International Remote Seller Voluntary Disclosure Program

Overview

From Feb. 1 to May 31, 2026, the Department of Revenue is offering a temporary International Remote Seller Voluntary Disclosure Program. This program is for foreign remote businesses that:

• Are unregistered.
• Have established substantial nexus in Washington and are required to register and report taxes according to WAC 458-20-101.

The goal of this temporary program is to encourage foreign remote businesses to comply with Washington tax laws, pay prior tax obligations, and register.

Program duration

The program will be accepting applications from Feb. 1 – May 31, 2026.

Who qualifies

A business must be headquartered outside the United States of America and meet all the following criteria:

• Has not had an active registration with or reported taxes to the department within the current statutory period (four years plus the current year).
• Has not been contacted by the department for enforcement purposes (for example, audit or compliance contacts regarding registration or reporting requirements) within the current statutory period.
• Has not engaged in evasion or misrepresentation in reporting tax liabilities.

Benefits of voluntary disclosure

This temporary expansion of the Voluntary Disclosure Program can offer you the following benefits:

• A limited lookback period.
  • Four years plus the current year for business and occupation (B&O) taxes.
  • 12 months for uncollected retail sales tax.

• Up to 39% in potential penalties can be waived, including:
  • 5% assessment penalty for substantially underpaid tax.
  • 5% unregistered penalty.
  • 29% late payment of a return penalty.
• The department can summarize your unreported tax liability in a single tax assessment.

Note: If you have collected retail sales or use tax but did not remit it there is an unlimited look back period, and the 29% late payment of a return penalty will apply only to the collected and unremitted retail sales or use tax amounts (WAC 458-20-228 and 458-20-230).

Penalties may either be partially or fully waived, and interest will be imposed at the statutory rate. Upon approval into the program, you may be required to complete a Business License Application, and pay the application fee.

Online application

All requests for voluntary disclosure must be submitted through the department’s online application. Applications are accepted and reviewed in the order they are received. Applications that include all the following elements are considered “complete” at the time of submission and may be prioritized over incomplete applications:

• Name, address, and phone number of business.
• Spreadsheet of gross income in the format specified in the sample agreement.
• Washington Business Activities Questionnaire.
• Confidential Tax/Email Authorization form.
• Copies of reseller permits, exemption certificates, or other similar documentation.

We strongly encourage you to attach and submit all the required elements at the time you complete your application to prevent delays in the process. After submitting your application, you will receive a confirmation that your application has been received.

Additional information may be requested during the voluntary disclosure process.

Applicants are required to register with the department by submitting a business license application. Applicants should register with the department after submitting the voluntary disclosure application. Business license applications may be completed online. For assistance completing the application, you can access our online Business Licensing Wizard.

Anonymity

If you choose to apply anonymously you must disclose the business identity within 15 calendar days of the application date. You are afforded protection from discovery by the department for this period of time only.

The department will send a reminder email to you after submitting the application. If you do not disclose your name and contact information by the 15th day, your application will not be approved and you will need to re-submit an application. If discovered by the department before you reapply, any tax and interest owed could be subject to an extended look back period of seven years plus the current year as well as penalties of up to 39% of the tax due. Delinquent return penalties apply at a rate of 9%, 19%, or 29%. To allow the department to work with a third party representative, you must provide a completed Confidential Tax Information Authorization (CTIA) at the time of disclosure in order for the department to correspond with them regarding your confidential taxpayer information.

Formal agreement

If the department has determined that you meet the voluntary disclosure qualifications, you will be approved for the program. The department will prepare an International Remote Seller Voluntary Disclosure Agreement which must be signed and returned to the department within 30 calendar days of the original application date. If you do not return the signed agreement within 30 days, your application will not be approved and any tax and interest owed could be subject to an extended look back period of seven years plus the current year as well as penalties of up to 39% of the tax due.

Once the signed agreement is returned, the department will sign the agreement and return a copy to you.

Completing the voluntary disclosure process

After submitting your application, you will receive communication from an examiner with instructions on what information is needed. If you did not include all the recommended documents with your initial application, you will be required to provide them no later than 60 days from the date you submitted your application. Once your tax liability has been determined, the department will prepare a tax assessment that includes the tax and interest due, as well as any applicable penalties. You will be sent a draft copy of the assessment for review. The assessment will then be submitted for processing and the department will send an invoice to your online My DOR account. Full payment must be received according to the payment instructions on your invoice. Additional interest and late payment penalties will accrue if the assessment is not paid in full by the due date.

Application not approved

In the event your application is not approved, you will receive an explanation from the department along with further instructions.

If your application is not approved due to a current or prior registration with the department, you may be eligible for a waiver of the 5% assessment penalty.

Previously or currently registered businesses

If a business has had an active registration at the beginning of the statutory period, it does not qualify for an International Remote Seller Voluntary Disclosure Agreement. They may, however, qualify for a waiver of the 5% assessment penalty.

Businesses with an active registration who wish to report liability for periods prior to their original registration date may still qualify for International Remote Seller Voluntary Disclosure treatment, provided the business meets all other requirements.

The Voluntary Disclosure Program covers taxes reportable on the Combined Excise Tax Return; requests for voluntary disclosure treatment for specific tax classifications will not be approved. However, we encourage you to come forward or file amended returns so you can become current with your reporting.

If you are unsure if your business has been previously registered with the Department of Revenue for tax collection purposes, you can go to our Business Lookup and do a search for your business.

If you need to make corrections or adjustments to previously filed returns, you may file an amended return(s). Returns can be amended electronically or by paper. If you have more than one year of periods to amend, submit a summary schedule or spreadsheet of adjustments through My DOR. You can send an "Amended Tax Returns" web message with the schedule or spreadsheet attached.

The department may verify the amended returns you file. In addition, the following penalties may apply to the underreported amounts:

• Late payment return penalties up to 29% if you originally filed no business or zero returns, were on active non-reporting status, or your original returns were filed late.
• 5% assessment penalty for substantially underpaid tax if the underreported tax is underpaid by at least 20%. (WAC 458-20-228).

For questions about filing amended returns, contact the Taxpayer Account Administration Division at 360-705-6215.

Prior contact

If our records indicate your business was previously contacted by the department in an effort to determine your registration and reporting requirements, or regarding other enforcement issues, you may not qualify for the Voluntary Disclosure Program. (WAC 458-20-228 (5)(a)(iii)).

Contact could include, but is not limited to: a phone call or written correspondence inquiring about your registration status, a request to complete the Washington Business Activities Questionnaire, or a notification of audit or examination.

Affiliated entities and subsidiaries

If you have unregistered affiliates, subsidiaries, or related entities organized outside the Unites States of America that are required to register and report, they are encouraged to come forward through the International Remote Seller Voluntary Disclosure Program. A separate application must be filed for each business entity.

If the department has contacted you for enforcement purposes (for example, a phone call, written correspondence, etc.) and has asked for information regarding any affiliates and related entities, then they, too, are considered to have been contacted and would generally not qualify for the program. It does not matter whether the affiliates or related entities were identified by name.

If you or a related entity received enforcement contact from the department and would like to participate in the program, you should work with the department employee to determine if an exception is appropriate.

A contact with a business is considered a contact with a business’s affiliates and related entities if all of the following apply:

1. The contact is for enforcement purposes.
2. The contact makes it clear that it is intended to reach both the business and its affiliates and related entities.
3. The contact requires the business and its affiliates and related entities to take action(s) in response to the contact.

The term “affiliate” means a person that is “affiliated” with another person; and “affiliated” means under common control; and “control” means the possession, directly or indirectly, of more than 50% of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise. Under these definitions, “affiliates” would include “subsidiaries.” (RCW 82.04.29005; RCW 82.04.645).

Risk of discovery

If your business is discovered through the department’s normal investigation, examination, or audit procedures you may be liable for tax, interest, penalties of 39% of the tax due, and a “look back” period of seven years plus the current year (WAC 458-20-228 and 458-20-230).

Full statutory interest will still be imposed on all amounts due.

Confidentiality

The information obtained from your application will be used by the department to determine your eligibility for the Voluntary Disclosure Program as well as to respond directly to you regarding your desire to comply with Washington's tax law. The department will maintain confidentiality of the information, as well as any Voluntary Disclosure Agreement, as provided in RCW 82.32.330. For more information please review our Privacy Statement.