Washington state is holding a tax amnesty program for business taxpayers. This amnesty program runs from February 1, 2011 to April 18, 2011. Eligible taxpayers who file an application and any necessary tax returns by the April 18th will have their penalties and interest waived under the amnesty program. All unpaid taxes must be paid by April 30, 2011 under this tax amnesty program.
Who is Eligible for Washington Tax Amnesty?
Businesses that are registered for taxes in Washington as well as businesses that have failed to register are all eligible for this amnesty program. The state has not stipulated a range of tax years that are included, but have stated that: "If you have filed and paid all tax returns as of November 25, 2010, you are not eligible for amnesty on tax returns due after that date."
Taxpayers cannot participate if they:
- Have ever been assessed a penalty by the Department for evasion or misuse of a reseller permit or resale certificate.
- Are in bankruptcy and payment of tax debt would violate federal bankruptcy laws.
- Have ever been prosecuted for failing to pay or collect the proper amount of any tax administered by the Washington Department of Revenue
State Taxes Covered by Amnesty
The Washington state amnesty program covers these Washington state business taxes:
- State business and occupation (B&O) tax
- State public utility tax
- State and local sales and use tax including:
- General retail sales and use taxes
- Rental car taxes
- King County food and beverage tax
- Additional sales and use tax on motor vehicle sales/leases
- Lodging taxes, but not including tourism promotion area lodging charges
- Brokered natural gas use tax
Right to Refund or Appeal is Waived Under Amnesty Program
There is one caveat to this amnesty program. By participating you waive your right to seek a refund or to challenge the amount of taxes paid under the program.
How to Apply
To be considered for amnesty you must do the following by April 18, 2011:
- Submit an Application
- File all outstanding tax returns and any amended returns for which you are requesting a waiver.
You must also pay the following by April 30, 2011:
- All tax due must be paid by April 30, 2011, on any invoice/return for which you are requesting a waiver of penalties and interest. You must also pay penalties and interest on taxes not included in the amnesty program.
- Pay all filing and other fees on any tax warrant for which you are requesting amnesty
Unregistered Businesses With Unpaid Tax Debts
If your business is not registered for taxes in Washington, you must attach to your application a list of undisclosed tax amounts by tax type and year for 2007 through 2010. You are also required to include a completed copy of both of the following:
More information: WA Dept. of Revenue, WA amnesty Q & A