West Virginia Unfiled Payroll Tax Returns Checklist
Introduction
West Virginia withholding tax returns are reports that employers submit to the West Virginia Tax
Division to document wages paid and income tax withheld from employee paychecks. When these returns remain unfiled by their due dates, the Tax Division initiates a collection process to close the compliance gap.
Unfiled returns create serious enforcement concerns because they prevent the state from verifying whether taxes were properly collected and remitted. Understanding what unfiled withholding tax returns mean and how the Tax Division responds can help you take appropriate action and avoid escalated penalties.
What This Issue Means
An unfiled withholding tax return means the West Virginia Tax Division has not received a required income tax return from an employer for a specific reporting period. This situation differs from filing or paying late, as no return was submitted at all, leaving state taxes unreported and unverified.
Why the State Issued This or Requires This
West Virginia law requires withholding tax returns to be filed according to schedules based on the amount of income tax withheld from employee wages. When more than $100 is withheld in a month, monthly returns are required and must be submitted by the fifteenth day of the following month.
In addition to monthly requirements, quarterly withholding tax returns must be filed for every calendar quarter, with deadlines falling on the last day of the month immediately following the quarter’s end. For businesses that withhold less than $600 in a year, an annual withholding tax return is required and must be filed by January 31.
What Happens If This Is Ignored
When missing withholding tax returns are not resolved, the West Virginia Tax Division generally issues follow-up notices requesting that the outstanding filings be submitted. West Virginia Code
section 11-10-5c authorizes the Tax Commissioner to prepare substitute returns and assess taxes when required returns have not been filed.
Interest begins accruing from the original due date, even if an extension was available, and statutory penalties continue to accumulate over time. A filing-related penalty is assessed at 5% per month, up to a maximum of 25%.
In addition, unpaid tax balances are subject to a separate penalty of 1/2 % per month, capped at
25%. For calendar year 2025, interest is charged at an annual rate of 12.25 percent, as established and published by the Tax Commissioner.
What This Does NOT Mean
An unfiled withholding tax return notice does not mean you have already been assessed a final tax bill for your tax debt. However, West Virginia Code section 11-10-18 provides specific criminal penalties for willful failure to file returns with intent to evade tax.
Checklist: What to Do After Receiving a Notice of Unfiled
Returns
Step 1: Review the Notice Carefully
Read the entire notice from the West Virginia Tax Division and identify the specific reporting periods listed as unfiled. Note any deadline dates for responding or filing, write down the contact information provided, and keep all related documents in a secure location.
Step 2: Gather Payroll Records
Locate payroll records for all periods listed as unfiled and collect records showing wages paid and state income tax withheld. If records are incomplete or missing, document what you have and what is missing so you can explain gaps to the Tax Division.
- West Virginia Tax Division
- Phone: 304-558-3333 or 800-982-8297
- Website: tax.wv.gov
Step 3: Determine What Returns Need to Be Filed
Identify which specific withholding tax returns are missing based on your withholding amount for each tax year. Contact the West Virginia Tax Division at 304-558-3333 or toll-free at
800-982-8297 to confirm the exact forms required and which tax periods still need to be reported.
Ask about the correct filing address and whether you should submit returns by mail or electronic filing methods. Request clarification if the notice is unclear about which returns are missing or if you need guidance on unfiled taxes.
Contact Information:
Step 4: Prepare Missing Returns
Complete the required withholding tax return forms for each unfiled period using the payroll records you gathered. Use Form WV/IT-101V for monthly returns if you withhold more than one hundred dollars per month, Form WV/IT-101Q for quarterly returns, and Form WV/IT-101A for annual returns if you withhold less than six hundred dollars annually.
Double-check all figures for accuracy before submitting and include explanatory notes if there are gaps or unusual circumstances in the data, particularly when dealing with income taxes that span multiple reporting periods.
Step 5: Submit Missing Returns to the Tax Division
Send completed returns to the West Virginia Tax Division by mail or electronic filing method.
Use certified mail or tracked delivery if mailing to have proof of submission, keep a copy of each income tax return submitted, and note the date of submission for your records.
Step 6: Address Any Tax Payment Liability
Review the returns to determine if any income taxes are still owed beyond what was already remitted. Contact the West Virginia Tax Division directly to confirm the total amount due, including interest and penalties calculated at statutory rates, and to ask about payment options, including installment arrangements, for resolving state tax liabilities.
Step 7: Respond to the Original Notice
If the notice requested a written response, prepare a letter addressing the unfiled returns and include documentation of your submission. Attach copies of submitted returns and proof of
mailing or electronic receipt, and send the response by certified mail or tracked delivery to establish a clear record of your compliance efforts.
Step 8: Follow Up on Tax Division Processing
Wait for acknowledgment from the West Virginia Tax Division that returns were received. The
Tax Division does not publish specific processing timeframes, but processing typically takes several weeks to a few months, depending on workload and whether state income tax calculations are complete.
Step 9: Document Everything
Keep copies of all notices from the Tax Division and maintain records of all returns submitted.
Save all correspondence with the West Virginia Tax Division and create a dedicated folder for this issue to track all related documents, especially if you work with tax professionals who need access to your compliance history.
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
Step 10: Monitor Your Account
Check the West Virginia Tax Division website for any updates to your account status. Look for additional notices that may reference these returns and verify that penalties and interest are calculated correctly once the returns are processed.
What Happens After This Is Completed
Once missing returns are submitted and processed by the West Virginia Tax Division, you will typically receive an acknowledgment and a revised account statement. The unfiled status will be resolved, but interest and penalties will continue to accrue on any unpaid income taxes until the account is paid in full.
Common Mistakes to Avoid
Missing state filing or response deadlines can lead to escalated enforcement actions, so all due dates should be tracked carefully. Submitting returns that are incomplete or contain inaccuracies may result in rejection and additional processing delays.
Proof of submission should always be retained, since the Tax Division may assert that returns were never received if documentation cannot be provided. Filing the returns alone does not
automatically resolve the matter, and follow-up is necessary to confirm that the Tax Division has received and processed the filings correctly.
Frequently Asked Questions
How long does it take for the West Virginia Tax Division to process missing returns after I submit them?
The Tax Division does not publish specific processing timeframes. Processing typically takes several weeks to a few months, depending on workload and whether the returns are complete.
If I cannot find payroll records from unfiled periods, what do I do?
Contact the West Virginia Tax Division and explain the situation. The Tax Division may allow you to file returns based on available records or estimated amounts with a written explanation.
Will penalties be reduced or removed if I file the missing returns now?
West Virginia Code section 11-10-18 provides that penalties for failure to timely file or pay may be waived if you prove that your failure was due to reasonable cause and not due to willful neglect. However, penalties for negligence, intentional disregard of rules, or fraud are non-waivable.
Can I pay the taxes without filing the returns?
No, the returns must be filed to establish what is owed and to satisfy the filing requirement.
What if the notice is in error, and the returns have already been filed?
Gather documentation showing the returns were filed, such as confirmation receipts or bank records of payments. Submit this documentation to the West Virginia Tax Division with a written explanation and include copies of any filing confirmations you have.
Facing State Tax Enforcement Action?
If you’ve received a notice related to sales tax or payroll tax enforcement, and aren’t sure how to respond, our team can help you understand your options and next steps.
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