wa-law.org > bill > 2025-26 > HB 2615 > Original Bill
Beginning July 1, 2027, the department shall implement a voluntary disclosure program for all persons. All persons, including affiliates and subsidiaries of such persons, may participate in the voluntary disclosure program unless otherwise provided in this section. The department shall waive all penalties for participating entities of the voluntary disclosure program for the purpose of registering and collecting revenue due from persons subject to the tax levied under chapter 82.04 RCW.
In order to apply for the voluntary disclosure program, a person must:
Disclose all relevant taxable activity to the department;
Have not engaged in fraud, evasion, or misrepresentation in reporting tax liabilities;
Have not been directly contacted by the department during the current calendar year or the four calendar years prior to submitting an application; and
Meet any general application requirements set forth by the department.
The department may make rules to implement the voluntary disclosure program created in this section.
The department may rescind a voluntary disclosure agreement within one year of the application if a business entity is found to have misrepresented or falsified any information on their application for the voluntary disclosure program.
For the purposes of this section, the following definitions apply:
a."Persons" has the same meaning as in RCW 82.04.030; and
Except as otherwise provided in subsections (4) and (5) of this section, the department must waive all penalties and interest otherwise due under this chapter that are unpaid as of the effective date of this section if all the following circumstances are met:
The penalties and interest are imposed with respect to: (i) State business and occupation tax, state public utility tax, state or local sales tax, or state or local use tax; and (ii) tax liability that first became due to the department before July 1, 2026, which includes taxes billed to the taxpayer, or disclosed by the taxpayer to the department, on or after July 1, 2026, but that were required by this chapter to have been reported and paid by the taxpayer before July 1, 2026;
The taxpayer must file with the department no later than August 17, 2026:
All outstanding tax returns for the taxes specified in (a)(i) of this subsection (1); and
Any amended returns covering tax liabilities with respect to which a penalty and interest waiver under this section is requested;
Before October 1, 2026, the taxpayer must remit full payment to the department of the balance due on all tax liabilities for which a penalty and interest waiver under this section is requested. If a waiver is requested for penalties or interest associated with an invoice that has been billed to the taxpayer, the taxpayer must remit full payment to the department of the entire balance due on that invoice other than any penalty and interest eligible for waiver under this section, even if the invoice includes taxes not specified in (a)(i) of this subsection (1). If the invoice is a tax warrant, the taxpayer must also remit full payment to the department of any filing or other fees added to the tax warrant, including the filing fees provided in RCW 36.18.012 (2) and (10), the fees imposed in RCW 36.18.016(4), and the surcharge imposed in RCW 40.14.027;
The taxpayer must file and pay in full by the due date all tax returns that become due after June 30, 2026, and before October 1, 2026, for all taxes administered by the department under this chapter;
No later than August 17, 2026, the department must receive a completed application for penalty and interest waiver under this section in a form and manner prescribed by the department;
The taxpayer must never have had an evasion penalty assessed against the taxpayer by the department under RCW 82.32.090 or a penalty assessed against the taxpayer by the department under RCW 82.32.291 for misusing a reseller permit or resale certificate;
The taxpayer must never have been a defendant in a criminal prosecution related to an offense involving the failure to collect or pay the proper amount of any tax administered by the department under this chapter; and
The taxpayer is not in the process of being audited by the department or the taxpayer does not have a past due balance owed to the department.
Taxpayers receiving penalty or interest relief under this section may not seek a refund, or otherwise challenge the amount, of any tax liability paid as required by subsection (1)(c) of this section. This subsection (2) applies to refund requests or appeals filed directly with the department and to proceedings brought in any court or administrative tribunal.
All tax liability reported and paid as required in subsection (1) (b), (c), and (d) of this section is subject to verification by the department as provided in RCW 82.32.050. This section does not preclude the assessment of taxes, penalties, and interest with respect to any amounts determined by the department to have been underpaid for any tax period for which the taxpayer previously received penalty or interest relief under this section.
This section does not authorize the department to waive the evasion penalty currently authorized by RCW 82.32.090 or the penalty currently authorized by RCW 82.32.291 for misusing a reseller permit or resale certificate.
If taxpayers are current for tax returns due as of March 31, 2026, tax liability that accrues after that date would not qualify under this section.
Nothing in this section may be construed as requiring a taxpayer to have first paid any penalty or interest for which a waiver is sought under this section.
Solely for purposes of determining whether a taxpayer qualifies for a waiver of penalties or interest under this section with respect to a balance owing as of the effective date of this section on any invoice issued by the department, any payments made to the department on that taxpayer's account before October 1, 2026, are deemed to have been applied first to any of the taxes specified in subsection (1)(a)(i) of this section, then to any other taxes, and then to penalties or interest, if such payments were applied either:
To that invoice; or
Against any liability reflected in that invoice before that invoice was issued by the department.
A taxpayer in a bankruptcy proceeding is ineligible for relief under this section to the extent that the payment of any tax debt by the taxpayer to the department as required under this section violates the federal bankruptcy code.
When authorized by the department, payment of the tax may be made by uncertified check under such rules as the department prescribes, but, if a check so received is not paid by the bank on which it is drawn, the taxpayer, by whom such check is tendered, will remain liable for payment of the tax and for all legal penalties and interest, the same as if such check had not been tendered.
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Except as otherwise provided in this subsection, payment of the tax must be made by electronic funds transfer, as defined in RCW 82.32.085. As an alternative to electronic funds transfer, the department may authorize other forms of electronic payment, such as payment by credit card. All taxes administered by this chapter are subject to this requirement, except that the department may exclude any taxes not reported on the combined excise tax return or any successor return from the electronic payment requirement in this subsection.
The department may waive the electronic payment requirement in this subsection for any taxpayer or class of taxpayers, for good cause or for whom the department has assigned a reporting frequency that is less than quarterly. In the discretion of the department, a waiver under this subsection may be made temporary or permanent, and may be made on the department's own motion.
The department is authorized to accept payment of taxes by electronic funds transfer or other acceptable forms of electronic payment from taxpayers that are not subject to the mandatory electronic payment requirements in this subsection.
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Except as otherwise provided in this subsection, returns must be filed electronically using the department's online tax filing service or other method of electronic reporting as the department may authorize.
The department may waive the electronic filing requirement in this subsection for any taxpayer or class of taxpayers, for good cause or for whom the department has assigned a reporting frequency that is less than quarterly. In the discretion of the department, a waiver under this subsection may be made temporary or permanent, and may be made on the department's own motion.
The department is authorized to allow electronic filing of returns from taxpayers that are not subject to the mandatory electronic filing requirements in this subsection.
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The department, for good cause shown, may extend the time for making and filing any return, and may grant such reasonable additional time within which to make and file returns as it may deem proper, but any permanent extension granting the taxpayer a reporting date without penalty more than ten days beyond the due date, and any extension in excess of thirty days must be conditional on deposit with the department of an amount to be determined by the department which is approximately equal to the estimated tax liability for the reporting period or periods for which the extension is granted. In the case of a permanent extension or a temporary extension of more than thirty days the deposit must be deposited within the state treasury with other tax funds and a credit recorded to the taxpayer's account which may be applied to taxpayer's liability upon cancellation of the permanent extension or upon reporting of the tax liability where an extension of more than thirty days has been granted.
The department must review the requirement for deposit at least annually and may require a change in the amount of the deposit required when it believes that such amount does not approximate the tax liability for the reporting period or periods for which the extension is granted.
During a state of emergency declared under RCW 43.06.010(12), the department, on its own motion or at the request of any taxpayer affected by the emergency, may extend the time for making or filing any return as the department deems proper. The department may not require any deposit as a condition for granting an extension under this subsection (4)(b).
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The department must keep full and accurate records of all funds received and disbursed by it. Subject to the provisions of RCW 82.32.105, 82.32.052, section 2 of this act, and 82.32.350, the department must apply the payment of the taxpayer in the following order, without regard to any direction of the taxpayer: (i) Interest; (ii) penalties; (iii) fees that are not within the definition of tax in RCW 82.32.020; (iv) other nontax amounts; (v) taxes, except spirits taxes; and (vi) spirits taxes.
For purposes of this subsection, "spirits taxes" has the same meaning as in RCW 82.08.155.
The department may refuse to accept any return that is not accompanied by a remittance of the tax shown to be due thereon or that is not filed electronically as required in this section. When such return is not accepted, the taxpayer is deemed to have failed or refused to file a return and is subject to the procedures provided in RCW 82.32.100 and to the penalties provided in RCW 82.32.090. The above authority to refuse to accept a return may not apply when a return is timely filed electronically and a timely payment has been made by electronic funds transfer or other form of electronic payment as authorized by the department.
Except for returns and remittances required to be transmitted to the department electronically under this section and except as otherwise provided in this chapter, a return or remittance that is transmitted to the department by United States mail is deemed filed or received on the date shown by the post office cancellation mark stamped upon the envelope containing it. A return or remittance that is transmitted to the department electronically is deemed filed or received according to procedures set forth by the department.
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For purposes of subsections (2) and (3) of this section, "good cause" means the inability of a taxpayer to comply with the requirements of subsection (2) or (3) of this section because:
The taxpayer does not have the equipment or software necessary to enable the taxpayer to comply with subsection (2) or (3) of this section;
The equipment or software necessary to enable the taxpayer to comply with subsection (2) or (3) of this section is not functioning properly;
The taxpayer does not have access to the internet using the taxpayer's own equipment;
The taxpayer does not have a bank account or a credit card;
The taxpayer's bank is unable to send or receive electronic funds transfer transactions; or