WA DOR Excise Tax Filing: Forms, Deadlines, & Requirements
Business owners in Washington—and even some out-of-state businesses with a presence in Washington—must comply with the state’s excise tax return requirements. Excise taxes include a variety of separate taxes, including business and occupation (B&O) tax , sales tax, and use tax. If your business is located in Washington, you are likely required to file an excise tax return, regardless of whether or not you have any income to report.
Learn more about filing requirements, schedules, and options for business owners. Or contact us at Seattle Legal Services for help with state tax problems today.
Key Takeaways
- Filing requirements – Businesses with physical or economic nexus in Washington must file an excise tax return.
- Due dates – Excise tax returns may be due monthly, quarterly, or annually.
- Late penalties – Excise tax penalties begin accruing immediately after you miss a payment or filing deadline.
- Relief options – If you have multiple missed returns or payments, you may look into penalty relief or the voluntary disclosure program.
What is the Washington Excise Tax Return?
The excise tax return is a form that a business must file on an annual, quarterly, or monthly basis, depending on its annual tax liability or gross annual income. The tax return combines B&O, sales and use tax, and other Washington state business taxes into one form for convenience and ease of filing.
Note that Washington’s usage of the term “excise” is broader than what the IRS and other agencies use. In this state, excise taxes include B&O and sales and use taxes, which are generally not referred to as excise taxes in other contexts.
Businesses Required to File WA Excise Tax Returns
The vast majority of businesses based in Washington are legally required to file an excise tax return. You are likely required to file if you meet any of these requirements:
- You have a physical location or employees in Washington
- You’re an online or remote seller with at least $100k in gross receipts in Washington State, which means you have economic nexus in this state
- You are registered with the Department of Revenue
- Your business makes purchases that are subject to use tax
Note the definition of gross receipts. Online sellers only need $100,000 in revenue to meet the requirement for excise tax returns, not $100,000 in profit. Additionally, you must file a return if your business is registered with the DOR, even in cases where your business has no income to report.
Nonprofit and Exempt Organizations
Washington generally taxes nonprofit organizations the same way it taxes any other business. As they are required to pay B&O tax and sales tax, they too must file excise tax returns. There are some exemptions for fundraising activities and donations. Additionally, there are B&O and sales tax exemptions available in extremely specific circumstances, including youth character-building organizations and student loan debt organizations.
Excise Tax Form
Officially, this form is known as the Excise Tax Return. While many tax documents have specific form numbers, this one does not.
The return can be found on the Department of Revenue’s website, where they are broken down into monthly, quarterly, and annual returns. The Department of Revenue requires that filers file and pay electronically unless they have a waiver to file by paper.
Filing Frequencies and Due Dates
Whether you file a monthly, quarterly, or annual return depends on the type of business you run and your gross annual income:
- Retail: File quarterly for up to $60,000 in sales and monthly for anything exceeding $60,000.
- Service, manufacturing, and wholesale: File annually for anything up to $60,000 in sales, quarterly for up to $100,000, and monthly for more than $100,000.
Companies in certain specialties have their own separate filing frequencies:
- Construction: Quarterly up to $60,000 and monthly for anything exceeding $60,000
- Restaurants: Quarterly up to $60,000 and monthly for anything exceeding $60,000
- Auto dealers: Quarterly up to $100,000 and monthly for anything higher than $100,000
- Truck drivers: Annual up to $60,000, quarterly for anything above $60,000
Annual returns are due April 15. Businesses that file quarterly returns must have the return for a tax quarter submitted by the last day of the first month after the quarter. For example, a tax return for quarter 1, which runs from January through March, would be due on April 30. Monthly returns are due by the 25th of the following month.
Missing due dates, even unintentionally, can result in penalties. Business owners can use My DOR to see the due date for their next return and avoid any errors.
What is Included in an Excise Tax Return?
Although the forms are separate for monthly, quarterly, and annual filers, they include the same basic information:
- Business and occupation tax: The B&O tax is a percentage of your business’s revenue, and this part of the form is broken down into industry classifications like extracting for hire, manufacturing, wholesaling, public hospitals, and real estate commissions. The return requires gross revenue, deductions calculated later in the form, the final taxable amount, and the tax due.
- Sales tax: In the sales and use tax section, you list your retail sales, deductions, taxable amount, and tax due.
- Use tax: The second part of this section is the use/deferred sales tax, which only includes the gross amount column.
- Specialty taxes: The fourth section of the form includes miscellaneous other taxes, including tobacco products, refuse collection, litter, heavy equipment rental, tires, syrup, and cigars.
- Credits and deductions: The final part of the form helps you calculate tax return deductions. Deductions are broken down into different categories for each of the classifications in the B&O section.
Penalties for Missed Tax Returns or Late Payments
Washington charges sizable penalties for late tax returns or payments. The penalties are:
- 9% when you are late,
- 19% after the last day of the month following the due date, or
- 29% after the last day of the second month after the due date.
Additionally, the Department of Revenue charges interest on late payments. The interest rate is 7% for 2025.
Consequences of Non-Compliance
Failing to comply can lead to further penalties and legal issues. Per RCW 82.32.100, the Department of Revenue has the legal right to assess taxes against businesses that fail to file their returns. These returns are based on any records and information available to the Department. Once they assess taxes, you have just 30 days to pay.
The Department of Revenue will attempt to secure voluntary payment of tax debt. If they are unable to do so, they may move forward with a tax warrant. If you do not pay the tax warrant off, the DOR places a lien on all of your assets. From there, they can legally seize and sell your assets to collect what they are owed. Additionally, failure to pay a tax warrant can lead to revocation of your business license.
Addressing Missed Returns and Errors in Your Returns
If you have failed to file your excise tax returns or you know you’ve made errors in your filed returns, correcting these mistakes can help you pay what you owe and become compliant with Washington requirements.
Via the My DOR portal, you can amend your tax returns and pay any new balances due. If you have to make amendments for multiple tax returns, you can compile them into one return for convenience. You can also file your missed returns and pay what you owe. Not only does this help you get caught up, but it also shows a good faith effort to comply with state tax laws.
You may also wish to request a penalty waiver. If you have 24 months of compliance with all filing and paying requirements, you can request a penalty waiver. You may also apply for a penalty waiver if you have a legitimate reason for being late.
Voluntary Disclosure Program
If you have multiple years of missed returns and you don’t have a business license in the state of Washington, you may want to look into the state’s voluntary disclosure program. This allows you to disclose your failure to apply for a license and missed tax filings. In exchange, your penalties are decreased, the lookback period is shorter, and you only have to deal with one tax assessment.
When It’s Time to Talk to a Washington Tax Attorney
Taxes can be incredibly confusing, particularly when you’re dealing with a set of state tax laws that are dramatically different from IRS requirements. If you feel like you’re in over your head or you know you’re non-compliant, the team at Seattle Legal Services can help you explore your options and get caught up.
We also help businesses that are already facing significant legal issues related to their tax situation. If you’re looking at a tax bill that’s significantly larger due to penalties or you’re the target of a DOR audit, you must proceed carefully. Our goal is to secure the best outcome for you while ensuring you’re compliant with excise tax filing requirements and all Washington tax requirements. Let us handle your legal needs and DOR communication—call us at 206-536-3152 or schedule a consultation online.
Frequently Asked Questions
What is included in the WA excise tax return?
This form breaks down your taxes into B&O, sales and use tax, and other miscellaneous state excise taxes. It helps you calculate your taxes due, any deductions you are entitled to, and how much you ultimately owe.
Is there a form number for Washington’s excise tax filing?
No. The Department of Revenue maintains a page listing all current forms, with new ones for each filing period. This form is simply known as the Excise Tax Return.
How do I know how often you should file?
Your filing frequency and due date are based on how much revenue your business brings in and the type of business you run.
Can I file a return if I made no money this period?
Yes. In fact, Washington generally requires that businesses file returns even if they do not have any income to report.
What happens if I miss a filing deadline?
The Department of Revenue assesses an immediate 9% penalty, which can increase to 19% and then 29% if you do not file. If you continue to fail to file, the state can create an estimated tax assessment and bill you for what they believe you owe.
Sources:
https://app.leg.wa.gov/rcw/default.aspx?cite=82.32.100
https://dor.wa.gov/education/industry-guides/construction/overview
https://dor.wa.gov/file-pay-taxes/file-or-amend-my-return
https://dor.wa.gov/education/industry-guides/nonprofit-organizations
https://dor.wa.gov/education/industry-guides/nonprofit-organizations#Schools
https://dor.wa.gov/file-pay-taxes/late-filing/penalty-waivers
https://dor.wa.gov/file-pay-taxes/file-or-amend-my-return/amend-my-return
https://dor.wa.gov/open-business/apply-business-license/voluntary-disclosure-program