| Relaxed penalties and extended tax return due dates will save thousands of Washington businesses $25 million over the next two years. Effective as of July 1, a five percent underpayment penalty will be assessed only if the taxpayer paid less than 80 percent of the total amount due for the period under review, and the underpayment was at least $1,000. Interest on the underpaid taxes will continue to be due.
The change is expected to benefit nearly 31,000 businesses. Effective Aug. 1, new legislation enacted at the request of Gov. Chris Gregoire, also changes the due date for monthly excise tax returns to the 25th of each month from the 20th, and moves the deadline for paying taxes by debit electronic funds transfer from 5 p.m. to 11:59 p.m. on the due date. The due date change benefits more than 83,000 businesses that file monthly.
More information is available on the Department’s web site at www.dor.wa.gov/content/home/TaxTopics/Penalties.aspx, or by calling the Taxpayer Information Center at (800) 647-7706. |
