Tax Midterm 1

Dolly is a college student who works as a part-time server in a restaurant. Her usual tip is 20% of the price of the meal. A customer ordered a piece of pie and said that he would appreciate prompt service. Dolly fulfilled the customer's request. The customer's bill was $8, but the customer left a $100 bill on the table and did not ask for a receipt. Dolly gave the cashier $8 and pocketed the $100 bill. Dolly concludes that the customer thought that he had left a $10 bill, although the customer did not return to correct the apparent mistake. The customer had commented about how much he appreciated Dolly's prompt service. Dolly thinks that a $2 tip would be sufficient and that the other $98 is like "found money". How much, if any, should Dolly include in her gross income concerning this customer?

$92

In each of the following independent situations, determine the corporation's income tax liability. Assume that all corporations use a calendar year for tax purposes and that the tax year involved is 2019. Taxable Income Purple Corporation $65,000 Azul Corporation 290,000 Pink Corporation 12,350,000 Turquoise Corporation 19,000,000 Teal Corporation (a personal service corporation) 130,000

13,650 60,900 2,593,500 3,990,000 27,300

Danny received the following interest and dividend payments this year. What amount should Danny include in his gross income? City of Atlanta bond interest $1,200 U.S. Treasury bond interest 500 State of Georgia bond interest 1,000 Ellis Company common stock dividend 400 Row Corporation bond interest 600

1500 (600+400+500) interest on municipal bonds (state and local) is excluded from gross income

Copp, Inc., a calendar year taxpayer, generated the following taxable income and losses before considering the use of any NOLs. Determine Copp's final taxable income for each year afer considering the NOLs. 2015 $1,200,000 2016 $300,000 2017 ($1,000,000) 2018 ($600,000) 2019 $500,000 2015 $ 2016 $ 2019 $

2015 $200,000 *NOL carried back from 2017 2016 $300,000 2019 $100,000 (500,000 - 400,000 (80%*500,000))

Champ received a $55,200 distribution from NeatCo, a U.S. C corporation. NeatCo's earnings and profits for the year totaled $33,120. How much dividend income does Champ recognize?

33,120 most of the time equal to earnings and profits for the year

Before any debt cancellation, PeppersCo holds business land with a $2,400,000 fair market value, a $1,000,000 tax basis, and a related mortgage of $3,000,000. In lieu of foreclosure, the lender reduces the mortgage principal by $1,300,000. Assume Peppers is insolvent and that the land and mortgage are its only asset and liability. What are the Federal income tax consequences of the debt cancellation?If an amount is zero, enter "0". As a result, PeppersCo recognizes income of $ and ___________ its basis in the land basis by $.

700,000 (3,000,000-1,300,000=1,700,000) (2,400,000-1,700,000),

Duck, an accrual basis corporation, sponsored a rock concert on December 29, 2019. Gross receipts were $300,000. The following expenses were incurred and paid as indicated: Rental of coliseum $25,000 December 21, 2019 Cost of goods sold: Food 30,000 December 30, 2019 Souvenirs 60,000 December 30, 2019 Performers 100,000January 5, 2020 Cleaning the coliseum $10,000 February 1, 2020 Because the coliseum was not scheduled to be used again until January 15, the company with which Duck had contracted did not perform the cleanup until January 8-10, 2020. Calculate Duck's net income from the concert for tax purposes for 2019.

Cleaning costs are left out because the services have not yet been performed. The performers can be deducted because they have already met their obligation.

Determine the taxpayer's current-year (1) economic income and (2) gross income for tax purposes from the following events: If an amount is zero, enter "0". a. Ja-ron's employment contract as chief executive of a large corporation was terminated, and he was paid $500,000 not to work for a competitor of the corporation for five years. b. Elliot, a 6-year-old child, was paid $5,000 for appearing in a television commercial. His parents put the funds in a savings account for the child's education. c. Valery found a suitcase that contained $100,000. She could not determine who the owner was. d. Winn purchased a lottery ticket for $5 and won $750,000 from it. e. Larry spent $1,000 to raise vegetables that he and his family consumed. The cost of the vegetables in a store would have been $2,400. f. Dawn purchased an automobile for $1,500 that was worth $3,500. The seller was in desperate need of cash.

Economic Income/Gross Income for Tax Purposes a. 500,000/500,000 b. 5,000/5,000 c. 100,000/100,000 d. 749,995/750,000 e. 1,400/0 f. 2,000/0

Trip Garage, Inc. (459 Ellis Avenue, Harrisburg, PA 17111), is an accrual basis taxpayer that repairs automobiles. In late December 2019, the company repaired Samuel Mosley's car and charged him $1,000. Samuel did not think the problem had been fixed, so he refused to pay; thus, Trip refused to release the automobile. In early January 2020, Trip made a few adjustments under the hood; Trip then convinced Samuel that the automobile was working properly. At that time, Samuel agreed to pay only $900 because he did not have the use of the car for a week. Trip said "fine" accepted the $900, and released the automobile to Samuel. An IRS agent thinks Trip, as an accrual basis taxpayer, should report $1,000 of income in 2019, when the work was done, and then deduct a $100 business loss in 2020. Complete the memo to Susan Apple, the treasurer of Trip, with the recommended treatment for the disputed income.

I am responding to the questions you raised regarding the timing of the reporting of income by Trip Garage, Inc. from repairing Samuel Mosley's car. The key issue is whether the Garage (1) should accrue the $1,000 of income in 2019 and take a $100 loss deduction in 2020 (the IRS view), or (2) report the $900 in 2020 (Trip's preferred approach).An accrual basis taxpayer is required to recognize income when (1) all the events have occurred to establish the taxpayer's right to receive the income, and (2) the amount of the income can be determined with reasonable accuracy. In Trip's case, it does not appear that all the events to fix the rights to the income had occurred in 2019. The customer did not accept the work by the end of the year. Thus, the transaction should be held open in 2019 and no income and related costs should be reported until 2020.

Your client is a new partnership, ARP Associates, which is an engineering consulting firm. Generally, ARP bills clients for services at the end of each month. Client billings are about $50,000 each month. On average, it takes 45 days to collect the receivables. ARP's expenses are primarily for salary and rent. Salaries are paid on the last day of each month, and rent is paid on the first day of each month. The partnership has a line of credit with a bank, which requires monthly financial statements. These must be prepared using the accrual method. ARP's managing partner, Amanda Sims, has suggested that the firm also use the accrual method for tax purposes and thus reduce accounting fees by $600. The partners are in the 35% (combined Federal and state) marginal tax bracket. Complete the letter to your client which outlines which method should be used for its tax return.

I am responding to your suggestion that ARP Associates should change to the accrual method of accounting for tax purposes as a means of reducing accounting fees. Under the accrual method of accounting, receivables must be recognized as income as the services are performed. This is to be contrasted with the cash method of accounting, where no income is recognized until payment is received.Each year, under the accrual method, accelerated tax payments would occur so long as the billing and collection pattern remains the same. Therefore, the partners will pay tax on an additional $75,000 in the first year's income [accrual of billings in first year that would not be collected until second year—one-half of November's billings ($25,000) and all of December's billings ($50,000)], and those payments will not be recovered until the company ceases its operations. Assuming the partners are in the 35% (combined state and Federal) marginal tax bracket, the deferred taxes under the cash method are $26,250 (0.35 × $75,000). If the partners earn a 2.29% ($600 ÷ $26,250) return, or greater, on the deferred taxes, the additional accounting fees will be recovered. Therefore, I recommend that you continue to use the cash method. The partnership is not required to use the accrual method for tax purposes.

The Robin Corporation is owned as follows: Isabelle 26% Peter, Isabelle's husband 19% Sonya, Isabelle's mother 15% Reggie, Isabelle's father 25% Quinn, an unrelated party 15% Robin is on the accrual basis, and Isabelle and Peter are on the cash basis. Isabelle and Peter each loaned Robin Corporation $40,000 out of their separate funds. On December 31, 2019, Robin accrued interest at 7% on both loans. The interest was paid on February 4, 2020. What is the tax treatment of this interest expense/income to Isabelle, Peter, and Robin?

Isabelle: Isabelle has $2,800 of interest income in 2020 when it is received. Peter: Peter has $2,800 of interest income in 2020 when it is received. Robin Corporation: Has a deduction for interest of $2,800 in 2019 on the loan from Peter and a deduction of $2,800 on the loan from Isabelle in 2020.

Lupe, a cash basis taxpayer, owns 55% of the stock of Jasper Corporation, a calendar year accrual basis C corporation. On December 31, 2019, Jasper accrues a performance bonus of $100,000 to Lupe that it pays to him on January 15, 2020. In which year can Jasper deduct the bonus? In which year must Lupe include the bonus in gross income?

Jasper can deduct the bonus in 2020 , and Lupe must report the bonus income in 2020 . Have to wait for Lupe to recognize his bonus as income in order for Jasper to recognize the deduction.

Rank the following items from the lowest (1) to highest (6) authority in the Federal tax law system. a.Interpretive Regulation. b.Legislative Regulation. c.Letter Ruling. d.Revenue Ruling. e.Internal Revenue Code. f.Proposed Regulation.

Letter ruling proposed regulation revenue ruling interpretive regulation legislatieve regulation internal revenue code

Know how to read a court case and discuss it

Plaintiff - one who brings about lawsuit trying to seek a legal remedy

Accounting students understand that the accrual method of accounting is superior to the cash method for measuring the income and expenses from an ongoing business for financial reporting purposes. Often, CPAs advise their clients to use the accrual method of accounting. Yet, CPA firms generally use the cash method to prepare their own tax returns. Indicate whether the following statements are "True" or "False" regarding whether the CPAs are being hypocritical. a. Generally Accepted Accounting Principles require that financial statements must be prepared using the accrual method. b. When permissible, CPAs often advises a client to use the cash method for tax purposes, because the cash method allows the taxpayer to defer income from accounts receivable. c. CPAs often advises a client not to use the cash method for tax purposes, because they lose any control over the period in which expenses are deducted.

True True False

a. Mike loaned his sister Shonda $90,000 to buy a new home. Mike did not charge interest on the loan. The Federal rate was 4%. Shonda earned $900 of investment income for the year. The imputed amount is $ . b. Nico's employer maintains an emergency loan fund for its employees. During the year, Nico's wife was very ill, and they incurred unusually large medical expenses. He borrowed $8,500 from his employer's emergency loan fund for six months. The Federal rate was 4%. Nico and his wife earned no investment income for the year. The imputed amount is $ . c. Jody borrowed $25,000 from her controlled corporation for six months. She used the funds to pay her daughter's college tuition. The corporation charged Jody 3% interest. The Federal rate was 4%. Jody earned $3,500 of investment income for the year. The imputed amount is $ . d. Kait loaned her son, Jake, $60,000 for six months. Jake used the $60,000 to pay off college loans. The Federal rate was 4%, and Kait did not charge Jake any interest. Jake earned dividend and interest income of $2,100 for the tax year. The imputed amount is $ .

a. 0 b. 0 c. 125 (25,000*(4%-3%)*6/12) d. 1,200 (60,000*4%*6/12)

Interpret each of the following citations by selecting the correct answer from each dropdown. a. Temp.Reg. § 1.460-4T. Type of regulation Related code section Regulation section number Temporary b. Rev.Rul. 2012-3, 2012-44 I.R.B. 631. Revenue procedure number Page Issue week c. Ltr.Rul. 20064138. Letter ruling Issue week Year

a. 1, 460, 4, T b. 3, 632, 44 c. 38, 41, 2006

Interpret each of the following citations by selecting the correct answer from each dropdown. a. Temp.Reg. § 1.956-2T. Type of regulation Related code section Regulation section number Temporary b. Rev.Rul. 2012-15, 2012-23 I.R.B. 975. Revenue procedure number Page Issue week c. Ltr.Rul. 200204051. Letter ruling Issue week Year

a. 1, 956, 2, T b. 15, 975, 23 c. 51, 4, 2002

Shanna, a calendar year and cash basis taxpayer, rents property from Janice. As part of the rental agreement, Shanna pays $10,600 rent on April 1, 2019 for the 12 months ending March 31, 2020. Do not round any division. a. How much is Shanna's deduction for rent expense in 2019? b. Assume the same facts, except that the $10,600 is for 24 months rent ending March 31, 2021. How much is Shanna's deduction for rent expense in 2019?

a. 10,600 b. 3,975 ((10,600/24)*9)

Compute the income tax liability for each of the following unrelated calendar year C corporations. a. Darter Corporation has taxable income of $50,500. b. Owl Corporation has taxable income of $13,420,000. c. Toucan Corporation, a personal service corporation, has taxable income of $1,085,000.

a. 10,605 b. 2,818,200 c. 227,850 Corporations have a 21% tax rate

Alva received dividends on her stocks as follows. Amur Corporation (a French corporation whose stock is traded on an established U.S. securities market) $60,000 Blaze, Inc., a Delaware corporation 40,000 Grape, Inc., a Virginia corporation 22,000 If an amount is zero, enter "0". a. Alva purchased the Grape stock three years ago, and she purchased the Amur stock two years ago. She purchased the Blaze stock 18 days before it went ex-dividend and sold it 20 days later at a $5,000 loss. Alva reported no other capital gains and losses for the year. She is in the 32% marginal tax bracket and applicable qualifying dividend rate is 15%. The amount of her tax on qualifying dividends is $. The amount of her tax on nonqualifying dividends is $. The total tax on all her dividend income is $ b. Alva's daughter, Veda, who is age 25 and who is not Alva's dependent, reported taxable income of $6,000, which included $1,000 of dividends on Grape stock. Veda purchased the stock two years ago. Daughter's tax liability on the dividends is $.

a. 12,300 (60,000+22,000)*15%), 12,800 (40000*32%), 25,100 b. 0

Before any debt cancellation, the insolvent KuhnCo holds business equipment, its only asset, with a fair market value of $1,000,000 and related liabilities of $1,250,000. The lender agrees to cancel $400,000 of the liabilities. KuhnCo has no other liabilities. If an amount is zero, enter "0". a. How much gross income does KuhnCo report as a result of the debt cancellation? b. How would your answer change, if at all, had the lender canceled $200,000 of the debt?

a. 150,000 (1,250,000-400,000=850,000) (1,000,000-850,000) b. 0

Ridge is a generous individual. During the year, she made interest-free loans to various family members when the Federal interest rate was 3%. What are the Federal tax consequences in 2018 of the following loans by Ridge? If an amount is zero, enter "0". a. On June 30, Ridge loaned $12,000 to a cousin, Jim, to buy a used truck. Jim's only source of income was his wages on various construction jobs during the year. The computed imputed interest amount for 2018 is $. However, the . This is because the loan was less than $ and does not have any investment income. b. On August 1, Ridge loaned $8,000 to a niece, Sonja. The loan was meant to enable Sonja to pay her college tuition. Sonja reported $1,200 interest income from CDs that her parents had given her. c. On September 1, Ridge loaned $25,000 to a brother, Al, to start a business. Al reported only $220 of dividends and interest for the year. The computed imputed interest amount for 2018 is $. However, . Because this amount exceed $1,000, is imputed. d. On September 30, Ridge loaned $150,000 to her mother, Joan, so that Joan could pay the entrance fee at a retirement home. Joan's only receipts for the year were $9,000 in Social Security benefits and $500 interest income received.The computed imputed interest amount for 2018 is $. However, . This is because the loan exceeded $.

a. 180 (12,000*3%*6/12), imputed interest rules do not apply, 100,000, Jim b. the imputed interest rules do not apply c. 250 (25,000*3%*4/12), the imputed interest is limited to an amount equal to Al's net investment income, does not, no interest d. 1,125 (150,000*3%*3/12), the imputed interest rules apply and the interest is not limited, 100,000

Broadbill Corporation, a calendar year C corporation, has two unrelated cash method shareholders: Marcia owns 51% of the stock, and Zack owns the remaining 49%. Each shareholder is employed by the corporation at an annual salary of $240,000. During 2019, Broadbill paid each shareholder-employee $220,000 of his or her annual salary, with the remaining $20,000 paid in January 2020. Determine how much of the 2019 salaries for Marcia and Zack is deductible by Broadbill in 2019 if the corporation is (a) a cash method taxpayer and (b) an accrual method taxpayer. a. If a cash method taxpayer: In 2019, Broadbill can deduct b. If an accrual method taxpayer: In 2019, Broadbill can deduct

a. 440,000 b. 460,000

Al is a physician who conducts his practice as a sole proprietor. During 2019, he received cash of $433,000 for medical services. Of the amount collected, $40,800 was for services provided in 2018. At the end of 2019, Al held accounts receivable of $99,900, all for services rendered in 2019. In addition, at the end of the year, Al received $12,500 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2020. a. Compute Al's gross income for 2019 using the cash basis of accounting. b. Compute Al's gross income for 2019 using the accrual basis of accounting. c. Advise Al on which method of accounting he should use.

a. 445,500 (433,000+12,500) b. 492,100 (445,500-12,500-40,800+99,900 c. Al should use the cash method of accounting so that he will not have to pay income taxes on the uncollected accounts receivable.

The Bluejay Apartments, a new development, is in the process of structuring its lease agreements. The company would like to set the damage deposits high enough that tenants will keep the apartments in good condition. The company actually is more concerned about such damage than about tenants not paying their rent. a. Indicate the tax effects of the following alternatives: $1,000 damage deposit with no rent prepayment. $500 damage deposit and $500 rent for the final month of the lease. $1,000 rent for the final two months of the lease and no damage deposit. b. Which alternative do you recommend to maximize deferrals without affecting cash flows?

a. None taxed in the year of receipt Part taxed in the year of receipt All taxed in the year of receipt b. $1,000 damage deposit with no rent prepayment.

Complete the following regarding proportional and progressive taxes. a. A tax is proportional if the rate of tax for any given income level. The tax is progressive if a higher rate of tax applies as the tax base . b. Select either "Proportional", "Progressive" or "Neither" to distinguish the items below. Social Security tax Federal gift tax Federal excise tax on cigarettes Federal individual income tax Federal corporate income tax

a. constant, increases b. proportional progressive proportional progressive proportional

Choose either "Administrative feasibility", "Economic justification", "Equity considerations", or "Social justification" to classify the probable non-revenue justifications for each of the following provisions of the tax law. a. A tax credit allowed for electricity produced from renewable sources. b. A tax credit allowed for the purchase of a motor vehicle that operates on alternative (i.e., nonfossil fuels) energy sources. c. Favorable treatment accorded to research and development expenditures. d. The deduction allowed for contributions to qualified charitable organizations. e. An election that allows certain corporations to avoid the corporate income tax and pass losses through to their shareholders.

a. economic justification b. economic justification c. economic justification d. social justification e. economic justification

Choose from the dropdown list the probable justification for each of the following aspects of the tax law. a. A tax credit is allowed for amounts spent to furnish care for minor children while the parent works. b. Deductions for interest on home mortgage and property taxes on a personal residence. c. The income-splitting benefits of filing a joint return. d. Fines and penalties are not deductible. e. Net operating losses of a current year can be carried forward to profitable years. f. A taxpayer who sells property on an installment basis can recognize gain on the sale over the period the payments are received. g. The exclusion from Federal tax of certain interest income from state and local bonds. h. Prepaid income is taxed to the recipient in the year it is received and not in the year it is earned.

a. economic/social considerations b. economic/social considerations c. equity/political considerations d. social considerations e. equity considerations f. wherewithal to pay concept g. political considerations h. wherewithal to pay concept

Elizabeth makes the following interest-free loans during the year. The relevant Federal interest rate is 5%, and none of the loans are motivated by tax avoidance. All of the loans were outstanding for the last six months of the tax year. Richard $4,750 $0 Gift Woody $5,700 $525 Purchase stock Irene $138,500 $0 Purchase residence Identify the Federal income tax effects of these loans. a. Richard subject to the imputed interest rules because the $10,000 gift loan exception apply. Elizabeth's gross income from the loan is $. b. The $10,000 exception apply to the loan to Woody because the proceeds were used to purchase assets. Although the $100,000 exception to this loan, the amount of imputed interest is $. Elizabeth's gross income from the loan is $. c. to the loan to Irene because the loan was for . Elizabeth's gross income from the loan is $.

a. is not, does, 0 b. does not, income producing, applies, 0, 0 c. none of the exceptions apply, more than 100,000, 3463

James Corporation believes that it will have a better distribution location for its product if it relocates the corporation to another state. What considerations (both tax and nontax) should James Corporation weigh before making a decision on whether to make the move? Select "Yes" or "No" whichever is applicable. a. Will there be a change in the FICA taxes? b. Will there be a change in state and local sales taxes? c. Will there be a change in state and local property taxes? d. Will there be a change in state and local income taxes? e. Is there a difference in the cost of living that would affect employees? f. Will there be lower logistics/transportation costs of getting the products to customers?

a. no b. yes c. yes d. yes e. yes f. yes

Using the legend provided, classify each of the following tax sources: Legend P = Primary tax source S = Secondary tax source B = Both N = Neither a. Sixteenth Amendment to the U.S. Constitution. b. Tax treaty between the United States and India. c. Revenue Procedure. d. IRS Publication 17. e. U.S. District Court decision. f. Yale Law Journal article. g. Temporary Regulations (issued 2018). h. U.S. Tax Court Memorandum decision. i. Small Cases Division of the U.S. Tax Court decision. j. House Ways and Means Committee report.

a. p b. p c. p d. s e. p f. s g. p h. p i. n j. p

In terms of Adam Smith's canon on economy in collection, select either "True" or "False" for each statement below. a. Economy is not present if one focuses on taxpayer compliance efforts and costs. b. Economy is present as long as one accepts ability to pay as an ingredient of this component. c. Economy is present if only the collection procedure of the IRS is considered.

a. true b. false c. true

Howard buys wrecked cars and stores them on his property. Recently, he purchased a Ford Taurus for $400. If he can sell all of the usable parts, his total proceeds from the Taurus will be over $2,500. As of the end of the year, he has sold only the radio for $75, and he does not know how many, if any, of the remaining parts will ever be sold. What are Howard's Federal income tax issues? Regarding Howard's income recognition, select either "True" or "False" to properly classify the statements made. a. He could consider all sales proceeds as a recovery of capital until he receives $400, and then all subsequent proceeds would be included in his gross income. b. He could allocate the cost of the car ($400) among the various parts he sells. This would allow him to reduce his gross receipts by the adjusted basis of the parts sold. c. He can consider all sales proceeds as a recovery of capital until he receives $2,500.

a. true b. true c. false

Each Saturday morning, Ted makes the rounds of the local yard sales. He has developed a keen eye for bargains, but he cannot use all of the items he thinks are "real bargains." Ted has found a way to share the benefits of his talent with others. If Ted spots something priced at $40 that he knows is worth $100, for example, he will buy it and list it on eBay for $70. Ted does not include his gain in his gross income because he reasons that he is performing a valuable service for others (both the original sellers and the future buyers) and sacrificing profit he could receive. "Besides," according to Ted, "the IRS does not know about these transactions." Indicate whether the following are "True" or "False" regarding whether Ted's ethical standards depend on his perception of his own generosity and the risk that his income-producing activities will be discovered by the IRS. a. While Ted may feel good about performing a valuable service for others, he is not in compliance with the tax law. b. Ted's decision not to report the gain should not be based on the likelihood that his activities may not be discovered by the IRS. c. Ted's decision not to report the gain is justified, since this is not his trade or business. d. Since Ted is sacrificing profit he could receive by reselling the items below their value, he does not have to report the activity to the IRS.

a. true b. true c. false d. false

The roof of your corporation's office building recently suffered some damage as the result of a storm. You, the president of the corporation, are negotiating with a carpenter who has quoted two prices for the repair work: $600 if you pay in cash ("folding money") and $700 if you pay by check. The carpenter observes that the IRS can more readily discover his receipt of a check. Thus, he hints that he will report the receipt of the check (but not the cash). The carpenter holds another full-time job and will do the work after hours and on the weekend. He comments that he should be allowed to keep all he earns after regular working hours. Identify whether the following statements are "True" or "False" regarding the carpenter's proposal. a. When the income is earned (i.e., after regular working hours) has nothing to do with measuring the taxpayer's ability to pay. b. If you pay in cash, you should obtain a receipt for the full amount paid from the carpenter as proof of payment. c. By paying the carpenter in cash, with the knowledge the cash will not be reported, you become party to the carpenter's tax fraud. d. By performing the work after hours and on the weekend, the carpenter can avoid claiming the funds as income.

a. true b. true c. true d. false

Answer the following questions regarding excise and sales taxes. Discuss the application of a general sales tax. is limited to a particular transaction, whereas covers a multitude of transactions. a. Do all states impose a general sales tax? b. Does the Federal government impose a general sales tax?

excise tax , general sales tax a. no b. no

Jang, a resident of Washington (which imposes a general sales tax), goes to Oregon (which does not impose a general sales tax) to purchase his automobile. Will Jang successfully avoid the Washington sales tax? Jang escape paying the sales tax and he probably will be required to pay the Washington tax.

sales, use