Washington State: Temporary expansion of voluntary disclosure agreement (VDA) program for investment income subject to B&O tax
Qualifying taxpayer can avoid penalties and interest on past due amounts
The Washington State biennial budget (SB 5167) authorizes the Department of Revenue to administer a temporarily expanded voluntary disclosure agreement (VDA) program for taxpayers with unreported investment income subject to business and occupation (B&O) tax following the recent Antio decision by the Washington Supreme Court.
Beginning July 1, 2025, qualifying taxpayers with unreported investment income subject to the B&O tax are permitted, through the VDA program, to report such income to the Department without incurring penalties and interest on past due amounts. Penalties for past due B&O liabilities can reach as high as 39% of the unpaid liability.
Read a June 2025 report prepared by KPMG LLP