LRB-1544/1
KRP:amn
2017 - 2018 LEGISLATURE
January 18, 2017 - Introduced by Representatives Kooyenga, Steffen, Tittl,
Bernier, Horlacher, Katsma, Macco, Duchow, Murphy, Knodl and Hutton,
cosponsored by Senators Marklein, Kapenga, LeMahieu, Cowles and
Ringhand. Referred to Committee on Ways and Means.
AB26,1,6 1An Act to repeal 71.775 (4) (a) 1. and 71.775 (4) (a) 2.; to renumber and amend
271.775 (4) (a) (intro.); to amend 71.20 (1), 71.24 (1), 71.24 (9) (a), 71.29 (8) (a),
371.44 (1) (a), 71.44 (4) (b), 71.84 (2) (a) and 71.84 (2) (c); and to create 71.775
4(4) (fm) 3. of the statutes; relating to: due dates for filing income and franchise
5tax returns, paying estimated income and franchise tax installment payments,
6and filing withholding tax returns.
Analysis by the Legislative Reference Bureau
This bill changes the due dates for certain entities to file Wisconsin income or
franchise tax returns, to pay the first installment of estimated income and franchise
tax, and to file withholding tax returns.
Under the federal Surface Transportation and Veterans Health Care Choice
Improvement Act of 2015, the due dates for certain entities to file federal income tax
returns were changed to the following:
1. For taxable years beginning after December 31, 2015, for a partnership,
limited liability company, or tax-option corporation, March 15 or the 15th day of the
third month following the close of the entity's fiscal year.
2. For taxable years beginning after December 31, 2015, for a corporation other
than a tax-option corporation, except for a corporation that has a taxable year ending
on June 30, April 15 or the 15th day of the fourth month following the close of the
corporation's fiscal year.

3. For taxable years beginning after December 31, 2015, and ending before
January 1, 2024, for a corporation, other than a tax-option corporation, that has a
taxable year ending on June 30, the 15th day of the third month following the close
of the corporation's fiscal year.
4. For taxable years beginning after December 31, 2025, for a corporation, other
than a tax-option corporation, that has a taxable year ending on June 30, the 15th
day of the fourth month following the close of the corporation's fiscal year.
The bill amends the due dates under Wisconsin law for those entities to file
state income and franchise tax returns to conform to the federal income tax return
filing due dates.
The bill also provides that a corporation that is required to pay periodic
installments of estimated Wisconsin income or franchise tax must pay the first
installment of the tax on or before the 15th day of the fourth month of the
corporation's taxable year, except that, if the corporation's taxable year ends in
March, the first installment must be paid in the third month of the corporation's
taxable year. Under current law, the first installment for all corporations is due on
the 15th day of the third month of the corporation's taxable year.
The bill also changes the due date for a partnership, limited liability company,
tax-option corporation, estate, or trust (pass-through entity) to file a withholding
tax return for amounts withheld from income of the pass-through entity that are
distributable to a nonresident partner, member, shareholder, or beneficiary. The bill
changes that due date to be the same as the due date for the pass-through entity to
file its federal income tax return.
Under current law, if a pass-through entity underpays estimated withholding
tax, the pass-through entity must pay interest on the amount of the underpayment
for the period of the underpayment. The bill provides that no interest must be paid
if the secretary of revenue determines that because of casualty, disaster, or other
unusual circumstances it is not equitable to impose interest.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB26,1 1Section 1. 71.20 (1) of the statutes is amended to read:
AB26,3,62 71.20 (1) Every partnership shall furnish to the department a true and
3accurate statement, on or before April 15 of each year, except that returns for fiscal
4years ending on some other date than December 31 shall be furnished on or before
5the 15th day of the 4th month following the close of such fiscal year
the date on which
6the partnership is required to file for federal income tax purposes under the Internal

1Revenue Code
, in such the manner and form and setting forth such the facts as the
2department deems necessary to enforce this chapter. A partnership that is the owner
3of a single-owner entity that is disregarded as a separate entity under section 7701
4of the Internal Revenue Code shall include that entity's information on the owner's
5return under this subchapter. The statement shall be subscribed by one of the
6members partners of the partnership.
AB26,2 7Section 2. 71.24 (1) of the statutes is amended to read:
AB26,4,28 71.24 (1) Filing returns. Every corporation, except corporations a corporation
9all of whose income is exempt from taxation and except as provided in sub. (1m), shall
10furnish to the department a true and accurate statement, on or before March 15 of
11each year, except that returns for fiscal years ending on some other date than
12December 31 shall be furnished on or before the 15th day of the 3rd month following
13the close of such fiscal year and except that returns for less than a full taxable year
14shall be furnished on or before
the date applicable on which the corporation is
15required to file
for federal income taxes tax purposes under the internal revenue code
16Internal Revenue Code, in such the manner and form and setting forth such the facts
17as the department deems necessary to enforce this chapter. Every corporation that
18is required to furnish a statement under this subsection and that has income that
19is not taxable under this subchapter shall include with its the corporation's
20statement a report that identifies each item of its the corporation's nontaxable
21income. The statement shall be subscribed by the president, vice president,
22treasurer, assistant treasurer, chief accounting officer, or any other officer duly
23authorized so to act. In the case of a return made for a corporation by a fiduciary, the
24fiduciary shall subscribe the return. The fact that an individual's name is subscribed

1on the return shall be prima facie evidence that the individual is authorized to
2subscribe the return on behalf of the corporation.
AB26,3 3Section 3. 71.24 (9) (a) of the statutes is amended to read:
AB26,4,64 71.24 (9) (a) Corporation franchise and income taxes not paid on or before the
515th day of the 3rd month following the close of the taxable year deadline for filing
6returns described in sub. (1) or (1m)
shall be deemed delinquent.
AB26,4 7Section 4. 71.29 (8) (a) of the statutes is amended to read:
AB26,4,108 71.29 (8) (a) The 3rd 4th month of the taxable year, except that a taxpayer
9whose taxable year ends in March shall pay the installment in the 3rd month of the
10taxable year
.
AB26,5 11Section 5. 71.44 (1) (a) of the statutes is amended to read:
AB26,5,512 71.44 (1) (a) Every corporation, except corporations a corporation all of whose
13income is exempt from taxation and except as provided in sub. (1m), shall furnish to
14the department a true and accurate statement, on or before March 15 of each year,
15except that returns for fiscal years ending on some other date than December 31 shall
16be furnished on or before the 15th day of the 3rd month following the close of such
17fiscal year and except that returns for less than a full taxable year shall be furnished
18on or before
the date applicable on which the corporation is required to file for federal
19income taxes tax purposes under the internal revenue code Internal Revenue Code,
20in such the manner and form and setting forth such the facts as the department
21deems necessary to enforce this chapter. Every corporation that is required to
22furnish a statement under this paragraph and that has income that is not taxable
23under this subchapter shall include with its the corporation's statement a report that
24identifies each item of its the corporation's nontaxable income. The statement shall
25be subscribed by the president, vice president, treasurer, assistant treasurer, chief

1accounting officer, or any other officer duly authorized so to act. In the case of a
2return made for a corporation by a fiduciary, the fiduciary shall subscribe the return.
3The fact that an individual's name is subscribed on the return shall be prima facie
4evidence that the individual is authorized to subscribe the return on behalf of the
5corporation.
AB26,6 6Section 6. 71.44 (4) (b) of the statutes is amended to read:
AB26,5,97 71.44 (4) (b) Corporation franchise and income taxes not paid on or before the
815th day of the 3rd month following the close of the taxable year deadline for filing
9returns described in sub. (1) or (lm)
shall be deemed delinquent.
AB26,7 10Section 7. 71.775 (4) (a) (intro.) of the statutes is renumbered 71.775 (4) (a)
11and amended to read:
AB26,5,1712 71.775 (4) (a) Each pass-through entity that is subject to the withholding
13under sub. (2) shall file an annual return that indicates the withholding amount paid
14to the state during the pass-through entity's taxable year. The pass-through entity
15shall file the return with the department no later than: on or before the date on which
16the pass-through entity is required to file for federal income tax purposes under the
17Internal Revenue Code.
AB26,8 18Section 8. 71.775 (4) (a) 1. of the statutes is repealed.
AB26,9 19Section 9. 71.775 (4) (a) 2. of the statutes is repealed.
AB26,10 20Section 10. 71.775 (4) (fm) 3. of the statutes is created to read:
AB26,5,2221 71.775 (4) (fm) 3. The secretary of revenue determines that because of casualty,
22disaster, or other unusual circumstances it is not equitable to impose interest.
AB26,11 23Section 11. 71.84 (2) (a) of the statutes is amended to read:
AB26,6,1224 71.84 (2) (a) Except as provided in s. 71.29 (7), in the case of any underpayment
25of estimated tax by a corporation under s. 71.29 or 71.48, there shall be added to the

1aggregate tax for the taxable year interest at the rate of 12 percent per year on the
2amount of the underpayment for the period of the underpayment. For corporations,
3except as provided in par. (b)
In this paragraph, “ period of the underpayment" means
4the time period from the due date of the installment until either the 15th day of the
53rd month beginning after the end of the taxable year
date on which the corporation
6is required to file for federal income tax purposes under the Internal Revenue Code

7or the date of payment, whichever is earlier. If 90 percent of the tax shown on the
8return is not paid by the 15th day of the 3rd month following the close of the taxable
9year
date on which the corporation is required to file for federal income tax purposes
10under the Internal Revenue Code
, the difference between that amount and the
11estimated taxes paid, along with any interest due, shall accrue delinquent interest
12under s. 71.91 (1) (a).
AB26,12 13Section 12. 71.84 (2) (c) of the statutes is amended to read:
AB26,6,2114 71.84 (2) (c) If a refund under s. 71.29 (3m) results in an income or franchise
15tax liability that is greater than the amount of estimated taxes paid in when reduced
16by the amount of the refund, the taxpayer shall add to the aggregate tax for the
17taxable year interest at an annual rate of 12 percent on the amount of the unpaid tax
18liability for the period beginning on the date the refund is issued and ending on either
19the 15th day of the 3rd month beginning after the end of the taxable year, date on
20which the taxpayer is required to file for federal income tax purposes under the
21Internal Revenue Code
or the date the tax liability is paid, whichever is earlier.
AB26,13 22Section 13. Initial applicability.
AB26,7,3
1(1) This act first applies retroactively to taxable years beginning on January
21, 2016, except that if this subsection takes effect after March 14, 2017, this act first
3applies to taxable years beginning on January 1, 2017.
AB26,7,44 (End)
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