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EHB 2487 Penalty and Interest Relief Program

Overview

From June 11 through Dec. 31, 2026, the Department of Revenue is offering a temporary penalty and interest relief program for businesses impacted by tax changes in Engrossed House Bill (EHB) 2487.  

This program is for businesses that took an insurance premium exemption on gross income not subject to that exemption. The goal is to facilitate compliance with Washington tax laws, pay prior tax obligations, and register if needed. 

Program duration

The program will accept applications from June 11 through Dec. 31, 2026. Applications received after Dec. 31, 2026, are not eligible. 

Who qualifies

Businesses that have unreported income as a result of taking the exemption under either RCW 82.04.320 or 82.04.322 (or both) on gross income not subject to insurance premiums tax under chapter 48.14 or 48.15 RCW. The program covers taxes owed as early as Oct. 2, 2019, and no later than March 31, 2026.  

Note: The evasion, negligence, and tax avoidance penalties are not eligible for relief via this program. 

Benefits of this relief program

This temporary EHB 2487 penalty and interest relief program may offer you the following benefits: 

  • Waiver of penalties and interest on B&O taxes due for periods between Oct. 2, 2019, and March 31, 2026. 
  • A multi-year tax repayment program.  
  • The department will summarize your unreported tax liability in a single tax assessment. 

Important: This program only waives penalties and interest. You must still pay the tax owed.  

Submit your application online

All requests for penalty and interest relief must be submitted through our online application.  

Please select Yes for the question, “Are you applying for penalty and interest relief for B&O tax changes related to insurers in EHB 2487 (2026)?” You will need to enter your UBI#/Account ID# (if available).   

Applications are accepted and reviewed in the order they are received.  

Sign and return your Penalty and Interest Relief Agreement

If we determine that you qualify for relief under this program, we will send you an agreement to sign. Return the signed agreement within 30 days of your application. If we do not receive it within 30 days, your application will not be approved.  

Once we receive your signed agreement, we will sign it and return a final copy to you.  

Next steps after you apply

After you submit your application and return the signed agreement, we will guide you through the following steps:  

  1. We’ll contact you. An examiner will contact you with instructions and request any additional information we need to process your application.  
  2. We’ll determine your tax liability. Once complete, we will prepare a tax assessment that includes the tax and any applicable penalties not covered by this program.  
  3. You’ll review the draft assessment. We will send you a draft copy to check for accuracy before we finalize it.  
  4. We’ll post the final invoice. After processing, the invoice will appear in your My DOR account.  
  5. You must pay by the due dates. Full payment is required by the date(s) listed on your invoice. You may request a multi-year repayment plan as a part of this program by following the instructions provided when you receive your assessment. If payment(s) are late or incomplete, additional interest and late-payment penalties will apply. 

What happens if your application isn’t approved? 

If your application is not approved, we will provide an explanation and further instructions.  

How we protect your information

We will use the information you provide to determine your eligibility for this Penalty and Interest Relief Program and respond to your application. We will keep your information, as well as any Penalty and Interest Relief Agreement, confidential as required in RCW 82.32.330. For more information, please review our Privacy Statement.