Revenue to expand Voluntary Disclosure Program

OLYMPIA, Wash. – July 13, 2020 – The Department of Revenue will relax eligibility requirements for participation in the Voluntary Disclosure Agreement (VDA) program, which allows unregistered businesses to come forward voluntarily to register and pay prior tax obligations.

Revenue is temporarily expanding the criteria for the VDA, effective July 15, 2020, through Nov. 30, 2020, to encourage more unregistered businesses to voluntarily come forward to register and pay past and future tax liabilities. Participation was previously limited to those businesses that never registered with or reported taxes to the state, and those that had never been contacted for enforcement purposes.

Under the temporary expansion, businesses are eligible if they:

  • Closed their tax registration prior to Jan. 1, 2020. This includes businesses that previously filed tax returns.
  • Were placed on active non-reporting status prior to Jan. 1, 2020.
  • Have not had contact from enforcement since July 1, 2019.
    • Businesses that have been contacted at any time by the department regarding Wayfair, Marketplace Fairness, or Remote Seller Relief do not qualify for the VDA program.
  • Have not been named as an affiliate of another business through an enforcement contact.

Learn more information on the program and if you qualify. Businesses can begin the process by submitting an online application. Once the application is approved, penalties will be partially or fully waived, and interest will be imposed at the statutory rate.

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The Department of Revenue is Washington state’s primary tax agency, nationally recognized as a trusted leader in tax administration and customer service. Revenue administers nearly 60 categories of taxes that help fund vital public services. It also oversees programs that return money to the public, including the Working Families Tax Credit and Unclaimed Property.