Wash. Court of Appeals published opinion — D2 60254-7-II Published Opinion.pdf

Citation: Wash. Court of Appeals published opinion — D2 60254-7-II Published Opinion.pdf
Jurisdiction: Washington (state)
Source: Official source
Original Source: https://www.courts.wa.gov/opinions/pdf/D2%2060254-7-II%20Published%20Opinion.pdf ↗

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The word “reimbursement” as used herein, means money or credits received
from a customer or client to repay the taxpayer for money or credits expended by
the taxpayer in payment of costs or fees for the client.

The words “advance” and “reimbursement” apply only when the customer
or client alone is liable for the payment of the fees or costs and when the taxpayer
making the payment has no personal liability therefor, either primarily or
secondarily, other than as agent for the customer or client.

There may be excluded from the measure of tax amounts representing
money or credit received by a taxpayer as reimbursement of an advance in
accordance with the regular and usual custom of his business or profession.

The foregoing is limited to cases wherein the taxpayer, as an incident to the
business, undertakes, on behalf of the customer, guest or client, the payment of
money, either upon an obligation owing by the customer, guest or client to a third
person, or in procuring a service for the customer, guest or client which the taxpayer
does not or cannot render and for which no liability attaches to the taxpayer. It does
not apply to cases where the customer, guest or client makes advances to the
taxpayer upon services to be rendered by the taxpayer or upon goods to be
purchased by the taxpayer in carrying on the business in which the taxpayer
engages.

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For the current opinion, go to https://www.lexisnexis.com/clients/wareports/.

No. 60254-7-II

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