OLYMPIA, Wash. - July 9, 2025 - The Department of Revenue has launched a temporarily expanded Voluntary Disclosure Program for investment income under ESSB 5167. This program allows businesses with unreported investment income subject to business and occupation (B&O) tax to report and pay prior tax obligations. Qualifying businesses that voluntarily report this revenue may avoid incurring penalties and interest.

The program will span two distinct 10-month phases over the next two fiscal years, allowing for structured administration.

• Phase 1 - July 1, 2025 through April 30, 2026.
• Phase 2 - July 1, 2026 through April 30, 2027.

This temporary relief may also apply to other income streams reportable on the combined excise tax return. The relief is only available for businesses with qualifying unreported investment income. However, penalties will still apply to collected but unremitted retail sales tax. The goal of this temporary program is to encourage businesses to comply with Washington tax laws, pay prior tax obligations, and register if necessary.

Who qualifies

• Any business registered or unregistered who has unreported investment income subject to B&O tax, unless the taxpayer has been notified of an audit or agency enforcement action as of July 1, 2025.
• Affiliates of entities under audit that would otherwise not qualify for the VDA treatment.

Who does not qualify

Businesses engaged in banking, lending, and security business, as defined in RCW 82.04.4281.

More information

Learn more information about the program and if you qualify. Businesses can begin the process by submitting an online application. Approved applications are eligible for penalty and interest relief. Continue checking the department's website for more updates.