Washington Offers Temporary Penalty Relief for Newly Taxable Services: Apply by September 30, 2027

• Washington now taxes certain services (like digital ads, IT, custom software, staffing) as of October 1, 2025, under ESSB 5814.
• Businesses that didn’t collect sales tax on these services can apply for penalty relief if they voluntarily report and pay owed tax and interest.
• The penalty relief application window closes September 30, 2027, and covers tax periods from October 1, 2025, to December 31, 2026.
• To qualify, businesses must file through Washington’s My DOR portal, sign a Penalty Relief Agreement within 30 days, and pay all tax and interest due.
• Failure to act or pay on time results in additional penalties; consult a tax advisor if unsure about exposure.

Source: taxcloud.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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