
Washington Tax Appeals
Generally, a state tax problem starts with an audit and with an assessment of tax liability. At this point, you are left with the option to pay the tax or appeal the assessment. The Washington State Department of Revenue handles hearings for appeals only in
Appeals must be filed within 30 days of the date the assessment was issued. If you applied for a refund and it was denied, you should file your petition for a review of that denial within 30 days. Appeals not postmarked or received within this time period are automatically dismissed.
To appeal a state tax deficiency you must file an appeal petition. The appeal petition must state:
- Your name, address, registration/UBI number, telephone number, fax number, e-mail address, and contact person;
- If represented, the representative's name, address, telephone number, fax number, and e-mail address;
- Identifying information from the assessment notice, balance due notice, or other document being appealed;
- The amount of tax, interest, or penalties in controversy, and the time period at issue;
- Whether you are requesting an in-person hearing in
Olympia or Seattle, a telephone hearing, or no hearing; - A brief explanation of each issue or area of dispute and an explanation of why it should be decided in your favor; and
- To the extent known or available, reference to applicable rules, statutes, or supporting case law.
The appeals backlog is approximately one year. While an appeal is pending, you do not need to make any payments and the amounts you owe will be placed on hold while the matter is under review. However, interest will accrue on any unpaid amount.
Further Appeals Options
When the Appeals Division of the Washington State Department of Revenue issues a decision, that decision will become final thirty days later, unless you submit some kind of appeal. Generally, there are three options available. A taxpayer can use all or just one of them.
MOTIONS FOR RECONSIDERATION
The first and most simple way to appeal an adverse decision is by moving the agency (or the Administrative Law Judge) to reconsider its decision. In essence, a motion for reconsideration is calling on the integrity of the agency and that specific judge to admit that he or she has made a mistake. As one can imagine, motions for reconsideration are hardly ever successful; for many reasons, however, they remain a valid and precious wild card to play in the overall appeals process.
BOARD OF TAX APPEALS (BTA)
You may also appeal the decision to the Board of Tax Appeals (BTA). The BTA offers formal and informal appeals. An appeal to the Board of Tax Appeals must be filed within 30 days of the date of the adverse decision.
The Board of Tax Appeals hears both appeals from decisions of the
PETITIONS FOR JUDICIAL REVIEW
When you have already paid the amount in dispute and you’re merely asking for a refund, you have a third option called a petition for judicial review. In a petition for judicial review you’re essentially suing the Washington State Department of Revenue for a refund. These lawsuits must be filed in Thurston County Superior Court. When a petition for judicial review is filed, the DOR is represented by the Washington State Attorney General. Petitions for judicial review are costly, time consuming, and seldom successful. It is estimated that only 10% of petitions for judicial review produce a result favorable to the taxpayer.