Washington DOR penalties and interest
For a May 2026 excise tax return, the return for sales and B&O tax, due June 25, 2026, DOR adds a late payment penalty of:
9%of the tax if you pay after June 25
19%if you pay after July 31
29%if you pay after August 31
The minimum penalty is $5. In 2026, DOR also charges 6% interest a year on unpaid tax.
Washington DOR tax warrants
DOR can issue a tax warrant, its formal claim for all unpaid tax, penalty and interest, if you do not respond to its notices or arrange payment. DOR adds a penalty of 10% of the tax, with a $10 minimum, when it issues the warrant.
If you do not pay within 10 days, DOR files the warrant with the county Superior Court and gains a lien on your real and personal property. DOR can then seize bank accounts, wages and other property. If you have not paid 30 days after DOR files the warrant, DOR can hold a hearing to revoke the tax registration endorsement your business needs to operate.
Ways to resolve Washington DOR tax debt
| Option | Fits when | What to expect |
|---|---|---|
| Partial Payment Agreement | Fits whenYou cannot pay the full balance at once | What to expectYou complete a DOR financial statement, pay electronically and file new returns on time. DOR may still issue a tax warrant, and you may qualify for its self-service payment plan instead. |
| Penalty waiver | Fits whenYou paid late because of circumstances beyond your control, or you filed and paid on time for the prior 24 months. DOR generally does not accept lack of funds as a reason. | What to expectYou request it in writing with the late return and payment, or check the waiver box when you file online. DOR grants the 24-month waiver for one return in any 24-month period. |
| Voluntary disclosure | Fits whenYour business had no active DOR registration and reported no taxes in the past four years plus the current year. DOR has not contacted it about enforcement, and you did not evade tax. | What to expectDOR limits the lookback to those years and can waive up to 39% in penalties. You still owe the tax and interest, and DOR applies no lookback limit to sales tax you collected and never sent. |
| Appeal | Fits whenYou believe you do not owe the assessed tax, penalty or interest | What to expectWe file the appeal and your supporting records with DOR. |
Personal liability for unpaid Washington sales tax
DOR can hold you personally liable for sales tax your business collected but did not pay, once it has issued a tax warrant for that tax. DOR treats collected sales tax as trust funds, money you hold for the state.
- Business status. The business has closed, dissolved or been abandoned, or it owes more than its assets are worth.
- Chief executives and chief financial officers. You are liable regardless of fault or knowledge, for the periods you held the role or had the duty to pay.
- Other officers, managers, members and partners, and anyone whose job was to send the tax to DOR. You are liable only if you willfully failed to pay, meaning you chose not to, and only for taxes due while you held that duty.
We check the periods and role DOR names in its notice against your records before you respond.
Send us your latest DOR notice or tax warrant, and we tell you which option to consider and what to gather first.
Send my DOR noticeTax resolution Everett WA process
- Step 01
Confirm the balance.
We check each period's tax, penalties and interest on your DOR account against your own records.
- Step 02
File what is missing.
We prepare your unfiled excise tax returns first, from your sales records.
- Step 03
Document your budget.
We complete DOR's financial statement with your income, expenses and assets.
- Step 04
Request the option.
We submit the payment agreement, waiver or voluntary disclosure request and answer DOR's questions after we file.
- Step 05
Keep you compliant.
You file and pay new returns on time during the agreement, and we flag each due date in advance.
"I was years behind on my tax returns, they helped me work my way through all the needed documents."
Owing the IRS and Washington DOR at once
In 2026, Washington has no income tax on wages, so you owe any income tax on your wages to the IRS.
We build one budget for your IRS and DOR payments, so you are not paying one agency with money the other expects.
What affects the cost of tax debt relief
We quote tax debt relief Everett WA work after we review your DOR account, from these factors:
How many excise tax returns you have not filed, or filed wrong
Which option you apply for, since you document more for a payment agreement than a penalty waiver
Which DOR taxes you owe, such as sales or B&O tax
Whether the IRS is collecting from you as well
A penalty waiver request for one late return is the lightest case.
These are the factors, not a quote. You approve the fee in writing before we contact DOR.
Book a tax debt relief Everett WA consultation
Call or send your latest DOR notice. We read it, and you decide before we send anything to DOR. Clients from Everett and Mill Creek meet us at our Everett office.