This announcement of the adoption of this interpretive statement is being published in the Washington State Register pursuant to the requirements of RCW 34.05.230(4).

     The Department of Revenue has adopted the following interim audit guideline.

     Interim Audit Guideline 04.01 - Instructs department personnel that, evaluating whether business and occupation tax applies to the investment income of any business, auditors may only use department policies and interpretations existing prior to the Washington Supreme Court's decision in Simpson Investment Co. v. Department of Revenue, 141 Wn.2d 139 (2000). The interpretive statement also provides procedures for auditors that discover incorrect deductions of investment income from taxable income.

     Request for copies of this guideline may be directed to Roseanna Hodson, Legislation and Policy Division, P.O. Box 47467, Olympia, WA 98504-7467, e-mail RoseannaH@dor.wa.gov.

Claire Hesselholt

Policy Counsel

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