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Bill

SB 5806

Creating a voluntary disclosure program within the department of revenue.

2025-2026 Regular Session Introduced by Chris Gildon and 1 co-sponsor

SB 5806 creates a Washington voluntary tax disclosure program letting taxpayers self-report past non-compliance with reduced penalties to improve compliance and revenue collection.

First reading, referred to Ways & Means.
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Bill Summary · SB 5806

Legislative bill overview

SB 5806 establishes a voluntary disclosure program administered by Washington's Department of Revenue, allowing taxpayers to voluntarily report and resolve previous tax compliance issues. The program would likely provide incentives such as reduced penalties or interest for those who come forward and correct their tax liabilities before being subject to audit or enforcement action.

Why is this important

Voluntary disclosure programs can increase tax compliance and revenue collection by encouraging taxpayers to resolve outstanding obligations without costly enforcement proceedings. They also reduce administrative burden on revenue agencies by allowing self-correction rather than investigation-driven compliance efforts, though critics note they may benefit high-income taxpayers more than average filers.

Potential points of contention

  • Penalty reduction specifics: The extent of penalty relief and whether certain violation types are excluded from the program could be contested between revenue interests and taxpayer advocates
  • Fairness concerns: Critics may argue that allowing voluntary disclosure rewards tax non-compliance and disadvantages compliant taxpayers who paid taxes timely
  • Fiscal impact: Unclear whether revenue gained from increased compliance outweighs lost penalty revenue, creating budget tradeoffs

Compiled from official sources — confirm details with the bill’s official record.

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