[WSBARP] Tax Issue: Estoppel and Waiver

[Ron Housh]

Friday afternoon tax issue:

 

Client seeks real property tax exemption as a tax exempt organization
requesting a refund of real property taxes previously paid

 

Dept. of Revenue repeatedly asks for proof that client is a 501(c)(3) and
has an IRS approval letter

Client never produces the same but says "we are a Washington not for profit
corp."

Dept. of Revenue grants exemption and refunds taxes - a very substantial sum

 

Per a contingent fee agreement client pays Sketchy Business [not a lawyer]
33% of the refund for their "services" in recovering the refund

 

4 months later - Department of Revenue announces "we made a mistake - we
really did need to obtain the proof of 501(c)(3) status which is required
under the WAC;  pay the refund amount back to us - Department of Rev.- or
else we will lien and foreclose."

 

In the meantime it is determined that recovery of the 1/3 fee from Sketchy
Business will likely not occur -why?  Again, the business is really
"sketchy" [or worse]..

 

I feel there is a good estoppel argument against the Department of Revenue
for the 1/3 of the refund that was paid to Sketchy Business - client will
gladly assign its claim against Sketchy Business to Department of Revenue.

But wonder if there is a waiver argument that applies to a governmental
entity, i.e. there is clear evidence Department of Rev. knew of the WAC reg.
that required the proof of the 501(c)(3) status, they asked for the records,
never received them and then approved the exemption and refunded the tax.

 

Any experience out there asserting waiver and/or estoppel claims against D
of Revenue (or other agencies)?

 

Thanks!

 

I AM TYPICALLY IN THE SEATTLE OFFICE ON TUESDAY AND THURSDAY AND IN THE
MOUNT VERNON OFFICE ON MONDAY, WEDNESDAY AND FRIDAY 

 

Ronald G. Housh, P.S.

Attorney at Law

 

Seattle Office:

1420 Fifth Avenue, Suite 3000

Seattle, WA 98101-2393

Phone:   206-381-1341

Fax:        206-464-0461

Email:     <mailto:ron at housh.org> ron at housh.org

 

Mount Vernon Office:

21411 Bluejay Place

Mount Vernon, WA 98274

Phone:  206-235-2459

Email:    <mailto:ron at housh.org> ron at housh.org

 


 

 

 

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