W. Va. Code R. § 110-21-51a

Current through Register Vol. XLI, No. 19, May 10, 2024

Section 110-21-51a - Composite Returns

51a.1. Any return required under the West Virginia Personal Income Tax Act for nonresident individuals who are:

(1) partners in a partnership deriving income from a West Virginia source or sources,

(2) shareholders of a corporation which made an election under 26 U.S.C. 1362(a) (S corporations) for the taxable year, or

(3) who have received a distribution from an estate or trust having income from a West Virginia source or sources, may, upon payment of a composite return processing fee of fifty dollars ($50), file a composite return in accordance with the provisions of this regulation. The fifty (50) dollar filing fee must accompany the composite return.

51a.2. When filing a composite return and determining the tax due thereon, no personal exemptions may be utilized and the rate of tax shall be six and one-half (6.5) percent of the taxable income determined in accordance with the applicable provisions of the West Virginia Personal Income Tax Act.

51a.2.1. The entity or entities, to which the composite return relates are responsible for collection and remittance of all income tax due at the time the return is filed.

51a.2.2. Although no exemptions are to be utilized in determining the tax due on a composite return, a credit is allowed for severance taxes paid by the partnership, trust, estate, or corporation electing S status under 26 U.S.C. 1362(a) for the taxable year.

51a.3. The composite return shall be filed on the form prescribed by the Tax Commissioner and completed according to the instructions contained therewith.

51a.3.1. The composite return need not be signed by all nonresident individuals on whose behalf the return is filed: Provided, That the return is signed by a partner in case of a partnership, a corporate officer in the case of a corporation, by a trustee in the case of a trust, or by an executor or administrator in the case of an estate.

51a.4. For purposes of this regulation a composite return means a return filed on a group basis as though there was only one (1) taxpayer and which sets forth the name, address, taxpayer identification number and percent ownership or interest of each nonresident individual in addition to return information as that term is defined in Section 5d, Article 10 of the West Virginia Code. The term "composite return" also includes block filing.

51a.5. Nothing in this regulation shall be construed to prohibit a nonresident individual from filing a separate nonresident personal income tax return for the taxable year and a nonresident personal income tax return shall be filed where the nonresident has income from any other West Virginia source.

W. Va. Code R. § 110-21-51a