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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='font-family:"Arial","sans-serif";color:#44546A'>Ron,<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>Here’s an Estoppel WAC for DSHS – not sure if there is a similar one for DOR.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>WAC 388-02-0495 <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>What is equitable estoppel?<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>(1) Equitable estoppel is a legal doctrine defined in case law that may only be used as a defense to prevent the department from taking some action against you, such as collecting an overpayment. Equitable estoppel may not be used to require the department to continue to provide something, such as benefits, services, or a license, or to require the department to take action contrary to a statute.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>(2) There are five elements of equitable estoppel. The standard of proof is clear and convincing evidence. You must prove all of the following:<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>(a) The department made a statement or took an action or failed to take an action, which is inconsistent with a later claim or position by the department. For example, the department gave you money based on your application, then later tells you that you received an overpayment and wants you to pay the money back based on the same information.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>(b) You reasonably relied on the department's original statement, action or failure to act. For example, you believed the department acted correctly when you received money.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>(c) You will be injured to your detriment if the department is allowed to contradict the original statement, action or failure to act. For example, you did not seek help from health clinics or food banks because you were receiving benefits from the department, and you would have been eligible for these other benefits.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>(d) Equitable estoppel is needed to prevent a manifest injustice. Factors to be considered in determining whether a manifest injustice would occur include, but are not limited to, whether:<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>(i) You cannot afford to repay the money to the department;<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>(ii) You gave the department timely and accurate information when required;<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>(iii) You did not know that the department made a mistake;<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>(iv) You are free from fault; and<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>(v) The overpayment was caused solely by a department mistake.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>(e) The exercise of government functions is not impaired. For example, the use of equitable estoppel in your case will not result in circumstances that will impair department functions.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>(3) If the ALJ concludes that you have proven all of the elements of equitable estoppel in subsection (2) of this section with clear and convincing evidence, the department is stopped or prevented from taking action or enforcing a claim against you.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>Sincerely,<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>Tom<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>Thomas J. Westbrook<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>Attorney at Law<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#44546A'><img width=170 height=67 id="Picture_x0020_3" src="cid:image001.jpg@01D15055.AED34A60" alt="cid:image001.jpg@01CFC835.0D3988D0"></span><span style='font-family:"Arial","sans-serif";color:#44546A'><o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>Rodgers, Kee & Card<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>324 West Bay Drive NW, Suite 201<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>Olympia, Washington 98502<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>Phone: 360-352-8311<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>Facsimile: 360-352-8501<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>Email: tjw@buddbaylaw.com<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>Skype: thomas.westbrook<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'>www.buddbaylaw.com<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#44546A'>The information contained in this email and attachment(s) are for the exclusive use of the addressee(s) and may contain private, privileged and/or confidential information. If you are not the addressee, you are strictly prohibited from reading, photocopying, distributing or otherwise using this email or its contents in any way. If you have received this communication in error, please notify us immediately by telephone at 360-352-8311 or by e-mail to <a href="mailto:reception@buddbaylaw.com"><span style='color:blue'>reception@buddbaylaw.com</span></a>, and destroy the original message from your electronic files.<o:p></o:p></span></p></div><p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#44546A'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Ron Housh<br><b>Sent:</b> Friday, January 15, 2016 4:14 PM<br><b>To:</b> 'WSBA Real Property Listserv'<br><b>Subject:</b> Re: [WSBARP] Tax Issue: Estoppel and Waiver<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><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.<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Attorney at Law<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:<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<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Seattle, WA 98101-2393<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Phone: 206-381-1341<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Fax: 206-464-0461<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><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Mount Vernon Office:<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>21411 Bluejay Place<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Mount Vernon, WA 98274<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial","sans-serif";color:#1F497D'>Phone: 206-235-2459<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=750 style='width:6.25in'><tr><td width=405 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=345 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>