West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-10F - Payment of Taxes by Electronic Funds Transfer › Section 110-10F-13 - Penalties, etc. for noncompliance

Current through Register Vol. XLI, No. 28, July 12, 2024
13.1. The provisions of W. Va. Code §
									11-10-1
et seq
., govern the administration of any tax, interest,
				additions to tax or penalty assessed due to late EFT payments, except as
				provided in this rule.
13.2. W. Va.
				Code §
									11-10-5t
				imposes, in addition to any other additions to tax or penalties that may be
				applicable, a civil penalty for failing or refusing to use an appropriate EFT
				method when required to do so. The amount of the penalty is three percent of
				the tax liability which is or was to be paid by EFT.
13.3. Failure of a taxpayer to respond to the
				notification from the Department concerning the required use of EFT to make
				payments for a tax type or failure to timely or properly make EFT payments in
				accordance with this rule subjects the taxpayer to applicable penalties,
				additions to tax and interest, as provided by the Code, for delinquent or
				underpaid tax payments. If payment is made for a tax type for which a taxpayer
				was required to make payments using EFT and the payment is made in a method
				which is not in accordance with the procedures stated in this rule, penalties,
				interest and additions to tax for late filing and late payment, for that tax
				type, may be assessed as specified in the Code. In addition to any penalty that
				may be imposed, interest shall be added to the amount of tax due from the due
				date of the tax payment to the date that the funds become available to the
				State Treasury.
13.4. The
				Department may waive the penalty and additions to tax if the taxpayer can
				demonstrate that the failure was due to reasonable cause and not due to willful
				neglect. Errors made by the Department, the State Treasury or the taxpayer's
				bank which result in a late payment by the taxpayer do not subject the taxpayer
				to penalties, additions to tax, or interest.
13.5. When a taxpayer uses the ACH Debit
				payment method, the State of West Virginia's bank is the originating bank and
				is responsible for the accuracy of the transmission. If the taxpayer has timely
				initiated the ACH Debit transaction, received a confirmation number, and
				demonstrated that adequate funds were available in the bank account, then the
				fact that the transaction is not properly completed does not subject the
				taxpayer to penalties, additions to tax or interest.
13.6. When a taxpayer uses the ACH Credit
				payment method, the taxpayer's bank is the originating bank and the taxpayer is
				primarily responsible for the accuracy and proper completion of the
				transaction. In order to prove timely compliance, the taxpayer shall show
				timely initiation of the transaction; shall have provided the correct
				information for the NACHA CCD+ entry and the required TXP Banking Convention
				addenda record; and shall show that there were sufficient funds in the account
				and that the financial institution properly completed the transaction in a
				timely manner. If the taxpayer makes this showing, no penalties, additions to
				tax or interest apply to the payment if the transaction is not properly
				completed.
13.7. A taxpayer
				required to make EFT payments, but unable to make a timely payment because of
				system failures within the Automated Clearing House system which are beyond the
				taxpayer's control, is not subject to penalties, additions to tax or interest
				for late payment.