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2020
WESTVIRGINIA
SCORPORATION&PARTNERSHIPINCOMETAX
(PASS THROUGHENTITIES)‐
PAGE1 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐
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IMPORTANTINFORMATIONFOR
StartingforTaxYear2020,theWestVirginiaSCorporation&PartnershipIncomeTaxReturnhasbeenredesignatedfrom
SPF100toPTE100.Thiswillimpactanyformthatpreviouslyhadthe“SPF”label.‐ ‐
ForperiodsbeginningonorafterJanuary1,2020,annualreturnswillhaveaduedateofMarch15,2021andan
extendedduedateofSeptember15,2021. Fiscaland52/53weekreturnswillbedueonthe15thdayofthethird ‐
monthfollowingthecloseofthetaxableyearwithanextensionperiodofsixmonths.
TAXRATES
ThewithholdingrateonWestVirginiasourceincomecontinuestobe . %(§ a(b)( )).
Effective January , , taxpayers who had annual remittance of any single tax equal to or greater than ,
duringfiscalyear arerequiredtoelectronicallyfilereturnsandmakepaymentsusingElectronicFundsTransfer
(EFT)forperiodsbeginningonorafterJanuary , .
FailuretocomplywiththerequirementtoremitpaymentsbyEFTwithoutfirstobtainingawaivermayresultinacivil
penaltyof percentofeachpaymentwhichwastobepaidbyEFT.Visitourwebsiteatwww.tax.wv.gov foradditional
information.
RETURNEDPAYMENTCHARGE
The Tax Department will recover a $15.00 fee associated with any returned bank transactions. These bank transactions
includebutarenotlimitedtothefollowing:
DirectDebit(payment)transactionsreturnedforinsufficientfunds.
Stoppedpayments.
Bankrefusaltoauthorizepaymentforanyreason.
DirectDepositofrefundstoclosedaccounts.
DirectDepositofrefundstoaccountscontaininginaccurateorillegibleaccountinformation.
Checksreturnedforinsufficientfundswillincura$28.00fee.
ThefeechargedforreturnedorrejectedpaymentswillbetorecoveronlytheamountchargedtotheStateTaxDepartment
bythefinancialinstitutions.
Important:Therearestepsthatcanbetakentominimizethelikelihoodofarejectedfinancialtransactionoccurring:
Besurethatyouareusingthemostcurrentbankroutingandaccountinformation.
Ifyouhaveyourtaxreturnprofessionallyprepared,thefinancialinformationusedfromaprioryearreturnoftenpre ‐
populatesthecurrentreturnasastepsaver.Itisimportantthatyouverifythisinformationwithyourtaxpreparerby
reviewingthebankroutingandaccountinformationfromacurrentcheck.Thiswillensuretheinformationisaccurate
and current in the event that a bank account previously used was closed or changed either by you or the financial
institution.
Ifyouprepareyourtaxreturnathomeusingtaxpreparationsoftware,thefinancialinformationusedfromaprioryear
return often pre populates‐ the current return as a step saver. It is important that you verify this information by
reviewingthebankroutingandaccountinformationfromacurrentcheck.Thiswillensuretheinformationisaccurate
and current in the event that a bank account previously used was closed or changed either by you or the financial
institution.
Ifyouprepareyourtaxreturnbyhandusingapaperreturn,besurethatallnumbersrequestingadirectdepositof
refundenteredareclearandlegible.
IfmakingapaymentusingMyTaxes,besurethatthebankroutingandaccountnumberbeingusediscurrent.
If scheduling a delayed debit payment for an electronic return filed prior to the due date, make sure that the bank
routingandaccountnumberbeingusedwillbeactiveonthescheduleddate.
Besurethatfundsareavailableinyourbankaccounttocoverthepaymentwhenchecksordelayeddebitpayments
arepresentedforpayment.
COVERPHOTOPHOTOGRAPHBYMARILYNWRENN
PAGE2 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐
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 Enlarge image | TAXPAYERRESPONSIBILITIES FILINGYOURBUSINESSTAXRETURNS Returnsmustbefiledbytheduedate. Youmayobtainformsfromanyofourregionalfieldofficesorfromourhomepage ontheinternetatwww.tax.wv.gov. FailuretofilereturnswillresultinyouraccountbeingreferredtoourComplianceDivisionforcorrectiveaction.Pleasefileall requiredtaxreturnsevenifyouowenotaxforthereportingperiod.Allpagesofthereturnmustbefiled. PAYMENTOFTHETAX Thefullamountoftaxowedisdueandpayableontheduedateofthetaxreturn.Failuretopaythefullamountoftaxbythe duedatewillresultininterestandpenaltiesbeingaddedtoanyunpaidamountoftax.Ifforanyreasonyouareunableto paythefullamountoftaxontheduedate,youshouldfileyourtaxreturnalongwithawrittenexplanationofwhyyouare unabletopayandwhenyouwillpaythetaxdue. REFUNDS Youareentitledtoarefundofanyamountthatyouoverpaid.Allorpartofanyoverpaymentmaybeappliedasacredit againstyourliabilityforsuchtaxforotherperiods.Aclaimforrefund(usuallyataxreturnshowinganoverpayment)must befiledwithinthreeyearsoftheduedateofthereturnortwoyearsfromthedatethetaxwaspaid,whicheverexpireslater. TheoverpaymentwillbeusedbytheTaxDepartmentagainstothertaxliabilitiesdue. IftheTaxDepartmentdoesnotrespondtoyourrequestwithinthree(3)monthsonoverpaymentofWithholdingTax,you maysubmitinwritingarequestforanadministrativehearingtopresentyourreasonswhyyoufeelyouareentitledtothe refund.InterestisallowedandpaidonanyrefunduponwhichtheDepartmenthasfailedtotimelyactandwhichisfinaland conclusive. If the Tax Department denies or reduces a request for a refund, a written request for an administrative hearing may be submitted.Failuretorespondtoadenialorreductionwithinsixty(60)dayswillresultinthedenial/reductionbecomingfinal andconclusiveandnotsubjecttofurtheradministrativeorjudicialreview. SELLINGORDISCONTINUINGYOURBUSINESS Ifyousellordiscontinueyourbusiness,notifytheTaxDepartmentinwritingassoonaspossibleafteryourbusinessissold ordiscontinued.Allfinaltaxreturnsshouldbefiled. PAGE3 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐ |
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GENERALINFORMATION
Theinformationinthisbookletisforcalendaryear2020returnsandforfiscalyearreturnsbeginningin2020andendingin
2021.Theinformationinthisbookisintendedtohelpyoucompleteyourreturnsandisnotasubstitutefortaxlawsand
regulations.
ASSISTANCE
Address questions to the West Virginia State Tax Department, Taxpayer Services Division, PO Box 3784, Charleston, WV
253373784orbytelephoneat(304)558‐ 3333,tollfreeat1800‐ ‐ 9828297.‐ ‐
EXEMPTORGANIZATIONS
AnySCorporationorPartnershipexemptfromfederalincometaxisalsoexemptfromWestVirginiaincometax.Inaddition,
certain insurance companies, certain production credit associations, trusts established under 29 U.S.C. 186, and other
organizationsspecificallyexemptunderthelawsofWestVirginiaarealsoexempt.
WHENTOFILEANDPAY
ForperiodsbeginningonorafterJanuary1,2020,annualreturnswillhaveaduedateofMarch15,2021andanextended
duedateofSeptember15,2021.Fiscaland52/53weekreturnswillbedueonthe15thdayofthethirdmonthfollowingthe ‐
closeofthetaxableyearwithanextensionperiodofsixmonths.
WHOMUSTFILE
ThefollowingPartnershipsarerequiredtofileanIncomeTaxReturn:
ResidentPartnerships,
NonresidentPartnershipshavingapartnerwhoisaresidentofWestVirginia,or
NonresidentPartnershipshavinganyincomefromorconnectedwithWestVirginiasourcesregardlessoftheamount
ofsuchincome.
Income from or connected with West Virginia is those items attributable to (a) the ownership of any interest in real or
tangiblepersonalpropertyinWestVirginia;or(b)abusiness,trade,profession,oroccupationcarriedoninWestVirginia
includingincomefromintangiblepersonalpropertyemployedinsuchbusiness,trade,profession,oroccupationunlessit
electstobetaxedundersubchapterSoftheInternalRevenueCode.
Theterm “Partnership” includessyndicates,pools,jointventuresoranyotherunincorporatedorganizationoftwoormore
personsthroughwhichanybusiness,trade,profession,occupationorventureiscarriedon. “ResidentPartnership” means
anypartnershiporganizedunderthelawsofWestVirginiawhoseprincipaloffice,placeofbusiness,orotheractivityiswithin
thebordersofWestVirginia.Itmayalsocarryonitsbusinessorotheractivitiesinotherstates. “NonresidentPartnership”
meansanypartnershipotherthanaresidentpartnership.
A LimitedLiabilityCompany whichistreatedlikeaPartnershipforfederalincometaxpurposeswillalsobetreatedassuch
forWestVirginiaincometaxpurposes.IfitisnottreatedlikeaPartnership,itwillbetaxedasaCCorporationunlessitelects
tobetaxedundersubchapterSoftheInternalRevenueCode.
EverycorporationelectingtobetaxedundersubchapterSoftheInternalRevenueCodethatengagesinbusinessinWest
Virginiaorthatderivesincomefromproperty,activity,orothersourcesinWestVirginiamustfileaWestVirginiareturn.
PAGE4 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐
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 Enlarge image | EXTENSIONOFTIMETOFILE AnySCorporationorPartnershipneedinganextensionoftimetofileand/orthatexpectstooweNonresidentWithholding TaxmustfileFormPTE100EXT,ExtensionofTimetoFileInformationReturns,onorbeforetheduedateofthereturn.Any ‐ SCorporationorPartnershipgrantedanextensionoftimetofiletheirfederalreturnisgrantedthesameextensionoftime tofiletheirWestVirginiareturn.Besuretoattachacopyofyourfederalextensiontoeachtaxreturntoavoidanypenalty forlatefiling.Anextensionoftimeforfilingdoesnotextendthetimeforpayment.Toavoidinterestandadditionstotaxfor latepayment,useFormPTE100EXTtomakeanextensionpaymentpendingthefilingoftheannualreturn. ‐ Astateextensionoftimetofilemaybeobtained,evenifafederalextensionhasnotbeenrequested,providedFormPTE ‐ 100EXTisfiledpriortotheduedateoftheWestVirginiareturn. WHERETOFILE WestVirginiaStateTaxDepartment TaxAccountAdministrationDivision POBox Charleston,WV 39 USEOFFEDERALFIGURES Allitemsofincomeanddeductionstobereportedonthisreturnarethesameasforfederaltaxpurposesandthemeaningofall termsarethesame,unlessotherwisedefined. PENALTYFORLATEFILINGANDFAILURETOINCLUDECORRECTINFORMATION AnySCorporationorPartnershipthatfailstofileand/orincludeallthecorrectinformationonFormPTE100,andon ‐ FormNRW ‐ 2,WVK1,WVK1C,1099,orFormNRW4whenapplicable,bytherequiredfilingdateissubjecttoapenaltyof$50.00foreach ‐ ‐ ‐ informationreturnthattheyfailedtofileorincludecorrectinformationon,nottoexceed$100,000. Provisionsforthereductionofthepenaltyamountexistifthepartnershipcorrectsthefailureorerrorwithinspecifiedtimeframes. Ifthefailureisduetointentionaldisregardforthefilingrequirementsorthecorrectinformationreportingrequirement,thepenalty is$100.00ortenpercent(.1)oftheaggregateamountoftheitemsrequiredtobereportedcorrectly,whicheverisgreater. Foradditionalinformationaboutthispenalty,requestacopyofPublicationTSD391bycallingTaxpayerServicesat(304)5583333 ‐ ‐ ortollfreeat18009828297.Also,thePublicationcanbefoundonlineatwww.tax.wv.gov. ‐ ‐ ‐ REPORTINGWESTVIRGINIAINCOMETAXWITHHOLDINGCREDIT AWestVirginiaIncomeTaxWithholdingCreditiscreatedwhenapaymentismadebyanotherentityforthebenefitoftheentity filingthisreturn. ElectronicFiledReturns –ItwillbenecessarytosubmitaFormNRW2,WVK1or1099aspartofyourelectronicreturnaspartof ‐ ‐ theelectronicfileandnotasaPDFifyouareclaimingawithholdingcredit.Thesedocumentswillbeusedtoverifythewithholding creditsclaimedonyourreturn.Ifwithholdingisfromnonresidentsaleofrealestate theFederalScheduleDmustbeattachedas ‐ aPDFattachment. PaperFiledReturns –EnterthetotalamountofWest Virginiataxwithheldon yourbehalfbyanotherentityonyourreturn.A completedNRW2,WVK1or1099 ‐ ‐ must beenclosedwithyourpaperreturn.Failuretosubmitthesedocumentswillresultinthe disallowance of the withholding credit claimed. Note: Local or municipal fees cannot be claimed as West Virginia income tax withheld.Ifthewithholdingsourceisforanonresidentsaleofrealestatetransaction,aformWV/NRSRmustbecompletedwith yourreturnandonfilewiththeStateTaxDepartmentpriortosubmittingataxreturn.Additionally,aFederalScheduleDmustbe submitted.IfwithholdingsarerelatedtoformWV/NRSR,pleaseindicateintheboxprovidedonline13. PAGE5 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐ |
 Enlarge image | NONRESIDENTSHAREHOLDER/PARTNERWITHHOLDINGTAX SCorporationsandPartnershipsarerequiredtowithholdWestVirginiaIncomeTaxforeachnonresidentshareholder/partnerthat hasnot providedtheSCorporationorPartnershipaWVNonresident IncomeTaxAgreement,FormNRW4.Theamounttobe ‐ withheldissixandonehalfpercent(.065)ofthenonresidentshareholder’s/partner’sshare ‐ of the Federal Taxable Income or portionthereofthatisderivedfromorattributabletoWestVirginiasources,whethersuchamountisdistributedorisdeemedto havebeendistributedforFederalIncomeTaxpurposes.TheentiretaxwithheldisrequiredtoberemittedwiththeWVIncome TaxReturnforSCorporationandPartnership. INFORMATIONSTATEMENTOFTAXWITHHELD Every SCorporation or Partnership required to deduct and withhold tax on nonresident shareholders/partners must provide a WV/NRW2‐ or WVK1 to each‐ nonresident shareholder/partner on or before the date it files its West Virginia S Corporation/PartnershipTaxReturn.TheinformationstatementshallshowtheamountofWVincomesubjecttowithholdingand theamountofWVIncomeTaxwithheldbytheSCorporationorPartnershiponbehalfoftheshareholder/partner. The S Corporation or Partnership is required to submit all income and withholding information as it relates to the individual shareholders/partnersoftheSCorporationorPartnershiponScheduleSP,SummaryofK1Shareholders/PartnersOwnershipand ‐ ComputationofWithholdingTax,whenfilingtheirannualPTE100. ‐ SATISFYINGNONRESIDENTPERSONALINCOMETAXREPORTINGREQUIREMENTS IT 140WESTVIRGINIAPERSONALINCOMETAXRETURN‐ The individual nonresident shareholder/partner must enclose the withholding documents supplied by the S Corporation or Partnership, WV/NRW2‐ or WVK1, when‐ filing the IT140 West ‐ Virginia Personal Income Tax Return on paper. If filing electronically,thisinformationwillbeenteredinthetaxsoftwareprogramanditwillnotbenecessarytosubmitanyadditional paperforms. IT 140NRCNONRESIDENTCOMPOSITETAXRETURN‐ If the only West Virginia source income for the shareholders/ partners is derived from the S Corporation or Partnership, the shareholders/partnersmayelecttosatisfythenonresidentincometaxreportingrequirementsusingtheIT140NRCNonresident ‐ CompositeTaxReturninlieuoftheIT140West ‐ VirginiaPersonalIncomeTaxReturn.Thispermitsthegrouptofileasasingle entitywiththeonlysignaturerequirementsbeingofapartnerinthecaseofaPartnershiporacorporateofficerinthecaseofan SCorporation. TheSCorporationorPartnershipwillfiletheIT140NRCandisresponsibleforcollectingandremittingallwithholdingtaxdue.A ‐ copy of Schedule SP as submitted with the PTE100 filed‐ by the S Corporation or Partnership indicating which shareholders/ partnershaveelectedtobepartofthecompositereturnmustbesubmittedwiththeIT140NRCreturn.Aprocessingfeeof$50.00 ‐ isalsorequiredtoberemittedatthetimeoffiling. SCORPORATION/PARTNERSHIPINCOME(LOSS) FormPTE100,ScheduleAisusedtoreportallincome(loss) ‐ fromallactivityofaSCorporationorPartnership,butonlytothe extent that it is taxable and allocable tothe shareholders/partners. If the S Corporation or Partnership has income (loss) from activityinmorethanonestate,FormPTE100APT,ScheduleBmustalsobecompleted. ‐ Ifan SCorporation orPartnershiphasincome(loss)fromactivityin morethanonestate,andtheycanseparatelyidentify and accountforitemsofincomeanddeductionsasbeingdirectlyallocabletoWV,theymayseparatelyaccountfortheWVbusiness activity on PTE100, ‐ Schedule A, lines 1 through 6. Supporting Federal documents must be attached to the PTE100. If direct ‐ allocation is used add PTE100, ‐ Schedule A, lines 9and 12, and enter the total on line 13. Generally, income derived from the ownershipofrealortangiblepersonalpropertyinWestVirginialendsitselftodirectallocation,whereasincomefromabusiness carriedonwithinandwithouttheStatewouldpreferablybeallocatedbyapportionment.UnlessthebooksandrecordsoftheS CorporationorPartnershipclearlyreflecttheirWestVirginiaportion,theallocationmustbemadebytheapportionmentformula providedinformPTE100APT,ScheduleB. ‐ IfyouhavedeterminedyourWVIncomeentirelybydirectallocation,youarenoteligibletoapportion. SHAREHOLDER/PARTNERINFORMATION PAGE6 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐ |
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Form PTE100,‐ lines 5 through 10, and the Schedule SP are used to identify all shareholders/partners and to account for each
shareholder/partner’sshareoftheSCorporation/Partnership’sincome.Theyarealsousedtocalculatetheamountofwithholding
that is required on the nonresident shareholder/partner’s share of the S Corporation’s/Partnership’s income. All
shareholders/partnersaresubjecttoWestVirginiapersonalincometaxundertheprovisionsofWVCodeChapter11,Article21.
The S Corporation/Partnership is required to withhold income tax on the nonresident shareholder’s/partner’s share of the S
Corporations/Partnership’sWestVirginiasourceincomeundertheprovisionsofChapter11,Article21,Section71aoftheWest
VirginiaTaxCode.
TAXABLEYEAR/METHODOFACCOUNTING
Youmustusethesametaxableyearandmethodofaccountingasyouuseforfederaltaxpurposes.
FEDERALRETURNINFORMATION
Asigned,truecopyofthefirstfivepagesofFederalForm1120Sor1065,plusM3ifrequired,andanysupportingdocumentsmust ‐
beattachedtothePTE100returnwhenfiled. ‐
INTEREST
Youmustpaytheentiretaxdueonorbeforetheduedateofthetaxreturn(determinedwithoutregardforanextensionoftime
tofile).Ifyoudonotpaytheentiretaxdueonorbeforetheduedate,youmustpayinterestontheamountoftheunderpayment
fromtheduedatetothedatepaid.Interestisalwaysdue,withoutexception,onanyunderpaymentoftax.
InterestisimposedatanadjustedrateestablishedbytheTaxCommissioner.Theinterestratewillbedeterminedandineffectfor
periodsofsixmonths.Interestratesineffectforvariousperiodsare:
01/01/99–06/30/00 8 %
01/01/17–12/31/17 8 %
07/01/00–12/31/01 9 %
01/01/18–12/31/18 8.75 %
01/01/02–06/30/02 8 %
01/01/19–12/31/19 9.75 %
07/01/02//12/31/16‐ 9.5 %
01/01/20–12/31/20 9.25 %
ContacttheWestVirginiaStateTaxDepartmentTaxpayerServicesDivisionfortheinterestrateineffectforotherperiods.The
telephonenumberis(304)5583333ortollfreewithinWestVirginia18009828297. ‐ ‐ ‐ ‐
ADDITIONSTOTAX
LATEFILING
Additionstotaxareimposedforfailuretofileareturnonorbeforetheduedate(determinedwithregardtoanextensionoftime
tofile).Onanyamountoftaxshowntobedueonthereturn,theadditionstotaxforlatefilingofthereturnisfivepercent(.05)
permonthoranypartofamonthnottoexceedtwentyfivepercent(.25). ‐
LATEPAYMENT
Additionstotaxareimposedforfailuretopayalltaxshowntobedueonareturnonorbeforetheduedate(determinedwithout
regardtoanextensionoftimetofile).Theadditionstotaxforlatepaymentisimposedattherateofonehalfofonepercent(.005)
permonthorpartofamonthnottoexceedtwentyfivepercent(.25). ‐
Whenboththefive percent (.05) additionstotaxfor latefilingand theonehalf ofone percent (.005)additions totax forlate
paymentareimposed,themaximummonthlypercentisfivepercent(.05).
COMPLETIONANDSIGNATURE
Allappropriatesectionsofthereturnmustbecompleted.Allrequiredsupportingdocumentsmustbeattached.Anincomplete
returnwillnotbeacceptedastimelyfiled.Thereturnsmustbesignedbyanauthorizedofficerorpartner.Ifthereturnisprepared
bysomeoneotherthanthetaxpayer,thepreparermustalsosignthereturnandenterhisorhercompleteaddress.
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CHANGESMADEBYTHEIRSTOFEDERALRETURN
AnySCorporationorPartnershipwhosereportedincomeordeductionsarechangedorcorrectedbytheInternalRevenueService
orthroughrenegotiationofacontractwiththeUnitedStatesisrequiredtoreportthechangeorcorrectiontotheWestVirginia
StateTaxDepartment.Thisreportmustbemadewithin90daysofthefinaldeterminationbyfilinganRARAmendedReturnand
attachingacopyoftherevenueagent’sreportdetailingsuchadjustments.
PASSTHROUGHAMENDEDRETURNS‐
AnSCorporationorPartnershipthatfiledanamendedreturnwiththeInternalRevenueService must fileanamendedreturnwith
theWestVirginiaStateTaxDepartmentwithin 90days offilingtheamendedfederalreturn.
FileFormPTE ,completingallappropriatelinesandcheckingthe Amended boxunder“RETURNTYPE”onpage .
BecauseWestVirginianowusesbarcodesontaxformsitisimportanttousetheappropriateformsforthetaxyear
beingamended.
Example:Youareamendingataxreturnfortheperiodending ;besuretousethe SPF forms.
NOTE:Taxformsfromdifferentyearsmayhavedifferentlinenumbers;readthelineinstructionscarefully.
AnyamountpaidwiththeoriginalreturnshouldbeenteredonFormPTE ,page ,line .
Ifyoureceivedarefundorhadanamountcreditedontheoriginalreturn,enterthatamountonFormPTE ,page
line .
Attachallschedulespreviouslysubmittedandmakeanyappropriateamendedchanges.
AmendedReturnsfiledforthepurposeofobtainingarefundofanoverpaymentmustbefiledwithin threeyears oftheduedate
ofthereturn(withregardtoanextensionoftimetofile),or twoyears fromthedatethetaxwaspaid,whicheverexpireslater.If
yourAmendedReturnhasabalancedue,sendthepaymentalongwiththetaxreturn.
CONSISTENCYINREPORTING
In completing your West Virginia Income Tax Return forSCorporationsandPartnerships,ifyoudepartfromormodifypast
proceduresforclassifyingbusinessincomeandnonbusinessincome, forvaluingpropertyorincludingorexcludingpropertyinthe
propertyfactor,fortreatingcompensationpaidinthepayrollfactor,orforincludingorexcludinggrossreceiptsinthesalesfactor,
youmustdisclosebyseparateattachedschedulethenatureandextentofthevarianceormodification.
Ifyoumakesalesoftangiblepersonalpropertywhichareshippedintoastateinwhichyouarenottaxable,youmustidentifythe
statetowhichthepropertyisshippedandreportthetotalamountofsalesassignedtosuchstate.
CONFIDENTIALINFORMATION
TaxinformationwhichisdisclosedtotheWestVirginiaStateTaxDepartment,whetherthroughreturnsorthroughdepartment
investigations,isheldinstrictconfidencebylaw.TheStateTaxDepartment,theUnitedStatesInternalRevenueService,andother
stateshaveagreementsunderwhichtaxinformationisexchanged.Thisistoverifytheaccuracyandconsistencyofinformation
reportedonfederal,otherstate,andWestVirginiareturns.
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SCHEDULESP
SUMMARYOFK SHAREHOLDERS/PARTNERSOWNERSHIPANDCOMPUTATIONOFWITHHOLDINGTAX
THISSCHEDULEMUSTBECOMPLETEDANDSUBMITTEDWITHALLSCORPORATIONANDPARTNERSHIPRETURNS.
COLUMNA
Enterthenameofeachshareholder/partnerthattheSCorporationorPartnershiphadduringitstaxableyear.
Ifentityhasmorethan12shareholders/partners,taxpayermustsubmittheirPTE100returnelectronically. ‐
If asingle Shareholder or Partner has 100% ownership,mark the checkbox provided and providethe information ofthe single
entity.
COLUMNB
Entereitherthesocialsecuritynumberorfederalemployer’sidentificationnumberofeachshareholder/partnerlistedinColumnA.
COLUMNC
CheckonlyoneBox:
Box‐ Iftheshareholder/partnerisaresidentofWestVirginia,checktheboxinthiscolumn.
Box‐ Iftheshareholder/partnerisanonresidentofWestVirginiaandhaselectedtobeamemberofthenonresident
compositegroup,checktheboxinthiscolumn.Thesearethenonresidentshareholders/partnerswhowillbeincluded
intheNonresidentCompositeTaxReturnfiling.
Box‐ If the shareholder/partner is a nonresident of West Virginia and has elected not to be a member of the
composite group and has not signed Form NRW , check the box in this column. These nonresident
shareholders/partnerswillfileIT WestVirginiaPersonalIncomeTaxReturnasrequired.
Box‐ IftheSCorporation/PartnershiphasreceivedFormNRW fromthenonresidentshareholder/partnerorifthe
shareholder/partneristaxexempt,checktheboxinthiscolumn. AttachanyNRW agreementsignedinthistaxperiod
toyourreturnwhenfiled.IfFormNRW wasfiledandsubmittedinapreviousperiod,andhasnotbeenrevoked,itis
notnecessarytofileadditionalcopieswithyourreturninsubsequentyears. Pleasemakeavailableuponrequestalist
oftaxexemptentitiesonScheduleSP.
COLUMND
Entertheincomedistributionpercentageofeachshareholder/partnercarriedouttothesixthdecimalplace.
COLUMNE
Multiplytheincomedistributionpercentageofeachshareholder/partnerinColumnDbytheamountshown intheTotalWest
VirginiaIncomeboxatthebottomofthepage. TheamountinColumnEistheWVDistributiveIncomeofeachshareholder/partner.
AstateofexplanationmustbesubmittediftheWestVirginiaDistributiveIncomeoftheshareholder/partnerisnotequaltotheir
ownershippercentagetimestheentity’sWestVirginiaincome.
COLUMNF
IfBox2inColumnC(NonresidentComposite)waschecked multiplythedollaramountinColumnEbythetaxrateof.065and ‐
entertheresultinColumnF.
COLUMNG
IfBox3inColumnC(Nonresident)waschecked multiplythedollaramountinColumnEbythetaxrateof.065andenterthe ‐
resultinColumnG.
SCHEDULESPGRANDTOTALLINE
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TotaltheamountinColumnFandColumnG. EnterthetotalsofthesecolumnsontheScheduleSPpageinthe“SPScheduleGrand
Total”line.
TOTALWVINCOME
TheamountinthisboxmustmatchtheamountshownonScheduleA,line13.
Special Note: S Corporations/Partnerships with nonresident shareholders/partners must complete and submit one of the
followingformsforeachshareholder/partnerlistedontheScheduleSP,withtheFromSPboxchecked:
NRW –StatementofWestVirginiaIncomeTaxWithheldforNonresidentIndividualorOrganization
WVK – Schedule of WV Partner/Shareholder/Member/Beneficiary Income, Loss, Modification, Credits, and
Withholding
WVK C – Schedule of WV Partner/Shareholder/Member or Beneficiary Information for Corporations subject to
CorporateIncomeTax
Theseformscontainimportantinformationaboutthenonresidentwithholdingrequirements.Youmayfindtheseformsonlineat
www.tax.wv.gov.
EXTENSIONPAYMENTS
Extensionrequestsandtentativepaymentsofnonresidentwithholdingtax,forbothshareholders/partnerswhoareincludedon
theNonresidentCompositeReturnandforthosewhowillbefilingindividualreturns,mustbesubmittedbytheSCorporation/
PartnershiponFormPTE100EXT. ‐
PAGE10 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐
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 Enlarge image | PTE INSTRUCTIONS Onpage1,enterthebeginningandendingtaxyeardatescoveredbythisreturn.Clearlyprintortypeyournameandaddress.If filingunderextension,enterextendedduedate. CENTRALIZEDAUDITREGIME ‐ IfyouhaveelectedoutoftheCentralizedAuditRegimeunderIRCSection6221(b),checkthe“yes” box.Ifnot,checkthe“no”boxandcompletetheRepresentativeinformationinthedesignatedareaonpage1. Inthe“ CHECKALLAPPLICABLEBOXES ”section,checkallboxesthatapplytothereturnbeingfiled. Part1–ENTITYTYPE –checkeitherSCorporationorPartnership Part2–RETURNTYPE –checkallthatapply(morethanoneboxmaybeselected). Part3–IFFINAL/SHORTPERIOD/INITIALRETURN– checkallthatapply. Part4–ACTIVITYDESCRIPTION– checkapplicablebox Part5–REPORTABLEENTITIES –checkallthatapply. Note: ifanyboxischeckedinthissection,informationaboutthereportable entitymustbeenteredonScheduleCiftheymadeapayment,andScheduleDforallotherentities. Attachacopyofthe firstfivepages ofyour signed federalreturn(Form1120Sor1065),andscheduleM3ifapplicable. ‐ Pleaseattachanyadditionalinformationand/orstatementsasrequired. AllSCorporations/PartnershipsmustcompletePTE100ScheduleSPbeforecompletinglines6through11. ‐ Line6,ColumnAIncome ‐ –EntertheamountofWVDistributiveIncomeofWVresidentsfromScheduleSP. Thisamountwillbe equaltothesumoftheamountinColumnEforeachshareholder/partnerwhohadColumnC,Box1marked. Line 7, Column AIncome ‐ – Enter the amount of WV Distributive Income of nonresidents filing on an IT140NRC ‐ Nonresident Composite Tax Return from Schedule SP. This amount will be equal to the sum of the amount in Column E for each shareholder/partnerwhohadColumnC,Box2marked. Line7,ColumnBWithholding ‐ –EntertheamountofwithholdingtaxduefornonresidentsfilingonanIT140NRCNonresident ‐ Composite Tax Return from Schedule SP. This amount will be equal to the sum of the amount in Column F for each shareholder/partnerwhohadColumnC,Box2marked. Line8,ColumnA Income– –EntertheamountofWVDistributiveIncomeofnonresidentsfilingonanIT140WVPersonalIncome ‐ TaxReturnfromScheduleSP. ThisamountwillbeequaltothesumoftheamountinColumnEforeachshareholder/partnerwho hadColumnC,Box3marked. Line8,ColumnBWithholding ‐ –EntertheamountofwithholdingtaxduefornonresidentsfilingonanIT140WVPersonalIncome ‐ ReturnfromScheduleSP. ThisamountwillbeequaltothesumoftheamountinColumnGforeachshareholder/partnerwhohad ColumnC,Box3marked. Line9,ColumnAIncome ‐ –EntertheamountofWVDistributiveIncomeofnonresidentsfilingwithasignedNRW4,orthatare ‐ taxexempt,fromScheduleSP. ThisamountwillbeequaltothesumoftheamountinColumnEforeachshareholder/partnerwho hadColumnC,Box4marked. Line10,ColumnAIncome ‐ –EnterthesumofColumnA,lines6,7,8and9. ThetotalWVincomeamountmustmatchtheamount shownonScheduleSP(GrandTotalofColumnE)andtheamountshownonScheduleA,line13. Line11,ColumnBWithholding ‐ –EnterthesumofColumnB,lines7and8. Theamountofwithholdingtaxduemustmatchthe amountshownonScheduleSP(GrandTotalofColumnFplusGrandTotalofColumnG). Line12 –Enterthecreditcarriedforwardfromthepriortaxyearhere. Line13 –Enterestimatedandextensionpaymentshere. Also,ifthisisanamendedreturnenteranyamountpaidwiththeoriginal returnhere. PAGE11 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐ |
 Enlarge image | Line14– EntertheamountofwithholdingcreditfromanyNRW2,WVK1or1099submittedwithyourreturn. ‐ ‐ Checktheboxif anywithholdingsarefromNRSR(nonresidentsaleofrealestate). Line15 –Line12plusline13plusline14. MustmatchthetotalpaymentsshownonScheduleC. Line16 –Overpaymentpreviouslyrefundedorcredited(amendedreturnonly). Line17 –Totalpayments.Line15minusline16. Line18 –TaxDue–Ifline17issmallerthanline11,enteramountowedhere,otherwise,skiptoline22. Line19 –Calculateinterestdue.Seethegeneralinformationonpage7ofthisbookletforadditionalinformationregardinginterest. Line20 –Calculateadditionstotaxdue.Seethegeneralinformationonpage7ofthisbookletforadditionalinformationregarding additionstotax. Line21 –Remitthisamount .Ifpayingbycheck,makethecheckpayabletotheWestVirginiaStateTaxDepartment.Forother. paymentoptionsseewww.tax.wv.gov. Line22– Amountofoverpayment. Anoverpaymentmaybecreditedtonextyear’staxorrefunded,eitherinwholeorpart. Line23– Theamountofoverpaymenttobecreditedtonextyear’stax. Line24– Theamountofoverpaymenttoberefunded. PAGE12 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐ |
 Enlarge image | PTE SCHEDULEA PleasenotethatiftheSCorporationorPartnershiphasincomefromsourcesbothwithinandwithoutWestVirginia,theymust completethePTE100APTSchedulestodeterminehowmuchoftheirincomeisfromaWestVirginiasource. ‐ Line ‐ 1 An S Corporation will enter the ordinary income (loss) as shown on Federal Form 1120S. A Partnership will enter the ordinaryincome(loss)asshownonFederalForm1065. Line2– Entertheamountofallothergrossincome(loss)oftheSCorporationasshownonFederalForm1120S,ScheduleK,that isnotincludedonline1. Entertheamountofallothergrossincome(loss)ofthePartnershipasshownonFederalForm1065, ScheduleK,thatisnotincludedonline1. Line3– SCorporationswillentertheamountofanyexpensesordeductionsasshownonFederalForm1120S,ScheduleK,that arenotincludedonline1. PartnershipswillentertheamountofanyexpensesordeductionsasshownonFederalForm1065, ScheduleK,thatarenotincludedonline1. Line5 –ModificationsincreasingFederalincome:SCorporationsandPartnershipsentertheamountfromPTE100,ScheduleB,line ‐ 6. Line6 –ModificationsdecreasingFederalincome:SCorporationsandPartnershipsentertheamountfromPTE 100,Schedule ‐ B,line12. Line7– Addline4plusline5minusline6.WhollyWestVirginiaEntitygotoline13.MultistateEntitycontinuetoline8. Line 8 –See the instructions for Form PTE100APT, ‐ Schedules A1 and A2 for proper classification of nonbusiness income. For entitieswithnonbusinessincomefromsourceswithinandwithoutWestVirginia,entertheamountfromPTE100APT,Schedule ‐ A1,line9here.‐ Line 10 ‐ If income is derived from sources within and without West Virginia, enter the apportionment factor from Form PTE ‐ 100APT,ScheduleB,part1orpart2orpart3asapplicable. Line12– ForentitieswithnonbusinessincomefromsourceswithinWestVirginia,entertheamountfromPTE100APT,Schedule ‐ A2,line9here. Line13– AmountofWestVirginiaincome. PAGE13 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐ |
 Enlarge image | PTE SCHEDULEB INCREASINGADJUSTMENTS Line1 – EntertheamountofUSGovernmentobligationinterestordividendsnotexemptfromstatetax,lessrelatedexpenses notdeductedonyourfederalreturn. Attachsupportingdocumentation. Line2 –InterestordividendsonstateandlocalbondsotherthanfromWVsources. Line3 –InterestonmoneyborrowedtopurchasebondsearningincomeexemptfromWVtax. Line4– Qualifying402(e)lumpsumincomenotincludedinfederaladjustedgrossincomebutsubjecttostatetax. ‐ Line5 ‐ Enteranyotherincreasingadjustmentshere.Enteradescription/explanation inthespaceprovided.Attachsupporting documentation. DECREASINGADJUSTMENTS Line7 InterestordividendsonUSorWVobligationsincludedinFederalAGIbutexemptfromstatetax. Line8 RefundsofstateandlocalincometaxesreceivedandreportedasincometotheIRS. Line9 QualifiedOpportunityZonebusinessincome(MustincludecopyofFederalIRSForm8996) Line10 Enteranyotherdecreasingadjustmentshere.Enteradescription/explanationinthespaceprovided. Attachsupporting documentation. Line11 Allowanceforgovernmentalobligations/obligationssecuredbyresidentialproperty(fromScheduleB1 ‐ ). SCHEDULEB Line1 Entertheamountoffederalobligationsandsecurities. Line2 EnteramountofobligationsofWestVirginiaandpoliticalsubdivisionofWestVirginia. Line3 EnterinvestmentorloansprimarilysecuredbymortgagesordeedsoftrustonresidentialpropertylocatedinWestVirginia. Line4 EnterloansprimarilysecuredbyalienorsecurityagreementonamobilehomeordoublewidelocatedinWestVirginia. Line5 Total Line6 EntertotalassetsasshownonScheduleLFederalForm1120SorFederalForm1065. Line7 Entertheamountofline5dividedbyline6androundtosixdecimalplaces. Line8 EnterthesumofScheduleAline4andScheduleBline6andsubtractthesumofScheduleBlines7through10. Line9 Entertheamountofline7multipliedbyline8. PAGE14 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐ |
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PTE SCHEDULEC
Ifthenumberofpaymentsexceedten(10),youmustfileelectronically.
Column1– Enterthenameoftheentity.
Column2 –EntertheFEINoftheentity.
Column3 –Enterthedateofanypaymentsmadebytheentity.
Column4 –Enteradescriptionofthetypeofpaymentmadeby,oronbehalfoftheentity.
Column5 –Entertheamountofthepaymentmadeby,oronbehalfoftheentity.
TotalLine –SumofthepaymentsshowninColumn5. ThisamountmustmatchtheamountonPTE 100,line15. ‐
SPF SCHEDULED
IfanyboxischeckedintheREPORTABLEENTITIESSectiononpage1,thenthenamesandFEINsofReportableEntitiesmustbe
enteredonthisschedule.
Ifthenumberofentitiesexceedsten(10)youmustfileelectronically.
Column1 Enterthenameofthereportableentity.
Column2 EntertheFEINofthereportableentity.
Column3 Enterthenameofthereportableentity’sparent.
Column4 EntertheFEINoftheparent.
Column5 EnteranexplanationoftherelationshipbetweenreportableentityandentitysubmittingthisWestVirginiaReturn.This
mayincludethefollowing:
ControlledForeignCorporation
DisregardedEntity
Entitythatownedmorethan %ofyourstock
Entitythatyouown %ormoreofvotingstock
AnyPass ThroughEntityofwhichyouareapartner,member,orshareholderdoingbusinessinWestVirginia.‐
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 Enlarge image | SPF TC SUMMARYOFTAXCREDITS TheSPF100TC,SummaryofTaxCredits,isaformusedbyPassThroughEntitiestosummarizethetaxcreditsthatareavailableto ‐ ‐ passontotheirshareholders/partnerssothesecreditscanbeusedagainsttheirnetincometaxliabilityfromthisentity.Inaddition, tocompletingtheSPF100TC,eachtaxcredithasascheduleorformthatisusedtodeterminetheamountofcreditthatcanbe ‐ distributed.Pleasenotethatsometaxcreditschedulesrequireacompletedapplicationtobesubmittedandapprovedbeforethe taxcreditschedulecanbefiled.BoththeSPF100TCandtheappropriatecreditcalculationschedule(s)orform(s)mustbeattached ‐ to your return Your shareholders/partners will need to submit the required documentation to claim their percentage of the availablecredits. PTE APT SCHEDULESA &A : ALLOCATIONOFNONBUSINESSINCOMEFORMULTISTATEBUSINESSES IfyourbusinessactivitiestakeplacebothwithinandwithoutWestVirginiaandyouarealsotaxableinanotherstate,certainitems ofnonbusinessincomethatareincludedinfederaltaxableincomearedirectlyallocated.Allotherincomemustbeapportioned. Businessincomearisesfromtransactionsandactivitiesintheregularcourseofthecorporation’stradeorbusinessandincludes incomefromtangibleandintangiblepropertyiftheacquisition,managementordispositionofthepropertyconstitutesintegral partsoftheentity’stradeorbusiness. Nonbusinessincomeincludesallincomethatisnotclassifiedasbusinessincome,lessallexpensesattributabletotheproduction ofthisincome.NonbusinessincomeisallocatedtoWestVirginiaif(1)theentity’scommercialdomicile,theprincipalplacefrom whichthetradeorbusinessismanaged,islocatedinWest Virginia,or(2)propertycreatingthenonbusinessincome isutilizedin WestVirginia.NonbusinessincomefromrealpropertyisallocatedifthepropertyislocatedinWestVirginia.Nonbusinessincome fromtangiblepersonalpropertyisallocatedtoWestVirginiaifthepropertyisutilizedinWest Virginiaor thepropertywaslocated inWestVirginiaatthetimeofitssale.NonbusinessincomefromintangiblepersonalpropertyisallocatedtoWestVirginiaifthe corporation’scommercialdomicileislocatedinWestVirginiaor,inthecaseofpatentsandcopyrights,iftheyareusedinWest Virginia. Foradetaileddiscussionofallocationofnonbusinessincome,youmayrequestacopyofPublicationTSD392,“CorporationNet ‐ IncomeTaxNonbusinessIncome”bycontactingourTaxpayerServicesDivisionoronlineatwww.tax.wv.gov. Determinenonbusiness income allocated to West VirginiaandoutsideWestVirginiabycompletingFormPTE100APT,Schedules ‐ A1andA2.OnlythosetypesofnonbusinessincomelistedonFormPTE 100APT,SchedulesA1andA2canbeallocated.Anyother ‐ typeofincomethattheentityclassifiesasnonbusinessmustbeapportioned. ScheduleA1,Line9 ‐ EntertheamountfromFormPTE100APTScheduleA1,column3,line9,onFormPTE100,ScheduleA,line ‐ ‐ 8. ScheduleA2,Line9 ‐ EntertheamountfromFormPTE100APTScheduleA2,column3,line9onFormPTE100,ScheduleA,line ‐ ‐ 12. SCHEDULEB: APPORTIONMENTFORMULA IfyourbusinessactivitiestakeplacebothwithinandwithoutWestVirginiaandyouarealsotaxableinanotherstate, allnet income, after deducting those items of nonbusiness income allocated on Form PTE100APT Schedules‐ A1 and A2, must be apportioned to West Virginia by using the appropriate apportionment formula. Completion of the PTE100APT ‐ Schedule B is requiredevenifapportionmentiszero. Specialapportionmentformulasapplytomotorcarriersandtofinancialorganizations. Ifyouarefilingforamotorcarrier,follow theapportionmentinstructionsforFormPTE100APT,ScheduleB,Part2. ‐ Ifyouarefilingforafinancialorganization,followthe apportionmentinstructionsforFormPTE100APT,ScheduleB,Part3. ‐ PAGE16 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐ |
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Multistate entities will use the standard apportionment formula of payroll, property, and sales, with the sales factor double
weighted,andwillcompleteFormPTE100APT,ScheduleB,Parts1,2and3asapplicable. ‐
MULTISTATESCORPORATIONS/PARTNERSHIPS–FOURFACTORAPPORTIONMENTFORMULA
PART1 – REGULARENTITIES
TodetermineyourWestVirginiaapportionmentpercentage,firstdeterminethefollowingfactors:
PROPERTYFACTOR. Propertyincludesallrealandtangiblepersonalpropertyownedorrentedandusedduringthetaxableyear
to produce business income. Property used in connection with the items of nonbusiness income allocated in SPF100APT,‐
SchedulesA1andA2shallbe excluded fromthefactor.
Propertymustbeincludedinthepropertyfactorifitisactuallyusedorisavailablefor,orcapableofbeingusedduringthetaxable
year.Propertyheldasreserves,standbyfacilities,orreservesourcesormaterialsmustbeincluded.Propertyorequipmentunder
construction (except goods in process that can be inventoried) must be excluded until it is actually used to generate business
income.Movableproperty,suchastools,constructionequipmentandtrucks,usedbothwithinandwithoutWestVirginia,shallbe
includedinthenumeratorofthefractiononthebasisoftotaltimewithinthestateduringthetaxableyear.
Propertyownedisvaluedatoriginalcost.Propertyrentedisvaluedateighttimesthenetannualrate.Leaseholdimprovements
areconsideredpropertyownedandareincludedattheiroriginalcost.Generally,originalcostisthebasisofthepropertyforfederal
income tax purposes at the time of acquisition and adjusted by subsequent capital additions or improvements and partial
dispositionsbyreasonofsale,exchange,abandonment,etc.Asageneralrule,propertyisincludedinthefactorbyaveragingits
values at the beginning and ending of the taxable period. However, the Tax Commissioner may require or allow averaging by
monthlyvaluesifsuchmethodisrequiredtoproperlyreflecttheaveragevalueofthetaxpayer’spropertyforthetaxableyear.
Determine the property factor by entering the appropriate amounts in line 1. Enter West Virginia property in column 1 and
propertyeverywhereincolumn2.
Line1 ‐ Dividecolumn1bycolumn2andentertheresultincolumn3. Statetheresultasadecimalandroundtosix(6)places
afterthedecimalpoint.
PAYROLLFACTOR. Thepayrollfactorshallincludethetotalamountofcompensationpaidtoemployeesduringthetaxableyear.
Thetotalamountpaidisdetermineduponthebasisofthetaxpayer’saccountingmethodforfederalincometaxpurposes.Ifyou
have adopted the accrual method of accounting for federal purposes, all compensation shall be deemed to have been paid.
CompensationmaybeincludedinthepayrollfactorbyuseofthecashbasisonlyifyouhavepermissionfromtheTaxCommissioner
foranalternatemethodofapportionment.Compensationmeanswages,salaries,commissions,andotherformsofremuneration
paidtoemployeesforpersonalservices.Paymentsmadetoanindependentcontractororanyotherpersonnotproperlyclassified
as an employee are excluded. Only amounts paid directly to employees are included in the payroll factor. Do not include
compensationpaidtoemployeesengagedexclusivelyinanactivitythatgeneratesnonbusinessincomethatyouallocatedinForm
PTE100APT,SchedulesA1andA2.‐
Thedenominator(column2)ofthepayrollfactoristhetotalcompensationpaidbythetaxpayerduringthetaxableyear,asshown
onthefederalincometaxreturnfiledwiththeInternalRevenueServiceandasreflectedinthescheduleofwagesandsalariesand
thatportionofthecostofgoodssoldwhichreflectcompensation.
Thenumerator(column1)ofthepayrollfactoristhetotalamountpaidinWestVirginiaduringthetaxableyearbythetaxpayer
forcompensation.CompensationispaidinWestVirginiaifanyofthefollowingtests,appliedconsecutively,aremet:
Theemployee’sserviceisperformedentirelywithinWestVirginia;
Theemployee’sserviceisperformedbothwithinandwithoutWest Virginia,buttheserviceperformedwithoutWest
Virginiais“incidental”totheemployee’sservicewithinWestVirginia(theword“incidental”meansanyservicewhich
istemporaryortransitoryinnatureorwhichisrenderedinconnectionwithanisolatedtransaction);
Iftheemployee’sservicesareperformedbothwithinandwithoutWestVirginia,theemployee’scompensationwillbe
attributed to West Virginia ( ) if the employee’s base of operations is in West Virginia; or ( ) if there is no base of
operationsinanystateinwhichpartoftheserviceisperformed,buttheplacefromwhichtheserviceisdirectedor
controlledisinWestVirginia;or( )ifthebaseofoperationsortheplacefromwhichtheserviceisdirectedorcontrolled
isnotinanystateinwhichsomepartoftheserviceisperformed,buttheemployee’sresidence isinWestVirginia.
Baseofoperationistheplacefromwhichtheemployeestartstheirworkandtowhichtheycustomarilyreturninorder
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toreceiveinstructionsorcommunicationsfromcustomersorothers,ortoreplenishstockorothermaterials,repair
equipment,orperformanyotherfunctionsnecessarytotheexerciseoftheirtradeorprofessionatsomeotherpoint
orpoints.
Determinethepayrollfactorbyenteringtheappropriateamountsinline2.EnterWestVirginiapayrollincolumn1andpayroll
everywhereincolumn2.
Line2 ‐ Dividecolumn1bycolumn2andentertheresultincolumn3. Statetheresultasadecimalandroundtosix(6)places
afterthedecimalpoint.
SALES FACTOR. The term “sales” means all gross receipts of the taxpayer that are business income. Thus, the sales factor
includesallgrossreceiptsderivedfromtransactionsandactivityintheregularcourseofyourtradeorbusiness,lessreturnsand
allowances. Donot includeinterest ordividendsfromobligations oftheUnitedStatesgovernment,whichareexemptfrom
taxationinWestVirginia,orgrossreceiptsfromanactivitythatproducednonbusinessincomethatyouallocatedinFormPTE ‐
100APT,SchedulesA1andA2.
Thedenominator(column2)ofthesalesfactorincludesallgrossreceiptsderivedfromtransactionsandactivityintheregular
courseofyourtradeorbusinessthatwasreflectedinyourgrossincomereportedandasappearingonyourfederalincometax
returnunlessotherwiseexcluded. Salesoftangiblepersonalpropertydeliveredorshippedtoapurchaserwithinastatein
whichyouarenottaxed(e.g.underPublicLaw86 272)aretobeexcludedfromthedenominator. ‐
The numerator (column 1) of the sales factor includes all gross receipts attributable to West Virginia and derived from
transactions and activity in the regular course of your trade or business. All interest income, service charges or time price ‐
differentialchargesincidentaltosuchgrossreceiptsmustbeincludedregardlessoftheplacewheretheaccountingrecordsare
maintainedorthelocationofthecontractorotherevidenceofindebtedness.
SalesofTangiblePersonalProperty. GrossreceiptsfromsalesoftangiblepersonalpropertyareinWestVirginiaif:
The propertyis received in West Virginia by the purchaser (except sales to the United States government) regardless of the
F.O.B.pointorotherconditionsofsales.
Thepropertyisshippedfromanoffice,store,warehouse,factoryorotherplaceofstorageinWestVirginiaandthepurchaser
istheUnitedStatesgovernment.
SaleswithinWestVirginiaaregenerallydeterminedonadestinationbasis.Ifthepurchaserpicksuporotherwisereceivesthe
propertyinWestVirginia,thesaleistreatedastakingplaceinWestVirginia.Ifthepropertyisdeliveredbycommoncarrieror
other meansof transportation, the place at which the property is received after all transportation is completed is the place
where the sale took place. Direct delivery in West Virginia, other than for purpose of transportation, to a person or firm
designated by a purchaser, constitutes delivery to the purchaser in West Virginia regardless of where title passes or other
conditionsofsale.
DirectdeliveryoutsideWestVirginiatoapersonorfirmdesignatedbyapurchaserdoesnotconstitutedeliverytoapersonin
WestVirginia.
Othersales. GrossreceiptsfromtransactionsotherthansalesoftangiblepersonalpropertyareattributabletoWestVirginia
if:
TheincomeproducingactivitywhichgivesrisetothereceiptsisperformedentirelyinWestVirginia;
The income producing activity is performed both in and outside West Virginia and a greater portion of the income
producingactivityisperformedinWestVirginiathananyotherstate,basedonthecostofperformance;or
Thesaleconstitutesbusinessincometothetaxpayer,orthetaxpayerisafinancialorganizationsubjecttothespecial
apportionmentrules.(RefertoWestVirginiaCode§ foradiscussionofincomeproducingactivityandcostof
performance).
Grossreceiptsfromthesale,lease,rental,orlicensingofrealpropertyareinWestVirginiaiftherealpropertyislocatedinWest
Virginia.Grossreceiptsfromtherental,lease,orlicensingoftangiblepersonalpropertyareinWestVirginiaifthepropertyis
locatedinWestVirginia.IfsuchpropertyisbothwithinandwithoutWestVirginiaduringtherental,lease,orlicensingperiod,
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grossreceiptsattributabletoWestVirginiashallbedeterminedbaseduponthetotaltimewithinthestateduringthetaxable
year.GrossreceiptsfortheperformanceofpersonalservicesareinWestVirginiaifsuchservicesareperformedinWestVirginia.
Determinethesalesfactorbyenteringtheappropriateamountonline3.EntertheWestVirginiasalesincolumn1andsales
everywhereincolumn2.
Line3 ‐ COLUMN2. TOTALSALES. Thisamount,whenaddedtothetotalgrossnonbusinessincome,asshownonScheduleA1,
line9,mustequalthesumofyouritemsofgrossincomeasreportedonyourfederalincometaxreturn.Anydifferencesmustbe
notedandexplainedinanattachmenttoyourreturn.
$________________Sumofgrossincomeitemsonfederalreturn
$________________Lesstotalallocatedincome(FormPTE100APTScheduleA1,line9) ‐
$________________EqualsFormPTE100APT,ScheduleB,column2,line3 ‐
Line4– Enterthetotalgrossreceiptsfromsalesoftangiblepersonalpropertydeliveredorshippedtoapurchaserwithinastate
inwhichyouarenottaxed(e.g.PublicLaw86272).ThisisthethrowoutruleperWVCode§11247(e)(11)(B)and§11235(l)(2). ‐ ‐ ‐ ‐ ‐
Line5– Incolumn1,entertheamountfromline3.Incolumn2,subtractline4fromline3andenterthedifference.Thendivide
column1,line5bycolumn2,line5andentertheresultincolumn3,line5.Statetheresultasadecimalandroundtosix(6)places
afterthedecimal.
Line6– Enterline5again .
Line7– Addcolumn3,lines1,2,5,and6andenterthesuminColumn3.
Line8– Dividethesix(6)digitdecimalfromcolumn3,line7bythenumber4,reducedbythenumberoffactors,ifany,showing
zeroincolumn2,lines1,2,5,or6.Enterthesix(6)digitdecimalfractionfromcolumn3,line8onFormPTE100,ScheduleA,line ‐
10.
MOTORCARRIERS– SPECIALSINGLEFACTORFORMULA
PART2–VEHICLEMILES. Motorcarriersofpropertyorpassengersaresubjecttospecialapportionmentrules.Motorcarriers
mustapportiontheirbusinessincomebyusingasinglefactorformulaofvehiclemiles.
Amotorcarrierisanypersonengagedinthetransportationofpassengersand/orpropertyforcompensationbyamotorpropelled
vehicleoverroadsinWestVirginia,whetheronascheduledrouteorotherwise.Theterm“vehiclemiles”meanstheoperationsof
amotorcarrieroveradistanceofonemile.
ThespecialapportionmentformulaformotorcarriersdoesNOTapplyif:
ThemotorcarrierneitherownsnorrentsanyrealortangiblepersonalpropertylocatedinWestVirginia,hasmadeno
pickupsordeliverieswithinWestVirginia,andhastraveledlessthan , milesinWestVirginiaduringthetaxable
year;or
ThemotorcarrierneitherownsnorrentsanytangiblepersonalpropertylocatedinWestVirginiaexceptvehiclesand
madenomorethan tripsintoorthroughWestVirginiaduringthetaxableyear.
Undereither(A)or(B),themileagetraveledinWestVirginiamaynotbemorethanfivepercent(.05)ofthetotalvehiclemiles
traveledinallstatesduringthetaxableyear.
DeterminetheapportionmentfactorbyenteringtheappropriatevehiclemilesforWestVirginiaincolumn1,andvehiclemiles
everywhereincolumn2.
Dividecolumn1bycolumn2andentertheresultincolumn3.Statetheresultasadecimalfractionandroundtosix(6)places
afterthedecimal.Enterthesix(6)digitdecimalfractionfromcolumn3onPTE100,ScheduleA,line10. ‐
FINANCIALORGANIZATIONS– SPECIALSINGLEFACTORFORMULA
PART 3–GROSS RECEIPTS. Financial organizations subject to apportionment must apportion their business income by using a
singlefactorgrossreceiptsformula.
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Afinancialorganizationisanyholdingcompanyorregulatedfinancialcorporationorsubsidiarythereof,oranycorporationderiving
morethanfiftypercent(.5)ofitsgrossreceiptsfromoneormoreofthefollowing:
. Making,acquiring,selling,orservicingloansorextensionsofcredit.
. Leasing or acting as an agent, broker, or advisor in connection with leasing real and personal property that is the
economicequivalentofanextensionofcredit.
. Operatingacreditcardbusiness.
. Renderingestateortrustservices.
. Receiving,maintaining,orotherwisehandlingdeposits.
. Engaginginanyotheractivitywithaneconomiceffectcomparabletoanyoftheabove.
FinancialorganizationsregularlyengaginginbusinessinWestVirginiashallapportiontheirbusinessincomebymeans ofasingle
factorofgross receiptsapportionment formula.Afinancialorganizationnot havingitscommercial domicilein West Virginia is
presumedtoberegularlyengaginginbusinessinWestVirginiaifduringanyyearitobtainsorsolicitsbusinesswith20ormore
personswithinWestVirginia,orthesumofitsgrossreceiptsattributabletosourcesinWestVirginiaequalsorexceeds$100,000.00.
Grossreceiptsfromthefollowingownershipinterest(andcertainrelatedactivities)will not beconsideredindeterminingwhether
afinancialorganizationissubjecttotaxation.
. Aninterestinarealestatemortgageinvestmentconduit,arealestateinvestment,oraregulatedinvestmentcompany.
. An interest in a loan backed security representing ownership or participation in a pool of promissory notes or
certificatesorinterestthatprovideforpaymentsinrelationtopaymentsorreasonableprojectionsofpaymentsonthe
notesorcertificates.
. Aninterestinaloanorotherassetfromwhichtheinterestisattributedtoaconsumerloan,acommercialloanora
secured commercial loan, and in whichthe payment obligations were solicited and entered into by a person that is
independentandnotactingonbehalfoftheowner;oraninterestintherighttoserviceorcollectincomefromsucha
loanorasset;or
. Anamountheldinanescrowortrustaccountwithrespecttopropertydescribedabove.
However,ifafinancialorganizationissubjecttotaxationwhengrossreceiptsfromtheseinterestsarenotconsidered,suchreceipts
mustthenbeincludedwhendeterminingtheamountoftaxesowed.
PETITIONINGFORANALTERNATIVEMETHODOFAPPORTIONMENT
Touseanalternatemethodofallocationandapportionment,youmustpetitiontheTaxCommissionertousesomeotherbasisto
determineyourtaxablenetincome.Yourpetitionforanalternatemethodmustbefiledbynolaterthanthe normalduedateof
yourreturn .
Youmustreceivewrittenpermission touseanalternateapportionmentmethodbeforefilingyourreturn.Permissionwillonlybe
grantedifyoucanshowthatthestatutoryformuladoesnotproperlyreflectyourtaxableincome,andifthealternatemethod
properlyandfairlyshowsyourWestVirginiataxableincome.
Your petition should include your name and address; stateof incorporation, and principal place of business; description ofthe
kind(s) ofbusinessinwhichyouareengaged;detailedstatementofhowsalesaremadeinWestVirginia;computationofyour
West Virginia taxable income using the statutory apportionment formula and using your proposed alternate formula; and a
summaryofthefactsthatsupportyourposition.
Sendyourpetitionto:
WestVirginiaStateTaxDepartmentTaxAccountAdministrationDivision
CorporateTaxUnit
P.O.Box1202
Charleston,WV253 39 751‐1
PAGE20 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐
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 Enlarge image | K INSTRUCTIONS GENERAL Thepartners,members,orshareholdersofanyPass ThroughEntityareliablefortaxontheirshareoftheincome,whetherornot‐ distributed,andmustincludetheirshareontheindividualincometaxreturn. West Virginia Schedule K1providesareportingmechanismforaPassThroughEntity ‐ ‐ toreportthedistributive share ofgains, losses,modificationsandcreditsofowners(i.e.partners,shareholders,members,etc.) Additionally,itisthereportingmechanismforanywithholdingrequiredtobeperformedonnonresidentowners. Thisformshouldbeusedforanyownerthatisnota“C”Corporation.TheScheduleK1Cshouldbeusedforanyownerthatisa ‐ “C”Corporation. “FROMSP”CHECKED INFORMATIONONLYK ‐ Whentheentitylistedin“OrganizationName”submitstheK1forinformationpurposes,theentitymustcheckthe“FromSP”box ‐ andincludethe“PARTNER/SHAREHOLDER/MEMBER/BENEFICIARY”onScheduleSP. WITHHOLDING Theupperhalfofthefirstpageincludesinformationconcerningtheentityreportingtheinformation(includingthename,address, identification number and type), information concerning the owner to which this information statement relates (including the name,address,andidentificationnumber)andawithholdingstatement. Line1 ofthissectionshouldincludethedistributiveshareofincomeforanonresidentowner. Line2 ofthissectionshouldincludetheamountwithheldforthenonresidentowner. PercentageofOwnership DISTRIBUTIVESHARE Thelowerhalfandsecondpagewillincludetheowner’sdistributiveshareofitemsofgain,loss,modificationandcreditapplicable totheowner. Line1 Line1ofthissectionshouldincludethedistributiveshareofincomeforaresidentownerregardlessofsource.Thisshould besimilartotheincomereportedontheFederalScheduleK1thatqualifiesasfederaladjustedgrossincome. ‐ Lines 2 through 10 : These lines reflect the distributive share of modifications available to the owner reported on the entities ScheduleB. Lines11through20: TheselinesreflectthedistributiveshareoftaxcreditsavailabletotheownerreportedontheentitiesSchedule PTE100TC.‐ ReportbyOwners–TheWVScheduleK1shouldbeprovidedtoallownersthatarenot“C”Corporations.Allsuchownersmust ‐ fileaWVtaxreturnthatincludesallWVScheduleK1’sprovidedtotheowner.Includeyourshareofthepartnership’sincomeor ‐ (loss),credits,deductions,etc.,asshownbyyourScheduleK1onyourWestVirginiaincometaxreturnfortheyearinwhichthe ‐ taxyearoftheentityends. SPECIALRULEFORPASSTHROUGHENTITIES: OwnersofPassThroughEntitiesshouldallocateincomereceivedfromaPass ‐ ThroughEntityunlesssuchentitiesareengagedina‐ unitary business. Ifaunitary relationship exists,aPassThrough ‐ Entity owner ofaPassThrough Entity‐ may reapportionits WV income,includingtheappropriatefactorsofthesubsidiary. PAGE21 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐ |
 Enlarge image | K C INSTRUCTIONS GENERAL Thepartners,members,orshareholdersofanyPass ThroughEntityareliablefortaxontheirshareoftheincome,whetherornot‐ distributed,andmustincludetheirshareontheirindividualincometaxreturn. WestVirginiaScheduleK1CprovidesareportingmechanismforaPassThroughEntitytoreportthedistributiveshareofgains, ‐ ‐ losses,modifications,andcreditsofownersthataretreatedas“C”CorporationsandaretherebysubjecttotheWVincometax. TheScheduleK1shouldbeusedforanyownerthatisnota“C”Corporation(includingindividuals,partnerships,LLC’s,and“S” ‐ Corporations). “FROMSP”CHECKED INFORMATIONONLYK ‐ C Whentheentitylistedin“OrganizationName”submitstheK1Cforinformationpurposes,theentitymustcheckthe“FromSP” ‐ boxandincludethe“PARTNER/SHAREHOLDER/MEMBER/BENEFICIARY”onScheduleSP. WITHHOLDING Theupperhalfofthefirstpageincludesinformationconcerningtheentityreportingtheinformation(includingthename,address, identification number and type), information concerning the owner to which this information statement relates (including the name,address,andidentificationnumber)andawithholdingstatement. Line1 ofthissectionshouldincludethedistributiveshareofincomeforanonresidentowner. Line2 ofthissectionshouldincludetheamountwithheldforthenonresidentowner. Percentageofownership DISTRIBUTIVESHARE Thelowerhalfandsecondpagewillincludetheowner’sdistributiveshareofitemsofgain,loss,modification,andcreditapplicable totheowner. Line1 ofthissectionshouldincludethedistributiveshareofincomeforanowner. Lines 2 through 15 : These lines reflect the distributive share of modifications available to the owner reported on the entity’s ScheduleB. ReportLine15onCIT120ScheduleB,Line23 ‐ Lines16through29:Theselinesreflectthedistributiveshareoftaxcreditsavailabletotheownerreportedontheentity’sSchedule CIT120TC.‐ ReportbyOwners–TheWVScheduleK1Cshouldbefiledwiththecorporationnetincometaxreturnofthe ‐ corporateownerofaPassThroughentity.AllincomereportedontheK1CshouldbeincomeapplicabletoWV. ‐ ‐ PAGE22 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐ |
 Enlarge image | NRW INSTRUCTIONS SCorporationsandPartnershipsdonotneedtocompleteaWVNRW2iftherequiredWVK1orWVK1Chasbeencompleted.‐ ‐ ‐ ‐ WHOMUSTFILE Everypartnership,Scorporation,estateortrust(“organization”)derivingincomeorgainfromWestVirginia ‐ sourcesmustcompleteaWV/NRW2,providedaWVK1orK1Chasnotbeencompleted,foreach ‐ ‐ ‐ NONRESIDENTpartner,shareholder,orbeneficiary,(“NonresidentDistributee”). GENERAL TheWVNRW2providesareportingmechanismforapartnership,SCorporation, ‐ ‐ estateortrust(“organization”)toreportthe distributiveshareofgainsandlossesofNONRESIDENTownersordistributees(i.e.partners,shareholders,members,beneficiary, etc.who’scommercialdomicileislocatedoutsideWestVirginia).TheNonresidentDistributeesareliablefortaxontheirshareof theincome,whetherdistributedornot,andmustincludetheirshareontheirincometaxreturn.FormWVNRW2andremittance ‐ mustaccompanytheorganizationsWestVirginiaincometaxreturnwhenitisfiled.Thisformmaybecopiedorafacsimilemade anddistributedasfollows: (1)onecopytobeattachedtotheorganization’sWestVirginiataxreturn (2)onecopyfortheentity’srecords (3)twocopiesmustbefurnishedtoeachNonresidentDistributeefromwhomWestVirginiaincometaxiswithheld. “FROMSP”CHECKED INFORMATIONONLYNRW ‐ Whentheentitylistedin“OrganizationName”submitstheNRW2forinformationpurposes,theentitymustcheckthe“FromSP” ‐ boxandincludethe“NONRESIDENT’SNAME”onScheduleSP.OncopiesfurnishedtoeachNonresidentDistributeethe“FromSP” boxshouldnotbechecked. WITHHOLDING Thispageincludesinformationconcerningtheentityreportingtheinformation(includingthename,address,identificationnumber and type), information concerning the owner to which this information statement relates (including the name, address, and identificationnumber)andawithholdingstatement. TAXABLEYEARS IftheNonresidentDistributee’staxableyearisthesameasthetaxableyear ofthe Organization, theDistributeeisrequiredto reporttheincomeandclaimwithholdingontheDistributee’sannualWestVirginiaincometaxreturnforthattaxableyear.Ifthe taxableyearsaredifferent,theDistributeereportstheincomeandclaimswithholdingtaxcreditontheDistributee’sannualWest VirginiaincometaxreturniffiledforthetaxableyearduringwhichtheOrganization’staxableyearended.Acopyofthisformmust beattachedtotheDistributee’sannualreturn. PAGE23 2020PTE 100INCOMETAXFORPASS‐ THROUGHENTITIESINSTRUCTIONS ‐ |