Monthly Filers Must File and Pay Taxes Electronically
Olympia, Wash., Aug. 7, 2009 — The Department of Revenue reminds monthly filers that they must file and pay their taxes electronically beginning with the July tax return due Aug. 25.
Substitute Senate Bill 5571, enacted during the 2009 legislative session, requires the shift to mandatory electronic filing and payment by businesses that file their tax returns monthly.
A business is required to file tax returns monthly when its annual tax liability exceeds $4,800. Monthlies comprise about 18 percent of taxpayers and pay 93.5 percent of excise taxes due.
Nearly 80 percent of the state’s 85,200 monthly filers already file electronically, but many still mail in their payments. Both filing and paying electronically will eliminate the need to reconcile payments with tax returns, allowing the Department to process tax returns more efficiently and reduce staffing in this area.
More than 22,000 businesses have switched to one of several electronic payment options since the Department began notifying businesses in May about this upcoming change.
Electronic payment options include Electronic Funds Transfer (EFT) debit, EFT credit, E-check, and credit card. Under EFT debit, a taxpayer authorizes the Department to deduct payments, and can file early but postpone payment until the due date. EFT credit is similar, but requires the taxpayer to initiate payment. E-check involves a $1 fee charged by third parties, and credit card companies levy a 2.5 percent convenience fee on credit card payments.
The law allows the Department to grant exceptions when electronic filing or payment is not feasible. The Department has made it easier to learn about E-file through online video tutorials and offers one-on-one assistance through its Telephone Information Center, 1-800-647-7706.
More information is available on our mandatory e-file page.