The West Virginia partnership tax return is prepared for calendar, fiscal, and short year partnerships. Using entries from the federal tax return and West Virginia worksheets , the following forms and schedules are prepared for the West Virginia return:
A copy of the federal return is attached to the West Virginia return.
West Virginia allows federal depreciation. West Virginia depreciation is computed from entries on the "Federal Depreciation and Amortization" input forms. Entries on the Depreciation worksheet, State if Different fields are NOT used to calculate West Virginia depreciation.
The West Virginia partnership return reports partnership adjustments to federal ordinary income. FS codes are NOT required to prepare the West Virginia partnership return. All income and expenses included on the federal return carry to the West Virginia return. With the exception of the automatic features listed below, you will need to make entries on the West Virginia input forms for additions to and subtractions from federal ordinary income. However, FS entries are used to process footnotes for the West Virginia IncomeTax Return, Form SPF-100. If you want a footnote to print with the West Virginia Nonresident Composite Tax Return, Form IT-140NRC, you must enter a "4" in the State/city use field on the Note worksheet .
The following items carry from the federal return or worksheets to the West Virginia return. You do NOT need to make additional entries on West Virginia worksheets for these items:
Interest on obligations of the United States (entered on Income/Deduction - interest worksheet ) carry to the West Virginia return as a subtraction from federal ordinary income. This adjustment is made on Form SPF-100, Page 2, Schedule A-1.
Municipal Bond Interest
West Virginia includes municipal bond interest from sources Income/Deduction - interest worksheet with a "State" code other than "WV" carries to the Form SPF-100, Page 2, Schedule A-1, as a modification to federal partnership income.
Be sure to identify the source of the municipal bond interest on federal input forms by entering the appropriate code in the "State Code" field on Income/Deduction - Interest worksheet. When no state code is entered for an item of Municipal Bond interest, it is assumed to originate in the state entered in the "State" field on the federal General - Basic Data worksheet.
Use federal Special Allocations input to specially allocate West Virginia distributive share items. All federal special allocation features (single entry of ratios, tiered allocations, residual suppression) are available for West Virginia purposes. West Virginia codes to be used include the following:
For additional information concerning special allocations and the various special allocation methods, refer to the instructions for the federal Special Allocations worksheet .
Form SPF-100EXT, Extension of Time to File Information Returns and Schedule L, Application for Extension of Time to File West Virginia Personal Income Tax Return, may be requested in any of the following ways:
Note: When using methods 1 or 2, West Virginia unique information must be input on Extension - West Virginia worksheet .
West Virginia conforms with federal bonus depreciation provisions. No state entries are required to carry the federal income including bonus depreciation to the return.
Common Interest Rate Worksheet
Common Interest rate worksheet is available to override late payment interest percentages on Form SPF-100 and IT-140NRC. Enter the state code "WV" on Basic Data worksheet. New interest rates for West Virginia may be entered for the first and third quarters of each year.
The Schedules K-1 Equivalent are designated as final or amended if the same partner's federal Schedule K-1 is final or amended. In addition, if Form SPF-100, is final or amended, all Schedules K-1 Equivalent are designated as final or amended. Use Common Generic Schedule K-1 Information worksheet to override these defaults, or to designate a Schedule K-1 Equivalent separately.
Use federal Filing instruction worksheet to suppress all state Schedules K-1 Equivalent. Use West Virginia General worksheet, Basic Data section, Suppress Schedule K-1 - Override field to suppress the West Virginia Schedules K-1 Equivalent.
Use federal Filing instruction worksheet to suppress supporting statements for the West Virginia Schedules K-1 Equivalent. See the instructions on Filing instruction worksheet under "Suppress Schedules K-1 Statements Code."
A. West Virginia conforms to the federal Job Creation and Worker Assistance Act. No adjustment is made for depreciation difference due to JCWA.
A. For the 2015 tax year, taxpayers who had annual remittance of any single tax equal to or greater than $10,000 during 2014 are required to electronically file 2015 returns and make payments using Electronic Funds Transfer (EFT) for all tax types. (11-10-5z) This ruling concerns 2014 fiscal year returns and calendar year filer's payments or estimated payments made during their 2014 tax year. The requirement applies to all business tax types, unless specifically excluded.
Please see the West Virginia Department of Revenue website for exclusions to the e-file requirement.
Use West Virginia General Category, Basic Data worksheet, "Annual remittance of any single tax type greater than $10,000 during 2014" field to turn off such language if not desired or to turn on such language if taxpayer is subject to using EFT payments due to an annual remittance of a single tax type greater than $10,000 during 2014 for another tax liability type.
A. Federal Common State Category, Generic State Schedule K-1 Information worksheet has several uses for West Virginia Partnership return information.
The entity type code override is available on Federal Common State Category, Generic State Schedule K-1 Information Worksheet, State/City Information Section, Type of entity and Description of other type of entity , if the West Virginia entity type differs from the federal.
You may override West Virginia Schedule K-1 Equivalent printing percentages on Generic State Schedule K-1 Information Worksheet using the ratio ID number method in Partners percentage option section, ratio ID field or the partner-by-partner method in Generic Partner Input section, profit before change field . For the latter method, you must enter the partner number for each partner starting in Generic Partner Input Section, Partner number field .
An amended or final Schedule K-1 Equivalent for West Virginia that is different from the federal may be overridden in Generic Partner Input section, Amended and Final field .
Federal Common State Category, Generic State Schedule K-1 Information Worksheet is used to provide unique partner information for Form WV/NRW-2. Generic Partner Input Section, State use field is used to enter the partner's West Virginia identification number, if applicable. For these entries to be associated with the proper partner, you must enter the partner number for each applicable partner starting in Generic Partner Input Section, Partner number field .
Generic State Schedule K-1 Information worksheet is also used to provide unique partner information for Form WV/NRW-4. Generic Partner Input Section, State use field allows you to enter the fiscal year end of the partner. No entry is needed here if the partner has a calendar year end. Generic Partner Input section, state use code field allows you to enter the code number designating the IRS Service Center where the nonresident partner files his federal return. For these entries to be associated with the proper partner, you must enter the partner number for each applicable partner starting in artner number field .
Generic State Schedule K-1 Information Worksheet, Generic Partner Input Section, State use field , provides you with the ability to select the appropriate nonresident tax treatment method, on a partner-by-partner basis.
These entries MUST be accompanied by an entry of code "5" on General Worksheet, Basic Data Section, Nonresident partner filing option . When using this method, ALL nonresident partners should be entered on Generic State Schedule K-1 Information worksheet .
A. Nonresident Schedule K-1 Equivalent worksheet is NOT used for West Virginia.
A. Yes. Use Federal Penalties worksheet, State Interest override Section , if there has been a late change in the rate charged on underpayments and late payments. The state postal code (WV) must be entered in state code field .
A. Form WV/NRW-2, Statement of West Virginia Income Tax Withheld for Nonresident Individual or Organization is produced by entries for Form SPF-100, on General Worksheet, Basic Date Section, Nonresident partner filing option filed , for ALL applicable nonresidents (blank, or Code "1"), or Federal Common State Category, Generic State Schedule K-1 Information Worksheet, Generic Partner Input Section, State Used field , by entering Code "1" for each partner selected.
Tax is not withheld for the following types of nonresident partners: tax-exempt, Keogh, IRA and SEP.
A. Form WV/NRW-4, West Virginia Nonresident Income Tax Agreement is produced for ALL applicable nonresidents (individuals, grantor trusts and C corporations) when General Worksheet, Basic Data Section, Nonresident partner code field , is "3", or when Generic State Schedule K-1 Information worksheet, Generic Partner Input Section, state use field 1 , is "3" for each applicable nonresident partner selected. Enter the spouse's social security number for this form on Composite worksheet, Form NRW-4 section .
For partners not applicable to Form WV/NRW-4: Form WV/NRW-2 is completed and tax is withheld for the following types of nonresident partners: partnership, limited partnership, limited liability partnership, limited liability company, S corporation, trust, estate and other.
A. Form IT-140NRC is produced by selecting Code "2" on General Worksheet, Basic Data Section, Nonresident partner filing option field . This entry includes every nonresident Individual partner in the composite return and produces the composite return.
To select some nonresident individual partners to be part of the composite return and others to have their withholding tax paid on Form SPF-100, you would use Generic State Schedule K-1 Information worksheet, Generic Partner Input Section, State use field 1 , to enter Code "2" for those nonresident individual partners to be included in the composite return. When using Generic State Schedule K-1 Information Worksheet , ALL nonresident partners should be listed and a method selected for each.
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