W. Va. Code R. § 110-13A-7

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

Section 110-13A-7 - Accounting

7.1. Accounting Periods. -- For purposes of the severance tax imposed by W. Va. Code '11-13A-1 et seq., a taxpayer's taxable year shall be the same as for federal income tax purposes. If a taxpayer's taxable year is changed for federal income tax purposes, it shall be similarly changed for purposes of the severance tax. The taxpayer shall provide a copy of the authorization for such change from the Internal Revenue Service, with the taxpayer's annual return.

7.2. Method of Accounting. -- A taxpayer's method of accounting under the severance tax shall be the same as taxpayer's method of accounting for federal income tax purposes. In the absence of any method of accounting for federal income tax purposes, the accrual method of accounting shall be used unless the Tax Commissioner, in writing, consents to use of another method. If a taxpayer's method of accounting for purposes of the federal income tax are changed, the severance tax shall similarly be changed. The taxpayer shall provide a copy of the authorization for such change from the Internal Revenue Service, with its annual severance tax return for the taxable year.