Tax Attorney in Washington

No personal income tax. Washington is one of nine states without one. The state revenue base instead rests on the 6.5% state sales tax, the Business & Occupation gross-receipts tax under Chapter 82.04 RCW for businesses, the state estate tax under Chapter 83.100 RCW, and the 2021 Capital Gains Tax under Chapter 82.87 RCW (a 7% excise tax on long-term gains above the annual standard deduction). Federal income tax filed on Form 1040 with the IRS applies in full to Washington residents.

The U.S. Tax Court holds permanent-courtroom trial sessions in Seattle (Nakamura U.S. Courthouse, 1010 5th Avenue, Room 4). Spokane is also a designated place of trial, but it uses rented facilities only when a session is calendared. A petitioner designates the preferred place of trial on the petition under Tax Court Rule 140. Western Washington filers usually choose Seattle; Eastern Washington filers in Spokane, Tri-Cities, Yakima, and Wenatchee can choose Spokane or, in some cases, Portland sessions when scheduling allows.

Under RCW §82.32.050, the Department of Revenue generally has four years from the close of the tax year to assess additional state tax (B&O, sales-and-use, capital gains). The period is extended where the return was not filed, where the taxpayer never registered with the DOR, where fraud or misrepresentation is found, or where the taxpayer signs a written waiver. The federal IRS Collection Statute Expiration Date (10 years from assessment under IRC §6502) runs independently of the state SOL.

Yes, but they audit different taxes. The IRS examines federal income tax, federal employment tax, and federal excise tax. The Department of Revenue examines state Business & Occupation tax, sales-and-use tax, the Capital Gains Tax, and a handful of other state-administered taxes. A Washington business can simultaneously face an IRS payroll audit (Form 941 issues) and a DOR sales-tax field audit. The two agencies share information through inter-agency exchange agreements, and an adjustment in one forum often triggers a look at the other.

Washington does not operate a formal Offer in Compromise program in the way the federal IRS does under IRC §7122. The Department of Revenue may negotiate payment plans, settle disputed assessments through its appeal process, and waive penalties under RCW §82.32.105 for circumstances beyond the taxpayer's control. For the federal side, the IRS OIC remains the standard mechanism for resolving a tax balance for less than the full amount when collectibility or liability is genuinely in doubt.

Your CSED is calculated from the date of assessment, which appears on your IRS Account Transcript as Transaction Code 150 (return filed) or Transaction Code 290 (additional assessment). Add ten years, then add the days for any tolling events: pending OICs, CDP hearings, bankruptcy stays, and so on. The IRS publishes the CSED date internally on its CC ACTRA transcript; we pull this for clients as part of every engagement. The practical impact is significant — a debt assessed in 2016 may be approaching expiration in 2026, and aggressive enforcement near the CSED is common.

Probably yes for the federal trust-fund portion. IRC §6672 assesses a Trust Fund Recovery Penalty against any "responsible person" who "willfully" failed to pay over withheld taxes — the FICA and federal income-tax withholding portion of Form 941, not the employer's share. The IRS conducts a Form 4180 interview to identify responsible persons. Anyone with check-signing authority, payroll-decision authority, or knowledge of the unpaid taxes can be assessed. On the state side, RCW §82.32.145 imposes responsible-person liability for unpaid sales tax at the Department of Revenue when the entity ceases business, which parallels federal TFRP.

Yes. IRC §7345 authorizes the IRS to certify "seriously delinquent" tax debt — currently $62,000 for 2026, indexed for inflation — to the State Department, which may then deny passport renewal or revoke an active passport. The certification reverses when the debt is paid, an IA is in place, an accepted OIC is in force, an active CDP hearing is pending, or Innocent Spouse Relief is in process. For Microsoft and Amazon engineers on India and EMEA rotations, Boeing field-service technicians, Alaska-cruise crews based out of Seattle, and Canadian-border commuters in Whatcom County, decertification is often urgent and can be processed in 30 days or less.

Federal tax-resolution fees vary by matter complexity. A straightforward Installment Agreement typically falls between $1,500 and $3,500. A full Offer in Compromise with Form 433 financial analysis runs $4,000 to $7,500. Audit defense depends on the audit type and the number of issues; RSU-cost-basis exams common to Seattle tech filers fall toward the higher end because reconstructing the basis history takes time. A U.S. Tax Court petition with case workup and trial preparation generally starts at $6,000 and rises with complexity. VTL provides a written fee quote after the free consultation. Cal Bar Rule 7.1 prohibits comparisons claiming we are cheaper or faster than competitors without verifiable substantiation, so we do not market on price.

Yes. Communications between you and a licensed attorney for the purpose of seeking legal advice are protected by federal common-law attorney-client privilege, subject to the usual exceptions (crime-fraud, waiver, etc.). The narrower federally-authorized tax practitioner privilege under IRC §7525 applies to non-attorney CPAs and EAs but does not extend to criminal-tax matters. An attorney handling your tax case retains the broader privilege that survives criminal investigation.

A Tax Court trial is a bench trial — no jury — before a Judge or Special Trial Judge of the U.S. Tax Court. The session opens with calendar call where the Court hears scheduling issues. Most cases on the calendar settle before trial; the IRS Office of Chief Counsel attorney for the case meets with petitioner's counsel during the days before trial. If trial proceeds, the petitioner bears the burden of proof on most issues, presents evidence and witness testimony, and the Court issues a written opinion typically within several months of trial. Small-tax-case procedure under IRC §7463 applies to deficiencies of $50,000 or less per year and uses a simplified evidentiary standard.

Yes, generally. IRC §6331(k)(1) suspends levy action while an offer is pending and for 30 days after a rejection, and during any timely-filed Appeals review of a rejection. The IRS will not levy on you while a processable OIC is being evaluated. The IRS may still file a Notice of Federal Tax Lien during the OIC pendency to protect its position. CSED is also tolled during the pendency. A poorly-prepared OIC that gets returned (not rejected) does not provide the same protection — processability matters.

Possibly, on the long-term portion. Under Chapter 82.87 RCW, individuals owe Washington's 7% Capital Gains Tax on long-term gains from the sale or exchange of stocks, bonds, business interests, and other long-term capital assets above the standard deduction ($278,000 for 2025, adjusted annually for inflation). Sales of real estate are excluded. RSUs vested and held more than one year before sale can produce long-term gain that counts. The tax was upheld by the Washington Supreme Court as an excise tax in Quinn v. State (March 2023). The Department of Revenue administers the tax, and disputes proceed through the DOR appeal process and the Washington Board of Tax Appeals.

They are separate liabilities owed to separate agencies. Federal payroll tax (FICA, FUTA, and federal income-tax withholding under Forms 941, 940, and W-2) is owed to the IRS by every employer with wages paid in the United States. The Seattle JumpStart Payroll Expense Tax under Seattle Municipal Code Chapter 5.38 is an employer-side excise tax owed to the City of Seattle by large employers on compensation paid to employees earning above defined thresholds within Seattle city limits. Unpaid federal payroll triggers IRS TFRP exposure under IRC §6672; unpaid JumpStart triggers City of Seattle collection proceedings. VTL handles the federal piece directly and coordinates Washington counsel for the city side when needed.

For administrative appeals to the Department of Revenue and the Washington Board of Tax Appeals, taxpayers may represent themselves or be represented by an attorney, a CPA, or another authorized representative under board rules. For judicial review in Thurston County Superior Court, an attorney admitted in Washington is required. VTL handles the federal side of overlapping matters and coordinates with Washington counsel where state-court litigation is necessary. Many DOR disputes resolve at the BTA stage without ever reaching state court.