Current through Register Vol. 24-06, March 15, 2024
(1)
Introduction. The department
of revenue (department) conducts adjudicative proceedings pursuant to chapter
34.05 RCW, the Administrative Procedure Act (APA). The department adopts in
this rule, the procedures as provided in
RCW
34.05.482 through
34.05.494 for the administration
of brief adjudicative proceedings to review the department notice explained in
subsection (2) of this rule. The department must provide the notice before it
may proceed in requesting that the Washington liquor control board (board)
suspend, not renew, or not issue a taxpayer's spirits license(s) as defined in
RCW
66.24.010(3)(c), referred to
in this rule as "agency action."
This rule explains the procedure pertaining to the adopted
brief adjudicative proceedings.
(2)
Department notice. If a
taxpayer is more than 30 days delinquent in reporting or remitting spirits
taxes on a tax return or assessed by the department, including applicable
penalties and interest, the department may request that the board suspend the
taxpayer's spirits license or licenses and refuse to renew any existing spirits
license held by the taxpayer or issue any new spirits license to the taxpayer.
Before the department may take agency action, the department must provide the
taxpayer with at least seven calendar days prior written notice of the
delinquency and inform the taxpayer that the department intends to make the
request to the board. The department notice must include:
(a) A listing of any unfiled tax
returns;
(b) The amount of unpaid
spirits taxes as applicable, including any applicable penalties and
interest;
(c) Who to contact to
inquire about payment arrangements; and
(d) Information that the taxpayer may seek
administrative review of the department notice, including the deadline for
seeking such review.
A taxpayer may seek an administrative review of the department
notice as explained under subsection (3) of this rule. Brief adjudicative
proceedings under this rule do not include the right to challenge the amount of
any spirits taxes assessed by the department.
(3)
Conduct of brief adjudicative
proceedings. To initiate an appeal of a department notice, the taxpayer
has seven calendar days from the date on the department notice to request a
review of that notice. The taxpayer must file a written notice of appeal
explaining why the taxpayer disagrees with the notice of delinquency.
A form notice of appeal is available at dor.wa.gov or by
calling 360-705-6705. The completed form should be mailed or faxed to the
department at:
Washington State Department of Revenue
Compliance Administration
Spirits License Suspension Petition
P.O. Box 47473
Olympia, WA 98504-7473
Fax: 360-586-8816
(a)
A presiding officer, who will be either the assistant director of the
compliance division or such other person as designated by the director of the
department (director), will conduct brief adjudicative proceedings. The
presiding officer for brief adjudicative proceedings will have agency expertise
in the subject matter but will not otherwise have participated in the specific
matter. The presiding officer's review is limited to the written
record.
(b) As part of the notice
of appeal, the taxpayer or the taxpayer's representative may include written
documentation explaining the taxpayer's view of the matter. The presiding
officer may also request additional documentation from the taxpayer or the
department and will designate the date by which the documents must be
submitted.
(c) In addition to the
record, the presiding officer for brief adjudicative proceedings may employ
agency expertise as a basis for decision.
(d) Within 10 days of receipt of the
taxpayer's notice of appeal, the presiding officer will enter an initial order
including a brief explanation of the decision under
RCW
34.05.485. All orders in these brief
adjudicative proceedings will be in writing. The initial order will become the
department's final order unless a petition for review is made to the
department's administrative review and hearings division under subsection (4)
of this rule. If the presiding officer's order invalidates the department
notice, the department may in its discretion start new proceedings by sending a
new department notice.
(4)
Review of initial order from brief
adjudicative proceeding. A taxpayer that has received an initial order
upholding a department notice under subsection (3) of this rule may request a
review by the department by filing a written petition for review or by making
an oral request for review with the department's administrative review and
hearings division within 21 days after the service of the initial order on the
taxpayer as described in subsection (8) of this rule.
A form petition of review is available at dor.wa.gov. A request
for review should state the reasons for the review.
The address, telephone number, and fax number of the
administrative review and hearings division are:
Administrative Review and Hearings Division
Spirits License Petition for Review/Spirits Taxes
Washington State Department of Revenue
P.O. Box 47460
Olympia, WA 98504-7460
Telephone Number: 360-534-1335
Fax: 360-534-1340
(a)
A reviewing officer, who will be either the assistant director of the
administrative review and hearings division or such other person as designated
by the director, will conduct a brief adjudicative proceeding and determine
whether the initial order was correctly decided. The reviewing officer's review
is limited to the written record.
(b) The agency record need not constitute the
exclusive basis for the reviewing officer's decision. The reviewing officer
will have the authority of a presiding officer.
(c) The order of the reviewing officer will
be in writing and include a brief statement of the reasons for the decision,
and it must be entered within 20 days of the petition for review. The order
will include a notice that judicial review may be available. The order of the
reviewing officer represents a final order of the department. If a final order
invalidates the department notice, the department may in its discretion start
new proceedings by sending a new department notice.
(d) A request for review is deemed denied if
the department does not issue an order on review within 20 days after the
petition for review is filed.
(5)
Record in brief adjudicative
proceedings. The record with respect to the brief adjudicative
proceedings under
RCW
34.05.482 through
34.05.494 related to department
notice will consist of:
(a)
The record
before the presiding officer: The record before the presiding officer
consists of the department notice; the taxpayer's appeal of the department
notice; all records relied upon by the department or submitted by the taxpayer
related to the department notice; and all correspondence between the taxpayer
and the department regarding the department notice.
(b)
The record before the reviewing
officer: The record before the reviewing officer consists of all
documents included in the record before the presiding officer; the taxpayer's
petition for review; and all correspondence between the taxpayer and the
department regarding the taxpayer's petition for review.
(6)
Court appeal. Court appeal
from the final order of the department is available pursuant to Part V, chapter
34.05 RCW. However, court appeal may be available only if a review of the
initial decision has been requested under subsection (4) of this rule and all
other administrative remedies have been exhausted. See
RCW
34.05.534.
(7)
Computation of time. In
computing any period of time prescribed by this rule or by the presiding
officer or reviewing officer, the day of the act or event after which the
designated period is to run is not to be included. The last day of the period
is to be included, unless it is a Saturday, Sunday or a legal holiday, in which
event the period runs until the next day which is not a Saturday, Sunday or
legal holiday. This subsection does not apply with respect to computation of
the seven calendar days required for the department notice.
(8)
Service. All notices and
other pleadings or papers filed with the presiding or reviewing officer must be
served on the taxpayer, their representatives/agents of record, and the
department.
(a) Service is made by one of the
following methods:
(i) In person;
(ii) By first-class, registered or certified
mail;
(iii) By fax and same-day
mailing of copies;
(iv) By
commercial parcel delivery company; or
(v) By electronic delivery pursuant to
RCW
82.32.135.
(b) Service by mail is regarded as completed
upon deposit in the United States mail properly stamped and
addressed.
(c) Service by
electronic fax is regarded as completed upon the production by the fax machine
of confirmation of transmission.
(d) Service by commercial parcel delivery is
regarded as completed upon delivery to the parcel delivery company, properly
addressed with charges prepaid.
(e)
Service by electronic delivery is regarded as completed on the date that the
department electronically sends the information to the parties or
electronically notifies the parties that the information is available to be
accessed by them.
(f) Service to a
taxpayer, their representative/agent of record, the department, and presiding
officer must be to the address shown on the notice described in subsection
(3)(a) of this rule.
(g) Service to
the reviewing officer must be to the administrative review and hearings
division at the address shown in subsection (4) of this rule.
(h) Where proof of service is required, the
proofs of service must include:
(i) An
acknowledgment of service;
(ii) A
certificate, signed by the person who served the document(s), stating the date
of service; that the person did serve the document(s) upon all or one or more
of the parties of record in the proceeding by delivering a copy in person to
(names); and that the service was accomplished by a method of service as
provided in this subsection.
(9)
Continuance. The presiding
officer or reviewing officer may grant, in their sole discretion, a request for
a continuance by motion of the taxpayer, the department, or on its own
motion.
(10)
Conversion of a
brief adjudicative proceeding to a formal proceeding. The presiding
officer or reviewing officer, in their sole discretion, may convert a brief
adjudicative proceeding to a formal proceeding at any time on motion of the
taxpayer, the department, or the presiding/reviewing officer's own motion.
(a) The presiding/reviewing officer will
convert the proceeding when it is found that the use of the brief adjudicative
proceeding violates any provision of law, when the protection of the public
interest requires the agency to give notice to and an opportunity to
participate to persons other than the parties, and when the issues and
interests involved warrant the use of the procedures of
RCW
34.05.413 through
34.05.479.
(b) When a proceeding is converted from a
brief adjudication to a formal proceeding, the director may become the
presiding officer or may designate a replacement presiding officer to conduct
the formal proceedings upon notice to the taxpayer and the
department.
(c) In the conduct of
the formal proceedings, WAC
458-20-10002 will apply to the
proceedings.
(11)
Taking agency action. The department may initiate agency action as
follows:
(a) If the taxpayer does not file a
timely appeal under subsection (3) of this rule, the department may proceed
with agency action the day following the end of the period for requesting such
appeal;
(b) If the taxpayer does
not make a petition for review consistent with subsection (4) of this rule, the
department may proceed with agency action the day following the end of the
period for making such petition of review;
(c) If the department makes a final order
adverse to the taxpayer under subsection (4) of this rule, the department may
proceed with agency action the day following the date the department issues its
final order.
Statutory Authority:
RCW
82.32.300 and
82.01.060(2).
12-24-008, § 458-20-10003, filed 11/27/12, effective
12/28/12.