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The WV NRW-4 form, or the West Virginia Nonresident Income Tax Agreement, serves as a critical document for nonresident individuals and entities with West Virginia source income to manage their tax obligations. Enacted to streamline the income reporting and tax collection process for nonresidents who earn through partnerships, S corporations, estates, trusts, or limited liability companies in West Virginia, this agreement allows such individuals or entities to bypass the state's withholding requirements provided they commit to file their income tax returns timely and pay any due taxes directly. The form requires detailed information including names, addresses, and identification numbers of both the nonresident and the organization distributing income. A pivotal aspect of this agreement is its declaration section, where nonresidents affirm their obligation to report income and its subsequent tax. Importantly, the form includes stipulations for its revocation either by the nonresident or the tax commissioner under specific conditions, emphasizing the importance of compliance with state tax laws. The document's complexity underscores the necessity for clear understanding and accurate completion to ensure tax accountability while avoiding unnecessary withholding and potential legal complexities for nonresidents affiliated with West Virginian entities.

Sample - Wv Nrw 4 Form

 

 

WV/NRW-4

West Virginia Nonresident Income Tax Agreement

 

 

REV 08-10 B

Read Instructions on Reverse Side

 

 

 

 

 

 

 

 

 

 

 

 

 

Part I:

 

 

 

 

 

 

 

 

ORGANIZATION NAME AND MAILING ADDRESS

NONRESIDENT NAME AND MAILING ADDRESS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name (please type or print)

 

 

 

Name

(please type or print)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Post Office or Street Address

 

 

 

 

 

 

 

 

 

 

 

Post Office or Street Address

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

City/Town

 

 

State

Zip Code

City/Town

 

 

 

 

 

 

State

Zip Code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

West Virginia Identification Number

 

Federal Identification Number

 

 

Social Security Number

Spouse's Social Security Number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

or Federal Identification Number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Type of Organization: (check only one)

 

 

 

 

 

 

 

Type of Nonresident:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partnership

 

 

S Corporation

 

Estate

 

 

 

Individual

 

Corporation

 

Partnership

 

 

 

 

 

 

 

 

Trust

 

 

Limited Liability Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonresident's Taxable Year:

 

 

 

 

 

 

 

 

 

 

Taxable Year of Organization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calendar Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calendar Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year Ending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year Ending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State of Commercial Domicile:

 

 

 

 

 

 

 

 

 

 

 

 

 

State of Residence or Commercial Domicile:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internal Revenue Service Center Where Organization's Federal Return

 

Internal Revenue Service Center Where Nonresident's Federal Return

is Filed:

 

 

 

 

 

 

 

 

 

 

 

 

Is Filed:

 

 

 

 

 

 

 

 

 

 

 

 

City

 

 

State

 

 

 

 

 

 

 

City

 

 

 

 

 

 

State

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Part II:

I declare that the above-named Distributee is a nonresident of West Virginia and that the nonresident Distributee hereby agrees to timely file West Virginia Income Tax Returns (Form IT-140 or WV/CNF-120) and pay any income tax due; that the Distributee will include in that return the portion of the above-named Organization’s West Virginia income or gain attributable to the nonresident Distributee’s interest in such Organization for the taxable year of the Distributee during which this Form is filed with the Organization and for each succeeding taxable year for which the Distributee receives actual or deemed distributions of West Virginia source income or gain; and that this Agreement remains in effect until it is revoked by either the Distributee or the Tax Commissioner.

SIGN

HERE

 

 

(Signature of Nonresident Partner, Shareholder, or Beneficiary, or of Authorized Corporate Officer)

 

 

 

 

 

 

 

 

 

 

(Print Name Signed Above)

 

 

 

 

 

 

 

 

 

 

(Mailing Address if Different from Above)

(Date)

 

 

 

 

 

 

 

 

 

Part III:

NOTICE OF REVOCATION OF NONRESIDENT INCOME TAX AGREEMENT

 

 

WARNING: COMPLETE ONLY IF REVOKING AGREEMENT

Notice is hereby given that the West Virginia Nonresident Income Tax Agreement (Form WV/NRW-4) previously executed by or on behalf of the above- named Nonresident is revoked for taxable years of the above-named Organization (Pass-through entity) that begins after today's date.

SIGN

HERE

(Signature of Nonresident Partner, Shareholder, or Beneficiary, or of Authorized Corporate Officer)

(Print Name Signed Above)

(Mailing Address if Different from Above)

(Date)

-16-

WEST VIRGINIA NONRESIDENT INCOME TAX AGREEMENT

INSTRUCTIONS

Who May File: Any Nonresident individual or C corporation who has West Virginia source income derived from a partnership, S corporation, estate, trust, or limited liability company (“Organization”) who desires to not have West Virginia income tax withheld by that Organization as provided in W.Va. Code § 11-21-71a, must complete a West Virginia Nonresident Income Tax Agreement (Form WV/NRW-4) and timely file it with the Organization. A corporation is a nonresident if its commercial domicile is located in another State.

When and Where to File: This Form must be completed and filed with the Organization on or before the last day of the Organization’s taxable year. If the Distributee receives West Virginia source income from more than one such Organization, a separate Form WV/NRW- 4 must be filed with each Organization in order to avoid withholding by that Organization. The Organization may copy this form or use a facsimile to distribute as follows: (1) one copy to be filed with the Organization's West Virginia income tax return, (2) one copy to be retained by the pass-through entity, and (3) one copy for the nonresident distributee.

West Virginia Income Tax Withholding for Nonresidents: Every Organization distributing West Virginia source income to a nonresident distributee is required to withhold West Virginia income tax on the amount thereof distributed to Nonresident Distributee unless the Nonresident Distributee timely files this Form with the Organization and the Organization attaches a copy of it to its West Virginia income tax return filed for the taxable year of its receipt. The withholding tax rate is 6.5% of distributions of West Virginia source income (whether actual or deemed distributions). The amount of tax withheld and remitted by the Organization is allowed as a credit against the Distributee’s West Virginia income tax liability for that taxable year.

Nonresident Agreement: Once this agreement is executed, it must be filed with the Organization to avoid having withholding tax deducted from further distributions (actual or deemed). This agreement first applies to the taxable year of the Organization during which the Organization receives a properly executed agreement from the Nonresident Distributee.

Duration of Agreement: Once this Agreement is filed with the Organization, it remains in effect until it is revoked by the Nonresident Distributee, or by the Tax Commissioner.

Revocation:

1.A Nonresident Distributee may revoke this Agreement by completing this Form and filing it with the Organization through which it receives West Virginia source income. Revocation applies prospectively, meaning that it first applies to taxable years of the Organization which begin after revocation is filed with that Organization.

2.The Tax Commissioner may revoke this Agreement if the Nonresident Distributee fails to file a West Virginia income tax return (IT-140, WV/SPF-100 or WV/CNF-120) for more than 60 days after the due date of the return (determined by including any authorized extension(s) of time for filing such return, or to timely pay West Virginia income tax for any taxable year covered by this agreement).

-17-

⇩ PDF Form

Document Specifics

Fact Name Description
Form Title West Virginia Nonresident Income Tax Agreement
Form Number WV/NRW-4
Revision Date August 2010 (REV 08-10 B)
Purpose Allows nonresidents who earn income from WV sources through certain entities to agree not to have WV income tax withheld.
Applicable Entities Partnerships, S Corporations, Estates, Individuals, Corporations, Partnerships, Trusts, Limited Liability Companies
Governing Law West Virginia Code § 11-21-71a
Who May File Nonresident individuals or C corporations with WV source income from an organization desiring not to have WV income tax withheld
Filing Requirements This form is to be filed with the Organization on or before the last day of the Organization’s taxable year; separate forms are needed for income from different organizations.
Nonresident Agreement Duration The agreement remains in effect until revoked by either the Nonresident Distributee or the WV Tax Commissioner.
Revocation Conditions A distributee can revoke the agreement for future taxable years; the Tax Commissioner can revoke it for non-compliance with filing or payment.

Guide to Using Wv Nrw 4

When individuals or corporations with income from sources within West Virginia but residing outside of the state, engage in business through entities such as partnerships, S corporations, or limited liability companies, they must navigate specific tax agreements to comply with West Virginia's tax regulations. One such critical document is the West Virginia Nonresident Income Tax Agreement, known as form WV/NRW-4. This form allows nonresidents to agree to file their own income tax returns in West Virginia, thereby avoiding the withholding tax that the state would otherwise collect from their West Virginia-sourced income. Filling out this form accurately is essential for nonresidents who want to manage their tax liabilities and ensure compliance with state laws. Here are the steps you need to follow to complete the WV/NRW-4 form successfully:

  1. Begin with Part I: ORGANIZATION NAME AND MAILING ADDRESS. Enter the name and full mailing address of the organization through which you are receiving income from West Virginia sources. Include the organization's West Virginia Identification Number and Federal Identification Number.
  2. Select the type of organization from the provided options (Partnership, S Corporation, Estate, etc.) by checking the appropriate box.
  3. Fill in the taxable year of the organization, choosing between 'Calendar Year' or 'Fiscal Year Ending', and provide the specific end date if selecting a fiscal year.
  4. Enter the state of commercial domicile for the organization.
  5. In the NONRESIDENT NAME AND MAILING ADDRESS section, provide your name, mailing address, Social Security Number, and, if applicable, your spouse’s Social Security Number or Federal Identification Number.
  6. Indicate the type of nonresident you are by selecting the correct box (Individual, Partnership, Corporation, etc.).
  7. Fill in your taxable year, choosing from 'Calendar Year' or 'Fiscal Year Ending', and provide the specific end date for a fiscal year.
  8. Enter your state of residence or commercial domicile.
  9. Specify the Internal Revenue Service Center where both the organization's and your federal returns are filed by providing the city and state.
  10. Move to Part II, which is a declaration section. As a nonresident distributee, sign the form to declare your agreement to file Westennialisincome tax returns and pay any tax due for income attributed to you by the organization. Print your name as signed, provide a different mailing address if necessary, and date the signature.
  11. Part III is for revocation notice and should only be completed if you are revoking a previously executed agreement. If not, leave this section blank.

After completing and signing the form, ensure to make copies. One should be filed with the organization's West Virginia income tax return, another retained by the pass-through entity, and keep a copy for your records. Filing this form on time before the last day of the organization’s taxable year is essential to comply with West Virginia’s taxation requirements and to avoid unnecessary withholding on your income from West Virginia sources.

Essential Points on Wv Nrw 4

What is the WV/NRW-4 form and who needs to file it?

The WV/NRW-4 form, known as the West Virginia Nonresident Income Tax Agreement, is a document that nonresident individuals or C corporations with West Virginia source income from partnerships, S corporations, estates, trusts, or limited liability companies need to complete. This agreement allows them to avoid West Virginia income tax withholding by the Organization as provided under W.Va. Code § 11-21-71a. Essentially, if a corporation's commercial domicile is outside of West Virginia, and it receives income from a pass-through entity within the state, filing this form with the entity is required.

When and where is the WV/NRW-4 form filed?

This form must be filed with the Organization from which a nonresident receives West Virginia source income on or before the last day of the Organization’s fiscal year. If a nonresident is receiving income from more than one such entity in West Virginia, a separate WV/NRW-4 form must be filed with each entity to avoid the withholding tax. Copies of this form should be distributed accordingly: one filed with the Organization's West Virginia income tax return, another retained by the pass-through entity, and a copy for the nonresident distributee.

What are the requirements for West Virginia income tax withholding for nonresidents?

Organizations distributing West Virginia source income to a nonresident distributee are mandated to withhold West Virginia income tax at a rate of 6.5% on the distribution amount unless the nonresident timely files a WV/NRW-4 form with the Organization, which then attaches a copy of the form to its West Virginia income tax return for that fiscal year. The tax withheld and remitted by the Organization acts as a credit against the distributee’s West Virginia income tax liability for that year.

How long does the WV/NRW-4 agreement last?

Once the WV/NRW-4 agreement is properly executed and filed with the Organization, it remains effective until it is revoked either by the nonresident distributee or by the Tax Commissioner. This means that nonresidents can avoid withholding tax deductions on further distributions (actual or deemed) from the Organization for as long as the agreement is in place.

How can the WV/NRW-4 agreement be revoked?

A nonresident distributee has the option to revoke this agreement by completing and filing the revocation section of the form with the Organization through which they receive West Virginia source income. This revocation is effective prospectively, meaning it applies to taxable years of the Organization beginning after the revocation is filed. The Tax Commissioner can also revoke the agreement if the nonresident distributee fails to file a West Virginia income tax return or to timely pay West Virginia income tax for any taxable year covered by the agreement.

What happens if a nonresident fails to file the WV/NRW-4 form or revoke it when required?

If a nonresident fails to file the WV/NRW-4 form, the Organization is required to withhold West Virginia income tax at the appropriate rate on distributions of West Virginia source income. Similarly, if the agreement is not timely revoked, the nonresident might inadvertently continue to receive distributions without the necessary withholdings, which could lead to complications with the West Virginia State Tax Department. Moreover, failure to file or revocation issues may result in the Tax Commissioner revoking the agreement if the nonresident distributee does not fulfill their tax filing or payment obligations.

Common mistakes

When it comes to filling out the West Virginia Nonresident Income Tax Agreement, also known as Form WV/NRW-4, individuals often make several common mistakes. Avoiding these errors can prevent processing delays and ensure compliance with state tax laws.

One frequent mistake is not completely filling out both the organization and nonresident sections, including names, addresses, and identification numbers. It's crucial to provide all the required information for both parties to avoid any confusion or processing delays. This information is vital for correctly associating the nonresident agreement with the appropriate entities and ensuring that the agreement is applied to the correct tax accounts.

Another error is selecting the wrong type of organization or nonresident. The form requires the filer to check only one box to identify the type of organization (e.g., Partnership, S Corporation, etc.) and the type of nonresident (e.g., Individual, Corporation, etc.). Incorrectly classifying the entity or individual can lead to improper tax treatment or processing of the form.

Choosing the wrong taxable year for either the organization or the nonresident is also a common mistake. The form requires information regarding the taxable year of both the organization and the nonresident, including whether it follows a calendar year or a fiscal year ending on a specific date. Providing incorrect dates can cause discrepancies in tax filings and lead to potential issues with the tax obligations of the nonresident.

Many filers fail to sign the form or provide the necessary signature in the designated areas in both Part II for the agreement and Part III for the revocation notice. The signature, along with the printed name and, if different, the mailing address, signifies the consent of the nonresident to the terms of the agreement or revocation. An unsigned form or a form lacking the required print name and address is typically considered incomplete and will not be processed.

Incorrectly filling out the form due to not reading the instructions provided on the reverse side is yet another mistake. The instructions offer guidance on who may file, when and where to file, and details on the withholding and agreement process. Overlooking or misunderstanding these instructions can lead to errors in how the form is completed and filed.

Lastly, not filing the form on time or with the correct organization can lead to unintended withholding of West Virginia income tax. The form must be filed with the organization on or before the last day of the organization’s taxable year to avoid withholding for that year. Moreover, if income is received from multiple organizations, separate WV/NRW-4 forms must be filed with each to ensure compliance.

To summarize, avoiding these common mistakes requires attention to detail and a thorough understanding of the form’s requirements:

  1. Fully completing all required sections and providing accurate entity and personal information.
  2. Correctly identifying the type of organization and type of nonresident.
  3. Accurately stating the taxable year for both the organization and the nonresident.
  4. Ensuring all necessary signatures and corresponding printed names and addresses are provided.
  5. Reading and following the instructions on the reverse side of the form carefully.
  6. Filing the form timely and with the correct organization(s).

Documents used along the form

When handling the West Virginia Nonresident Income Tax Agreement (Form WV/NRW-4), several other documents often come into play to ensure full compliance with tax obligations and legal requirements. These documents help streamline the process for nonresidents and organizations, facilitating a smoother tax filing experience while ensuring adherence to West Virginia tax laws.

  • Form IT-140: This is the West Virginia Personal Income Tax Return, used by individuals to report their yearly income. Nonresidents who earn income from a West Virginia source will use this form to declare that income and any taxes due.
  • Form WV/CNF-120: This form is for Corporate Net Income Tax Return in West Virginia. Nonresident corporations that receive income from business activities within the state file this document to report their income and calculate their tax liability.
  • Form WV/SPF-100: This is the West Virginia Income / Franchise Tax Return for Pass-Through Entities and Trusts. It is filed by S corporations, partnerships, and trusts to report income, gains, losses, deductions, and credits to the state.
  • Form WV/IT-101V: This form serves as the Income Tax Payment Voucher for Filers of Combined Corporate Net Income and Business Franchise Tax. It is used to make payment for tax owed when filing Form WV/CNF-120.
  • Form WV/IT-140ES: These are estimated tax payment vouchers for individuals, including nonresidents, to submit quarterly estimated tax payments to the West Virginia State Tax Department.
  • Form WV/IT-141: West Virginia Fiduciary Income Tax Return, filed by estates or trusts to report income earned by the estate or trust and distributees’ allocable share of income.
  • Form WV/IT-102: The Direct Deposit Electronic Funds Transfer Authorization, which allows taxpayers to request direct deposit of their tax refund into their bank account.
  • Notice of Change: Any entity or individual must inform the West Virginia State Tax Department of changes in address, contact information, or business status using this notice to ensure all communications and documents are properly received.

Understanding and properly filing these forms alongside the WV/NRW-4 ensures that nonresident individuals and entities comply with West Virginia’s tax regulations. This not only avoids penalties but also makes sure that taxpayers are credited with any taxes due or refunds owed in a timely manner. It’s beneficial for both the taxpayer and the state, facilitating a transparent and efficient tax filing process.

Similar forms

The Form IT-140, West Virginia Personal Income Tax Return, is similar to the WV/NRW-4 form because they both involve the reporting of income for tax purposes by individuals. Where the WV/NRW-4 form is specifically for nonresidents agreeing to file West Virginia income tax returns and pay any income tax due on income from West Virginia sources, the Form IT-140 is a broader instrument used by residents and nonresidents alike to report their annual income and calculate taxes owed to the state of West Virginia.

The WV/CNF-120, West Virginia Corporation Net Income Tax Return, parallels the WV/NRW-4 form in its focus on income tax obligations within the state of West Yet where the WV/NRW-4 form facilitates an agreement for nonresidents to file taxes without withholding, the WV/CNF-120 is used by corporations to report and pay their net income taxes to West Virginia, indicating an organization’s broader income-related responsibilities to the state.

Form W-4, Employee's Withholding Certificate, shares a foundational similarity with the WV/NRW-4 in terms of withholding taxes. Although the W-4 is a federal form used by employees to determine the amount of federal income tax to be withheld from their paychecks, it aligns with the WV/NRW-4’s purpose to manage the withholding process, albeit in a different context. Both seek to streamline tax payments and reduce year-end tax liabilities by addressing withholding directly.

The WV/SPF-100, Special Nonresident Income Tax Return, is closely related to the WV/NRW-4 since both address nonresident income tax issues in West Virginia. The WV/NRW-4 form allows nonresidents to agree not to have income tax withheld by pass-through entities, while the WV/SPF-100 is used by nonresidents to file their income tax returns, calculating tax on income sourced within West Virginia directly.

Form W-9, Request for Taxpayer Identification Number and Certification, is similar to the WV/NRW-4 due to its requirement for taxpayer identification information. While the WV/NRW-4 includes spaces for Social Security Numbers or Federal Identification Numbers of nonresident individuals and entities, the W-9 is a federal form used to provide such information to entities that will pay them income, ensuring correct reporting to the IRS.

Form WR-IT-147, West Virginia Income Tax Withholding Return, has a connection with the WV/NRW-4 form through the withholding tax process. Entities must withhold income tax for nonresident members without a WV/NRW-4 agreement in place, similar to how employers use WR-IT-147 to report and pay withheld employee income tax to the state of West Virginia, underscoring both forms’ roles in tax collection and compliance.

The Form 1065, U.S. Return of Partnership Income, though a federal form, is related to the WV/NRW-4 as both involve partnerships and the allocation of income to members. The WV/NRW-4 specifically deals with nonresident members of partnerships in West Virginia, requiring agreements to file state income tax returns. In contrast, Form 1065 is used by partnerships to report their income, deductions, and gains to the IRS. Both forms play essential roles in tax reporting for partnerships at different government levels.

Form 8804, Annual Return for Partnership Withholding Tax (Section 1446), is another federal form that parallels the WV/NRW-4 in addressing partnership income and withholding tax for nonresident partners. While Form 8804 is focused on withholding and reporting U.S. income effectively connected to a trade or business, the WV/NRW-4 allows for a similar state-level agreement for nonresidents regarding their West Virginia-sourced income, emphasizing both forms' focus on compliance with tax obligations for nonresident partners.

The Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc., is related to the WV/NRW-4 because it details a partner's share of a partnership's income, deductions, and credits. The WV/NRW-4 requires nonresident partners to agree to file West Virginia income tax returns and include their share of West Virginia source income or gain. Both documents work together to ensure that nonresident partners accurately report and pay taxes on their income from partnerships.

The Articles of Organization for a Limited Liability Company (LLC) in West Virginia have a tangential relation to the WV/NRW-4 because both involve business entity operations within the state. While the Articles of Organization are foundational documents filed to formally establish an LLC in West Virginia, the WV/NRW-4 comes into play when nonresident members or partners of the LLC earn income from West Virginia sources. Both are critical in the lifecycle and tax compliance of LLCs with nonresident economic engagement.

Dos and Don'ts

Filling out the WV/NRW-4 form accurately is crucial for nonresident individuals and corporations with West Virginia source income. Here are key dos and don'ts to ensure the process goes smoothly:

  • Do read the instructions on the reverse side of the form carefully before beginning. Understanding these can clarify many common points of confusion.
  • Do ensure that all the information provided is accurate and legible to avoid any unnecessary delays or issues with your submission.
  • Do check the correct box that corresponds to your type of organization or nonresident status, as this will affect how your information is processed.
  • Do include all required identification numbers, such as your Social Security Number, Federal Identification Number, or both, depending on your circumstances.
  • Don't forget to sign and date the form in Part II or Part III, depending on what action you're taking. An unsigned form is considered incomplete and can lead to rejection.
  • Don't fill out the revocation section unless you are intending to revoke an agreement previously made. Doing this accidentally can complicate your tax situation.
  • Don't overlook the filing deadline. The form must be completed and filed with the Organization on or before the last day of the Organization’s taxable year to avoid withholding.
  • Don't submit the form without verifying that all the information matches your records and the specific requirements for nonresident income tax agreements.

Getting each of these steps right will help ensure that the form is processed smoothly and that you remain compliant with West Virginia's tax laws regarding nonresident income. Paying close attention to the details and taking your time with the form can save a lot of headaches down the road.

Misconceptions

The West Virginia Nonresident Income Tax Agreement, known by its form number WV/NRW-4, is often misunderstood. Clearing up misconceptions can help ensure nonresidents of West Virginia who derive income from certain types of organizations within the state comply with tax laws while taking advantage of provisions meant to benefit them. Here are six common misconceptions about the form and the truths behind them:

  • Misconception 1: Any nonresident can file Form WV/NRW-4.

    This is not the case. Only nonresidents with West Virginia source income from a partnership, S corporation, estate, trust, or limited liability company and who wish not to have West Virginia income tax withheld need to file this form.

  • Misconception 2: Form WV/NRW-4 needs to be filed annually.

    Actually, once filed, the agreement remains in effect until it is revoked either by the nonresident distributee or the West Virginia Tax Commissioner. Therefore, it does not need to be filed annually, but must be timely filed with the organization before the end of its taxable year.

  • Misconception 3: WV/NRW-4 ensures no taxes are due to West Virginia.

    The truth is this form merely prevents West Virginia income tax from being withheld at the source by the organization distributing income to the nonresident. The nonresident is still responsible for filing West Virginia income tax returns and paying any taxes due on their West Virginia source income.

  • Misconception 4: The form is only for individuals.

    Both nonresident individuals and C corporations with West Virginia source income can use Form WV/NRW-4, provided their commercial domicile is outside the state.

  • Misconception 5: Filing this form is complex and requires a tax professional.

    While tax matters can be intricate, the instructions for completing Form WV/NRW-4 are straightforward and designed to be completed without the need for a tax professional. However, consulting with one can provide additional peace of mind or clarification as needed.

  • Misconception 6: Revoking the agreement is difficult.

    Revocation is relatively simple. A Nonresident Distributee wishing to revoke the agreement need only complete and file the form with the organization through which they receive West Virginia source income, with revocation taking effect for years beginning after the filing.

Understanding these key points can demystify the process of complying with West Virginia's nonresident income tax requirements and ensure that nonresidents are taking full advantage of the state's tax provisions.

Key takeaways

Filing and utilizing the West Virginia Nonresident Income Tax Agreement (WV/NRW-4 form) requires attention to detail and an understanding of its provisions. This article outlines five key takebas for those navigating this process.

  • Eligibility: The form is intended for any nonresident individual or C corporation generating income in West Virginia from partnerships, S corporations, estates, trusts, or limited liability companies seeking to avoid income tax withholding by these organizations.
  • Filing Deadline: The agreement must be submitted to the relevant organization on or before the last day of the organization’s taxable year. For nonresidents receiving income from multiple sources, a separate form for each entity is required to prevent income withholding.
  • Distribution of Copies: Once completed, the form should be distributed in threefold: one copy is filed alongside the organization's West Virginia income tax return, another retained by the entity itself, and the last given to the nonresident distributor.
  • Impact on Withholding: Successfully filing the WV/NRW-4 exempts the nonresident from the usual 6.5% withholding tax on distributions of West Virginia source income. However, this exemption only kicks in once the form is properly executed and filed with the organization for the tax year in question.
  • Duration and Revocation: The agreement remains active until either the nonresident distributor revokes it or the Tax Commissioner does so due to non-compliance, such as failing to file a West Virginia income tax return or pay taxes on time. Revocations by the nonresident distributor only apply to future taxable years starting after the revocation is filed.

Understanding these facets of the WV/NRW-4 agreement is crucial for nonresident individuals and corporations earning income in West Virginia. By adhering to these guidelines, they can efficiently manage their tax liabilities and ensure compliance with state tax regulations.

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