Washington Tax Alert: Annual B&O Tax Apportionment Reconciliation Due October 31

Does your business engage in apportionable business activities in Washington?

If the answer is yes, your business is required to file an “Annual Reconciliation of Apportionable Income.” The deadline to file is October 31, 2019. Your business must file with the Washington State Department of Revenue regardless of whether or not an adjustment to the tax amounts reported throughout the year is required.

The Department will assess penalties and interest, in addition to any tax due, if you fail to timely file.

Apportionable business activities include only the activities subject to B&O classifications such as (but not limited to):

• Service and Other Activities
• Research and Development Performed by Nonprofit Corporations or Associations
• Royalties
• Gambling Contests of Chance (less than $50,000 a year)
• Travel Agents Commission/Tour Operators
• International Investment Management Services
• Insurance Producers; Title Insurance Agents; Surplus Line Brokers
• Licensed boarding homes
• Public or Nonprofit Hospitals
• Printing or Publishing
• Real Estate Brokers

For a full list of the B&O tax, classifications visit the department website.

Here are two ways to file:
1. You may file your annual reconciliation utilizing the Department of Revenue’s online services if you file your Washington state excise tax returns electronically, or

2. You can download and mail the Department of Revenue’s form, Annual Reconciliation of Apportionable Income, which is available at dor.wa.gov. If any additional tax is due, payment may be made either by electronic funds transfer (EFT) or check. Credits will be handled in the same manner.

October 31, 2019, is approaching quickly so make sure to file your “Annual Reconciliation of Apportionable Income” to avoid any penalties or interest!

Note: Effective January 1, 2020, the economic nexus threshold is reduced to $100,000 of combined gross receipts per calendar year.

If you have any questions, Delap advisors have an 87-year history of offering trusted and reliable state and local tax services to the state of Oregon. With offices in both Lake Oswego and Portland, we’re convenient to get to as well.