This bill creates a new voluntary disclosure program in chapter 82.32 RCW (effective July 1, 2027) and establishes a temporary penalty-and-interest waiver in the same chapter. It also amends the existing RCW 82.32.080. The changes include both new law (the voluntary disclosure program and the temporary waiver) and modifications to existing law (procedures and payment rules in RCW 82.32.080). The voluntary disclosure program allows eligible persons (as defined in RCW 82.04.030) and their affiliates/subsidiaries to apply for agreements under which the department will waive penalties so they can register and begin collecting taxes due under Title 82 RCW. Eligibility requirements include disclosure of taxable activity, no prior fraud/evasion/misrepresentation, no “direct contact” by the department in the current or four prior calendar years, and meeting department application requirements. The department may adopt rules to implement the program and may rescind an agreement within one year if the applicant misrepresented or falsified application information. The temporary penalty-and-interest waiver covers certain tax liabilities that first became due before July 1, 2026 and sets specific filing and payment deadlines: file outstanding and amended returns and submit a completed waiver application by August 17, 2026; remit full payment of balances covered by the waiver by October 1, 2026; and file and pay returns that become due after June 30, 2026 and before October 1, 2026 by their due dates. Taxpayers who accept the waiver may not seek refunds or otherwise challenge the amount of tax paid as required for the waiver. Waived amounts remain subject to departmental verification and assessment for underpayments, and the waiver does not apply to the evasion penalty (RCW 82.32.090) or the reseller-permit misuse penalty (RCW 82.32.291). Taxpayers in bankruptcy are ineligible to the extent required by federal bankruptcy law. The bill also specifies how payments made before October 1, 2026 are applied for waiver qualification. The amendment to RCW 82.32.080 and related procedural changes authorize the department to require electronic funds transfer (with specified alternatives, exclusions, or waivers) and electronic filing (with possible waivers), permit uncertified checks when authorized, allow departmental extensions of filing time in some cases with deposit requirements, provide special handling during declared states of emergency, and prescribe the order in which payments are applied (interest, penalties, certain fees and nontax amounts, taxes except spirits taxes, then spirits taxes). The department may refuse to accept returns that are late, have tax due, or are not filed electronically as required; a return so refused is treated as a failure or refusal to file and is subject to procedures in RCW 82.32.100 and penalties in RCW 82.32.090. The bill defines “good cause” for exceptions to electronic requirements (including lack of equipment, software or internet access, lack of a bank account or credit card, bank EFT failures, or other circumstances the department finds supportive of effective administration, including certain voluntary remitters). The text in the provided extracts is incomplete in places, the department is not named in these excerpts, and several referenced RCW provisions and definitions are cited but not reproduced here.

If enacted, the bill creates a short-term amnesty that lets eligible taxpayers avoid penalties and some interest only if they file all outstanding returns and amended returns by August 17, 2026 and pay the full balances by October 1, 2026; in exchange they waive the right to seek refunds or challenge the tax paid and remain exposed to departmental verification and assessment for underpayments. It also starts a voluntary disclosure program July 1, 2027 that can shield qualifying businesses from penalties when they come forward to register and collect Washington taxes, but eligibility excludes those with prior fraud, certain recent department contact, or bankruptcy limits; at the same time the law tightens electronic filing and electronic funds transfer requirements (with department waivers for “good cause”), and gives the department authority to refuse returns that are late, owe tax, or aren’t filed electronically, which can trigger failure-to-file procedures and penalties. The people most affected are businesses and taxpayers subject to Washington B&O, public utility, sales and use taxes, plus voluntary sellers who already collect Washington sales tax; they may face immediate cash outlays to use the amnesty, lose the option to contest amounts once they accept relief, or gain a clearer, penalty-limited path to register under the later disclosure program. Banks and payment processors may see more electronic payment traffic, while small sellers lacking internet, software, or bank access can seek “good cause” waivers. Important implementation details—such as the department’s precise procedures for deeming electronic filings timely, the department’s full name, and other referenced rules and fee schedules—are not included in the extracted text, so some operational effects remain uncertain.