This bill adds two new sections to chapter 82.32 RCW and amends RCW 82.32.080. It creates a voluntary disclosure program, effective July 1, 2027, under which the department will implement a process allowing eligible persons (as defined by RCW 82.04.030) to register and remit unpaid tax liabilities and have penalties waived if they meet specified conditions: full disclosure of relevant taxable activity, no fraud/evasion/misrepresentation, no direct contact by the department for tax enforcement in the current or four prior calendar years, and any other application requirements the department sets. The department may adopt rules, may rescind an agreement within one year for misrepresentation, may verify reported and paid tax liability, and may assess tax, penalties, and interest for any underpayments discovered. The new law also creates a separate, time‑limited penalty and interest waiver for certain liabilities that first became due before July 1, 2026, subject to filing and payment deadlines (including filing outstanding returns and submitting a waiver application by August 17, 2026, and paying qualifying balances by October 1, 2026), with limits for tax warrants, filing fees, and bankruptcy ineligibility to the extent payment would violate federal law. The waiver does not authorize relief from the evasion penalty in RCW 82.32.090 or the reseller‑permit penalty in RCW 82.32.291. The amendment to RCW 82.32.080 makes procedural changes to filing and payment rules administered under chapter 82.32 RCW. It generally requires electronic funds transfer as the default payment method (with specified exceptions and waivers), authorizes other electronic payment forms, and requires electronic filing of returns unless good cause is shown. The department may refuse to accept a return that is not filed electronically as required or is not accompanied by the remittance shown due; a refused return is treated as a failure or refusal to file and triggers the procedures in RCW 82.32.100 and penalties in RCW 82.32.090. The section defines examples of “good cause” for exceptions (including lack of equipment, internet access, bank account, or EFT capability) and allows the department to find other circumstances that support efficient administration, including relief for some taxpayers who voluntarily collect and remit Washington sales or use taxes. The bill specifies how mailed and electronic filings are deemed filed and states that “spirits taxes” has the meaning given in RCW 82.08.155(6). It also prescribes an order in which payments are applied among interest, penalties, fees, nontax amounts, and taxes (with a specified ordering for spirits taxes). This enactment therefore creates new statutory provisions, provides a limited penalty and interest waiver (a substantive relief change), and makes procedural changes to filing and payment requirements and enforcement (including refusal to accept certain returns). The provided text is incomplete in places: the bill repeatedly refers to “the department” without naming it in these excerpts, some subsections are cut off, and later or omitted text that could affect thresholds, exceptions, or implementation details is not available in the extracted facts.

If enacted, the bill creates a time-limited opportunity for businesses to come forward and register unpaid Washington business and occupation, public utility, sales, and use taxes with penalties and, in some cases, interest waived, provided they file by mid-August 2026 and pay full balances by October 1, 2026, disclose all taxable activity, and were not already contacted by the department. This will likely encourage unregistered or late-paying sellers to voluntarily report taxes to avoid penalties, but it also creates a strict window and conditions: missed deadlines, any fraud or misrepresentation, or being in bankruptcy to the extent payment would violate federal law will disqualify them, and agreements can be rescinded within a year if the department finds false information. The bill also makes electronic filing and electronic funds transfer the default for returns and payments, allows the department to refuse returns that are not filed electronically or not accompanied by payment, and defines “good cause” exceptions such as lack of equipment, internet access, or banking capability. That shifts compliance costs and operational responsibilities onto taxpayers (and may require banks to support EFTs), increases the risk of being treated as having failed to file if electronic requirements are not met, and gives the department broad discretion to set rules and apply payments in a specified order; however, the text provided is incomplete about some implementation details and the specific department named, so parts of enforcement and who exactly must file electronically remain unclear.