RCW 82.04.3221: Penalty and interest waiver—Insurance. (Expires January 1, 2029.)

(1) Except as provided in subsection (5) of this section, the department must waive penalties and interest otherwise due under chapter 82.32 RCW, and allow any person who owes delinquent taxes due under this chapter to enter into a three-year repayment schedule for taxes owed, if all of the following conditions are met:

(a) The taxes owed, and any penalties and interest, are for delinquent taxes due under chapter 82.04 RCW as a result of a person taking the exemption under either RCW 82.04.320 or * 82.04.322, or both, on gross income that is not subject to the insurance premiums tax under chapter 48.14 or 48.15 RCW; and

(b) The taxes owed, and any penalties and interest, are for delinquent taxes due on the gross income of the business between October 2, 2019, and March 31, 2026.

(2)(a) The taxpayer must submit a completed application for a penalty and interest waiver, and repayment schedule, under this section in a form and manner prescribed by the department.

(b) An application for a penalty and interest waiver, and repayment schedule, under this section must be submitted to the department on or before December 31, 2026.

(c) The taxpayer must remit full payment in accordance with the repayment schedule issued by the department. If payment is late or incomplete, additional interest and late payment penalties apply.

(3) A waiver of penalties and interest provided by this section does not apply to other delinquent taxes that are not directly related to the exemption under either RCW 82.04.320 or * 82.04.322, or both.

(4) The tax liability for which a penalty and interest waiver, and repayment schedule, is requested under this section is subject to verification by the department as provided in RCW 82.32.050. This section does not preclude the assessment of taxes, penalties, and interest with respect to any amounts determined by the department to have been underpaid for any tax period for which the taxpayer previously received penalty and interest relief under this section.

(5) Penalties for evasion, negligence, and avoidance pursuant to RCW 82.32.090 are not eligible for the penalty and interest waiver under this section.

(6) This section expires January 1, 2029.