W. Va. Code R. § 110-23-8

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

Section 110-23-8 - Accounting Periods And Methods Of Accounting

8.1. General rule. -- For purposes of the business franchise tax, a taxpayer's taxable year shall be the same as the taxpayer's taxable year or reporting year for federal income tax purposes.

8.2. Change of taxable year. -- If a taxpayer's taxable year or reporting year is changed for federal income tax purposes, the taxpayer's taxable year for purposes of the business franchise tax shall be likewise changed. The taxpayer shall provide a copy of the authorization for such change from the Internal Revenue Service with its business franchise tax return filed for the taxable year under Section '11-23-1 et seq. of the West Virginia Code.

8.3. Methods of accounting.

8.3.1. Same as federal. -- A taxpayer's method of accounting under the Business Franchise Tax Act shall be the same as the 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 consents, in writing, to the use of another method.

8.3.2. Change of accounting methods. -- If a taxpayer's method of accounting is changed for federal income tax purposes, its method of accounting for purposes of the business franchise tax shall likewise be changed. The taxpayer shall provide a copy of the authorization for such change from the Internal Revenue Service with its return filed for the taxable year under the Business Franchise Tax Act.

W. Va. Code R. § 110-23-8