OUR THOUGHTS ON:

West Virginia Issues Regulations on Tax Refunds and Credits

State and Local Tax

By Matthew Dodge

Effective July 28, 2014, the West Virginia State Tax Department (“Department”) is adopting new procedural rules relating to the filing of claims for tax refunds and credits.  The most significant change is the requirement that certain taxpayers file their tax refund or credit claims electronically.  The electronic filing requirement is based on the total annual remittance for any single tax by a person required to file a tax return for that specific tax.  The annual remittance threshold for the electronic filing requirement was phased in beginning January 1, 2009 at $100,000 and will conclude January 1, 2015 at $10,000.  For example, if you file a West Virginia tax return with an annual remittance of $200,000, all tax refund or credit claims must be filed electronically.  In contrast, if your annual remittance is $15,000, an electronic tax refund or credit claim would not be required until 2015.  Taxpayers with less than $10,000 in annual remittance for a single tax have the option to file their claims electronically, but are not required to do so.

Tax refund or tax credit claims that meet the requirement for electronic filing must be filed using the MyTaxes system on the Department’s website.  The Department will designate which tax refund and credit forms will be utilized for the electronically filed refund claims and will make those forms available to taxpayers online.  The Department reserves the authority to waive the electronic filing requirement if the taxpayer lacks the technology to file the tax refund or credit electronically.  The taxpayer must make a written request for the waiver to the Department.

West Virginia tax refund or credit claims must be filed in accordance with the Department’s procedures in order to be considered complete and filed.  Tax refund and credit claims that do not meet the procedural requirements will be categorized as invalid and incomplete and are not considered as “filed” by the Department.  The Department will require the claim to be refiled by the taxpayer for consideration.  Taxpayers are advised to review the Department’s website and instructions for any future tax refund or credit claims with West Virginia.

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This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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