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Washington sales tax notices

Got a letter from the Washington State Department of Revenue? Find it below to see what it means, why businesses usually receive it, and what to do next.

Sources checked

Tax authority

Washington State Department of Revenue (opens in a new tab)

Disagree with a notice?

Start an informal Rule 100 review with the Administrative Review and Hearings Division by filing a written petition (Form 50-0001 or your own format). State the amount and periods in dispute, your reasons, and whether you want a hearing. A petition filed before the Department acts is returned as too early.

Deadline: Generally 30 days after the Department's action; for a disputed bill or assessment, by the due date of the bill or assessment.

Source: Washington State Department of Revenue (opens in a new tab)

Balance due

A bill for tax, penalty, or interest the authority says is unpaid.

Balance due

Notice of Balance Due

A notice that tax or another liability is past due and unpaid. If ignored, the account is assigned to a Revenue Agent for collection.

Why you got it

  • A return or liability due date passed and the amount remains unpaid

What to do

  1. Check the balance against your returns and payments, and respond promptly; ignored notices are assigned to a Revenue Agent
  2. Pay the tax, or contact your local field office about a payment agreement or self-service payment plan
  3. If you were late because of circumstances beyond your control, or you had 24 months of on-time filing, request a penalty waiver in writing with proof; interest is waived only in narrow cases

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Source: Delinquent tax collection process (opens in a new tab)

Assessment

A proposed or final determination of tax owed, sometimes estimated when returns were never filed.

Assessment

Tax assessment

A Department assessment of tax, penalties, or interest you owe. It can be reviewed through the Rule 100 process.

Why you got it

  • The Department determined additional tax, penalty, or interest is due
  • Audit adjustments

What to do

  1. Review the assessment and note its due date, which is also the deadline to request a review
  2. If you disagree, file a Rule 100 petition by the due date with supporting documents
  3. If you agree with the tax, pay it; if penalties apply and the delay was beyond your control, ask in writing for a waiver within the same deadline

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: Request a review by the due date of the assessment.

Source: Starting a Rule 100 review (opens in a new tab)

Audit

A request for records or notice that the authority is examining your returns.

Audit

Excise tax audit

The Department routinely audits businesses to check that excise taxes such as retail sales tax and use tax were reported and paid correctly. The auditor contacts you to schedule the audit.

Why you got it

  • Routine selection for audit

What to do

  1. Prepare records of income, purchases, deductions, and exemptions for the audit period
  2. Tell the auditor promptly about information not yet considered
  3. If you disagree with adjustments, meet with the auditor's manager or request an administrative review

Source: Audits (opens in a new tab)

Nexus inquiry

A questionnaire or letter asking about your activity in the jurisdiction to decide whether you must register.

Nexus inquiry

Nexus Initial Inquiry letter with Washington Business Activities Questionnaire (WBAQ)

Sent to an unregistered business the Department believes may have nexus. It asks you to complete a questionnaire so the Department can decide whether you must register.

Why you got it

  • The Department found evidence of physical nexus, economic nexus, or marketplace activity in Washington

What to do

  1. Complete and return the questionnaire on time; if you do not respond, the Department may register you and issue an estimated assessment
  2. Review your Washington activity (physical presence, sales and marketplace sales) before answering
  3. Register if required; a questionnaire request generally counts as enforcement contact, so the Voluntary Disclosure Program is usually no longer available

Source: Tax Discovery Overview (Business Advisory Council presentation) (opens in a new tab)

Registration

Changes to your permit or account: required registration, filing-frequency changes, revocation, or closure.

Registration

Initial order revoking business certificate of registration

An order revoking your business's tax registration, which you need to operate legally in Washington. It can be appealed to the Administrative Review and Hearings Division.

Why you got it

  • A filed tax warrant remained unpaid

What to do

  1. Request an appeal in writing or by phone within 21 days
  2. Explain your reasons and submit any documents the same day
  3. Keep your contact information current while the appeal is pending

Response window: 21 days from the date of the initial order.

Source: Revocation of a business certificate of registration (opens in a new tab)

Collections

Enforcement on unpaid balances, such as liens, levies, warrants, or referral to a collection agency.

Collections

Tax warrant

Covers all unpaid tax, penalty, and interest. If unpaid 10 days after issue, it is filed with the county Superior Court and becomes a lien that lets the Department seize property.

Why you got it

  • No response or payment arrangement during the collection process

What to do

  1. Pay the warrant within 10 days of the issue date to avoid filing
  2. Contact your local field office about a partial payment agreement
  3. Act quickly: a filed warrant unpaid after 30 days can lead to a revocation hearing

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: Filed with the county Superior Court if not paid 10 days after the issue date.

Source: Delinquent tax collection process (opens in a new tab)

Ask for penalty relief

Penalties on a Washington notice aren't always final. You can ask for them to be waived. Follow the steps below, including anything the state requires you to file or pay before it reviews the request.

Penalty waiver

  1. File the late return and pay the tax
  2. Request the waiver with the return: check Request Penalty Waiver when filing in My DOR, or send a letter or secure message
  3. Give all the relevant facts and any proof; you must show the circumstances were beyond your control, unless you qualify for the one-time 24-month waiver

What qualifies: Circumstances beyond your control, or a one-time waiver if all returns were filed and paid on time for the prior 24 months

Interest: Interest is waived only if the late payment was the direct result of written instructions from the Department, or if the Department extended the due date of an assessment for its own convenience.

Source: WAC 458-20-228: Returns, payments, penalties, extensions, interest, stays of collection (opens in a new tab)

Before you respond

  • Check the date on the notice. Response windows usually run from that date, not the day you open it.
  • Match the account number and filing period to your own records before paying or disputing.
  • If returns are missing, filing the actual returns usually replaces an estimated bill. Confirm how on the notice or with the authority.
  • Ask about penalty relief before paying penalties, and check what must be paid with the request. See how
  • Keep a copy of the notice and everything you send back.

This page is general information, not tax or legal advice. Notice names and procedures change, so always follow the instructions on your notice and the official sources linked above.

Need the rates, nexus thresholds and filing rules? Read the Washington sales tax guide.

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