Businesses that engage in apportionable activities in Washington should mark their calendars: the Annual Reconciliation of Apportionable Income for calendar year 2024 is due on or before October 31, 2025.
This filing is required by the Washington State Department of Revenue, even if no adjustments are needed to the tax amounts reported throughout the year.
What is Apportionable Income?
Apportionable business activities include income reported under any of Washington’s 19 apportionable tax classifications. The most common is the Service & Other Activities business and occupation (B&O) tax classification.
For businesses on a monthly filing frequency, this reconciliation is treated as a “thirteenth return.”
Why It Matters
Failing to file by the October 31 deadline can trigger penalties and interest on any B&O tax that may be due. Even if no additional tax is owed, the reconciliation must still be filed to remain compliant.
Filing Options
Businesses that file Washington excise tax returns electronically can submit the annual reconciliation through the Department of Revenue’s My DOR Services portal.
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If additional tax is due: Payment can be made via electronic funds transfer or check.
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If a credit is due: Refunds will be issued by electronic transfer or check.
Increasing Complexity
In recent years, the reconciliation process has become more complex due to changing thresholds and expanded reporting requirements. Many businesses are rethinking how they approach this filing to ensure accuracy and compliance.
Need Help?
Our State and Local Tax (SALT) team is here to guide you through Washington’s reconciliation requirements and help minimize risks.
📩 Contact Sonjia Barker, SALT Shareholder, or your Perkins advisor for assistance in completing the Annual Reconciliation of Apportionable Income.