wa-law.org > bill > 2025-26 > SB 5806 > Original Bill

SB 5806 - Revenue voluntary disclosure

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Section 1

The legislature intends to create a formal voluntary disclosure program to encourage more taxpayers to register with the department of revenue and pay taxes in perpetuity.

Furthermore, the legislature finds that the last tax amnesty program in Washington state, between February 1, 2011, and April 30, 2011, generated $345,800,000 and over 5,000 taxpayers were granted amnesty. By waiving penalties and interest for a limited period of time, the legislature intends to accelerate the number of taxpayers that participate in the voluntary disclosure program, similar to the amnesty program in fiscal year 2011.

Section 2

  1. The department shall enter into an agreement with a voluntary registrant in which the department waives any portion of penalties that would otherwise be imposed on the voluntary registrant under RCW 82.32.090 (1), (2), or (4), for tax liability incurred while the person was not registered as required by RCW 82.32.030.

  2. For the purposes of this section, "voluntary registrant" means any person who:

    1. Engages in any taxable activity that requires registration under RCW 82.32.030, while unregistered;

    2. Submits an application for a registration certificate under RCW 82.32.030 prior to any department contact with the person;

    3. Has not engaged in fraud, evasion, or misrepresentation in reporting tax liabilities, with regard to any tax administered by the department under this chapter;

    4. Has disclosed all relevant taxable activity to the department; and

    5. Attests, under penalty of perjury, in a form and manner as required by the department, that the person meets the requirements of (a) through (d) of this subsection.

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    1. For the purposes of qualifying as a voluntary registrant under subsection (2) of this section, the department is deemed to have contacted the person, if, during the current or preceding four calendar years:

      1. The contact is for tax enforcement purposes;

      2. The contact is clearly directed to that person; and

      3. The contact requests the person to take some action in response to the contact.

  4. If the department determines that facts differ materially from what the taxpayer originally represented to the department to qualify as a voluntary registrant, the penalty and interest relief granted under subsection (1) of this section may be rescinded, in whole or in part, at the discretion of the department.

  5. Subsection (1) of this section does not relieve any person from liability for state and local sales taxes that the person collected from buyers but did not remit to the department.

  6. Nothing in this section may be construed as authorizing the refund of state and local sales and use taxes properly paid before July 1, 2025.

  7. For any qualifying voluntary registrant who submits a voluntary disclosure application after July 1, 2025, and prior to September 30, 2025, the department shall waive all penalties and interest that would otherwise be imposed on the voluntary registrant under RCW 82.32.090 (1), (2), or (4), for tax liability incurred while the person was not registered as required by RCW 82.32.030.

Section 3

This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2025.

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