What You Should Do Next
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The program “encourages unregistered businesses” with “substantial nexus” “to comply with Washington tax laws and to voluntarily register and pay prior tax obligations” in exchange for several benefits.
The extension, made effective July 15, 2020, increases VDA eligibility.
Disclosing under the VDA shortens the “look back” period for tax liability from seven to four years, and potentially waives the Department’s 39% penalty for noncompliance.
Note that the VDA does not cover businesses that collected but never remitted sales tax.
You can learn more about expanded eligibility criteria on the Washington Department of Revenue site.
Have a state or local tax issue or question? Need help? Want peace of mind? We can help! Sign up for a free "What's Next" call and let us get to work for you.