3.54.150 Waiver of penalties and interest.
A. The director may cancel any penalties imposed under ACC 3.54.140(A) if the taxpayer shows that its failure to timely file or pay the tax was due to reasonable cause and not willful neglect. Willful neglect is presumed unless the taxpayer shows that it exercised ordinary business care and prudence in making arrangements to file the return and pay the tax but was, nevertheless, due to circumstances beyond the taxpayer’s control, unable to file or pay by the due date. The director has no authority to cancel any other penalties or to cancel penalties for any other reason except as provided in subsection C of this section.
B. A request for cancellation of penalties must be received by the director within 30 days after the date the finance department mails the notice that the penalties are due. The request must be in writing and contain competent proof of all pertinent facts supporting a reasonable cause determination. In all cases the burden of proving the facts rests upon the taxpayer.
C. The director may waive or cancel a penalty imposed under ACC 3.54.140(A) when a taxpayer is ineligible for a penalty waiver or cancellation under subsection A of this section, if:
1. Was not licensed, and filing returns; and
2. The taxpayer has timely filed all tax returns and paid all required taxes due under those RCW sections for 24 months immediately preceding the period for which the waiver was requested.
D. The director may also waive or cancel interest imposed under this chapter if:
1. The timing of the taxpayer’s tax payment was in direct reliance on written instructions from the director to the taxpayer; or
2. The timing of a taxpayer’s assessment deficiency payment was based on a due date established for the sole convenience of the director.
E. The director may adopt rules for the waiver or cancellation of penalties and interest under this section. (Ord. 6898 § 2 (Exh. B), 2023; Ord. 6814 § 2 (Exh. B), 2021.)