Washington DOR Issues Interim Guidance on Rounding Due to Penny Minting Halt

The Washington Department of Revenue (DOR) issued an interim guidance statement addressing the tax accounting implications from the U.S. Treasury’s halt in penny minting. The guidance includes: 1) explaining how retailers may round cash transactions and how such rounding affects Washington sales tax; 2) business and occupation (B&O) tax obligations; 3) clarifying that retail sales tax must be computed on the pre-rounding sales price regardless of the rounding method; and 4) clarifying that while gains from rounding are currently gross income subject to the Service & Other Activities B&O classification, the DOR will not enforce B&O tax on such gains ...