CHAPTER 11. TAXATION.

§11-21-6. Accounting periods and methods.

(a) Accounting periods. -- A taxpayer's taxable year under this article shall be the same as his taxable year for federal income tax purposes.

(b) Change of accounting periods. -- If a taxpayer's taxable year is changed for federal income tax purposes, his taxable year for purposes of this article shall be similarly changed. If a taxable year of less than twelve months results from a change of taxable year, the West Virginia standard deduction, the West Virginia personal exemptions and the credits allowed under section eight shall be prorated under regulations of the Tax Commissioner.

(c) Accounting methods. -- A taxpayer's method of accounting under this article shall be the same as his method of accounting for federal income tax purposes. In the absence of any method of accounting for federal income tax purposes, West Virginia taxable income shall be computed under such method as in the opinion of the Tax Commissioner clearly reflects income.

 (d) Change of accounting methods. -- (1) If a taxpayer's method of accounting is changed for federal income tax purposes, his method of accounting for purposes of this article shall be similarly changed.

(2) If a taxpayer's method of accounting is changed, other than from an accrual to an installment method, any additional tax which results from adjustments determined to be necessary solely by reason of the change shall not be greater than if such adjustments were rateably allocated and included for the taxable year of the change and the preceding taxable years, not in excess of two, during which the taxpayer used the method of accounting from which the change is made.

(3) If a taxpayer's method of accounting is changed from an accrual to an installment method, any additional tax for the year of such change of method and for any subsequent year which is attributable to the receipt of installment payments properly accrued in a prior year shall be reduced by the portion of tax for any prior taxable year attributable to the accrual of such installment payments, in accordance with regulations of the Tax Commissioner.

Bills Affecting §11-21-6

2003 Regular Session: HB3157
2004 Regular Session: HB3157
2004 Regular Session: HB4558
2004 Regular Session: SB594
2004 Regular Session: SB594
2004 Regular Session: SB594
2004 Regular Session: SB594
2004 Regular Session: SB594
2004 Regular Session: SB594
2005 1X: SB1004
2005 Regular Session: HB2445
2005 Regular Session: HB2445
2005 Regular Session: HB2445
2005 Regular Session: HB2445
2005 Regular Session: HB2445
2005 Regular Session: HB2445
2005 Regular Session: SB188
2005 Regular Session: SB188
2005 Regular Session: SB188
2005 Regular Session: SB188
2005 Regular Session: SB188
2005 Regular Session: SB188
2006 Regular Session: HB2445
2006 Regular Session: HB2445
2006 Regular Session: HB2445
2006 Regular Session: HB2445
2006 Regular Session: HB2445
2006 Regular Session: HB2445
2006 Regular Session: HB4566
2006 Regular Session: HB4566
2006 Regular Session: HB4566
2006 Regular Session: HB4566
2006 Regular Session: HB4566
2006 Regular Session: HB4566
2006 Regular Session: SB520
2006 Regular Session: SB520
2006 Regular Session: SB520
2006 Regular Session: SB520
2006 Regular Session: SB520
2006 Regular Session: SB520
2006 Regular Session: SB674
2012 Regular Session: HB4364
2012 Regular Session: SB469
2013 Regular Session: SB520
2013 Regular Session: SB520
2014 Regular Session: HB4343
2014 Regular Session: HB4343
2014 Regular Session: SB312
2014 Regular Session: SB312
2015 Regular Session: HB2687
2016 Regular Session: HB2687
2016 Regular Session: SB419
2017 1X: SB1017
2017 Regular Session: HB2127
2017 Regular Session: HB2933
2017 Regular Session: SB683
2018 Regular Session: HB2127
2019 Regular Session: HB2201
2019 Regular Session: HB2798
2019 Regular Session: SB499
2020 Regular Session: HB2201
2020 Regular Session: HB4033
2020 Regular Session: HB4152
2020 Regular Session: HB4202
2020 Regular Session: HB4459
2020 Regular Session: HB4724
2021 Regular Session: HB2046
2021 Regular Session: HB2149
2021 Regular Session: HB2181