Each year, the Washington State Department of Revenue (DOR) requires taxpayers who participated in one or more of the state’s tax incentive programs to complete and file a survey or report regarding the programs’ use. These filings are due by May 31 following the year in which the incentive, credit, or reduced tax rate was claimed.
Businesses must file a separate survey or report for each tax reporting account in Washington. The survey or report must be filed electronically through the state’s e-filing system. Failure to file a completed survey or report by the deadline could result in a partial loss of the applicable incentive, credit, or reduced tax rate.
Participation in the following tax incentive programs requires you to file a tax incentive survey with the DOR:
Participation in the following tax incentive programs requires you to file an annual report with the DOR:
Aerospace
Aluminum Smelting
Semiconductor Manufacturing
Miscellaneous
Effective July 1, 2016, the penalty for failure to file the report or survey on time is 35 percent of the incentive claimed—a reduction from the 100 percent penalty previously in place.
If you’re unable to file the survey or report by May 31, you can request an extension by contacting the DOR—prior to the due date—at (360) 570-3265. (On its voice mail menu, press six, then two.)
Note that nearly all forms—including those for high tech, biotechnology, aerospace, fruit and vegetable processors, seafood, timber, dairy, customized employment, and cold storage—must be filed electronically using the DOR’s e-filing services. Note also that many first-year filings for incentives must include surveys for both the 2015 and 2016 periods.
Filing your survey or report in a timely manner is critical to maintaining the credit or incentive your business may depend on. If you have any questions about filling out the forms or would like to discuss how you can leverage additional Washington State tax credits and incentives, please contact:
Marke Greene, Partner | (206) 302-6496
Sarah Correia, Senior Manager | (509) 834-2420