How West Virginia Collects State Taxes & Types of Tax Help Offered
The State Tax Department of West Virginia is responsible for many of the duties that the IRS carries out, but just at the state level. One of its main functions is to ensure that state taxes are paid on time. If you cannot fully pay what you owe in taxes, it would make sense to consult with a reputable tax professional or CPA who can provide you with the tax help and advice you need. The last thing you want is for collection activities to commence against you, which would likely cause you even more financial problems.
The following are the various types of tax that residents of West Virginia are obligated to pay:
Residents of West Virginia must pay income tax at rates ranging from 3% to 6.5% depending on which of 5 tax brackets they fall under.
Individual Income Tax
Residents of West Virginia are obligated to pay income tax at rates ranging from 3% to 6.5% depending on which of 5 tax different brackets they fall under. You are required to pay taxes on your personal income if you are filing your return as a single person, head of household or are married filing jointly.
These are the tax rates on the following amounts of taxable income:
- First $10,000 is taxed at 3%
- $10,001 to $25,000 is taxed at 4%
- $25,001 to $40,000 is taxed at 4.5%
- $40,001 to $60,000 is taxed at 6%
- $60,001 and above is taxed at 6.5%
State tax returns in West Virginia are due on April 15th or if it happens to occur on a weekend or government holiday, the next business day.
West Virginia individuals who file an amended return can check a box on the form that cancels out the delayed debit transaction on their original return. This will only work if they file their amended return before the debit withdrawal was scheduled to take place or finalized. If you are planning on filing an amended return it might be wise to consult with a qualified tax professional or CPA for their tax help and expertise.
In West Virginia consumers are charged a 6% sales tax on most items they purchase. Use tax is considered a companion to the sales and service tax charged to consumers. Individuals and businesses pay this tax directly to the Tax Department. The use tax statewide is 6% of the purchase price of tangible personal property and/or services for which sales tax was not paid.
local sales taxes
A number of municipalities in West Virginia also charge local sales taxes, which range anywhere from 0.5% to 1%. Taxes on Personal & Real Property
All personal and real property in West Virginia are subject to being taxed unless the law allows for a specific exemption.
It is up to the counties in West Virginia to administer property tax laws, which means that each county is responsible for the collection of property taxes due on real and personal property. The tax assessor in each county is responsible for managing the tax records on all such property.
A property’s use, location and monetary value as of July 1st are what determine the property’s tax assessment. A reappraisal is done on all property every 3 years with annual adjustments being made when a property’s value changes. If you think your property has been assessed incorrectly, it’s time to hire a reputable tax professional or CPA for tax help so the matter can be resolved as painlessly as possible.
A homestead exemption is available to West Virginia residents who are permanently disabled or residents who are 65 years of age or older.
West Virginia has since 2008 been offering residents a personal income tax credit, a refund of up to $1,000 on taxes paid on real property that exceeded income.
Inheritance & Estate Taxes
In West Virginia there is currently no inheritance tax. Because the federal government phased out its estate tax credit, there is no estate tax in West Virginia on the estates of residents who passed away in 2005 or after.
Important Tax Facts for Residents of West Virginia
Taxpayers in West Virginia who are 65 years of age or older during the taxable year or taxpayers who are fully disabled permanently may deduct up to $8,000 from his/her federal adjusted gross income, no matter what the source, to determine the taxable amount he/she owes the State. Concerning married couples that file jointly, if each one qualifies, up to $16,000 in income is then excludable on their State tax return.
West Virginia residents can go online to the MyTaxes page on the Tax Department’s website to file their tax returns and to check on their tax refund. If you have questions or need additional information, contact General Assistance at the West Virginia State Tax Department at (800) 982-8297 or go online to the Department’s website.
Tax Help & Tax Relief Programs Available to West Virginia Taxpayers
If you owe unpaid taxes to the State of West Virginia, you shouldn’t be shy about reaching out to the Tax Department to discuss your payment options. West Virginia offers tax help to taxpayers who need a way to resolve their outstanding tax issues.
Installment Payment Plans
If you do not have the funds to fully pay your taxes, the Tax Department may let you make monthly installment payments. In order to be eligible for an Installment Payment Plan you will have to prove that your financial situation is such that you in no way can pay your tax bill in full.
Before entering into such an agreement it might be wise to consult with a good tax professional or CPA for their tax help and expertise in determining if this is the best course of action under the circumstances or whether there might be another way to gain some measure of tax relief.
If you do move forward with an Installment Payment Plan, the Tax department will charge you 9.5% interest per year, which could change annually. To avoid paying a lot of money in interest it would be best to pay the balance off as quickly as you can. The Tax Department may also file a lien against you, which will remain in place until your tax debt is paid in full.
Requesting an Installment Payment Agreement
Phone the Tax Department at (304) 558-8753 and request Payment Agreement Request Form CD-5.
Complete the form and mail a money order or check to:
Compliance Division of the WV Department of Taxation
Internal Collections Unit
P.O. Box 229
Charleston, WV 25321
Your money order or check should be made payable to the West Virginia State tax Department and make sure your social security number is written in the memo section.
If your request is accepted, your installment payments will be due each month on the 15th. The Tax Department will send you a formal payment agreement that requires your signature. You may want to have your tax professional look over the agreement and offer their tax help and advice before you sign and send back in the enclosed envelope.
Each month thereafter the Tax Department will send you a statement showing the balance with a payment voucher that you should send back with your payment in the enclosed envelope.
It is vital that you stay up-to-date on your payments to avoid having your agreement cancelled, which can happen if you fail to make more than 2 payments.
If your request is denied, the Tax Department will inform you by phone. Please call (304) 558-8753 with any questions you may have.
Offer in Compromise
The State Tax Department of West Virginia has an Offer in Compromise tax relief program that will only be considered under the following conditions:
- The Tax Department seriously doubts that it can collect the tax debt in full
- The Tax Department seriously doubts that you owe this tax debt.
To be eligible to submit an offer, you will need to be current on all your required tax filings. During the time your application is under consideration, all collection activities against you will temporarily cease.
You may offer a lump-sum payment or request an Installment Payment Plan that would not last beyond 2 years.
Before submitting your application you may want to get tax help from an experienced tax professional or CPA who has a track record of success in getting his/her clients tax relief through an Offer in Compromise.
In filing your offer you must complete the following forms, which must be signed and submitted to the Tax Department:
Offer in Compromise Form CD-3
Collection Information Statement for Individuals Form 433A, along with the required documentation to substantiate your financial situation
Authorization of Power of Attorney Form WV-2848 if you plan on designating someone else to represent you before the State Tax Department
Send your request for an Offer in Compromise including all necessary forms and documentation to the following address:
Office of Tax Appeals
1012 Kanawha Blvd. E., Suite 300
Charleston, WV 25301
The Tax Department provides no timeline for making their decision. If you want to find out what’s going on with your offer or if you have any questions, just phone (304) 558-1666 or you can call toll free at (800) 982-8297.
Locations of Compliance & Taxpayer Services Offices
If you need tax help from the Tax Department, you are welcome to reach out to one of the local offices listed below to find out when someone would be available to help you in person. Of, you can phone their main office at (304) 558-8753.
407 Neville Street Suit 109
Beckley, WV 258041
Phone: (304) 256-6870
1001 Lee Street East
Charleston, WV 25301
Phone: (304) 558-8773
Fax: (304) 558-1645
2699 Park Avenue Suite 230
Huntington, WV 25704
Phone: (304) 528-5565
397 Mid Atlantic Parkway Suite 2
Martinsburg, WV 25401
Phone: (304) 267-0020
Huntington Bank Building, Suite 210
230 West Pike Street
Clarksburg, WV 26301
Phone: (304) 627-2165
400 5th Street
Parkersburg, WV 26101
Phone: (304) 420-4573
40 14th Street
Wheeling, WV 26003
Phone: (304) 238-1150