West Virginia – Certain Taxpayers Required to File and Pay Electronically

SALT Report 2689 – The West Virginia State Tax Department issued a news release regarding the e-file requirement for taxpayers who pay more than $50,000 for a single tax type. Taxpayers who meet the $50,000 threshold are now required to file their returns and make their tax payments electronically, unless they are specifically excluded.

Filing and Payment Options

Taxpayers can file their business tax returns electronically or pay using ACH Debit once they register with MyTaxes.  However, taxpayers cannot file their corporate income and business franchises taxes, income taxes for pass-through entities, and motor fuel taxes for suppliers using this system.  Instead, these taxpayers should contact the Department for a list of approved vendors that offer filing services for these tax types.

To initiate payments through a financial institution by using ACH Credit or Pay-by-Phone, taxpayers must first complete an Electronic Funds Transfer Application – Form WV/EFT-5. If a taxpayer elects to pay by credit card a convenience fee of 2.5% will be applied.

Failure to comply with the e-file requirement may result in a civil penalty of 3% of the total tax liability. The civil penalty will be imposed in addition to any other interest, additions, or penalties that will accrue from the returns due date until the date the funds are received by the West Virginia State Treasury.

Additionally, the Department states that they will no longer mail returns to taxpayers that are affected by the e-file mandate.  However, in some cases the Department may send taxpayers a paper return if they contact the Department by phone or register for MyTaxes and request that a return be mailed.

For Further Information

West Virginia State Tax Department – You Might Have to File and Pay Electronically