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Panel backs temporary tax-amnesty window and codified voluntary disclosure program
Summary
House Bill 26 15 would codify a DOR voluntary disclosure agreement (VDA) for B&O tax and establish a temporary tax-amnesty window waiving penalties/interest for eligible liabilities reported before 07/01/2026. Supporters argued it encourages compliance and could generate substantial revenue; staff noted technical issues to work through with DOR.
Lawmakers heard support for a bill that would codify the Department of Revenue’s voluntary disclosure agreement for B&O tax and create a time-limited tax-amnesty program.
Staff told the committee HB 26 15 limits the codified VDA to the B&O tax beginning July 1, 2027, and sets qualifying conditions for taxpayers (full disclosure of taxable activity, no fraud or misrepresentation, not currently under DOR enforcement contact or audit). The temporary amnesty program would begin June 10, 2026, and waive penalties and interest for covered B&O, public-utility and state and local sales and use tax liabilities required to be reported or paid before July 1, 2026. To qualify, businesses must file an amnesty application by Aug. 17, 2026, pay the taxes by Oct. 1, 2026, and meet other eligibility conditions staff described.
Representative Amy Wallen, the sponsor, said the bill helps businesses who make honest filing mistakes and cited Washington’s 2011 amnesty as an example of a program that brought millions to the general fund. Supporters including the Washington Society of CPAs, NFIB, and tax practitioners noted the program encourages voluntary compliance, helps small or non‑English-speaking businesses come into the system, and limits the large penalties that can otherwise deter disclosure.
Staff and several testifiers said DOR provided technical feedback the sponsors will work through. No final committee action was taken at the hearing.
