W. Va. Code R. § 110-10E-10

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-10E-10 - One Hundred Percent Interest Penalty for Failure to Participate

10.1. If an eligible taxpayer who fails to participate in the Voluntary Compliance Program is contacted by the Internal Revenue Service or the Tax Commissioner regarding the potential use of a tax avoidance transaction with respect to a taxable year or years and has a deficiency with respect to such taxable year or years, there shall be added to the tax attributable to the potential tax avoidance transaction an amount equal to 100% of the interest due under W. Va. Code § 11-10-1 et seq., for the period beginning with the statutory due date of the return (determined without regard to extensions) on which the income should have been reported to the date of the notice of assessment. The penalty shall be deemed assessed upon the assessment of the interest to which the penalty relates and shall be collected and paid in the same manner as the interest. The penalty imposed in this subsection is in addition to any other penalty imposed by W. Va. Code §§ 11-10E-1 et seq., or W. Va. Code 11-10-1 et seq. This subsection shall apply to taxable years ending on and after December 31, 2005.

10.2. The penalty imposed by W. Va. Code § 11-10E-5 is in addition to any other penalty imposed by W. Va. Code §§ 11-10-1 et seq., or 11-10E-1 et seq.