West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-10J - Abusive Tax Shelters › Section 110-10J-4 - Reportable Transactions

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1.
				For each taxable year in which a taxpayer is required to make a disclosure
				statement under Treasury Regulations Section 1.6011-4 with respect to any
				reportable transaction in which the taxpayer participated in a taxable year for
				which a return is required, the taxpayer shall file a copy of the disclosure
				with the Tax Commissioner: Provided, That this disclosure requirement also
				applies to any taxpayer that is a member of a consolidated group that is
				required to make a disclosure.
4.1.1.
				Disclosure under this subsection is required to be made by any taxpayer that is
				a member of a unitary business group that includes any person required to make
				a disclosure statement under Treasury Regulations Section 1.6011-4.
4.1.2. Disclosure under this subsection is
				required with respect to any reportable transaction entered into after February
				28, 2000, that becomes a listed transaction at any time, and shall be made in
				the manner prescribed in this rule.
4.1.2.1.
				If a taxpayer fails to disclose a listed transaction on either the taxpayer's
				state or federal income tax return, an assessment shall be made at any time not
				later than six years after the due date of the return required under W. Va.
				Code §
											11-21-1 et
				seq., or W. Va. Code §
											11-24-1 et
				seq., for the same taxable year or after the return was filed, or not later
				than three years after an amended return is filed, whichever is
				later.
4.1.3. With
				respect to reportable transactions in which the taxpayer participated for
				taxable years ending before December 31, 2004, disclosure shall be made by the
				due date of the first annual return due after June 8, 2006: Provided, That if
				the taxpayer has applied for and been granted an extension of time for filing
				the first annual return that is due after June 8, 2006, the extension of time
				shall apply in like manner to the disclosure statement required to be filed
				with the return.
4.1.4. With
				respect to reportable transactions in which the taxpayer participated for
				taxable years ending on and after December 31, 2004, disclosure shall be made
				in the time and manner prescribed in Treasury Regulations Section 1.6011-4(e).
4.1.4.1. The disclosure statement for a
				reportable transaction must be attached to the taxpayer's tax return for each
				taxable year for which a taxpayer participates in a reportable transaction. In
				addition, the disclosure statement for a reportable transaction must be
				attached to each amended return that reflects a taxpayer's participation in a
				reportable transaction. If a reportable transaction results in a loss which is
				carried back to a prior year, the disclosure statement for the reportable
				transaction must be attached to the taxpayer's application for tentative refund
				or amended tax return for that prior year. In the case of a taxpayer that is a
				partnership or S corporation, the disclosure statement for a reportable
				transaction must be attached to the partnership's or S corporation's tax return
				for each taxable year in which the partnership or S corporation participates in
				the transaction under the rules of section 5 of this rule.
4.1.4.2. If a transaction becomes a listed
				transaction after the filing of a taxpayer's tax return (including an amended
				return) reflecting either tax consequences or a tax strategy described in
				guidance published by the Internal Revenue Service listing the transaction (or
				a tax benefit derived from tax consequences or a tax strategy described in the
				publication) and before the end of the period of limitations for the final
				return (whether or not already filed) reflecting the tax consequences, tax
				strategy, or tax benefit, then a disclosure statement must be filed as an
				attachment to the taxpayer's tax return next filed after the date the
				transaction is listed regardless of whether the taxpayer participated in the
				transaction in that year.
4.1.5. Notwithstanding subdivisions 4.1.1
				through 4.1.4 of this rule, no disclosure is required for transactions entered
				into after the February 28, 2000, and before January 1, 2004:
4.1.5.1. If the taxpayer has filed an amended
				West Virginia income tax return which reverses the tax benefits of the
				potential tax avoidance transaction; or
4.1.5.2. As a result of a federal audit the
				Internal Revenue Service has determined the tax treatment of the transaction
				and a West Virginia amended return has been filed to reflect the federal
				treatment.
4.1.6. If as
				a result of filing a disclosure required by W. Va. Code §
										11-10E-5
				and this rule a taxpayer's tax liability for any taxable year for tax imposed
				by W. Va. Code §
										11-21-1 et
				seq., or W. Va. Code §
										11-24-1 et
				seq. is changed, the appropriate amended tax return or returns for the affected
				tax year or years are required to be filed.
4.1.7. Any action by the Internal Revenue
				Service resulting in a reportable transaction being added to, modified or
				removed from the categories of reportable transactions identified and described
				in Treasury Regulations Section 1.6011-4, or identified and described in any
				other Treasury publication, will be treated in like manner by the Tax
				Department and considered to be incorporated in this section.