For a limited time, through June 30, 2018, Washington State is offering a B&O Tax Penalty Abatement Program

Economic nexus for sales tax and Washington’s 2018 collection requirement for out of state sellers.

  • The state of Washington has a limited time opportunity for penalty abatement through the Marketplace Fairness Penalty Reduction program. You cannot apply online if you have already been contacted, but can apply through a tax agent. Up to 39% of the penalties can be waived. WA does not typically remove penalties for ignorance of law, etc., and penalties are high at 39%.
  • Marketplace Fairness Penalty Reduction Program
    • 5% unregistered business penalty.
    • 29% late payment on return penalty.
    • 5% assessment penalty if assessment > $1,000.
  • Companies with > $58,000 in annual gross sales must file monthly B&O tax returns.

Economic nexus threshold for B&O tax is $267,000 in sales, but economic nexus threshold for retail sales tax is $10,000.

Beginning January 1, 2018, remote sellers making $10,000 or more in retail sales to Washington purchasers must either:

  • Collect and remit sales/use tax on sales to Washington purchasers
  • Follow the use tax notice and reporting requirements explained below (The reporting requirements have vigorous rules). See the linked page for more information.

Contact Us

The Barnes Dennig Tax Team will keep you informed of any updates and changes as they occur, please reach out if you have any questions about the  changes above, and a member of the tax team will contact you.