In a recession like this, governments start looking for anything to help cut costs and increase revenues. One of the new tax laws passed by Washington state recently involves a requirement that monthly filers of the Combined Excise Tax Return do so electronically, and that they use a new EFT system for payment.

Electronic filing reduces the cost and increases the accuracy of return filing. Washington has been encouraging everyone to switch to e-file for a while now, but many people (including myself) have resisted. There is good news, though: a major update the online filing system has made it much more functional and removed some of my concerns.

Electronic payment, of course, means no more floating checks through the mail. But there’s a silver lining here as well: previously, the state charged you to pay electronically, but the new EFT system has no fees. (For non-monthly filers, you can still use the e-check option for $1 or the credit option for 2.5%, but why would you?)

These requirements take effect July 1, 2009. The return for this period is not filed until August 25, 2009, but it is better to get started on the registration process soon. Failure to file and pay electronically will result in a 10% penalty.

For more information, see the DOR web site or give us a call.

Categories: Tax News and Tips
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