Pilcher v. Department of Revenue

Dr. Charles A. Pilcher appeals a judgment for the Washington Department of Revenue (Department) in his business and occupation (B&O) tax refund action. He *430argues that the Department wrongfully required him to pay B&O tax on that portion of his gross receipts from Evergreen Hospital that he had paid to the physicians he hired to staff the hospital’s emergency department. We hold that (1) substantial evidence supports the trial court’s findings of fact, and (2) Pilcher’s payments to the physicians under his contract with Evergreen are not excludable from income as pass-through payment…