The bill establishes a voluntary disclosure tax program in Washington, set to begin on July 1, 2027, allowing individuals and businesses to disclose taxable activities without facing penalties. Participants must meet specific criteria, including full disclosure of taxable activities, no prior fraud or evasion, and no recent contact from the department regarding tax enforcement. The department is authorized to create rules for the program and can rescind agreements if misrepresentation is found.

Additionally, the bill introduces a temporary tax amnesty program that waives penalties and interest for certain unpaid taxes if specific conditions are met, such as filing all outstanding tax returns by August 17, 2026, and remitting full payment by October 1, 2026. Taxpayers must also have a clean record regarding evasion penalties and must not be under audit or have past due balances. The bill amends existing law to incorporate these provisions and clarifies the order of payment application for tax liabilities.

Statutes affected:
Original bill: 82.32.080