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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><span style='color:#1F497D'>Friday afternoon tax issue:<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Client seeks real property tax exemption as a tax exempt organization requesting a refund of real property taxes previously paid<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Dept. of Revenue repeatedly asks for proof that client is a 501(c)(3) and has an IRS approval letter<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Client never produces the same but says “we are a Washington not for profit corp.”<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Dept. of Revenue grants exemption and refunds taxes – a very substantial sum<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Per a contingent fee agreement client pays Sketchy Business [not a lawyer] 33% of the refund for their “services” in recovering the refund<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>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…”<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>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]……<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>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.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>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.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Any experience out there asserting waiver and/or estoppel claims against D of Revenue (or other agencies)?<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Thanks!<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal><b><span style='font-size:12.0pt;font-family:"Arial","sans-serif";color:red'>I AM TYPICALLY IN THE SEATTLE OFFICE ON TUESDAY AND THURSDAY AND IN THE MOUNT VERNON OFFICE ON MONDAY, WEDNESDAY AND FRIDAY <o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:green'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Ronald G. Housh, P.S.</span></b><b><span style='font-family:"Arial","sans-serif";color:#1F497D'><o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Attorney at Law</span></b><b><span style='font-family:"Arial","sans-serif";color:#1F497D'><o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'> <o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Seattle Office:</span></b><b><span style='font-family:"Arial","sans-serif";color:#1F497D'><o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>1420 Fifth Avenue, Suite 3000</span></b><b><span style='font-family:"Arial","sans-serif";color:#1F497D'><o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Seattle, WA 98101-2393</span></b><b><span style='font-family:"Arial","sans-serif";color:#1F497D'><o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Phone: 206-381-1341</span></b><b><span style='font-family:"Arial","sans-serif";color:#1F497D'><o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Fax: 206-464-0461</span></b><b><span style='font-family:"Arial","sans-serif";color:#1F497D'><o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Email: </span></b><b><span style='font-family:"Arial","sans-serif";color:#1F497D'><a href="mailto:ron@housh.org"><span style='color:#1F497D'>ron@housh.org</span></a><o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Mount Vernon Office:</span></b><b><span style='font-family:"Arial","sans-serif";color:#1F497D'><o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>21411 Bluejay Place</span></b><b><span style='font-family:"Arial","sans-serif";color:#1F497D'><o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Mount Vernon, WA 98274</span></b><b><span style='font-family:"Arial","sans-serif";color:#1F497D'><o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Phone: 206-235-2459</span></b><b><span style='font-family:"Arial","sans-serif";color:#1F497D'><o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Email: <a href="mailto:ron@housh.org"><span style='color:#1F497D'>ron@housh.org</span></a><o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'><o:p> </o:p></span></b></p><div align=center><table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=600 style='width:6.25in'><tr><td width=324 valign=top style='width:243.0pt;padding:0in 0in 0in 0in'><p class=MsoNormal><span style='font-size:8.5pt;font-family:"Trebuchet MS","sans-serif";color:#5C5B5B'><o:p> </o:p></span></p></td><td width=276 style='width:207.0pt;padding:0in 0in 0in 0in'><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'><o:p> </o:p></span></p></td></tr></table></div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'><o:p> </o:p></span></p></div></div></body></html>