Interested businesses must register by June 30
The state’s Department of Revenue is offering a penalty reduction program worth every small-business owner’s attention, whether you have run afoul of the law or not. NFIB Washington is recognized as the top lobbying organization for stopping regulations, refining regulations to allow for a pre-penalty phase, and reducing the cost of penalties on small business.
NFIB members are known to be the most responsible small-business owners in the nation, and they are often called upon for advice from fellow small-business owners. That’s why NFIB is encouraging them to make the revenue department’s program known to fellow entrepreneurs who may be unaware of it.
From Patti Wilson, Marketplace Fairness Manager, Washington State Department of Revenue:
The Washington State Department of Revenue is conducting a penalty reduction program for marketplace sellers, facilitators, and remote sellers. Businesses that register in Washington state by June 30, 2018, through the Marketplace Fairness Penalty Reduction Program may receive a reduction of some penalties.
Why should businesses come forward?
Applying for the program by June 30 will provide several advantages that are not available when businesses are discovered by the Department during an audit or investigation:
- up to 39 percent in potential penalties can be waived;
- the “look back” period for tax liability is limited to the prior four calendar years, plus the current year instead of seven calendar years plus the current year.
Who is eligible?
Businesses without physical presence that meet the economic threshold for retail sales into Washington, and businesses who have established physical presence, are eligible to participate if they have:
- never registered with or reported taxes to the Department;
- never been contacted by the Department for enforcement purposes*; and
- not engaged in evasion or misrepresentation in reporting tax liabilities.
If businesses have collected but not sent in retail sales tax, the look-back period is unlimited and any penalty reductions may be adjusted.
*Note: if a business has already been in contact with the Department they may still be eligible to receive a reduction in penalties even if the business is already registered. By June 30 contact the Department employee who has previously communicated with the business for more information.
Please share the attached information with your members. More information is available on our website: https://dor.wa.gov/PenaltyReduction.
Questions? Contact us at [email protected] or (800) 647-7706.
