Washington State Tax Updates

For the latest news and updates on Washington state and local tax

July 2020

Washington State VDA Program is Temporarily Expanded

Washington State on a provisional basis has expanded the eligibly for its Voluntary Disclosure Agreement (VDA) program. The program is expanded to businesses whose most recent enforcement contact was prior to July 1, 2019. Further, the program is expanded for businesses that previously registered, as long it had closed its department registration account or was placed on “Active Non-Reporting” status prior to Jan. 1, 2020, including those that previously filed tax returns. This expanded eligibility is effective July 15 through November 30, 2020. Refer to the Department of Revenue’s guidance for additional details on the expanded program.

March 2020

Seattle’s Mayor Durkan Announces Provisions to Provide Immediate Relief for Those Impacted by COVID-19

To provide relief to small business owners and community stakeholders impacted by COVID-19, Mayor Durkan announced provisions to provide immediate relief. The provisions are as follows:

1. Deferral of B&O Taxes: Effective immediately, the Department of Finance and Administrative Services (FAS) will defer business and occupation (B&O) tax collections for eligible business owners, allowing small business owners increased flexibility during a period of financial duress caused by the COVID-19 outbreak.
2. Expansion of Small Business Stabilization Fund: OED is expanding its Small Business Stabilization Fund to support income-qualified microbusinesses.
3. Assistance to Access SBA Loans: OED will provide direct technical assistance to local small businesses and nonprofits to ensure they can immediately access the Small Business Administration’s (SBA) federal loan program once it becomes available.
4. Relief for Utility Payments: As announced earlier by Mayor Durkan, all SPU and SCL customers can set up deferred payment plans if their financial stability has been jeopardized by COVID-19.

New Small Business Recovery Task Force: The Mayor has appointed former Governor Gary Locke and former Council President Bruce Harrell to lead the COVID-19 Small Business Recovery Task Force, which will advise on long-term policy recommendations and provide technical assistance and outreach.

More on Taxes and the Coronavirus Pandemic.

Tax Penalty Relief Measures for Businesses Affected by Coronavirus

The Governor of Washington State announced that the Department of Revenue is implementing tax penalty relief measures for businesses affected by COVID-19. Emergency provisions have been put in place providing for a waiver of financial penalties, which a business may have incurred for filing their tax reports late or cannot pay their taxes on time due to the outbreak. Businesses can request an extension or penalty waiver by sending an email through their My DOR account or by calling the Department of Revenue’s customer service line. In addition, businesses can request to reschedule planned audits, extension of time to file a business license or registration renewal, or obtain an extension of an expiring resellers permit.

Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.