West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-10F - Payment of Taxes by Electronic Funds Transfer
Section 110-10F-13 - Penalties, etc. for noncompliance
Current through Register Vol. XLI, No. 38, September 20, 2024
13.1. The provisions of W. Va. Code § 11-10-1 et seq., govern the administration of any tax, interest, additions to tax or penalty assessed due to late EFT payments, except as provided in this rule.
13.2. W. Va. Code § 11-10-5t imposes, in addition to any other additions to tax or penalties that may be applicable, a civil penalty for failing or refusing to use an appropriate EFT method when required to do so. The amount of the penalty is three percent of the tax liability which is or was to be paid by EFT.
13.3. Failure of a taxpayer to respond to the notification from the Department concerning the required use of EFT to make payments for a tax type or failure to timely or properly make EFT payments in accordance with this rule subjects the taxpayer to applicable penalties, additions to tax and interest, as provided by the Code, for delinquent or underpaid tax payments. If payment is made for a tax type for which a taxpayer was required to make payments using EFT and the payment is made in a method which is not in accordance with the procedures stated in this rule, penalties, interest and additions to tax for late filing and late payment, for that tax type, may be assessed as specified in the Code. In addition to any penalty that may be imposed, interest shall be added to the amount of tax due from the due date of the tax payment to the date that the funds become available to the State Treasury.
13.4. The Department may waive the penalty and additions to tax if the taxpayer can demonstrate that the failure was due to reasonable cause and not due to willful neglect. Errors made by the Department, the State Treasury or the taxpayer's bank which result in a late payment by the taxpayer do not subject the taxpayer to penalties, additions to tax, or interest.
13.5. When a taxpayer uses the ACH Debit payment method, the State of West Virginia's bank is the originating bank and is responsible for the accuracy of the transmission. If the taxpayer has timely initiated the ACH Debit transaction, received a confirmation number, and demonstrated that adequate funds were available in the bank account, then the fact that the transaction is not properly completed does not subject the taxpayer to penalties, additions to tax or interest.
13.6. When a taxpayer uses the ACH Credit payment method, the taxpayer's bank is the originating bank and the taxpayer is primarily responsible for the accuracy and proper completion of the transaction. In order to prove timely compliance, the taxpayer shall show timely initiation of the transaction; shall have provided the correct information for the NACHA CCD+ entry and the required TXP Banking Convention addenda record; and shall show that there were sufficient funds in the account and that the financial institution properly completed the transaction in a timely manner. If the taxpayer makes this showing, no penalties, additions to tax or interest apply to the payment if the transaction is not properly completed.
13.7. A taxpayer required to make EFT payments, but unable to make a timely payment because of system failures within the Automated Clearing House system which are beyond the taxpayer's control, is not subject to penalties, additions to tax or interest for late payment.
