The state Department of Revenue has advised businesses receiving federal aid to cope with the COVID-19 crisis not to report the income as gross receipts for B&O tax purposes or pay B&O tax on it for the time being.
However, the department cautioned: “In the meantime, no penalties or interest will accrue with regard to any tax that may be due on such receipts until further notice.”
The aid referred to is the federal Paycheck Protection Program (PPP) and other unidentified federal COVID-related programs to help businesses with cash flow challenges. Revenue said it will delay a final decision on taxability or enforcement actions until after the Legislature has an opportunity to act.
Though many expect that Governor Jay Inslee will call a special Legislative Session later this year to deal with the financial impact of the crisis, he has not yet done so.
Read the full statement here.