Voluntary Disclosure Program

The city's Voluntary Disclosure Program encourages unregistered businesses to comply with the City of Renton's tax laws and to voluntarily register and pay prior obligations. If your business has established nexus in the City of Renton and is required to register and report taxes according to RMC 5-5, the city can assist you in becoming compliant.

Businesses can come forward through the Voluntary Disclosure Program by submitting a written request or program application. Under the Voluntary Disclosure Program, the "look back" period is generally limited to four (4) plus the current year. Penalties will be waived and interest will be imposed at the statutory rate. You will be required to complete a Business License Application and pay applicable license fees.

Program benefits

If a business is discovered through the city's own efforts (e.g. enforcement, investigation, audit), the business may be liable for:

Tax and interest plus up to 29% delinquent tax penalties
License fees plus up to $22.50 license penalty per license year
A "look back" period up to 10 years plus the current year.

The Voluntary Disclosure Program can offer the following benefits:

The city can summarize your unreported tax liability in a single tax assessment.
Waiver of up to 29% tax penalties
Waiver of up to $22.50 of license penalties per license year
A "look back" period limited to the prior four (4) years plus the current year.
Waiver of $250 failure to obtain license penalty

Full statutory interest will still be imposed on all tax amounts due.

Eligibility and application

Business Eligibility

In order to qualify for voluntary disclosure benefits, unregistered taxpayers doing business in the City of Renton must voluntarily register prior to being contacted by the city's Tax and Licensing division.

Application Process

Businesses must submit the following:

Application or letter requesting voluntary disclosure, including an explanation of the business activities both in Renton and worldwide.

Schedules, by year, showing gross income generated in Renton, along with any deductions.

If third-party representation is desired, a Confidential Taxpayer Information Authorization(PDF, 267KB) form

Submit an application(PDF, 461KB)

Approval

Once tax liability has been determined, the city will prepare a tax assessment with interest and provide a draft to the taxpayer for review.

The assessment will then be submitted for processing, and taxpayer will receive a billing notice.

Full payment must be received according to the payment instructions on the billing notice. Additional interest and late payment penalties will accrue if the billing notice is not paid in full by the due date.

Application denial

In the event that a taxpayer's application is denied, the taxpayer will receive an explanation from the City of Renton along with further instructions. All monies paid with the registration are non-refundable.