Corporate Income Tax

If your business is incorporated in West Virginia or does business or participates in certain other activities in West Virginia, you may have to file an annual West Virginia State Corporation tax return.

The Corporation Net Income Tax is a tax on the West Virginia taxable income of every domestic or foreign corporation which enjoys the benefits and protections of the government and laws in the State of West Virginia or derives income from property, activity or other sources in West Virginia.

How do I?

Filing Status

Separate Entity Based

Use this method if you are filing a separate return and you are not engaged in a unitary business with one of more other corporations.

Combined Unitary Based

Corporations that are members of the same unitary business group must file a combined report including all required information of every business engaging in the unitary business with the corporation. This report must be filed with each member’s separate return unless the group elects to designate a corporation as surety and file a group combined return.

Filing Methods

Separate Entity Based

When filing a separate return, you may/will need to complete certain forms and schedules:

Combined Reporting Based §11-24-13A (j).

For tax years beginning on or after January 1, 2009, any taxpayer engaged in a unitary business with one or more other corporations shall file a combined report which includes the income, allocation, and apportionment of income of all corporations that are members of the unitary business.

Water’s Edge Reporting

Water’s Edge Reporting is mandated, absent an affirmative election to report based upon a worldwide unitary combined report.

Worldwide Unitary Combined reporting

You may choose to file Worldwide Unitary Combined Reporting, to do so, please fill out and sign West Virginia Form CNF-120 OPT and attach to your return. This election is binding for 10 years unless a written request to withdraw for reasonable cause has been sent to commissioner and granted.

Separate Combined Reporting

Use this method if you are filing a combined report but a separate return. Forms and schedules you may/will need to complete are the same as required for Separate Entity Filers except that the Schedule UB4-CR Combined Reporting Spreadsheet is required.

Group Combined Reporting

Corporations use this method if they are members of the same unitary business group and elect to designate surety.

Taxpayers must designate a surety FEIN in the space provided.

Forms and Schedules you may/will need to complete a group combined return are:

Remember: If you file as Combined Separate or Combined Group, you must complete the Schedule UB4-CR Combined Reporting Spreadsheet, and attach it to your return.

You must use the same taxable year and method of accounting as you use for Federal Tax Purposes.

You must attach to your West Virginia Corporate return a copy of pages 1 through 5 of your signed Federal Return as filed with the Internal Revenue Service.

If you attach a Proforma Federal Income Tax Return, the following consolidated return data is also required:

  • A copy of pages 1 through 5 of the consolidated return, plus
  • Supporting schedules showing the consolidation of the income statement, balance sheet, eliminations and adjustments;
  • A copy of Federal Form 851;
  • A signed statement explaining the differences, if any, between the income statement and balance sheet reported for Federal Consolidated filing.
  • Federal Schedule M-3, when applicable.

Estimated Taxes

Estimated Corporation Net Income Tax payments are required for any Corporation which can reasonably expect its West Virginia taxable income to be in excess of $10,000 (which equals a tax liability after tax credits in excess of $650.00) and are due in four equal installments on the 15th day of the fourth, sixth, ninth, and twelfth months of the tax year.

Filing your Business Returns

Returns should be filed by the due date.

Please file all required tax returns even if you owe no tax for the reporting period. All applicable pages of the return must be filed.

Assistance

Mailing Address:

West Virginia State Tax Department
Taxpayer Services Division
PO Box 3784
Charleston, WV 25337-3784

Telephone:

(304) 558-3333
1-800-982-8297 toll free within West Virginia and area code 614
1-800-282-9833 TDD for the hearing impaired

Payment of Tax

Due Date

A corporation’s annual West Virginia Net Income Tax Return is due on or before the 15th day of the fourth month after close of the taxable year.

A tax exempt organization’s annual return is due on or before the 15th day of the fifth month after the close of the taxable year. Make remittance payable to the West State Tax Department.

Where to File

West Virginia Corporation Net Income Tax Returns should be mailed to:

West Virginia State Tax Department
Tax Account Administration Division
PO Box 1202
Charleston WV 25324-1202

Extension of Time to File

An extension of time to file a Federal Return is automatically accepted by West Virginia as an extension of time to file the West Virginia return.

A copy of Federal extension form (Federal Form 7004) must be attached to the West Virginia return when filed and the extended due date must be entered on top of the first page of the West Virginia State Tax Return.

A state extension of time to file may be obtained, even if a federal extension has not been requested, provided a written request is made to the West Virginia Tax Department prior to the due date of the return.

An extension of time to file does not extend the time for payment of tax due. If you have an extension of time to file, payment of any tax due may be made by filing a tentative return. (See the instructions for Form CNF-120EXT (Formerly CNF-120T)).

To avoid interest and penalties, payment must be received on or before the original due date of return.

Additions to Tax

Late Filing

Additions to tax are imposed for failure to file return on or before the due date (determined with regard to an extension to file).

On any amount of tax shown to be on the return, the additions to tax for late filing is five percent (.05) per month or any part of a month, not to exceed twenty five percent (.25).

Late Payment

Additions to tax are imposed for failure to pay all tax shown to be due on a return on or before the due date (determined without regard to an extension of time to file).

The additions to tax for late payment are imposed at the rate of one half of one percent (.005) per month or part of a month not to exceed twenty five percent (.25).

Late File and Late Pay

When both the five percent (.05) additions to tax for late filing and the one half of one percent (.005) additions to tax for late payment are imposed, the maximum monthly percent is five percent (.05) not to exceed forty-seven and one half of one percent (.475) of the tax due.

Failure to Pay Estimated Tax

Corporations that are required to make estimated payments of their tax liability are subject to additions to tax for failing to pay at least ninety percent (.90) of their annual tax liability.

The additions are imposed at the same rate as interest is imposed. See form CNF-120U for more information.

Completion and Signature

All applicable sections of the return must be completed and all required supporting documents must be attached. An incomplete return will not be accepted as timely filed.

The return must be signed by an authorized officer. If the return is prepared by someone other than the taxpayer, the preparer must also sign the return and enter his or her complete address.

Changes on Federal Return

Any corporations whose reported income or deductions are changed or corrected by the Internal Revenue Service are required to report the change or correction to the West Virginia State Tax Department.

This report must be made within 90 days of the final determination by filing an amended return and attaching a copy of the revenue agent’s report detailing such adjustments.

Tax Forms and Instructions

Forms for prior tax years are available here.

Business Tax Return Questionnaire

Combined Reporting

About the Schedule UB4-CR Combined Reporting Spreadsheet

The Schedule UB4-CR Combined Reporting Spreadsheet is formatted according to Tax Department specifications in a common Microsoft Excel 97-2003 format for consistency.

The Schedule UB4-CR must be used when filing a combined report and/or combined return. It must be sent by e-mail to the Tax Department through the dedicated inbox at TaxCIT@WV.Gov.

Once you've created your UB4-CR, please save it according to the following file naming format:

  • FEIN of surety, if group combined. Example: 251234567
  • Type (CR). Example: CR
  • Sequence. Example: 001

Example file name: 251234567CR001.xls

Credit Forms and Schedules

Payments

Mailing Addresses

Please mail your completed Corporate Net Income Tax Return and supporting documents to:

West Virginia State Tax Department

Tax Account Administration Division

PO Box 1202

Charleston, WV 25324-1202

For tax information or assistance, call (304)558-3333 or 1-800-982-8297, Monday through Friday, 8:00 a.m. - 5:00 p.m. e-mail us at TaxHelp@WV.Gov.