Current through Register Vol. XLI, No. 38, September 20, 2024
55.1. Requirement Of Declaration. - Every
resident and nonresident individual whose West Virginia adjusted gross income
(other than from wages on which the proper amount of tax is withheld under
Section 71 of these regulations) can reasonably be expected to exceed four
hundred dollars ($400) shall make and file a West Virginia declaration of
estimated tax for the taxable year unless the estimated tax otherwise due in
installment payments is remitted through additional withholding by the employer
from the employee's wages during the taxable year or withholding satisfies at
least ninety percent (90%) of the annual personal income tax liability.
55.1.1. If in addition to income from wages
subject to West Virginia withholding an individual also has other income, the
sum of that individual's allowable personal exemptions are to be counted only
once for purposes of determining the amount of withholding taxes and estimating
the tax due on the additional income. In other words, the amount of West
Virginia personal income taxes owed for the taxable year (determined before
application of credit for employer withholding) must be prepaid either by
employer withholding, installment payments or a combination of both. Taxpayers
are encouraged to increase the amount withheld from wages under W. Va. Code
'11-21-71
and Section 71 of these regulations whenever practicable in order to insure
that the proper amount of taxes are prepaid for the taxable year.
55.1.1.1. Whether or not a taxpayer is
required to file a federal declaration of estimated tax for the taxable year or
remit installment payments of estimated federal income tax is not relevant to
determining whether or not the taxpayer is required to file a West Virginia
declaration of estimated tax for the taxable year.
55.1.2. Examples. - Application of Subsection
55.1 of this regulation is illustrated by the following examples. The
applicability of safety zones is not considered in any of the examples set
forth below. See Subsection 56a of these regulations for a discussion of safety
zones.
Example 1. - X, a taxpayer making his return on the calendar
year basis, is married and has two (2) dependent children. X is sole proprietor
of a retail business which is his only source of income. X can reasonably
expect to realize twenty-five thousand dollars ($25,000) from the business
during 1989, based on prior year's earnings. Therefore, X is required to make a
declaration of estimated tax, because his income can reasonably be expected to
exceed the sum of his personal exemptions plus four hundred dollars ([2,000 X
4] + 400 = $8,400) for 1989.
Example 2. - Y is a cash basis taxpayer with three (3)
personal exemptions including himself. Y is employed and expects to receive
twenty-three thousand dollars ($23,000) subject to withholding during calendar
year 1989. Also, Y expects to receive twelve thousand dollars ($12,000) of
income during the taxable year from the practice of a profession on his own
account. Y is required to file a West Virginia declaration of estimated tax,
for Y's income ($12,000) not subject to withholding exceeds four hundred
dollars ($400). The sum of his personal exemptions (2,000 X 3 = $6,000) was
considered in determining the amount withheld from his wages for the 1989
taxable year. Alternatively, Y could increase the amount being withheld for
West Virginia personal income taxes by his employer. If the amount of estimated
tax due on Y's other income is remitted through additional withholding, Y will
not be required to file a declaration of estimated tax and make quarterly
installment payments.
Example 3. - P is a taxpayer making his return on a calendar
year basis. P is engaged in the practice of law as a sole practitioner. He has
West Virginia adjusted gross income of three thousand dollars ($3,000) from his
profession each month in the first (1st) quarter of 1989. He can reasonably
expect that his profession will continue to average three thousand dollars
($3,000) for each month throughout the year, and that he will not have income
from any other source during 1989. Since P's gross income is not subject to
withholding, he is required to file a declaration of estimated tax for that
year, on or before April 15, 1989. Since P's West Virginia adjusted gross
income from sources other than wages subject to withholding exceeds his two
thousand (2,000) dollar personal exemption plus four hundred dollars ($400), P
is required to file a declaration of estimated tax for the 1989 tax year on or
before April 15, 1989, and make quarterly installment payments.
Example 4. - S, a married taxpayer, has been regularly
employed for many years. As of January 1, 1989, his salary was twenty-six
thousand dollars ($26,000) per year. S also owns stocks and other investments
which he inherited when his father died in 1987, and which pay S approximately
five thousand dollars ($5,000) a year. Because his West Virginia adjusted gross
income not subject to withholding taxes exceeds four hundred dollars ($400),
and the sum of his personal exemptions (2,000 X 2 = $4,000) was considered in
determining employer withholding taxes, S is required to file a declaration of
estimated tax for calendar year 1989 by April 15, 1989, unless the amount of
tax remitted with his 1989 annual return will be ten percent (10%) or less of
his liability for the taxable year. Alternatively, S can avoid filing a
declaration of estimated tax by increasing the amount being withheld for West
Virginia personal income taxes by his employer in order to pay the amount of
estimated tax that otherwise would be due in installment payments.
Example 5. - H is a married individual with three (3)
dependent children. H is employed at an annual salary of eighteen thousand
dollars ($18,000). His spouse, W, is employed at an annual salary of sixteen
thousand dollars ($16,000). Both salaries are subject to this State's
withholding taxes. They have additional income of fifteen thousand dollars
($15,000) from investments. H and W will file a joint personal income tax
return for calendar year 1989. Because the amount of West Virginia adjusted
gross income from sources not subject to withholding taxes is in excess of four
hundred dollars ($400), a declaration of estimated tax is required for the 1989
calendar year. In lieu of filing the declaration of estimated tax, H and W can
elect to increase the amount of West Virginia personal income taxes withheld
from their wages by their employees so that the required amount of tax is
prepaid.
Example 6. - Presuming the same facts as in Example 5 above
except that on July 20, 1989, W is the grand prize winner in a contest
sponsored by a national magazine. The prize is an initial payment of five
thousand dollars ($5,000) plus a payment of one thousand dollars ($1,000) per
month for the rest of W's life. An amended declaration of estimated tax must be
filed by W or a joint amended declaration by H and W on or before September 15,
1989.
55.1.3. Exemption Of
Spouse. - For the purpose of determining whether a declaration of estimated tax
is required under Subsection 55.1 of this regulation, a married taxpayer filing
a separate declaration may not take into account the exemption of his spouse,
if his spouse has, or is reasonably expected to have, West Virginia adjusted
gross income, or is reasonably expected to be the dependent of another taxpayer
for the taxable year.
55.1.4.
Income Of Child. - In estimating the amount of West Virginia adjusted gross
income for the taxable year, a parent should not include the income of his or
her minor child. Such income is not includible in the gross income of the
parent.
55.1.5. Partnerships And S
Corporations. - Neither a partnership nor an S Corporation is subject to tax
under the West Virginia Personal Income Tax Act. Partners and S Corporation
shareholders in their individual capacities must file declarations of estimated
income tax for their estimated income from the partnership or S
Corporation.
55.1.6. Estates And
Trusts. - An estate or trust is generally taxed as an individual but is not
required to file a declaration of estimated tax, or remit estimated tax in
installment payments during the taxable year. Beneficiaries of estates and
trusts must file declarations of estimated tax in their individual capacities
and must take into consideration their estimated distributive shares of income
from estates and trusts.
55.1.7.
Death Of Taxpayer. - No declaration of estimated income tax is required to be
filed for a decedent subsequent to the date of his or her death. A short year
tax return may however need to be filed and additions to tax may be due for any
failure of the decedent to:
(1) timely file a
declaration of estimated tax required under W. Va. Code '11-21-55
and Section 55 of these regulations;
(2) timely pay any installment of estimated
tax required under W. Va. Code '11-21-56
and Section 56 of these regulations; or
(3) properly estimate his or her income tax.
See Subsection 55.3.4.2 of this regulation regarding the making of an amended
declaration by a surviving spouse where a joint declaration had been made prior
to the death of the decedent.
55.1.8. Fiscal Year Taxpayers. - The
provisions of this regulation are equally applicable to fiscal year taxpayers.
See Subsection 55.10 of this regulation.
55.1.9. Declaration For Taxable Year Of 52 -
53 Weeks. - No declaration may be made for a period of more than twelve (12)
months. For purposes of this Subsection, a taxable year of fifty-two (52) or
fifty-three (53) weeks, in the case of a taxpayer who computes his or her
taxable income for federal income tax purposes in accordance with the election
permitted by 26 U.S.C. s 441(f) shall be deemed a period of twelve (12) months.
A separate declaration for a fractional part of a year is required where the
taxpayer has a short taxable year for federal income tax purposes.
55.1.10. When Preceding Year Was A Loss Year.
- If an individual has zero (0) or negative West Virginia taxable income for
the preceding year, a declaration of estimated tax is not required to be filed
for the current taxable year until such time as the individual can reasonably
estimate that his or her West Virginia adjusted gross income for the current
tax year will exceed the amount of his or her allowable exemption(s) plus four
hundred dollars ($400) unless the zero (0) or negative West Virginia taxable
income in the preceding taxable year was due to:
(1) the carry forward of a loss from a
preceding taxable year unless the loss will also be carried forward to the
current taxable year with like effect; or
(2) unusual events or occurrences not
reasonably expected to affect the current taxable year with like
effect.
55.1.10.1. Notwithstanding
the provisions of Subsection 55.1.10 above, a declaration of estimated tax is
not required for the current year if the amount remitted or that should be
remitted with the annual return for that year is ten percent (10%) or less of
the tax liability for the taxable year (determined before application of any
credits) for employer withholding taxes and installment payments of estimated
tax.
55.1.11. Contents
Of Declaration.
55.1.11.1. The declaration of
estimated tax by an individual shall be made on Form 140-ES.
55.1.11.1.a. For the purpose of making the
declaration, the amount of West Virginia adjusted gross income which the
taxpayer can reasonably be expected to receive or accrue, depending upon the
method of accounting upon which his or her taxable income is computed, and the
sum of the estimated allowable deductions and credits to be taken into account
in computing the amount of estimated income tax shall be determined upon the
basis of the facts and circumstances existing at the time prescribed for the
filing of the declaration along with those reasonably to be anticipated for the
taxable year.
55.1.11.1.b. Where
the taxpayer is employed at the date prescribed for filing his or her
declaration at a given wage or salary, it should, in the absence of
circumstances indicating the contrary, be presumed by him or her for purposes
of the declaration that such employment will continue to the end of the taxable
year at the wage or salary received by him or her as of such date.
55.1.11.1.c. In the case of income other than
wages and salary, it is the responsibility of the taxpayer to estimate
correctly or comply with provisions of these regulations allowing for the
timely filing of an annual return to be accepted as a declaration of estimated
tax where such other income is expected to be paid with regularity.
55.1.11.1.d. In the care of a taxpayer
engaged in a trade, business or profession, he or she shall make an estimate of
gross income, deductions and credits in the light of the best available
information affecting the trade, business or profession.
55.1.11.1.e. In determining whether or when
the filing of a declaration of estimated tax is required by law and these
regulations, and in determining the amount of estimated tax, the burden is on
the taxpayer to show he or she complied with the law and these regulations. If,
upon filing of the annual return, more than ten percent (10%) of the taxpayer's
liability is remitted or should have been remitted with the return it will be
presumed that there was noncompliance. Similarly, a taxpayer's total West
Virginia personal income tax liability for the taxable year, as shown on his or
her annual return for that year, will be divided by five (5) to determine
whether tax was timely remitted in "equal" installment payments in compliance
with the law and these regulations.
55.1.11.2. Use Of Prescribed Form. - Copies
of Form 140-ES will, so far as possible, be furnished to the taxpayer by the
Tax Commissioner. A taxpayer will not be excused from making a declaration,
however, by the fact that no form has been furnished to him or her. Taxpayers
not supplied with the proper form should make application therefor to the Tax
Department in ample time to have their declarations prepared, verified, and
filed with the Tax Commissioner on or before the date prescribed for filing the
declaration. If the prescribed form is not available, a statement disclosing
the amount estimated as the tax, the estimated credits, and the estimated tax
after deducting such credits should be filed as a tentative declaration within
the prescribed time, accompanied by the payment of the required installment.
Such tentative declaration should be supplemented, without unnecessary delay,
by a declaration made on the proper form.
55.2. Definition Of Estimated Tax. - The term
"estimated tax" means the amount which an individual estimates to be his income
tax under the provisions of the West Virginia Personal Income Tax Act and these
regulations for the taxable year, less the amount such individual estimates to
be the sum of any credits allowable against the tax.
55.3. Joint Declaration Of Husband And Wife.
55.3.1. In General.- A husband and wife may
make a joint declaration of estimated income tax as if they are one (1)
taxpayer, even though they are not living together, except as provided below. A
joint declaration may be made even though one (1) spouse is expected to have no
income during the taxable year. If a husband and wife make a joint declaration,
their liability with respect to the estimated tax shall be joint and
several.
55.3.2. Exceptions. - A
joint declaration of estimated income tax may not be made if the husband and
wife are separated under a decree of divorce or of separate maintenance, or if
they have different taxable years. Also, a joint declaration of estimated tax
may not be filed if the husband and wife do not have the same resident status
unless both elect to determine their joint West Virginia taxable income as if
both were residents.
55.3.3.
Application To Separate Returns. - The fact that a joint declaration of
estimated income tax is made by a husband and wife will not preclude them from
electing to determine their West Virginia income taxes on separate annual
returns. In the case where a joint declaration is made but a joint annual
return is not made for the same taxable year, the installment payments of
estimated tax for such year may be treated as payments on account of the tax
liability of either the husband and wife for the taxable year or may be divided
between them in such manner as they may agree. One spouse may claim the full
amount of estimated tax paid during the year. Where husband and wife file
separate returns, the spouse claiming the estimated tax paid, or each spouse if
each claims a portion of the estimated tax paid, must make a notation on his or
her West Virginia Personal Income Tax Return to the effect that the estimated
tax paid was by a joint declaration.
55.3.3.1. In the event that a husband and
wife file separate returns and fail to agree to a division of any estimated tax
payments, such payments shall be allowed between them in accordance with the
following rule. The portion of estimated tax payments to be allocated to a
spouse shall be that portion of the aggregate of all such payments as the
amount of tax imposed under the West Virginia Personal Income Tax Act shown on
the separate return of the taxpayer bears to the sum of the taxes imposed under
the West Virginia Personal Income Tax Act shown on the separate returns of both
the taxpayer and his or her spouse.
55.3.3.2. Example. - Assume that for calendar
year 1989 H and his spouse, W, make a joint return of estimated tax and
pursuant thereto, pay a total of nine hundred dollars ($900) of estimated tax.
H and W subsequently file separate returns for 1989 showing tax imposed under
the West Virginia Personal Income Tax Act in the amount of five hundred
forty-eight dollars ($548) and four hundred fifty dollars ($450) respectively.
H and W fail to agree to a division of the estimated tax paid. The amount of
the aggregate estimated tax payments allocated to H is computed as follows:
(1) Amount of tax imposed as shown on H's
return...$548
(2) Total taxes
imposed as shown on W's return...$450
(3) Total taxes imposed as shown on both H's
and W's returns...$998
(4)
Proportion of taxes on H's return to the total amount of taxes shown on both
returns. ($548 - 998) ...54.90%
(5)
Amount of estimated tax payments allocated to H ...$494.10
Accordingly, H's return would show remaining tax liability in
the amount of $53.90 ($548 taxes shown less than $494.10 estimated tax
allocated.)
55.3.4. Death Of Spouse.
55.3.4.1. A joint declaration may not be made
after the death of either a husband or wife. However, if it is reasonable for a
surviving spouse to assume that there will be filed a joint return for himself
and the deceased spouse for his taxable year and the last taxable year which
includes the period comprising such last taxable year of his spouse, he may
estimate the amount of tax imposed on his and his spouse's taxable income on an
aggregate basis and compute his estimated tax in the same manner as though a
joint declaration had been filed.
55.3.4.2. If a joint declaration is made by a
husband and wife and thereafter one spouse dies, no further payments of
estimated tax on account of the joint declaration are required from the estate
of the decedent. The surviving spouse, however, shall be liable for the payment
of any subsequent installments of the joint estimated tax unless an amended
declaration setting forth the separate estimated tax for the taxable year is
made by the surviving spouse. Such separate estimated tax shall be paid at the
times and in the amounts determined under the rules prescribed in Section 56 of
these regulations.
55.3.4.2.a. For the
purposes of making the amended declaration by the surviving spouse, and for the
allocation of payments made pursuant to a joint declaration between the
surviving spouse and the legal representative of the decedent in the event a
joint return is not filed, the payments made pursuant to the joint declaration
may be divided between the decedent and the surviving spouse in such proportion
as the surviving spouse and the legal representative of the decedent may agree.
55.3.4.2.a.1. In the event the surviving
spouse and the legal representative of the decedent fail to agree to a
division, such payments shall be allocated in accordance with the following
rule. The portion of such payments to be allocated to the surviving spouse
shall be that portion of the aggregate amount of such payments as the amount of
tax imposed under the West Virginia Personal Income Tax Act shown on the
separate return of the surviving spouse bears to the sum of the taxes imposed
by said Act shown on the separate returns of the surviving spouse and of the
decedent; and the balance of such payments shall be allocated to the decedent.
This rule may be illustrated by analogizing the surviving spouse described in
this rule to H in the example contained in Subsection 55.3.1.1 of this
regulation and the decedent in this rule to W in that example.
55.3.5.
Signing Of Joint Declaration. - A joint declaration of a husband and wife (if
not made by an agent of one (1) or both spouses) shall be signed by both
spouses. The provisions of Subsection 55.11 of this regulation, relating to
returns made by agents shall apply where one (1) spouse signs a declaration as
agent for the other or where a third (3rd) party signs a declaration as agent
for both spouses.
55.4.
Time For Filing Declaration.
55.4.1. In
General. - A declaration of estimated income tax of an individual, other than a
farmer, shall be filed on or before April fifteenth (15th) of the taxable year,
except that if the requirements of Subsection 55.1 of these regulations are
met:
(1) After April first (1st) and before
June second (2nd) of the taxable year, the declaration shall be filed on or
before June fifteenth (15th) or
(2)
After June first (1st) and before September second (2nd) of the taxable year,
the declaration shall be filed on or before September fifteenth (15th),
or
(3) After September first (1st)
of the taxable year, the declaration shall be filed on or before January
fifteenth (15th) of the succeeding year.
55.4.2. Exceptions. - A declaration of
estimated tax need not be filed for the taxable year if:
(1) At least ninety percent (90%) of the
annual tax liability is satisfied by withholding; or
(2) The amount of taxes due for the taxable
year that will be remitted (or should be remitted) with the annual return is
ten percent (10%) or less.
55.4.3. Optional Rule For Farmers. - See
Subsection 55.5 of this regulation.
55.4.4. Fiscal Year Taxpayers. - An
individual's tax year for purposes of this tax shall be the same as his or her
taxable year for federal income tax purposes. Fiscal year taxpayers, except
farmers, shall file declarations of estimated tax in accordance with Subsection
55.9 of this regulation.
55.5. Declarations Of Estimated Tax By
Farmers.
55.5.1. In General. - In the case of
an individual on a calendar year basis, if that individual expects to derive at
least two-thirds (2/3) of his or her estimated West Virginia adjusted gross
income from farming, he or she may file a declaration of estimated income tax
at any time on or before January fifteenth (15th) of the succeeding year in
lieu of the time for filing set forth in Subsection 55.4 of these regulations.
55.5.1.1. "Farming" Defined. - Income is
attributable to farming if it is obtained from cultivation of the soil, the
raising or harvesting of any agricultural or horticultural commodities, the
raising, etc., of livestock, bees, poultry, furbearing animals, or wildlife. In
other words, the requisite percentage of West Virginia adjusted gross income
must be derived from the operation of a stock, dairy, poultry, fruit or truck
farm. If an individual receives for the use of his or her land income in the
form of a share of the crops produced thereon, such income is from
farming.
55.5.2. Fiscal
Year. - In the case of an individual on a fiscal year basis, if that individual
expects to derive at least two-thirds (2/3) of his or her estimated West
Virginia adjusted gross income from farming, he or she may file a declaration
of estimated income tax at any time on or before the fifteenth (15th) day of
the first (1st) month of the succeeding year.
55.5.3. Joint Return. - If a joint
declaration of estimated tax will be filed by a husband and wife, at least
two-thirds (2/3) of their combined estimated West Virginia adjusted gross
income must be from farming before that declaration may be filed under
Subsections 55.5.1 and 55.5.2. Otherwise, the rules of Subsection 55.4 of this
regulation shall control.
55.6. Automatic Extension Of Time For Filing
Declarations Of Estimated Tax.
55.6.1. In
General. - If an individual determines that the amount of tax to be remitted
with his or her annual return for the taxable year will be ten percent (10%) or
less of the amount of tax shown (or that should have been shown) to be due on
the annual return for the taxable year, determined before application of
credits for employer withholding taxes and installment payments of estimated
tax, whichever is greater, he or she is only required to file an annual return
for the taxable year and pay the amount of tax shown thereon to be due, on or
before April fifteenth (15th) of the succeeding tax year. For this purpose, all
eligible taxpayers are granted an automatic extension of time from the date
when the declaration of estimated tax and installment payments would otherwise
be lawfully due until April fifteenth (15th) of the next tax year.
55.6.1.1. A husband and wife who file a joint
declaration of estimated tax or a joint annual return are treated as one (1)
individual for purposes of Subsection 55.6.1.
55.6.1.2. An individual with estimated tax in
excess of forty dollars ($40) would in the absence of Subsection 55.6.1 be
required to file his or her declaration of estimated tax as provided in
Subsection 55.4 of this regulation.
55.6.1.3. An individual with estimated tax of
forty dollars ($40) or less would in the absence of Subsection 55.6.1 be
required to file his or her declaration of estimated tax on or before January
fifteenth (15th) of the succeeding tax year.
55.6.2. Additions To Tax.
55.6.2.1. If the amount remitted with the
annual return is ten percent (10%) or less of the tax liability for the taxable
year, or if one of the safety zones applies (See Subsection 56a), no additions
to tax under W. Va. Code '11-10-18a
will begin to accrue on the amount due until April sixteenth (16th) of the
succeeding tax year (sixteenth (16th) day of the fourth (4th) month of the
succeeding tax year if filing on a fiscal year basis).
55.6.2.2. If the amount remitted with the
annual return exceeds ten percent (10%) of the tax liability and if none of the
safety zones discussed under Section 56a of these regulations is applicable,
additions to tax shall be imposed and shall be calculated from the date when
the declaration of estimated tax and the first installment payment should have
been remitted. Additions to tax shall similarly be applied to any subsequent
installment payments that should have been remitted, calculated from the date
such installments should have been paid. See Sections 56 and 56a of these
regulations for matters pertaining to additions to tax and application of
safety zones.
55.7. Amendment Of Declaration.
55.7.1. In General. - In making a declaration
of estimated income tax, the taxpayer is required to take into account the then
existing facts and circumstances as well as those reasonably to be anticipated
relating to prospective West Virginia adjusted gross income, allowable
deductions for personal exemptions and estimated credits for the taxable year.
Amended or revised declarations may be made in any case in which the taxpayer
estimates that his or her West Virginia adjusted gross income, deductions for
personal exemptions or credits will differ from the West Virginia adjusted
gross income, deductions for personal exemptions, or credits reflected in the
previous declaration. Only one amended declaration, however, may be filed
during the interval between installment dates and no further amendment may be
made until a succeeding installment date. An amended declaration may be filed
jointly by husband and wife even though separate declarations have previously
been filed.
55.7.2. Payments. -
Subsequent installment payments shall be proportionally increased or decreased
based on the amended declaration. No refund will be issued due to the filing of
an amended declaration. Consideration will be given to a refund only in
connection with a completed annual return filed by a taxpayer for the taxable
year covered by his or her declaration, and/or amended declaration.
55.7.3. Time For Filing Amended Declaration.
- An amended declaration of estimated income tax may be filed on or after an
installment date prescribed for the taxable year. However, no amended
declaration may be filed until after the original declaration has been filed
and only one (1) amended declaration may be filed during any interval between
installment due dates.
55.7.4.
Forms. - An amended declaration shall be made on Form 140-ES clearly marked
"AMENDED". If the proper form is not available, the procedure outlined in
Subsection 55.1 of this regulation must be followed.
55.8. Return As Declaration Or Amendment.
55.8.1. In General. - If the annual return of
the taxpayer is filed as hereinafter provided, the annual return may be treated
as the declaration or amended declaration of estimated tax.
55.8.2. Time For Filing Return.
55.8.2.1. Return As Declaration; February
Fifteenth (15th). - If the taxpayer files his or her return for the calendar
year on or before February fifteenth (15th) of the succeeding calendar year (or
if the taxpayer is on a fiscal year basis, the fifteenth (15th) day of the
second (2nd) month of the next succeeding fiscal year) and pays therewith the
full amount of the tax shown to be due on the return, then such return shall be
considered as the taxpayer's declaration if the declaration is not required to
be filed during the taxable year, but is otherwise required to be filed on or
before January fifteenth (15th) of the succeeding year (or in the case of a
fiscal year, the fifteenth (15th) day of the first (1st) month of the
succeeding fiscal year).
55.8.2.2.
Return As Amendment Of Declaration: January Fifteenth (15th). - If the taxpayer
files his or her return for the calendar year on or before January fifteenth
(15th) of the succeeding calendar year (or if on a fiscal year basis, the
fifteenth (15th) day of the first (1st) month of the succeeding fiscal year),
and pays therewith the full amount of the tax shown to be due on the return,
then if a declaration was filed during the taxable year, such return shall be
considered as the amendment of the declaration if the tax shown on the return
is greater than the estimated income tax shown in the declaration.
55.8.2.3. Examples.
Example 1. - An individual taxpayer on the calendar year
basis who, subsequent to September 1, 1989, first meets the requirements of
Subsection 55.1 of this regulation for filing a declaration for 1989, may
satisfy such requirements by filing his or her return for 1989 on or before
February 15, 1990, and paying in full at the time of such filing the tax shown
thereon to be payable.
Example 2. - Similarly, if a taxpayer files on or before
September 15, 1989, a timely declaration for such year and on or before January
15, 1990, files a 1989 return on which the tax shown is more than the estimated
income tax shown on such declaration, and pays at the time of such filing the
tax shown by the return to be payable, such return shall be treated as the
amended declaration permitted to be filed on or before January 15, 1990.
Example 3. - A taxpayer discovers on January 10, 1990, that
he underpaid his estimated tax for the calendar year 1989. He may in lieu of
filing the amended declaration on January 15, 1990, file his annual return on
January fifteenth (15th), and pay in full the amount computed thereon as
payable. By so doing he will avoid the additions to tax with respect to the
installment payment that was due January 15, 1990. The periods of underpayment
of the installments due April 15, 1989, June 15, 1989, and September 15, 1989,
will also terminate on January 15, 1990.
55.8.3. Additions To Tax.
55.8.3.1. Compliance with the provisions of
Subsection 55.8 will enable a taxpayer to avoid paying additions to tax with
respect to an underpayment of the installment not required to be paid until
January fifteenth (15th) of the succeeding calendar year.
55.8.3.2. With respect to an underpayment of
any earlier installment, compliance with Subsection 55.8 will not relieve the
taxpayer from additions to tax imposed under Article 10, Chapter 11, of the
West Virginia Code. However, the period of the underpayment with respect to an
earlier installment will terminate on January fifteenth (15th) of the
succeeding calendar year.
55.9. Fiscal Year Taxpayers. - In the case of
individuals on a fiscal year basis, other than those referred to in Subsections
55.5 and 55.6 of this regulation, the declaration must be filed on or before
the fifteenth (15th) day of the fourth (4th) month of the taxable year. The
provisions of this Section and of Section 56 of these regulations shall apply
to a taxable year other than a calendar year by the substitution of the
corresponding fiscal year months for the calendar year months referred to in
this Section 55. See Section 6 relating to accounting periods and tax
years.
55.10. Short Taxable
Periods.
55.10.1. In General. - If a taxpayer
is required to make a declaration of estimated income tax pursuant to
Subsection 55.1 of this regulation, and a short taxable year is involved, a
separate declaration for such fractional part of the year is required, except
as hereinafter provided.
55.10.2.
Income And Income Tax Placed On Annual Basis. - In order to determine whether a
declaration of estimated tax needs to be filed for a short taxable year, West
Virginia adjusted gross income and the taxes imposed under the West Virginia
Personal Income Tax Act shall be placed on an annual basis in the manner
prescribed in
26 U.S.C.
443(b)(1).
55.10.2.1. Example. - A taxpayer changes from
a calendar year to a fiscal year basis beginning July first (1st). The taxpayer
will have a short taxable year beginning January first (1st), and ending June
thirtieth (30th). The anticipated West Virginia adjusted gross income -
(excluding wages on which tax is withheld) for such short taxable year is three
thousand dollars ($3,000). His West Virginia adjusted gross income for the
purpose of determining whether a declaration is required is six thousand
dollars ($6,000), which is the amount obtained by placing the anticipated
income of three thousand dollars ($3,000) upon an annual basis ($3,000
multiplied by 12 and divided by 6).
55.10.3. Four (4) Months Or Less. - No
declaration is required if the short taxable year is a period of less than four
(4) months or one (1) of the safety zones set forth under Section 56a of these
regulations is applicable.
55.10.4.
Time For Filing.
55.10.4.1. In General. - In
the case of a short taxable year, the declaration shall be filed by individuals
(other than those referred to in Subsection 55.5 and - 55.6 of this regulation)
on or before the fifteenth (15th) day of the fourth (4th) month of such taxable
year. If the requirements prescribed in Subsection 55.1 of this regulation are
originally met after the first (1st) day of the fourth (4th) month but before
the second (2nd) day of the sixth (6th) month, the declaration must be filed on
or before the fifteenth (15th) day of the sixth (6th) month. If the
requirements of Subsection 55.1 are originally met after the first (1st) day of
the sixth (6th) month but before the second (2nd) day of the ninth (9th) month,
the declaration must be filed on or before the fifteenth (15th) day of the
ninth (9th) month.
55.10.4.2. Short
Year Of More Than Six But Less Than Nine (9) Months. - If, however, the period
for which the declaration is filed is at least six (6) months but less than
nine (9) months and the requirements of Subsection 55.1 of this regulation are
not met until after the first (1st) day of the fourth (4th) month, the
declaration may be filed on or before the fifteenth (15th) day of the
succeeding taxable year.
55.10.4.3.
Short Year Of More Than Nine (9) Months. - If, however, the period for which
the declaration is filed is for nine (9) months or more and such requirements
are not met until after the first (1st) day of the sixth (6th) month, the
declaration may be filed on or before the fifteenth (15th) day of the
succeeding taxable year.
55.11. Declaration Made By Agent For
Individual Under Disability.
55.11.1. In
General. - The declaration of estimated tax for an individual who is unable to
make a declaration by reason of minority, disease, injury, or other disability
may be made and filed by his or her guardian, committee, fiduciary or other
person charged with care of the individual or his property (other than a
receiver in possession of only a part of the individual's property), or by his
or her duly authorized agent in accordance with Subsection 55.11.2
below.
55.11.2. Procedure.
55.11.2.1. General. - Whenever a declaration
is made by a duly authorized agent, it must be accompanied by a power of
attorney (or copy thereof) authorizing the agent to represent his or her
principal in making, executing, or filing the declaration. A copy of the
Federal Form used for the same purpose, when properly completed, is sufficient,
and in the case of a court appointed agent, a copy of the court order of
appointment is sufficient.
55.11.2.2. Disabled Spouse. - Where one
spouse is physically unable by reason of disease or injury to sign a joint
declaration, the other spouse may, with the oral consent of the one who is
incapacitated, sign the incapacitated spouse's name in the proper place in the
declaration followed by the words "By...........Husband (or Wife)," and by the
signature of the signing spouse in his or her own right, provided that a dated
statement signed by the spouse who is signing the declaration is attached to
and made a part of the declaration providing the following information: the
name of the declaration being filed, the taxable year to which the declaration
applies, the reason for the inability of the incapacitated spouse to sign the
declaration and a statement verifying that the spouse who is incapacitated
consented to the signing of the declaration.
55.11.2.3. Liability Of Taxpayer And Agent. -
The taxpayer and his or her agent, if any, are responsible for the declaration
as filed and incur liability for any penalties for false, or fraudulent
declarations.
55.11.2.3.a. "Agent" Defined. -
For purposes of this regulation, the term "agent" includes guardian, committee,
fiduciary or other person charged with the care of the individual under a
disability, and a duly authorized agent of the taxpayer.
