation taxes on its legal services in Washington state because that’s where the benefits of the services were received, a state appeals court held.

Betts Patterson & Mines PS rendered the legal services within the state where its insurance company clients benefited, not in the out-of-state legal departments that received billing, so the state Department of Revenue correctly apportioned the firm’s tax bill to Washington, the Washington Court of Appeals’ Monday opinion said.

“In the case of its litigation services, the benefit is realized where the case is litigated,” ...