What You’ll Learn

• What happens if you miss a tax deadline in Washington
• How to minimize penalties and get caught up quickly
• When to call in professional bookkeeping support
• What To Do if You Miss a Tax Deadline in Washington

What To Do if You Miss a Tax Deadline in Washington

Even the most organized business owners can miss a filing deadline. Between sales, payroll, and everything else on your plate, it happens—especially during busy seasons or growth transitions. Missing a Washington tax deadline doesn’t have to turn into a crisis, but quick action can save you from extra fees and stress.

Identify Which Deadline Was Missed

First, figure out which agency the deadline applies to. Washington business owners typically file several types of reports each quarter:

• WA Department of Revenue (DOR): Handles sales tax, business and occupation (B&O) tax, and excise filings. [↗]
• Labor & Industries (L&I): Collects quarterly workers’ compensation premiums. [↗]
• Employment Security Department (ESD): Manages payroll and unemployment reports. [↗]
• IRS: Oversees federal income and payroll tax filings. [↗]

Each agency has its own filing system and due dates — DOR uses the MyDOR portal, L&I and ESD have separate logins — so it’s easy to lose track of what’s due where.

Understand the Consequences

Penalties and interest vary depending on the agency and how late the filing is:

• DOR: Late sales or excise tax filings can trigger a penalty starting at 9% of the tax due, increasing over time.
• L&I and ESD: Late employer reports may result in added interest, fines, or suspension of your business account.
• IRS: Federal penalties compound monthly until filings are submitted.

The longer the delay, the higher the cost — which is why it’s worth filing as soon as you realize something’s been missed.

How To Catch Up

File or pay immediately. Even if you can’t pay in full, submitting the report prevents additional late-filing penalties from accruing.

• Contact the agency directly. Many allow businesses to request penalty waivers or set up short-term payment plans.
• Gather your records. Make sure sales reports, payroll data, and payment confirmations are organized before re-filing.
• Check for related filings. If one report is late, it’s common for others to be behind too — catch everything up in one go.
• Set reminders going forward. Use a calendar, bookkeeping software, or a recurring schedule to keep quarterly filings consistent.

Requesting a Penalty Waiver

If your late filing happened because of circumstances truly outside your control — such as a serious illness, natural disaster, or unexpected system failure — you may be able to request a penalty waiver from the Washington Department of Revenue.

The process is straightforward: you can submit the request directly through your MyDOR account or send a written explanation to the Department outlining what happened and when you resolved the issue. Keep in mind that everyday business challenges, like cash flow problems or missing a due date by mistake, typically don’t qualify for relief.

Even if your waiver request isn’t approved, making the effort shows good faith and can be helpful when working to get your business back in good standing.

When To Call in Professional Support

If the thought of catching up on taxes feels overwhelming, you’re not alone. Many Tacoma and Pierce County business owners turn to bookkeeping professionals when filings start stacking up.

Josh can help you:

• Review and reconcile your books before filing late reports.
• Identify missing or inconsistent data that could cause errors.
• Create reliable systems and checklists to keep future filings on schedule.

With the right systems in place, you can move from reactive to proactive — and stop worrying about what might be due next week.

Bringing It All Back to Balance

Missing a tax deadline isn’t the end of the world, but ignoring it can make the problem worse. Taking quick, informed steps helps protect your business’s reputation and financial health.

If you’ve missed a Washington tax filing and need help getting back on track, contact J. Ott Business Solutions. Josh can help you review what’s overdue, clean up your books, and put a plan in place so your next deadline doesn’t sneak up on you.