The State of Washington is temporarily offering a waiver of all penalty and interest related to tax liabilities for the following: state and local sales and use tax, state business and occupation (B&O) tax and state public utility tax. The amnesty program is available for the period of February 1 to April 30, 2011, with a filing deadline of April 18, 2011. The waiver applies to all liabilities that first became due to the Washington Department of Revenue (“Department”) on or before February 1, 2011. Taxpayers taking advantage of the waiver are not permitted to appeal or seek refunds for any liabilities paid under the program. Certain taxpayers who are in bankruptcy, have been penalized for misuse of resale certificates or reseller permits, or have been prosecuted by the Department may be excluded from the program. In addition, taxpayers who are current on tax returns due as of November 25, 2010 are not eligible for amnesty on any payments due after that date.
The timeline for the program is as follows:
- February 1, 2011 - Applications are available online at the Department’s website.
- April 18, 2011 - All applications, tax returns and amended tax returns for which you are requesting a waiver must be filed.
- April 30, 2011 - Payment for all taxes for which you are seeking relief from penalty and interest, all penalties and interest on taxes not included in this program and all filing and other fees on any tax warrant for which you are requesting a waiver must be received.
It is important to note that an additional requirement is that the taxpayer must file and pay on time all taxes due during the amnesty period. Both registered and unregistered businesses are eligible to participate in the program. Businesses with a Washington State tax liability should consult with their state and local tax professional to determine if amnesty is the best option for resolving these liabilities.
For further information on this tax amnesty program, please contact Jack Stewart, State and Local Tax Advisory Services.
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This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax-related matter.