Law Firm’s Tax Argument Met With Doubt From Washington Judges

Three Washington appellate judges grilled a law firm at oral arguments Tuesday on its position that the revenue department should look to its clients’ offices when determining how much of the firm’s income the state can tax.

Betts Patterson & Mines PS and the Washington Department of Revenue disagree about where the firm’s insurance company clients receive the benefit of its services.

The firm wants the Washington Court of Appeals, Division I, to refund some of the $650,000 in business and occupation taxes it alleges it overpaid from 2010-2014. It argues the out-of-state clients’ business activity related to insurance defense ...