Washington B&O Tax: No Activity? KEEP FILING!
Washington State has changed the length of time a business continues to have reporting obligations for business and occupation (B&O) tax after it stops activity in Washington.
Effective June 1, 2010, there is a change in the length of time a business continues to have reporting obligations for business and occupation (B&O) tax.
A person who stops the business activity that created nexus in Washington now continues to have nexus for the remainder of that calendar year, plus one additional calendar year. (See RCW 82.04.220)
This “trailing” nexus provision applies to all business and occupation (B&O) tax classifications.
This legislation only changes trailing nexus for B&O taxes.
The trailing nexus period for retail sales tax (RST) is still four years, plus the current year, under WAC 458-20-193 (Rule 193).
For more information regarding the change, go to Washington's Special Notice.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at email@example.com.
Because state and local taxes are deceptively simple and endlessly complicated.