Current through Register Vol. XLI, No. 38, September 20, 2024
58.1. General. -
Every person subject to tax under the West Virginia Personal Income Tax Act, or
subject to collection of such tax, and any person required to file a return of
information with respect to income, shall keep such permanent books of account
or records as are sufficient to establish the amount of gross income,
deductions, credits or other matters required to be shown by such person in any
return of such tax or information. The Tax Commissioner is authorized to
prescribe the content and form of returns and statements, and may require the
inclusion in a return, document, or statement of any information he deems
necessary for the proper enforcement of the West Virginia Personal Income Tax
Act. For purposes of this regulation, the term "person" shall include, but is
not limited to, any individual, firm, partnership, limited partnership,
copartnership, joint adventure, association, corporation, S corporation,
municipal corporation, organization, receiver, estate, trust, guardian,
executor, administrator, and also any officer, employee or member of any of the
foregoing who, as such officer, employee or member, is under a duty to perform
or is responsible for the performance of an act prescribed by the provisions of
the West Virginia Personal Income Tax Act or these regulations.
58.1.1. If no method of accounting has been
regularly used by the taxpayer, or if the method used does not clearly reflect
income, then the computation of taxable income shall be made under such a
method as, in the opinion of the Tax Commissioner, does clearly reflect
income.
58.1.2. Bookkeeping
entries, in and of themselves, are not conclusive of the amount of income. The
actual facts, rather than the book entries, control. In addition, entries on
another individual's books are not conclusive against a taxpayer.
58.1.3. Retention Of Records. - The books or
records required by this Section 58 shall be kept at all times available for
inspection by authorized representatives of the Tax Commissioner.
58.1.4. Farmers And Wage Earners. -
Individuals deriving gross income from the business of farming as defined under
Subsection 55.5.1.1 of these regulations, and individuals whose gross income
includes salaries, wages or similar compensation for personal services
rendered, are required with respect to such income to keep such records
(including duplicate copies of the wage and tax deduction statements furnished
by their employers) as will enable the Tax Commissioner to determine the
correct amount of income subject to tax.
58.1.5. Form Of Records. - The records
required in this regulation shall be kept accurately, but no particular form is
required for keeping the records. Such methods of accounting shall be used
which will enable the Tax Commissioner to ascertain whether liability for tax
has been incurred, and, if so, the correctness of the amounts required to be
reported in any return of tax or information.
58.1.6. Employer's Records.
58.1.6.1. Every employer or withholding
agent, as defined for federal withholding tax purposes, required under the West
Virginia Personal Income Tax Act to deduct and withhold State income taxes upon
the wages of employees, and every person, firm, organization or corporation
required to file information returns as described in this regulation, shall
keep all records pertinent to these taxes and information reports available for
examination and inspection by the Tax Commissioner, or his authorized
representatives. Such records shall be retained and preserved for a period of
five (5) years following the close of the calendar year to which they
relate.
58.1.6.2. No particular
form is prescribed for such records, but the records shall include the amounts
and dates of all wage payments subject to West Virginia personal income taxes,
the names, addresses and occupations of employees receiving such payments, the
periods of their employment, the periods for which they are paid by the
employer while absent due to sickness or personal injuries and the amount and
weekly rate of such payments, their social security account numbers, their
income tax withholding exemption certificates, the employer's identification
number, records of monthly or quarterly and annual withholding returns and
reports filed, and the dates and amounts of withholding tax payments
made.
58.1.6.3. For nonresidents,
performing services partly within and partly without the State, a record of the
allocation used for withholding purposes must be kept.
58.1.7. Notice By Tax Commissioner Requiring
Returns, Statements, Or The Keeping Of Records. - The Tax Commissioner may
require any person, by notice served upon him, to make such returns, render
such statements, furnish such copies of federal income tax returns and of
federal audit determinations, or keep such specific records as the Tax
Commissioner may deem necessary to verify whether or not such person is
complying or has complied with any applicable provision of the West Virginia
Personal Income Tax Act.
58.1.8.
Copies Of Returns, Schedules And Statements. - Every person who is required in
these regulations or by instructions applicable to any form prescribed
thereunder to keep a copy of any return, schedule, statement or other document,
shall keep such copy as a part of his records.
58.1.9. Place For Keeping Records. - All
records prescribed by these regulations shall be kept, by the person required
to keep them at one (1) or more convenient safe locations accessible to the
authorized representatives of the Tax Commissioner, and shall at all times be
available for inspection by such representatives.
58.2. Partnerships. - Every partnership
having a resident partner or having any income derived from West Virginia
sources shall file a partnership return for the taxable year. The partnership
shall file a return regardless of the amount of its income and regardless of
the taxable years of the partners. Such partnership return shall set forth all
items of income, gain, loss and deduction. The return shall also set forth the
names, addresses, social security numbers, and amount of distributive shares of
income and deduction of all partners, and such other information or schedules
which the Tax Commissioner may prescribe on income tax forms and instructions.
58.2.1. Under certain prescribed
circumstances, the Internal Revenue Service does not require the execution and
filing of a federal partnership return of information. Where a federal
partnership return is not required for a taxable year, a West Virginia
partnership return is not required for such taxable year.
58.3. Information At Source. - See Section 72
of these regulations.
58.4. Notice
Of Qualification As Receiver, Trustee, Assiqnee Or Other Fiduciary. - Every
receiver, trustee in bankruptcy, assignee for the benefit of creditors, or like
fiduciary shall give written notice of his qualification as such to the Tax
Commissioner.
58.5. Employers With
Nonresident Employees Working Both Within And Without The State. - If an
employer has nonresident individuals as employees and such individuals work
both within and without West Virginia, the employer is required to keep records
which clearly reflect the amount of income earned within West Virginia and the
number of days worked therein.
