How-to: Opting into Active Non-Reporting Status


Hey business owners! Does filing your quarterly or annual Washington Department of Revenue (WA DOR) tax return get you down? We want to tell you about Active Non-Reporting status and how it may make running your business a little easier.

What is Active Non-Reporting Status?

Beginning January 1, 2023, the WA DOR now offers an option called Active Non-Reporting Status for businesses that meet specific criteria. This status allows you to actively conduct business in Washington without the requirement to file state tax returns.

Qualifying Criteria

  1. No Retail Sales: Your business activity doesn’t require collecting retail sales tax.
  2. Gross Income Limit: Your business grosses less than $125,000 per year starting 1/1/2023 and later.
  3. No Outstanding Taxes or Fees: Your business doesn’t owe any other taxes or fees to WA DOR.

Examples of Qualifying Businesses

  • Therapists
  • Consultants
  • House Cleaners
  • Architects

How to Change to Actie Non-Reporting Status

Think your business qualifies?

First, sign into My DOR and check for electronic notifications. WA DOR has been automatically updating the filing status for many businesses and you may already be included.

Otherwise, if your business qualifies, reach out to the WA DOR via My DOR or at 360-705-6705 to switch up your filing status.

Going Over the Limit

It’s crucial to maintain accurate financial records. If your business revenue exceeds the annual $125,000 limit, it is your responsibility to notify the WA DOR promptly and change your status back to reporting. Ignoring this could mean dealing with penalties and interest down the road.

And of course, we’re here to assist! Our bookkeeping services can help you stay on top of the numbers, manage tax filing deadlines, and keep you focused on what you do best!

Cheers to smoother operations!