Washington Tax Update — Out-of-State Thresholds and Nexus
As of January 1, 2020, the State of Washington updated the rules around businesses without a physical presence in the state.
You could be affected by this change if your business has done any of the following in Washington within the current or previous year:
- Maintained a physical presence
- Had more than $100,000 in gross receipts from Washington customers
- Organized or commercially domiciled in Washington
These regulations apply to retail, wholesale, service and other activities.
The updates include a $100,000 retail sales tax threshold where businesses will also be required to collect sales taxes from its customers. Additionally, businesses must now report their business and occupation status to the State of Washington on the date they establish nexus. These responsibilities remain active for one year after gross receipts drop below the $100,000 threshold.
For additional information, check out Washington’s Department of Revenue. If you have questions or concerns about what this means to you, reach out to your Aldrich Advisor today.
Sara Northcutt, CPA
Aldrich CPAs + Advisors LLP
Sara Northcutt joined the firm in 2005 and has more than a decade of experience working on a wide range of clients, including financial lending, private equity, real estate, and other closely held businesses. Sara specializes in multi-state tax compliance. Sara received her Bachelor of Arts degree from Vanguard University of Southern California and did her... Read more Sara Northcutt, CPA
- Closely-held businesses
- Certified Public Accountant
- Strategic tax planning and compliance