Washington Launches Temporary Voluntary Disclosure Program for International Sellers

The Washington Department of Revenue (WA DOR) has implemented a temporary voluntary disclosure program for international remote sellers and international marketplace facilitators. This program provides a limited opportunity to comply with the state’s tax laws under favorable settlement terms.

Applications for the program must be received on or before May 31, 2026.

What is the Washington Voluntary Disclosure Program?

A Voluntary Disclosure Program allows a business to proactively resolve previously unreported tax liabilities with a taxing authority, typically in exchange for reduced penalties and a limited assessment period (the lookback period).

By coming forward before the state initiates contact, a business can often avoid audits and enforcement actions while gaining certainty around its compliance obligations.

To qualify for this temporary voluntary disclosure program, a business must:

1. Not have had an active registration with or reported taxes to the WA DOR within the prior four years plus the current year.
2. Not have been contacted by the WA DOR for enforcement purposes, such as audit or compliance contacts regarding registration or reporting requirements within the last four years plus the current year.
3. Not engaged in evasion or misrepresentation in reporting tax liabilities.
4. Make sales directly to consumers or operate as a marketplace facilitator.
5. Be headquartered outside of the 50 United States and the District of Columbia.
6. Have no employees working in Washington.
7. Not own or lease any real property in Washington.

The program allows a limited lookback period of four years plus the current year for business and occupation (B&O) taxes. It also includes a 12-month look period for uncollected retail sales tax. Finally, the program includes a waiver of applicable penalties (up to 39%).

Note that interest remains due and payable on all taxes reported under the agreement.

Key Implications to Consider

This temporary program presents a limited time opportunity for qualifying international remote sellers and international marketplace facilitators to significantly reduce potential liabilities. Failure to participate before the deadline could result in continued accrual of penalties and interest and increased enforcement risk.

Taxpayers should note, however, that entering into a voluntary disclosure agreement may limit their ability to later contest the liability. This means careful review of the amounts owed is essential.

What do I need to do?

International remote sellers and international marketplace facilitators should review their records to identify any unreported or unpaid Washington tax liabilities. Applications must be submitted to the WA DOR on or before May 31, 2026, to receive the favorable terms temporarily offered under this program.

Our State and Local Tax team can help evaluate eligibility and apply for relief under this program.