Senate Bill No. 253
(By Senators Minard and Sharpe)
[Introduced February 22, 2005; referred to the Committee
on Banking and Insurance; and then to the Committee on Finance.]
A BILL to amend and reenact §33-43-7 of the Code of West Virginia,
1931, as amended, relating to late filings of tax returns to
the Insurance Commissioner; permitting the Commissioner to
waive or reduce the penalty; and establishing the standard for
granting waiver or reduction.
Be it enacted by the Legislature of West Virginia:
That §33-43-7 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 43. INSURANCE TAX PROCEDURES ACT.
(a) If any taxpayer fails to file a return by the applicable
filing date, then for each day throughout which the taxpayer fails
to file, the taxpayer is liable for a civil
penalty of twenty-five
dollars: Provided, That the Commissioner may waive or reduce this
penalty if the Commissioner determines that the failure to timely
file was caused by excusable neglect or otherwise does not warrant the imposition of the maximum allowable penalty.
(b) If a taxpayer fails to pay a tax liability in full by the
applicable payment date, then for each day throughout which a
portion of the liability remains unpaid, the taxpayer is liable for
penalty in an amount equal to one percent of the unpaid
, That the sum of the penalties imposed under
this subsection may not exceed one hundred percent of the tax
liability: Provided, however, That this
under this section
may be waived or reduced
by the commissioner
the taxpayer establishes, to the satisfaction of the Commissioner,
that the failure upon which the penalty is based was not, in whole
or in part, willful or due to the neglect of the taxpayer.
The assessment of a penalty under this section is
automatic unless a waiver or reduction of the penalty is agreed to
by the Commissioner in writing.
(NOTE: The purpose of this bill is to permit the Commissioner
to waive or reduce the daily penalty for failure to timely file a
tax return with the Insurance Commissioner for excusable neglect.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would