Trick or Treat? October 31 Deadline for Washington State Tax Approaches

Welcome, taxpayers and soon-to-be trick-or-treaters, to our annual Washington State October 31 reconciliation reminder.

Do you report under the Service and Other Activities classification, or do you possess apportionable income or royalty income in Washington State? If so, the spookiest non-return filing of all awaits: the Annual Reconciliation of Apportionable Income.

By Friday, October 31, you must enter this eerie accounting mansion and file your report. Failing to meet the deadline could awaken a horrifying 29% penalty (pretty ghoulish for a non-return).

What lurks in this Department of Revenue-created haunted mansion, you ask? The chance to shine your flashlight (that needs new batteries) on last year’s apportionment calculations. If you find a discrepancy, it could lead to a treat—a refund—or, more menacingly, a trick with extra tax, penalties, and interest.

The Washington Department of Revenue insists that everyone with apportionable revenue must face this mansion. So, even if you believe your reconciliation is perfectly aligned, the best practice is to file the form to avoid potential penalties on future assessments.

For more information, navigate your way to the Department’s website and find the secret passage: "My DOR Help" > "Special Credits: Apply and Reconcile: File Annual Apportionment Reconciliation."

Do you need a guide to find treats and avoid tricks? If so, or if you have questions about whether your activities are apportionable, how to apportion (including the formula or throw-out income), how your revenue or income should be attributed, or whether you are eligible for any deductions, don't be afraid to reach out to our State and Local Tax Group.

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