Hearing On Proposed New Rules Could Dramatically Impact B&O Taxes For Service Industry Businesses

more+
less-

The Washington State Department of Revenue (“Department”) has recently announced that it will be holding a hearing on April 19 in Olympia on two proposed permanent rules implementing single factor receipts apportionment. Proposed Rule 19402 is the general rule that will apply to most businesses that report under apportionable business and occupation (“B&O”) tax classifications, which includes the “service and other” classification. Proposed Rule 19403 addresses apportionment of royalty income.

Under the single factor receipts apportionment, a business’s Washington taxable gross income is determined by multiplying “apportionable gross income” by a “receipts factor,” the numerator of which is gross income “attributable” to Washington business activities. The denominator of the receipts factor is world-wide gross income from the same class of activity.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: General Business Updates, Finance & Banking Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Lane Powell PC | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »