Businesses that meet certain criteria may be eligible for active non-reporting status. Active non-reporting status means you are actively doing business in Washington, but you are not required to file tax returns. To qualify, your business must meet the following criteria:
- Business activity does not require the collection of retail sales tax.
- You meet one of the gross proceeds of sales, gross income or value of products or services for all business and occupation (B&O) tax classification requirements.
- For calendar years starting January 1, 2023, or later, gross proceeds of sales, gross income, or value of products or services for all B&O tax classifications is less than $125,000 per year.
- For calendar years before January 1, 2023, gross proceeds of sales, gross income, or value of products or services for all B&O tax classifications is less than $28,000 per year; or $46,667 per year for persons generating at least 50% of their income from activities taxable under RCW 82.04.255, 82.04.290(2)(a), and 82.04.285.
- Gross income of the business for all public utility tax (PUT) classifications is less than $24,000 per calendar year.
- The business does not owe any other tax or fee to the Department of Revenue.
Note: You do not have to include the following types of income when determining whether you meet the above criteria:
- Amounts earned from tax exempt activities such as wholesale sales by farmers, nonprofit fundraising, and non-transient rental of real estate.
- Amounts earned by enrolled tribal members when conducting business on the reservation of which they are a member.
How can I change my filing status to active non-reporting?
If your business is currently assigned a monthly, quarterly, or annual filing status and you think your business would qualify for active non-reporting, please contact us using My DOR or call us at 360-705-6705 to request a filing status change.
What should I do if I exceed the limit?
It is your responsibility to maintain proper financial records and notify the department if your business exceeds the income threshold for active non-reporting status. If at any time your gross income exceeds the threshold, a tax return must be filed and any tax due paid. Late filing and payment will cause penalties and interest to be assessed.
Call the Business Registration section at 360-705-6211 or contact your local Department of Revenue field office if your account exceeds the thresholds. We will assign a reporting frequency and make tax returns available through your My DOR account so you can report your taxes.
Do I have other responsibilities?
Businesses have a number of rights and responsibilities in regard to their tax obligations. One of your most important responsibilities is to notify the department of changes that require an update on your account. In addition to the change noted above, other changes may include:
- New mailing address or business location.
- New telephone number.
- New partners or corporate officers.
- Closing date if you cease to do business in Washington State.
You can notify the department of any changes to your business' status:
See Taxpayer Rights and Responsibilities.
What is considered a retail sale?
Businesses that make retail sales must file tax returns. Retail sales include selling tangible personal property, digital products, and certain services to consumers.
Businesses performing any of these transactions are required to be registered and submit and remit retail sales tax on their tax returns. If you have any questions about whether you should collect retail sales tax or if you feel you do not qualify for the active non-reporting status, please contact us immediately. You will be assigned a reporting frequency and begin receiving tax returns through My DOR.
What if I owe use tax?
To pay use tax:
Who should I contact for more information?
Washington Department of Revenue
Business Registration Section
PO Box 47476
Olympia, WA 98504-7476