Article
Take advantage of benefits of temporary Washington voluntary disclosure program
Sept. 2, 2025 · Authored by Adam Cline, Shane Griffiths
The Washington Department of Revenue (DOR) has introduced a temporary expanded Voluntary Disclosure Agreement (VDA) Program under ESSB 5167, offering significant benefits, including penalty and interest waivers, to encourage compliance with Washington tax laws.
The program, effective July 1, 2025, targets businesses with unreported investment income subject to Business and Occupation (B&O) tax.
Navigate this opportunity to address past tax obligations and mitigate risks.
Why act now?
The Antio, LLC v. Washington State Department of Revenue decision clarified that investment income is subject to B&O tax unless incidental — less than 5% of gross income, per HB 2081. This temporary VDA program offers a rare opportunity for businesses to address unreported investment income, limit tax exposure, and avoid costly penalties and interest.
With the first phase beginning July 1, 2025, now is the time to review your B&O tax filings and assess eligibility.
Program details
The Investment Income VDA Program, prompted by the Antio decision, allows qualifying businesses to report unreported investment income without incurring penalties or interest.
Two phases
Program administration will be broken into two phases.
- Phase 1: July 1, 2025–April 30, 2026
- Phase 2: July 1, 202–April 30, 2027
Eligibility
To qualify, businesses must meet these criteria:
- Registered or unregistered businesses with unreported investment income subject to B&O tax.
- Affiliates of entities under audit may qualify, provided they meet other criteria.
Businesses meeting these criteria will be excluded:
- Businesses engaged in banking, lending, or securities activities as defined in RCW 82.04.4281
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.