B&O Tax Filing Extension

On March 26, 2020, Mayor Mary Lou Pauly signed a proclamation providing relief to small businesses during the COVID-19 outbreak by extending the Business & Occupation (B&O) tax filing deadline.

Which businesses qualify?

Small businesses that pay Issaquah B&O tax on a quarterly basis. For the automatic due date extension, a “small business” is defined as any taxpayer who reported taxable receipts of $5 million or less during the 2019 tax year. 

What tax returns qualify?

  • First quarter 2020 B&O tax filings
  • Tax returns falling outside this period do not qualify for the extension. Delinquent returns prior to this period do not qualify.

How long is the due date extended?

First quarter B&O tax returns are due on or before July 31, 2020 (a three-month extension). 

Businesses choosing to defer their 1st quarter payment should retain the 1st quarter B&O quarterly tax form and use it to submit their 1st quarter payment in July. Businesses should use the separate 2nd quarter tax return form that it will receive at the end of June to make their 2nd quarter B&O payment, also due on July 31. This will assist the City in properly accounting for businesses’ quarterly payments.

Does a business have to defer its filing?

No. Businesses may continue to file quarterly.  Deferred filing is not mandatory. It is simply an option to help smaller businesses get through any current financial hardship they might be experiencing due to COVID-19.

What if I exceed the $5 million small business threshold but need an extension?  

If you need additional time to file, please send an email to Yeong Chang, Senior Tax Auditor, and request a filing extension. Extensions are available in accordance with IMC 5.05.060.

Are there any other resources available to small businesses?

Yes! The City and its partners are rapidly compiling and deploying additional resources and tools for small businesses. Find more information at issaquahwa.gov/BusinessHelp or email the Economic Development Department.