Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Finance Committee

SB 6206

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

Grants taxpayers of certain tax incentives a 90-day extension for filing annual accountability reports and surveys.

Background:

Businesses claiming certain tax incentives must provide data on annual accountability reports or surveys filed with the Department of Revenue. In general, accountability reports and surveys require information about employment and economic activities related to the tax incentives.

If a taxpayer fails to file a required report or survey by the due date, the business cannot claim the benefit and may have to repay any deferred taxes. The penalty for failure to file varies by tax program. Under current law, the only grounds to extend the filing due date or to waive or cancel penalties for failure to file a required report or survey is circumstances beyond the control of the taxpayer. Circumstances beyond the control of the taxpayer does not include misunderstandings or mistakes; rather, it relates to circumstances such as the death of the taxpayer, fire or other casualty, or fraud or other employee crime for which a police report was obtained.

Summary of Bill:

A 90-day extension of the filing date is allowed for annual accountability reports or surveys for taxpayers who: (1) make a request for a filing extension in writing; and (2) have filed all earlier annual reports and surveys in a timely manner. No taxpayer may be granted more than one 90-day extension.

This extension applies to surveys and reports due in calendar year 2011 and thereafter.