InstructIons - WV State Tax Departmenttax.wv.gov/Documents/TaxForms/2015/spf100.instructions.pdf ·...

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2015West Virginia

s Corporation & partnership inCome tax

(pass-through entities)

InstructIons

2015 in Come tax For pass-th ro ugh en t i t i es

Important Information for 2015Tax Rates

• FortaxyearsbeginningonorafterJanuary1,2015,theBusinessFranchiseratehasbeeneliminated(§11-23-6).• ThewithholdingrateonWestVirginiasourceincomecontinuestobe6.5%(§11-21-71a(b)(1)).• EffectiveJanuary1,2015,taxpayerswhohadannualremittanceofanysingletaxequaltoorgreaterthan$10,000

duringfiscalyear2014arerequiredtoelectronicallyfilereturnsandmakepaymentsusingElectronicFundsTransfer(EFT)forperiodsbeginningonorafterJanuary1,2015.

• FailuretocomplywiththerequirementtoremitpaymentsbyEFTwithoutfirstobtainingawaivermayresultinacivilpenaltyof3percentofeachpaymentwhichwastobepaidbyEFT.Visitourwebsitewww.tax.wv.govforadditionalinformation.

Returned Payment Charge

TheTaxDepartmentwillrecovera$15.00feeassociatedwithanyreturnedbanktransactions.Thesebanktransactionsincludebutarenotlimitedtothefollowing:

• DirectDebit(payment)transactionsreturnedforinsufficientfunds.• Stoppedpayments.• Bankrefusaltoauthorizepaymentforanyreason.• DirectDepositofrefundstoclosedaccounts.• DirectDepositofrefundstoaccountscontaininginaccurateorillegibleaccountinformation.• Checksreturnedforinsufficientfundswillincura$28.00fee.

The fee charged for returned or rejected payments will be to recover only the amount charged to the state tax Department by the financial institutions.Important: Therearestepsthatcanbetakentominimizethelikelihoodofarejectedfinancialtransactionoccurring:

• Besurethatyouareusingthemostcurrentbankroutingandaccountinformation• Ifyouhaveyourtaxreturnprofessionallyprepared,thefinancialinformationusedfromaprioryearreturnoftenpre-

populatesthecurrentreturnasastepsaver.Itisimportantthatyouverifythisinformationwithyourtaxpreparerbyreviewingthebankroutingandaccountinformationfromacurrentcheck.Thiswillensuretheinformationisaccurateandcurrentintheeventthatabankaccountpreviouslyusedwasclosedorchangedeitherbyyouorthefinancialinstitution.

• Ifyouprepareyourtaxreturnathomeusingtaxpreparationsoftware,thefinancialinformationusedfromaprioryearreturnoftenpre-populatesthecurrentreturnasastepsaver.Itisimportantthatyouverifythisinformationbyreviewingthebankroutingandaccountinformationfromacurrentcheck.Thiswillensuretheinformationisaccurateandcurrentintheeventthatabankaccountpreviouslyusedwasclosedorchangedeitherbyyouorthefinancialinstitution.

• Ifyouprepareyourtaxreturnbyhandusingapaperreturn,besurethatallnumbersrequestingadirectdepositofrefundenteredareclearandlegible.

• IfmakingapaymentusingMyTaxes,besurethatthebankroutingandaccountnumberbeingusediscurrent.• Ifschedulingadelayeddebitpaymentforanelectronicreturnfiledpriortotheduedate,makesurethatthebank

routingandaccountnumberbeingusedwillbeactiveonthescheduleddate.• Besurethatfundsareavailableinyourbankaccounttocoverthepaymentwhenchecksordelayeddebitpayments

arepresentedforpayment.


Taxpayer ResponsibilitiesFiling Your Business Tax Returns

Returnsmustbefiledbytheduedate.Youmayobtainformsfromany of our regional field offices or from our home page on theinternetatwww.tax.wv.gov.Failure to file returns will result in your account being referredto ourComplianceDivision for corrective action. Please file allrequiredtaxreturnsevenifyouowenotaxforthereportingperiod.All pages of the return must be filed.

Payment of the Tax

Thefullamountoftaxowedisdueandpayableontheduedateofthetaxreturn.Failuretopaythefullamountoftaxbytheduedatewillresultininterestandpenaltiesbeingaddedtoanyunpaidamount of tax. If for any reason you are unable to pay the fullamountoftaxontheduedate,youshouldfileyourtaxreturnalongwithawrittenexplanationofwhyyouareunabletopayandwhenyouwillpaythetaxdue.

Refunds

Youareentitledtoarefundofanyamountthatyouoverpaid.Allorpartofanyoverpaymentmaybeappliedasacreditagainstyourliabilityforsuchtaxforotherperiods.Aclaimforrefund(usuallyataxreturnshowinganoverpayment)mustbefiledwithinthreeyearsoftheduedateofthereturnortwoyearsfromthedatethetaxwaspaid,whicheverexpireslater.TheoverpaymentwillbeusedbytheTaxDepartmentagainstothertaxliabilitiesdue.If theTaxDepartmentdoesnot respond toyour requestwithinthree(3)monthsonoverpaymentofWithholdingTax,youmaysubmitinwritingarequestforanadministrativehearingtopresentyourreasonswhyyoufeelyouareentitledtotherefund.InterestisallowedandpaidonanyrefunduponwhichtheDepartmenthasfailedtotimelyactandwhichisfinalandconclusive.IftheTaxDepartmentdeniesorreducesarequestforarefund,awritten request for an administrativehearingmaybe submitted.Failuretorespondtoadenialorreductionwithinsixty(60)dayswill result inthedenial/reductionbecomingfinalandconclusiveandnotsubjecttofurtheradministrativeorjudicialreview.

Selling or Discontinuing Your Business

Ifyousellordiscontinueyourbusiness,notifytheTaxDepartmentin writing as soon as possible after your business is sold ordiscontinued.Allfinaltaxreturnsshouldbefiled.

General InformationTheinformationinthisbookletisforcalendaryear2015returnsandforfiscalyearreturnsbeginningin2015andendingin2016.Theinformationinthisbookisintendedtohelpyoucompleteyourreturnsandisnotasubstitutefortaxlawsandregulations.

Assistance

Address questions to theWestVirginia StateTax Department,Taxpayer Services Division, PO Box 3784, Charleston, WV25337-3784orbytelephoneat(304)558-3333,tollfreeat1-800-982-8297.

Exempt Organizations

AnySCorporationorPartnershipexemptfromfederalincometaxisalsoexemptfromWestVirginiaIncomeTax.Inaddition,certaininsurance companies, certain production credit associations,trusts established under 29U.S.C. 186, and other organizationsspecificallyexemptunderthelawsofWestVirginiaarealsoexempt.

When to File and Pay

AnSCorporation’sannualIncomeTaxReturnisdueonorbeforethe15thdayofthe3rdmonthafterthecloseofthetaxableyear.APartnership’sannualIncomeTaxReturnisdueonorbeforethe15thdayofthe4thmonthafterthecloseofthetaxableyear.*Thefilingofreturnsisrequiredwhetherornotanytaxisdue.

Who Must File

The following Partnerships are required to file an Income TaxReturn:

a. ResidentPartnerships,b. Nonresident Partnerships having a partner who is a

residentofWestVirginia,orc. Nonresident Partnerships having any income from or

connectedwithWestVirginia sources regardless of theamountofsuchincome.

Income from or connected with West Virginia is those itemsattributableto(a)theownershipofanyinterestinrealortangiblepersonal property in West Virginia; or (b) a business, trade,profession, or occupation carried on inWestVirginia includingincome from intangible personal property employed in suchbusiness,trade,profession,oroccupationunlessitelectstobetaxedundersubchapterSoftheInternalRevenueCode.Theterm“Partnership”includessyndicates,pools,jointventuresoranyotherunincorporatedorganizationoftwoormorepersonsthrough which any business, trade, profession, occupationor venture is carried on. “resident Partnership” means anypartnership organized under the laws of West Virginia whoseprincipal office, place of business, or other activity iswithin thebordersofWestVirginia.Itmayalsocarryonitsbusinessorotheractivities in other states. “nonresident Partnership”means anypartnershipotherthanaresidentpartnership.ALimited Liability company whichistreatedlikeaPartnershipfor federal income tax purposeswill also be treated as such forWest Virginia income tax purposes. If it is not treated like aPartnership,itwillbetaxedasaCCorporationunlessitelectstobetaxedundersubchapterSoftheInternalRevenueCode.

* For2015AnnualPartnershipand/orNon-ResidentCompositefilers,theduedateforthereturnisApril18,2016.


EverycorporationelectingtobetaxedundersubchapterSoftheInternalRevenueCodethatengagesinbusinessinWestVirginiaorthatderivesincomefromproperty,activity,orothersourcesinWestVirginiamustfileaWestVirginiareturn.

Extension of Time to File

AnySCorporationorPartnershipneedinganextensionoftimeto file and/or that expects to owe Nonresident WithholdingTax must file Form SPF-100EXT, Extension of Time to FileInformationReturns,onorbeforetheduedateofthereturn.AnySCorporationorPartnershipgrantedanextensionoftimetofiletheir federal return isgrantedthesameextensionof timetofiletheirWestVirginiareturn.Besuretoattachacopyofyourfederalextensiontoeachtaxreturntoavoidanypenaltyforlatefiling.Anextensionoftimeforfilingdoesnotextendthetimeforpayment.Toavoidinterestandadditionstotaxforlatepayment,useFormSPF-100EXTtomakeanextensionpaymentpendingthefilingoftheannualreturn.Astateextensionoftimetofilemaybeobtained,evenifafederalextensionhasnotbeenrequested,providedFormSPF-100EXTisfiledpriortotheduedateoftheWestVirginiareturn.

Where to File

WestVirginiaStateTaxDepartmentTaxAccountAdministrationDivisionPOBox11751Charleston,WV25339-1751

Use of Federal Figures

Allitemsofincomeanddeductionstobereportedonthisreturnare the same as for federal taxpurposes and themeaningof alltermsarethesame,unlessotherwisedefined.

Penalty for Late Filing and Failure to Include Correct Information

AnySCorporationorPartnershipthatfailstofileand/orincludeall thecorrect informationonFormSPF-100andFormNRW-2orFormNRW-4when applicable, by the requiredfilingdateissubjecttoapenaltyof$50.00foreachinformationreturnthattheyfailedtofileorincludecorrectinformationon,nottoexceed$100,000.Provisions for the reduction of the penalty amount exist if thepartnership corrects the failure or error within specified timeframes.Ifthefailureisduetointentionaldisregardforthefilingrequirementsorthecorrectinformationreportingrequirement,thepenaltyis$100.00ortenpercent(.1)oftheaggregateamountoftheitemsrequiredtobereportedcorrectly,whicheverisgreater.For additional information about this penalty, request acopy of Publication TSD-391 by calling Taxpayer Servicesat (304) 558-3333 or toll free at 1-800-982-8297. Also, thePublicationcanbefoundonlineatwww.tax.wv.gov.

Business Capital

Although theBusinessFranchiseTaxhas been eliminated as ofJanuary 1, 2015, the Business Capital of the S Corporation orPartnershipmuststillbereportedonSPF-100ScheduleB.

Reporting West Virginia Income Tax Withholding Credit

Electronic Filing – It is not necessary to use or submit anSPF-100Wsincethisinformationwilltransmitelectronicallyonceenteredwithinthesoftware.Paper Filed Returns–Enter the totalamountofWestVirginiataxwithheldonyourbehalfbyanotherentityas shownonyourForm SPF-100W. A completed SPF-100W must be enclosedwith your paper return. Failure to submit this document willresult in the disallowance of the credit claimed. note:Local ormunicipal fees cannot be claimed as West Virginia income taxwithheld. If thewithholding source is for a nonresident sale ofrealestatetransaction,aformWV/NRSRmustbecompletedandonfilewiththeStateTaxDepartmentprior tosubmittinga taxreturn.Additionally,afederalScheduleDmustbesubmitted.IfwithholdingsisrelatedtoformWV/NRSR,pleaseindicateintheboxprovidedonline11.

Nonresident Shareholder/Partner Withholding TaxSCorporations andPartnerships are required towithholdWestVirginia Income Tax for each nonresident shareholder/partnerthat has not provided the S Corporation or Partnership aWVNonresidentIncomeTaxAgreement,FormNRW-4.Theamounttobewithholdissixandone-halfpercent(.065)ofthenonresidentshareholder’s/partner’s share of the Federal Taxable incomeor portion thereof that is derived from or attributable to WestVirginiasources,whethersuchamountisactuallydistributedorisdeemedtohavebeendistributedforFederalIncomeTaxpurposes.Theentire taxwithheld is required tobe remittedwith theWVIncomeTaxReturnforSCorporationandPartnership.

InFormAtIon stAtEmEnt oF tAx WIthhELDEvery S Corporation or Partnership required to deduct andwithhold taxonnonresident shareholders/partnersmustprovidea WV/NRW-2 or WV/K-1 equivalent to each nonresidentshareholder/partneronorbeforethedateitfilesitsWestVirginiaSCorporation/PartnershipTaxReturn.TheinformationstatementshallshowtheamountofWVincomesubjecttowithholdingandtheamountofWVIncomeTaxwithheldbytheSCorporationorPartnershiponbehalfoftheshareholder/partner.TheSCorporationorPartnershipwillsatisfythisrequirementbysubmitting all income andwithholding information as it relatesto the individual shareholders/partners of the SCorporation orPartnershiponScheduleSPShareholder/PartnerinformationandNonresidentWithholdingwhenfilingtheirannualSPF-100.

sAtIsFyIng nonrEsIDEnt PErsonAL IncomE tAx rEPortIng rEquIrEmEnts

It-140 nonresident Personal Income tax returnThe individual nonresident shareholder/partner, using thewithholding documents supplied by the S Corporation orPartnership,willcompleteIT-140WWestVirginiaWithholdingTaxScheduleindicatingthesourceasWV/NRW-2orK-1iffilingthe IT-140NonresidentPersonal IncomeTaxReturn on paper.If filing electronically, this information is entered into the taxsoftwareprogramandnoadditionalpaperformsarenecessary.It-140nrc nonresident composite returnIf the only West Virginia source income for the shareholders/


partners is derived from the S Corporation or Partnership, theshareholders/partnersmayelecttosatisfythenonresidentincometax reporting requirements using the IT-140NRC NonresidentCompositeTaxreturninlieuoftheIT-140NonresidentPersonalIncomeTaxReturn.Thispermitsthegrouptofileasasingleentitywiththeonlysignaturerequirementsbeingofapartnerinthecaseofapartnershiporacorporateofficerinthecaseofacorporation.TheSCorporationorPartnershipwillfile theIT-140NRCandis responsible for collecting and remitting all withholding taxdue. Filing a composite return requires a copy of the ScheduleSPassubmittedwiththeSPF-100filedbytheSCorporationorPartnership indicatingwhich shareholders/partners have electedtobepartofthecompositereturn.Aprocessingfeeof$50.00isalsorequiredtoberemittedatthetimeoffiling.note: Form WV/NRW-2 or WV/K-1 equivalent statementsshouldnotbesubmittedunlessrequestedbytheTaxDepartment.

S Corporation/Partnership Income (Loss)

s corPorAtIons: Form SPF-100, Schedule A is used toreportallincome(loss)fromallactivityoftheSCorporation,butonlytotheextentthatitistaxableandallocabletotheshareholders.IftheSCorporationhasincome(loss)fromactivityinmorethanonestate,FormSPF-100APT,ScheduleBmustalsobecompleted.IfanSCorporationhasincome(loss)fromactivityinmorethanone state, and they are able to separately identify and accountforitemsofincomeanddeductionsasbeingdirectlyallocabletoWV,theymayseparatelyaccountfortheWVbusinessactivityonSPF-100,ScheduleA, lines1through5andsupportingFederaldocumentsmustbeattached.IfdirectallocationisusedaddSPF-100,ScheduleA, lines8 and11, andenter the totalon line12.Generally,incomederivedfromtheownershipofrealortangiblepersonalpropertyinWestVirginialendsitselftodirectallocation,whereasincomefromabusinesscarriedonwithinandwithouttheStatewouldpreferablybeallocatedbyapportionment.UnlessthebooksandrecordsoftheSCorporationclearlyreflectthatportion,the allocation must be made by the apportionment formulaprovidedinFormSPF-100APT,ScheduleB.If you have determined your WV Income entirely by directallocation,youarenoteligibletoapportion.PArtnErshIPs: FormSPF-100,ScheduleAisusedtoreportall income(loss) fromallactivityof thePartnership,butonlytothe extent that it is taxable and allocable to thepartners. If thePartnershiphasincome(loss)fromactivityinmorethanonestate,FormSPF-100APT,ScheduleBmustalsobecompleted.

shArEhoLDEr/PArtnEr InFormAtIonFormSPF-100,lines1through8,andtheScheduleSPareusedto identify all shareholders/partners and to account for eachshareholder/partner’s share of the S Corporation/Partnership’sincome.Theyarealsousedtocalculatetheamountofwithholdingthatisrequiredonthenonresidentshareholder/partner’sshareoftheSCorporations/Partnership’sincome.Allshareholders/partnersaresubjecttoWVpersonalincometaxundertheprovisionsofWVCodeChapter 11,Article 21.TheSCorporation/Partnership isrequiredtowithholdincometaxonthenonresidentshareholders/partner’s share of the S Corporations/Partnership’s WV sourceincome under the provisions ofChapter 11,Article 21, Section71a.

Taxable Year/Method of Accounting

Youmustusethesametaxableyearandmethodofaccountingasyouuseforfederaltaxpurposes.

Federal Return Information

Asigned,truecopyofthefirstfivepagesofFederalForm1120Sor1065,andanysupportingdocumentsmustbeattachedtothereturnwhenfiled.

Interest

Youmustpaytheentiretaxdueonorbeforetheduedateofthetaxreturn(determinedwithoutregardforanextensionoftimetofile).Ifyoudonotpaytheentiretaxdueonorbeforetheduedate,youmustpay intereston theamountof theunderpayment fromtheduedatetothedatepaid.Interestisalwaysdue,withoutexception,onanyunderpaymentoftax.Interest is imposed at an adjusted rate established by the TaxCommissioner.Theannualratewillneverbelessthaneightpercent(.08).Theinterestratewillbedeterminedandineffectforperiodsofsixmonths.Interestratesineffectforvariousperiodsare:

7/1/90—12/31/91 10% 1/1/98—12/31/98 9%1/1/91—6/30/92 9% 1/1/99—6/30/00 8%7/1/92—12/31/95 8% 7/1/00—12/31/01 9%1/1/96—12/31/96 9% 1/1/02—6/30/02 8%1/1/97—12/31/97 8% 7/1/02—12/31/15 9.5%

Contact the West Virginia State Tax Department TaxpayerServicesDivisionfortheinterestrateineffectforotherperiods.The telephone number is (304) 558-3333 or toll free withinWestVirginia1-800-982-8297.

Additions to Tax

LAtE FILIngAdditionstotaxareimposedforfailuretofileareturnonorbeforetheduedate(determinedwithregardtoanextensionoftimetofile).Onanyamountof tax shown tobedueon the return, theadditionstotaxforlatefilingisfivepercent(.05)permonthoranypartofamonthnottoexceedtwenty-fivepercent(.25).

LAtE PAymEntAdditions to taxare imposed for failure topayall tax shown tobedueonareturnonorbeforetheduedate(determinedwithoutregardtoanextensionoftimetofile).Theadditionstotaxforlatepaymentisimposedattherateofonehalfofonepercent(.005)permonthorpartofamonthnottoexceedtwenty-fivepercent(.25).Whenboththefivepercent(.05)additionstotaxforlatefilingandtheonehalfofonepercent(.005)additionstotaxforlatepaymentareimposed,themaximummonthlypercentisfivepercent(.05)not to exceed forty-seven andone-half of onepercent (.475)ofthetaxdue.

Completion and Signature

All appropriate sections of the return must be completed. Allrequiredsupportingdocumentsmustbeattached.Anincomplete


returnwill not be accepted as timely filed.The returnsmust besignedbyanauthorizedofficerorpartner.Ifthereturnispreparedbysomeoneotherthanthetaxpayer,thepreparermustalsosignthereturnandenterhisorhercompleteaddress.

Changes Made by the IRS to Federal Return

Any S Corporation or Partnership whose reported income ordeductionsarechangedorcorrectedbytheInternalRevenueServiceor throughrenegotiationofacontractwith theUnitedStates isrequiredtoreportthechangeorcorrectiontotheWestVirginiaStateTaxDepartment.Thisreportmustbemadewithin90daysof the final determination by filing an RAR Amended Returnandattachingacopyoftherevenueagent’sreportdetailingsuchadjustments.

Pass-Through Amended Returns

An SCorporation or Partnership that filed an amended returnwith the InternalRevenueServicemustfile an amended returnwiththeWestVirginiaStateTaxDepartmentwithin90 daysoffilingtheamendedfederalreturn.

• FileFormSPF-100,completingallappropriatelinesandchecking theAmendedboxunder“TypeofReturn”onpage1.BecauseWestVirginianowusesbarcodesontaxformsitisimportanttousetheappropriateformsforthetaxyearbeingamended.Example:Youareamendingataxreturnfortheperiodending12-31-2007;besuretousethe2007SPF-100forms.

• NOTE:Taxformsfromdifferentyearsmayhavedifferentlinenumbers;readthelineinstructionscarefully.

• Any amount paid with the original return should beenteredonFormSPF-100,page2,line12.

• If you received a refundorhad an amount creditedontheoriginalreturn,enterthatamountonFormSPF-100,page2line14.

• Attachallschedulespreviouslysubmittedandmakeanyappropriateamendedchanges.

AmendedReturnsfiledforthepurposeofobtainingarefundofanoverpaymentmustbefiledwithinthree yearsoftheduedateofthereturn(withregardtoanextensionoftimetofile),ortwo years from thedate the taxwas paid,whichever expires later. IfyourAmendedReturnhasabalanceduesendthepaymentalongwiththetaxreturn.

Consistency in Reporting

In completing your West Virginia Income Tax Return forSCorporations and Partnerships, if you depart from ormodifypastprocedures for classifyingbusiness incomeandnonbusinessincome,forvaluingpropertyorincludingorexcludingpropertyinthepropertyfactor,fortreatingcompensationpaidinthepayrollfactor,forincludingorexcludinggrossreceiptsinthesalesfactor,youmust disclose by separate attached schedule the nature andextentofthevarianceormodification.Ifyoumakesalesoftangiblepersonalpropertywhichareshippedintoastateinwhichyouarenottaxable,youmustidentifythestatetowhichthepropertyisshippedandreportthetotalamountofsalesassignedtosuchstate.

Confidential Information

Tax information which is disclosed to the West Virginia StateTaxDepartment,whetherthroughreturnsorthroughdepartmentinvestigations, is held in strict confidence by law.TheStateTaxDepartment,theUnitedStatesInternalRevenueService,andotherstateshaveagreementsunderwhichtaxinformationisexchanged.This is to verify the accuracy and consistency of informationreportedonfederal,otherstate,andWestVirginiareturns.

Schedule SPThis schedule must be completed and submitted with all S Corporation and Partnership returns.

coLumn AEnterthename,address,city,state,andzipcodeofeachshareholder/partner that the S Corporation or Partnership had during itstaxableyear.Ifadditionalspaceisneeded,attachadditionalcopiesofScheduleSP.

coLumn BEnterthesocialsecuritynumberorfederalemployer’sidentificationnumberofeachshareholder/partnerlistedincolumnA.

coLumn cIftheshareholder/partnerisaresidentofWestVirginia,entertheirpercent of ownership/interest in this column. Do not complete columns D through K for West Virginia resident shareholders/partners. Enter amount from Schedule SP Grand Total Line,ColumnConSPF-100,line1.

coLumn DIftheshareholder/partnerisanonresidentofWestVirginiaandhaselectedtobeamemberofthenonresidentcompositegroupentertheirpercentageofownership/interest in thiscolumn.CompleteColumnsG,H,andIforyournonresidentshareholders/partnerswhowillbeincludedintheNonresidentCompositeReturnfiling.EnteramountfromScheduleSPGrandTotalLineColumnDonSPF-100,line2.

coLumn EIftheshareholder/partnerisanonresidentofWestVirginiaandhaselectednottobeamemberofthecompositegroup,andhasnot signedFormNRW-4. Enter theirpercentageofownership/interest inthiscolumn.EnteramountfromScheduleSPGrandTotalLine,ColumnEonSPF-100,line3.

coLumn FIftheSCorporation/PartnershiphasreceivedFormNRW-4fromthe nonresident shareholder/partner, enter their percentage ofownership/interest in this column, and attach the agreement toyourreturnwhenfiled.IfFormNRW-4wasfiledandsubmittedinapreviousperiod,andhasnotbeenrevoked,itisnotnecessarytofileadditionalcopieswithyourreturninsubsequentyears.EnteramountfromScheduleSPGrandTotalLine,ColumnFonSPF-100,line4.

coLumn gSCorporationsenter theamountofyourWestVirginia incomefrom Form SPF-100, Schedule A line 12. Partnerships,enter


the amountof yourWestVirginia income fromFormSPF-100ScheduleA,line10.

coLumn hMultiplythedollaramountincolumnGbythepercentofowner-ship/interestfromcolumnDandentertheresultincolumnH.

coLumn IMultiplythedollaramountincolumnHbythetaxrateof.065andentertheresultincolumnI.

coLumn JMultiplythedollaramountincolumnGbythepercentofowner-ship/interestfromcolumnEandentertheresultincolumnJ.

coLumn KMultiplythedollaramountincolumnJbythetaxrateof.065andentertheresultincolumnK.

coLumn LEntertheamountoftaxcreditsallocatedbytheSCorporation/Partnershiptoeachshareholder/partner.TheScheduleSPGrandTotalLine,ColumnLmustmatchSPF-100TC,line12oftheTaxCreditUsedinCurrentYearcolumn.

schEDuLE sP grAnD totAL LInETotal the columns. If you have attached additional pages ofScheduleSP,enterthetotalsofthecolumnsfromallthepagesofScheduleSPonthefirstScheduleSPpageinthe“SCHEDULESPGRANDTOTAL”line.Transfertheappropriatecolumntotalstothefrontofthereturn(SPF-100).sPEcIAL notE:SCorporations/Partnershipswithnonresidentshareholders/partnersmustreviewthefollowingforms:nrW-2–StatementofWestVirginiaIncomeTaxWithheldforNonresidentIndividualorOrganizationsPF-100Ext –ExtensionofTimetoFileInformationReturnsTheseformscontainimportantinformationaboutthenonresidentwithholding requirements. You may find these forms online atwww.tax.wv.gov.

ExtEnsIon PAymEntsExtension requests and tentative payments of nonresidentwithholdingtax,forbothshareholders/partnerswhoareincludedontheNonresidentCompositeReturnandforthosewhowillbefilingindividualreturns,mustbesubmittedbytheSCorporation/PartnershiponFormSPF-100EXT.

SPF-100InstructIons

Onpage1,enterthebeginningandendingtaxyeardatescoveredby this return. Clearly print or type your name and address. Iffilingunderextension,enterextendedduedate.Inthe“chEcK APPLIcABLE BoxEs” section, checkall boxes that apply tothereturnbeingfiled.Attachacopyofthe first five pagesofyoursignedfederalreturn(Form 1120S or 1065), and schedule M-3 if applicable. Pleaseattachanyadditionalinformationand/orstatementsasrequired.All s corporations/Partnerships must complete sPF-100 schedule sP before completing lines 1 through 8.

1L i n e

Enterthetotalpercentagefrom,ScheduleSP,ColumnC,GrandTotalline.

2L i n e

EnterthetotalpercentagefromScheduleSP,ColumnD,GrandTotalline.

3L i n e

EnterthetotalpercentagefromScheduleSP,ColumnE,GrandTotalline.

4L i n e

EnterthetotalpercentagefromScheduleSP,ColumnF,GrandTotalline.

5L i n e

Enter the total dollar amount from Schedule SP,Column G. (Please note: This amount must matchSPF-100,ScheduleA, line12 if anSCorporationor

SPF-100,ScheduleA,line10ifaPartnership.)

6L i n e

Enter the total amount fromScheduleSP,Column I,GrandTotalline.

7L i n e

EnterthetotalamountfromScheduleSP,ColumnK,GrandTotalline.

8L i n e

TotalWithholdingTaxdue(addlines6and7).

9L i n e

Enterthecreditcarriedfowardfromthepriortaxyearhere.

10L i n e

Enterestimatedandextensionpaymentshere.

11L i n e

Enter the amount from your SPF-100W,ColumnC,GrandTotalLine submittedwith your return.Checkbox if anywithholdings are fromNRSR (nonresident

saleofrealestate).

12L i n e

Amount paid with original return (amended returnonly).

14L i n e

Overpaymentpreviouslyrefundedorcredited(amendedreturnonly).


15L i n e

Totalpayments.Line13minusline14.

16L i n e

TaxDue–Ifline15issmallerthanline8,enteramountowedhere,otherwise,skiptoline20.

17L i n e

Calculate interest due. See the general informationon page 5 of this booklet for additional informationregardinginterest.

18L i n e

Calculate additions to tax due. See the generalinformation on page 5 of this booklet for additionalinformationregardingadditionstotax.

19L i n e

Remitthisamount.Ifpayingbycheck,makethecheckpayabletotheWestVirginiaStateTaxDepartment.Forotherpaymentoptionsseewww.tax.wv.gov.

21-22

L i n e s Anoverpaymentmaybecredited tonextyear’s taxorrefunded,eitherinwholeorpart.Enteronline21theamountofoverpaymenttobecreditedtonextyear’stax.

Enteronline22theamountofoverpaymenttoberefunded.

SPF-100 Schedule APleasenotethatiftheSCorporationorPartnershiphasincomefromsourcesbothwithinandwithoutWestVirginia, theymustcomplete Form SPF-100APT to determine howmuch of theirincomeisfromaWestVirginiasource.

1L i n e

AnSCorporationwillentertheordinaryincome(loss)as shownonFederal Form1120S.Apartnershipwillenter the ordinary income (loss) as shownonFederal

Form1065.

2L i n e

Enter the amount of all other gross income (loss) oftheSCorporation as shownonFederalForm1120S,ScheduleK that is not included on line 1.Enter the

amount of all gross income (loss) of the partnership shown onFederalForm1065,ScheduleKthatisnotincludedonline1.

3L i n e

SCorporationswillentertheamountofanyexpensesordeductionsasshownonFederalForm1120S,ScheduleK,thatarenotincludedonline1.Partnershipswillenter

the amountof any expenses ordeductions as shownonFederalForm1065,ScheduleK,thatarenotincludedonline1.

5L i n e

Net modifications to federal income: S Corporationenter amount from SPF-100, Schedule A-2, line 26;Partnership enter amount from SPF-100, Schedule

A-1,line13.

7L i n e

SeetheinstructionsforFormSPF-100APT,SchedulesA1 and A2 for proper classification of nonbusinessincome.ForSCorporationswithnonbusiness income

fromsourceswithinandwithoutWestVirginia,entertheamountfromSPF-100APT,ScheduleA-1,line8here.

9L i n e

If income isderived fromsourceswithin andwithoutWest Virginia, enter the apportionment factor fromFormSPF-100APT,ScheduleB,part1orpart2orpart

3asapplicable.

11L i n e

For S Corporations with nonbusiness income fromsourceswithinWestVirginia, enter the amount fromSPF-100,ScheduleA-2,line12.

SPF-100 Schedule A-1Partnerships

West Virginia law requires certain items of income anddeductions to be added to or subtracted from the Partnership’sfederalpartnershipincome.Entertheappropriateincreasinganddecreasingmodificationsasindicatedonlines1through10.Enterallowance for governmental obligations/obligations secured byresidentialpropertyfromScheduleA-3,line9onScheduleA-1,line11.

SPF-100 Schedule A-2S Corporations

IncrEAsIng ADJustmEnts

1L i n e

Enter exempt interest or dividends from any state orlocalbondsorsecuritiesfromyourfederalreturnForm1120S,ScheduleKorScheduleM-1.

2L i n e

Enter the amount of US Government obligationinterest or dividends not exempt from state tax, lessrelated expenses not deducted on your federal return.

Attachsupportingdocumentation.

3L i n e

Attachan itemized scheduleof taxesor licenses fromyour federal income tax return Form 1120S or proforma.

4L i n e

Taxpayers can elect to expense the cost of certainair and water pollution control facilities locatedin West Virginia in the year in which the cost of

acquisition, construction, or development was paid or incurred.EligibleairandwaterpollutioncontrolfacilitiesarethoselocatedinWestVirginiathatare“certifiedpollutioncontrolfacilities”asdefinedbySection169(d)of theInternalRevenueCode.If thiselection ismade, the total amount of any federal deduction fordepreciation or amortization of such facilities is disallowed.Theelectionismadeonthereturnfortheyearinwhichthecostispaidorincurred.Oncemade,theelectionornon-electionisirrevocable.AtaxpayerwhoreportsallincometoWestVirginiawillmaketheadjustmentforthecostoffacilitiesonline20.Thedepreciationoramortizationon the facilities, including that attributable to cost


expensedthisyearaswellasprioryears,deductedonthefederalreturn,isenteredonline4.Ataxpayerwhoissubjecttoallocationand apportionment makes the adjustment for the cost of thefacilitiesonFormSPF-100APT,ScheduleA2, line9,column3.Thedepreciationoramortizationonthefacilities,deductedonthefederalreturnforthisyearaswellaspreviousyears,isenteredonFormSPF-100APT,ScheduleA2,lines10and11,column3.

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Corporations which are exempt from federal incometax are exempt from West Virginia Corporation NetIncomeTax.Ifsuchcorporationhasunrelatedbusiness

taxableincome,asdefinedbySection512oftheInternalRevenueCode,theymustpayWestVirginiaCorporationNetIncomeTaxon the unrelated business taxable income. Enter the unrelatedbusinesstaxableincomeasreportedonFederalForm990T.

6L i n e

If you claim the West Virginia NeighborhoodInvestment Program Tax Credit, any deduction,decreasing adjustment, or decreasing modification

takenonyourfederalreturnforanycharitablecontributionmadeto such Neighborhood Investment Program and for which theWestVirginiacreditisclaimed,mustbeaddedbackonline6.

7L i n e

Taxpayerswithforeignsourceincomemustadjusttheirfederal taxable incomeby theamountof their taxableincomeorlossfromsourcesoutsidetheUnitedStates.

Indeterminingforeignsourceincome,theprovisionsofSections861,862,and863oftheInternalRevenueCodeapply.Completethefollowingworksheet:

Foreign source Income Worksheet1.TaxableIncomefromsources

outsidetheUnitedStates...............

2.LESS:Foreigndividendgrossup...

3.LESS:SubpartFincome................

4.WestVirginiaadjustment...............

Iftheamountonline4oftheworksheetisapositivefigure,enteritonline19.Ifitisanegativefigure,entertheamountofthelossonline7withoutthenegativesign.AttachcopiesofFederalForm1118tosupportyourcalculation.IfyoudidnotfileFederalForm1118,youmustprepareandfileaproformaFederalForm1118tosupportyouradjustment.IfyoufiledaconsolidatedFederalForm1118 and file separate or unitary West Virginia returns, attachboththetrueconsolidatedandaproformaFederalForm1118tosupportyouradjustment.

8L i n e

EntertheamountofforeigntaxesasdeductedonyourFederalForm1120S.

9L i n e

EnterQualifiedProductionActivityDeduction takenunderIRC§199.

10L i n e

Add back for expenses related to certainREIT’s andregulated investment companies (WV Code §11-24-4b).

11L i n e

Enter any other increasing adjustments here. Enter adescription/explanation in the space provided. Attachsupportingdocumentation.

DEcrEAsIng ADJustmEnts

13L i n e


14L i n e


15L i n e


16L i n e

EntertotalandincludecopyofFederalForm3800or5884and/orotherasapplicable.

17L i n e

EntertotalfromFederalForm1120S.

18L i n e

EntertotalfromFederalForm1120S.

19L i n e

Seeinstructionsforline7.

20L i n e

Seeinstructionsforline4.

21L i n e

A decreasing adjustment to federal taxable income isallowedforemployercontributionstoamedicalsavingsaccountestablishedpursuanttoWVCode§33-16-15,

totheextentincludedinfederaltaxableincome,lessanyportionoftheemployer’scontributionswithdrawnforpurposesotherthanpaymentofmedicalexpenses.Theamount takenasadecreasingadjustmentmaynotexceedthemaximumamountthatwouldhavebeendeductiblefromthecorporation’sfederaltaxableincomeiftheaggregateamountofthecorporation’scontributionstoindividualmedicalsavingsaccountsestablishedunderWVCode§33-16-15had been contributions to a qualified plan as defined under theEmployeeRetirementIncomeSecurityActof1974(ERISA),asamended.


22L i n e

Enter other decreasing adjustments here. Enter adescription/explanation in the space provided. Attachsupportingdocumentation.

24L i n e

Taxpayers that own certain tax-exempt governmentobligationsandobligationssecuredbycertainresidentialproperty located in West Virginia can take a special

allowancethatfurtherreducesfederaltaxableincome.

25L i n e

Addlines23and24.

26L i n e

Line12minusline25.EntertheamounthereandonSPF-100,ScheduleA,line5.

SPF-100 Schedule A-3TaxpayersthatowncertaintaxexemptgovernmentobligationsandobligationssecuredbycertainresidentialpropertyinWestVirginiacan take a special allowance that further reduces federal taxableincome.Thevalueoftheseobligationsandloansisdeterminedusingtheaverage of themonthly beginning and ending account balances.Theseaccountbalancesaredeterminedatcostinthesamemannerthatsuchobligations,investments,andloansarereportedonthebalancesheetofyourfederaltaxreturn.

1 – 4L i n e s Attachacopyofworksheetssupportingthecalculations

ofaveragemonthlybalance.

6L i n e

Average of beginning and ending balance of totalassets on Schedule L of Federal Form 1120S orFederalForm1065.

8L i n e

Adjustedincome.

SPF-100 Schedule BComputation of Business Capital

S Corporations and Partnerships must complete this section todeterminetheircapitalbase.Thecapitalbaseistheaverageoftheirdollar amounts of thebeginning and endingbalances of certainentriesfromthebalancesheetofyourFederalTaxReturnasfiledoraswouldhavebeenfiledwiththeInternalRevenueServiceforthetaxableyear.SCorporationsandPartnershipsnot requiredbyFederal law tocompleteandfileabalancesheetarerequiredtocompleteaproformabalancesheetinordertocalculatetheirBusinessCapital.AproformabalancesheetisthebalancesheetthattheSCorporationorPartnershipwouldhavefiledwiththeInternalRevenueServicehadtheybeenrequiredtofileone.S Corporations complete lines 1 through 9 and line 11 as

applicable.Partnershipscompleteline10only.SCorporationsandPartnershipscompletelines12through16asapplicable.Addtheamountsincolumn1andcolumn2anddividetheresultbythenumber2todeterminetheaveragecapitalincolumn3.

12L i n e

Taxpayers that own certain tax exempt governmentobligationsandobligationssecuredbycertainresidentialpropertylocatedinWestVirginiacantakeanallowance

that reduces their capital. If you do not qualify for the specialallowance, skip lines12and13. Instead, enter theamount fromline10ifaPartnershiporline11isanSCorporationonline14.

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Generally,theapportionmentfactorusedtoapportionyour income for Income Tax purposes is used toapportion your capital base for Business Capital

calculationpurposes.Therearetwoexceptions:1. Thespecialapportionmentrulesforcertainmotorcarriers

cannot be used for the Business Capital calculation.MotorcarrierswillneedtocompleteFormSPF-100APT,Schedule B, Part 1 to determine their apportionmentfactorforBusinessCapitolcalculationpurposes.

2. Taxpayers exempt from, or not subject to, theWestVirginia IncomeTax must complete Form SPF-100APTScheduleBtodeterminetheirapportionmentfactorforBusinessCapitalcalculation.

APPortIonmEnt FActor: Complete Form SPF-100APT, Schedule B Apportionment Factors for MultistateSCorporations/Partnerships.EnterPart1,line8orPart3,column3onSPF-100,ScheduleB,line15.***Important note regardIng lIne 15***

Form sPF-100APt, schEDuLE B must BE comPLEtED AnD AttAchED. FAILurE to AttAch comPLEtED Form WILL rEsuLt In 100% APPortIonmEnt to WEst VIrgInIA!

16L i n e

Multiplyline14byline15andentertheresulthere.

SPF-100APTSchedules A1 & A2: Allocation of

Nonbusiness Income for S Corporations Only

If your business activities take place both within and withoutWestVirginiaandyouarealsotaxableinanotherstate,certainitemsofnonbusinessincomethatareincludedinfederaltaxableincomearedirectlyallocated.Allotherincomemustbeapportioned.Business income arises from transactions and activities in theregularcourseofthecorporation’stradeorbusiness,andincludesincome from tangible and intangibleproperty if the acquisition,management or disposition of the property constitutes integralpartsofthecorporation’stradeorbusiness.Nonbusiness income includesall incomethat isnotclassifiedasbusiness income, less all expenses attributable to theproductionofthisincome.NonbusinessincomeisallocatedtoWestVirginia


if (1) the S Corporation’s commercial domicile, the principalplacefromwhichthetradeorbusiness ismanaged, is locatedinWestVirginia, or (2) property creating the nonbusiness incomeis utilized in West Virginia. Nonbusiness income from realproperty is allocated if theproperty is located inWestVirginia.NonbusinessincomefromtangiblepersonalpropertyisallocatedtoWestVirginia if the property is utilized inWestVirginia orthepropertywaslocatedinWestVirginiaatthetimeofitssale.NonbusinessincomefromintangiblepersonalpropertyisallocatedtoWestVirginiaifthecorporation’scommercialdomicileislocatedinWestVirginiaor,inthecaseofpatentsandcopyrights,iftheyareusedinWestVirginia.Foradetaileddiscussionofallocationofnonbusinessincome,youmay request a copy of PublicationTSD-392, “CorporationNetIncome Tax Nonbusiness Income” by contacting our TaxpayerServicesDivisionoronlineatwww.tax.wv.gov.Determine nonbusiness income allocated to West Virginiaand outside West Virginia by completing Form SPF-100APT,SchedulesA1andA2.Only those typesofnonbusiness incomelisted on Form SPF-100APT, Schedules A1 and A2 can beallocated.Anyothertypeofincomethatthecorporationclassifiesasnonbusinessmustbeapportioned.

8L i n e

EntertheamountfromFormSPF-100APTScheduleA1,column3, line8,onFormSPF-100,ScheduleA,line7.

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EntertheamountfromFormSPF-100APTScheduleA2,column3,line12onFormSPF-100,ScheduleA,line11.

Schedule B: Apportionment Formula

If your business activities take place both within and withoutWestVirginiaandyouarealsotaxableinanotherstate,allnetincome,after deducting those items of nonbusiness income allocated onFormSPF-100APTSchedulesA1andA2,mustbeapportionedtoWestVirginiabyusingtheappropriateapportionmentformula.completion of the sPF-100APt, schedule B is required even if apportionment is zero.special apportionment formulas apply to motor carriers and to financial organizations. Ifyouarefilingforamotorcarrier,followtheapportionmentinstructionsforFormSPF-100APT,ScheduleB,Part2.Ifyouarefilingforafinancialorganization,followtheapportionmentinstructionsforFormSPF-100APT,ScheduleB,Part3.Multistate corporations will use the standard apportionmentformulaofpayroll,property,andsales,withthesalesfactordoubleweighted, and will complete Form SPF-100APT, Schedule B,Parts,1,2,and3asapplicable.muLtIstAtE s corPorAtIons/PArtnErshIPs –

Four FActor APPortIonmEnt FormuLAPArt 1 rEguLAr EntItIEsToDetermineyourWestVirginiaapportionmentpercentage,firstdeterminethefollowingfactorsProPErty FActor.Propertyincludesallrealandtangible

personal property owned or rented and used during the taxableyear to produce business income. Property used in connectionwiththeitemsofnonbusinessincomeallocatedinSPF-100APT,SchedulesA1andA2shallbeexcludedfromthefactor.Propertymustbe included in theproperty factor if it isactuallyusedorisavailablefor,orcapableofbeingusedduringthetaxableyear.Propertyheldasreserves,standbyfacilities,orreservesourcesor materials must be included. Property or equipment underconstruction (except goods in process that can be inventoried)must be excluded until it is actually used to generate businessincome.Movableproperty,suchastools,constructionequipmentandtrucks,usedbothwithinandwithoutWestVirginia,shallbeincludedinthenumeratorofthefractiononthebasisoftotaltimewithinthestateduringthetaxableyear.Propertyownedisvaluedatoriginalcost.Propertyrentedisvaluedat eight times the net annual rate.Leasehold improvements areconsideredpropertyownedandareincludedattheiroriginalcost.Generally, original cost is the basis of the property for federalincome tax purposes at the time of acquisition and adjustedby subsequent capital additions or improvements and partialdispositions by reason of sale, exchange, abandonment, etc. Asageneralrule,property is includedinthefactorbyaveragingitsvaluesatthebeginningandendingofthetaxableperiod.However,theTaxCommissionermayrequireorallowaveragingbymonthlyvalues if suchmethod is required toproperly reflect theaveragevalueofthetaxpayer’spropertyforthetaxableyear.Determinethepropertyfactorbyenteringtheappropriateamountsinline1.EnterWestVirginiapropertyincolumn1andpropertyeverywhereincolumn2.

1L i n e

Divide column1by column2 andenter the result incolumn3.Statetheresultasadecimalandroundtosix(6)placesafterthedecimalpoint.

PAyroLL FActor.Thepayrollfactorshallincludethetotalamountofcompensationpaidtoemployeesduringthetaxableyear.Thetotalamountpaidisdetermineduponthebasisofthetaxpayer’saccountingmethod for federal income taxpurposes. If youhaveadoptedtheaccrualmethodofaccountingforfederalpurposes,allcompensationshallbedeemedtohavebeenpaid.CompensationmaybeincludedinthepayrollfactorbyuseofthecashbasisonlyifyouhavepermissionfromtheTaxCommissionerforanalternatemethodof apportionment.Compensationmeanswages, salaries,commissions,andotherformsofremunerationpaidtoemployeesforpersonalservices.Paymentsmadetoanindependentcontractoror any other person not properly classified as an employee areexcluded.Onlyamountspaiddirectlytoemployeesareincludedinthepayrollfactor.Donotincludecompensationpaidtoemployeesengaged exclusively in an activity that generates nonbusinessincomethatyouallocated inFormSPF-100APT,SchedulesA1andA2.Thedenominatorof thepayroll factor is the total compensationpaidbythetaxpayerduringthetaxableyear,asshownonthefederalincometaxreturnfiledwiththeInternalRevenueServiceandasreflectedinthescheduleofwagesandsalariesandthatportionofthecostofgoodssoldwhichreflectcompensation.The numerator of the payroll factor is the total amount paidin West Virginia during the taxable year by the taxpayer forcompensation.Compensation is paid inWestVirginia if any of


thefollowingtests,appliedconsecutively,aremet:A. The employee’s service is performed entirely within

WestVirginia;B. The employee’s service is performed both within and

withoutWestVirginiabuttheserviceperformedwithoutWest Virginia is “incidental” to the employee’s servicewithinWestVirginia (theword“incidental”means anyservicewhichistemporaryortransitoryinnatureorwhichisrenderedinconnectionwithanisolatedtransaction);

C. Iftheemployee’sservicesareperformedbothwithinandwithoutWestVirginia,theemployee’scompensationwillbeattributedtoWestVirginia(1)iftheemployee’sbaseofoperationsisinWestVirginia;or(2)ifthereisnobaseofoperationsinanystateinwhichpartoftheserviceisperformed,buttheplacefromwhichtheserviceisdirectedor controlled is inWestVirginia; or (3) if the base ofoperationsortheplacefromwhichtheserviceisdirectedor controlled is not in any state inwhich somepart ofthe service is performed, but the employee’s residenceis inWestVirginia.Baseofoperationistheplacefromwhichtheemployeestartstheirworkandtowhichtheycustomarily return in order to receive instructions orcommunicationsfromcustomersorothers,ortoreplenishstockorothermaterials,repairequipment,orperformanyotherfunctionsnecessarytotheexerciseoftheirtradeorprofessionatsomeotherpointorpoints.

Determinethepayrollfactorbyenteringtheappropriateamountsin line 2. EnterWestVirginia payroll in column 1 and payrolleverywhereincolumn2.

2L i n e

Divide column1by column2 andenter the result incolumn 3. Round to six (6) places after the decimalpoint.

sALEs FActor.Theterm“sales”meansallgrossreceiptsofthetaxpayerthatarebusinessincome.Thus,thesalesfactorincludesallgrossreceiptsderivedfromtransactionsandactivityintheregularcourseofyourtradeorbusiness,lessreturnsandallowances.DonotincludeinterestordividendsfromobligationsoftheUnitedStatesgovernment,whichareexemptfromtaxationinWestVirginia,orgrossreceiptsfromanactivitythatproducednonbusinessincomethatyouallocatedinFormSPF-100APT,SchedulesA1andA2.Thedenominator(column2)ofthesalesfactorincludesallgrossreceiptsderivedfromtransactionsandactivityintheregularcourseofyourtradeorbusinessthatwasreflectedinyourgrossincomereportedandasappearingonyourfederalincometaxreturnunlessotherwiseexcluded.sales of tangible personal property delivered or shipped to a purchaser within a state in which you are not taxed (e.g. under Public Law 86-272) are to be excluded from the denominator.Thenumerator (column 1) of the sales factor includes all grossreceiptsattributabletoWestVirginiaandderivedfromtransactionsand activity in the regular course of your trade or business.Allinterestincome,servicechargesortime-pricedifferentialchargesincidentaltosuchgrossreceiptsmustbeincludedregardlessoftheplacewheretheaccountingrecordsaremaintainedorthelocationofthecontractorotherevidenceofindebtedness.sales of tangible Personal Property.GrossreceiptsfromsalesoftangiblepersonalpropertyareinWestVirginiaif:

1. ThepropertyisreceivedinWestVirginiabythepurchaser(exceptsalestotheUnitedStatesgovernment)regardlessoftheF.O.B.pointorotherconditionsofsales.

2. Thepropertyisshippedfromanoffice,store,warehouse,factoryorotherplaceofstorageinWestVirginiaandthepurchaseristheUnitedStatesgovernment.

Sales within West Virginia are generally determined on adestinationbasis.If thepurchaserpicksuporotherwisereceivestheproperty inWestVirginia, thesale is treatedas takingplaceinWestVirginia.Ifthepropertyisdeliveredbycommoncarrierorothermeansoftransportation,theplaceatwhichthepropertyisreceivedafteralltransportationiscompletedistheplacewherethe sale tookplace.Directdelivery inWestVirginia,other thanforpurposeoftransportation,toapersonorfirmdesignatedbyapurchaser,constitutesdelivery to thepurchaser inWestVirginiaregardlessofwheretitlepassesorotherconditionsofsale.Direct delivery outside West Virginia to a person or firmdesignatedbyapurchaserdoesnotconstitutedeliverytoapersoninWestVirginia.other sales.GrossreceiptsfromtransactionsotherthansalesoftangiblepersonalpropertyareattributabletoWestVirginiaif:

1. The income producing activity which gives rise to thereceiptsisperformedentirelyinWestVirginia;

2. TheincomeproducingactivityisperformedbothinandoutsideWestVirginiaandagreaterportionoftheincomeproducingactivityisperformedinWestVirginiathananyotherstate,basedonthecostofperformance;or

3. The sale constitutes business income to the taxpayer orthe taxpayer is a financial organization subject to thespecial apportionment rules. (Refer to West VirginiaCode §11-24-7 for a discussion of income producingactivityandcostofperformance)

Gross receipts from the sale, lease, rental, or licensing of realproperty are inWestVirginia if the real property is located inWestVirginia.Gross receipts fromthe rental, lease,or licensingoftangiblepersonalpropertyareinWestVirginiaifthepropertyis located inWestVirginia. If suchproperty isbothwithin andwithoutWestVirginiaduringtherental,lease,orlicensingperiod,gross receipts attributable toWestVirginia shall be determinedbaseduponthetotaltimewithinthestateduringthetaxableyear.Gross receipts for the performance of personal services are inWestVirginiaifsuchservicesareperformedinWestVirginia.Determine the sales factor by entering the appropriate amounton line 3. Enter theWestVirginia sales in column 1 and saleseverywhereincolumn2.

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coLumn 2. totAL sALEs. This amount, whenaddedtothetotalgrossnonbusinessincome,asshownonScheduleA1,column1,mustequalthesumofyour

itemsofgrossincomeasreportedonyourfederalincometaxreturn.Anydifferencesmustbenotedandexplainedinanattachmenttoyourreturn.

$Sumofgrossincomeitemsonfederalreturn

$Less total allocated income (FormSPF-100APTScheduleA1,column1)


$EqualsFormSPF-100APT,ScheduleB,column2,line3.

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Enter the total gross receipts from sales of tangiblepersonal property delivered or shipped to a purchaserwithin a state inwhich you arenot taxed (e.g.Public

Law86-272).ThisisthethrowoutruleperWVCode§11-24-7(e)(11)(B)and§11-23-5(l)(2).

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Incolumn1,entertheamountfromline3.Incolumn2,subtractline4fromline3andenterthedifference.Thendividecolumn1,line5bycolumn2,line5andenterthe

resultincolumn3,line5.Statetheresultasadecimalandroundtosix(6)placesafterthedecimal.

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Enterline5again.

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Addcolumn3,lines1,2,5,and6andenterthesumincolumn3.

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Dividethesix(6)digitdecimalfromcolumn3,line7bythenumber4,reducedbythenumberoffactors,ifany,showingzeroincolumn2,lines1,2,5,or6.Enterthe

six(6)digitdecimalfractionfromcolumn3,line8onFormSPF-100,ScheduleA,line9,andScheduleB,line15.

motor cArrIErs – sPEcIAL sIngLE FActor FormuLA

PArt 2 – VEhIcLE mILEs. Motor carriers of propertyor passengers are subject to special apportionment rules.Motorcarriersmust apportion their business income by using a singlefactorformulaofvehiclemiles.The special apportionment formula for motor carriers is to be used for the Calculation of Income Tax ONLY! The special formula rules do not apply to the West Virginia Business capital calculation.Amotor carrier is any person engaged in the transportation ofpassengersand/orpropertyforcompensationbyamotorpropelledvehicleoverroadsinWestVirginia,whetheronascheduledrouteorotherwise.Theterm“vehiclemiles”meanstheoperationsofamotorcarrieroveradistanceofonemile.ThespecialapportionmentformulaformotorcarriersdoesNOTapplyif:

A. The motor carrier neither owns nor rents any real ortangiblepersonalpropertylocatedinWestVirginia,hasmade no pick ups or deliveries within West Virginia,andhastraveledlessthan50,000milesinWestVirginiaduringthetaxableyear;or

B. The motor carrier neither owns nor rents any tangiblepersonal property located in West Virginia exceptvehicles,andmadenomorethan12tripsintoorthroughWestVirginiaduringthetaxableyear.

Under either (A) or (B), themileage traveled inWestVirginiamaynotbemorethanfivepercent(.05)ofthetotalvehiclemilestraveledinallstatesduringthetaxableyear.Determinetheapportionmentfactorbyenteringtheappropriatevehicle miles forWestVirginia in column 1, and vehicle mileseverywhereincolumn2.Dividecolumn1bycolumn2andenter theresult incolumn3.Statetheresultasadecimalfractionandroundtosix(6)placesafter the decimal. Enter the six (6) digit decimal fraction fromcolumn3online9ofFormSPF-100,ScheduleA.

FInAncIAL orgAnIzAtIons – sPEcIAL sIngLE FActor FormuLA

PArt 3 – gross rEcEIPts.Financialorganizationssubjecttoapportionmentmustapportiontheirbusinessincomebyusingasinglefactorgrossreceiptsformula.Thisspecialapportionmentrule applies to bothWestVirginia IncomeTax AND BusinessCapitalcalculation.A financial organization is any holding company or regulatedfinancial corporation or subsidiary thereof, or any corporationderivingmorethanfiftypercent(.5)ofitsgrossreceiptsfromoneormoreofthefollowing:

1. Making,acquiring,selling,orservicingloansorextensionsofcredit.

2. Leasing or acting as an agent, broker, or advisor inconnectionwithleasingrealandpersonalpropertythatistheeconomicequivalentofanextensionofcredit.

3. Operatingacreditcardbusiness.4. Renderingestateortrustservices.5. Receiving,maintaining,orotherwisehandlingdeposits.6. Engaging inanyotheractivitywithaneconomiceffect

comparabletoanyoftheabove.Financial organizations regularly engaging in business inWestVirginiashallapportiontheircapitalandbusinessincomebymeansofasinglefactorofgrossreceiptsapportionmentformula.A financial organization not having its commercial domicile inWestVirginiaispresumedtoberegularlyengaginginbusinessinWestVirginiaifduringanyyearitobtainsorsolicitsbusinesswith20ormorepersonswithinWestVirginia,orthesumofitsgrossreceiptsattributabletosourcesinWestVirginiaequalsorexceeds$100,000.00.Grossreceiptsfromthefollowingownershipinterest(andcertainrelatedactivities)willnotbeconsideredindeterminingwhetherafinancialorganizationissubjecttotaxation.

1. Aninterestinarealestatemortgageinvestmentconduit,a real estate investment, or a regulated investmentcompany;

2. An interest in a loan backed security representingownershiporparticipationinapoolofpromissorynotesor certificates or interest that provide for paymentsin relation to payments or reasonable projections ofpaymentsonthenotesorcertificates;

3. An interest in a loan or other asset from which theinterest is attributed to a consumer loan, a commercialloan or a secured commercial loan, and in which thepayment obligationswere solicited and entered into by


apersonthatisindependentandnotactingonbehalfoftheowner;oraninterestintherighttoserviceorcollectincomefromsuchaloanorasset;or

4. An amount held in an escrow or trust account withrespecttopropertydescribedabove.

However, if a financial organization is subject to taxationwhengrossreceiptsfromtheseinterestsarenotconsidered,suchreceiptsmust then be included when determining the amount of taxesowed.

PEtItIonIng For An ALtErnAtE mEthoD oF APPortIonmEnt

Touseanalternatemethodofallocationandapportionment,youmustpetition theTaxCommissioner touse someotherbasis todetermineyourtaxablenetincome.Yourpetitionforanalternatemethod must be filed by no later than the normal due date of your return.

you must receive written permission to use an alternateapportionmentmethodbeforefilingyourreturn.Permissionwillonlybegrantedifyoucanshowthatthestatutoryformuladoesnotproperlyreflectyourtaxableincome,andifthealternatemethodproperlyandfairlyshowsyourWestVirginiataxableincome.Your petition should include your name and address; state ofincorporation,andprincipalplaceofbusiness;descriptionof thekind(s)ofbusinessinwhichyouareengaged;detailedstatementof how sales are made in West Virginia; computation of yourWestVirginiataxableincomeusingthestatutoryapportionmentformulaandusingyourproposedalternateformula;andasummaryofthefactsthatsupportyourposition.Sendyourpetitionto:WestVirginiaStateTaxDepartmentTaxAccountAdministrationDivisionCorporate&FranchiseTaxUnitP.O.Box1202Charleston,WV25324-1202

Form SPF-100W InstructionsA–Payerinformation:

• EnterthenameFEINandaddressofthepayerfromwhichyoureceivedtheFederal1099,FederalK-1,orWV/NRW-2.B–TaxpayerInformation:

• EntertheFEINandnameofthetaxpayer.MakesuretheFederalEmployerIdentificationNumber(s)agreewithyourstatementsandarecorrect.Ifthepaymentwasmadeonbehalfofadisregardedentity,entertheirnameandFEINhereratherthanthenameandFEINoftheentityfilingthereturn.

• EntertheamountofincomesubjecttoWestVirginiawithholdingC–WVTaxWithheld:

• Checkthesourceofwithholding• EntertheamountofWESTVIRGINIATAXWITHHELDfrompayer• Federal1099• Federal K-1. As the Federal K-1 does not break outWestVirginia information, please attach a supplemental schedule

breakingdownincomeandwithholdingsbystate.• NRW-2,WVonly• Enterthetaxyearendingdateofpass-throughentityfiler.

1

A – Payer Information B – Taxpayer Information C – WV Tax Withheld

l23456789 ABC CompAny 500.00Payer ID from 1099, K-1, and/or NRW-2 Name WV WITHHOLDING

JSmITH InC 555555555 Check the appropriate boxPayer Name

123 Any STREETFEIN

1099 K-1 NRW-2Address

5000.00 1215 Date tax year ending (MMYY)CookEvIllE Tn 38506City, State, ZIP Income Subject to WV WITHHOLDING Enter WV withholding Only

InstructIons - WV State Tax Departmenttax.wv.gov/Documents/TaxForms/2015/spf100.instructions.pdf ·...

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Transcript of InstructIons - WV State Tax Departmenttax.wv.gov/Documents/TaxForms/2015/spf100.instructions.pdf ·...