W. Va. Code R. § 110-21-58

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

Section 110-21-58 - Requirements Concerning Returns, Notices, Records And Statements

58.1. General. - Every person subject to tax under the West Virginia Personal Income Tax Act, or subject to collection of such tax, and any person required to file a return of information with respect to income, shall keep such permanent books of account or records as are sufficient to establish the amount of gross income, deductions, credits or other matters required to be shown by such person in any return of such tax or information. The Tax Commissioner is authorized to prescribe the content and form of returns and statements, and may require the inclusion in a return, document, or statement of any information he deems necessary for the proper enforcement of the West Virginia Personal Income Tax Act. For purposes of this regulation, the term "person" shall include, but is not limited to, any individual, firm, partnership, limited partnership, copartnership, joint adventure, association, corporation, S corporation, municipal corporation, organization, receiver, estate, trust, guardian, executor, administrator, and also any officer, employee or member of any of the foregoing who, as such officer, employee or member, is under a duty to perform or is responsible for the performance of an act prescribed by the provisions of the West Virginia Personal Income Tax Act or these regulations.

58.1.1. If no method of accounting has been regularly used by the taxpayer, or if the method used does not clearly reflect income, then the computation of taxable income shall be made under such a method as, in the opinion of the Tax Commissioner, does clearly reflect income.

58.1.2. Bookkeeping entries, in and of themselves, are not conclusive of the amount of income. The actual facts, rather than the book entries, control. In addition, entries on another individual's books are not conclusive against a taxpayer.

58.1.3. Retention Of Records. - The books or records required by this Section 58 shall be kept at all times available for inspection by authorized representatives of the Tax Commissioner.

58.1.4. Farmers And Wage Earners. - Individuals deriving gross income from the business of farming as defined under Subsection 55.5.1.1 of these regulations, and individuals whose gross income includes salaries, wages or similar compensation for personal services rendered, are required with respect to such income to keep such records (including duplicate copies of the wage and tax deduction statements furnished by their employers) as will enable the Tax Commissioner to determine the correct amount of income subject to tax.

58.1.5. Form Of Records. - The records required in this regulation shall be kept accurately, but no particular form is required for keeping the records. Such methods of accounting shall be used which will enable the Tax Commissioner to ascertain whether liability for tax has been incurred, and, if so, the correctness of the amounts required to be reported in any return of tax or information.

58.1.6. Employer's Records.

58.1.6.1. Every employer or withholding agent, as defined for federal withholding tax purposes, required under the West Virginia Personal Income Tax Act to deduct and withhold State income taxes upon the wages of employees, and every person, firm, organization or corporation required to file information returns as described in this regulation, shall keep all records pertinent to these taxes and information reports available for examination and inspection by the Tax Commissioner, or his authorized representatives. Such records shall be retained and preserved for a period of five (5) years following the close of the calendar year to which they relate.

58.1.6.2. No particular form is prescribed for such records, but the records shall include the amounts and dates of all wage payments subject to West Virginia personal income taxes, the names, addresses and occupations of employees receiving such payments, the periods of their employment, the periods for which they are paid by the employer while absent due to sickness or personal injuries and the amount and weekly rate of such payments, their social security account numbers, their income tax withholding exemption certificates, the employer's identification number, records of monthly or quarterly and annual withholding returns and reports filed, and the dates and amounts of withholding tax payments made.

58.1.6.3. For nonresidents, performing services partly within and partly without the State, a record of the allocation used for withholding purposes must be kept.

58.1.7. Notice By Tax Commissioner Requiring Returns, Statements, Or The Keeping Of Records. - The Tax Commissioner may require any person, by notice served upon him, to make such returns, render such statements, furnish such copies of federal income tax returns and of federal audit determinations, or keep such specific records as the Tax Commissioner may deem necessary to verify whether or not such person is complying or has complied with any applicable provision of the West Virginia Personal Income Tax Act.

58.1.8. Copies Of Returns, Schedules And Statements. - Every person who is required in these regulations or by instructions applicable to any form prescribed thereunder to keep a copy of any return, schedule, statement or other document, shall keep such copy as a part of his records.

58.1.9. Place For Keeping Records. - All records prescribed by these regulations shall be kept, by the person required to keep them at one (1) or more convenient safe locations accessible to the authorized representatives of the Tax Commissioner, and shall at all times be available for inspection by such representatives.

58.2. Partnerships. - Every partnership having a resident partner or having any income derived from West Virginia sources shall file a partnership return for the taxable year. The partnership shall file a return regardless of the amount of its income and regardless of the taxable years of the partners. Such partnership return shall set forth all items of income, gain, loss and deduction. The return shall also set forth the names, addresses, social security numbers, and amount of distributive shares of income and deduction of all partners, and such other information or schedules which the Tax Commissioner may prescribe on income tax forms and instructions.

58.2.1. Under certain prescribed circumstances, the Internal Revenue Service does not require the execution and filing of a federal partnership return of information. Where a federal partnership return is not required for a taxable year, a West Virginia partnership return is not required for such taxable year.

58.3. Information At Source. - See Section 72 of these regulations.

58.4. Notice Of Qualification As Receiver, Trustee, Assiqnee Or Other Fiduciary. - Every receiver, trustee in bankruptcy, assignee for the benefit of creditors, or like fiduciary shall give written notice of his qualification as such to the Tax Commissioner.

58.5. Employers With Nonresident Employees Working Both Within And Without The State. - If an employer has nonresident individuals as employees and such individuals work both within and without West Virginia, the employer is required to keep records which clearly reflect the amount of income earned within West Virginia and the number of days worked therein.

W. Va. Code R. § 110-21-58