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Tax 2.955(3) (3)Credits not allowed. An income tax credit may not be allowed for:
Tax 2.955(3)(a) (a) Income tax paid to Illinois, Indiana, Kentucky, Michigan or Minnesota on personal service income earned in these states included under a reciprocity agreement.
Tax 2.955 Note Note: Refer to s. Tax 2.02 for information concerning reciprocity.
Tax 2.955(3)(b) (b) Minimum tax or income tax paid to another state on income considered neither taxable income for Wisconsin tax purposes nor a tax preference item in the computation of the Wisconsin minimum tax.
Tax 2.955(3)(c) (c) Minimum tax paid to a state which does not classify the minimum tax as an income tax.
Tax 2.955(3)(d) (d) Income tax paid to a county, city, village, town or foreign country.
Tax 2.955(4) (4)How to claim a credit. The amount of income tax credit claimed shall be entered on the line provided for net income tax paid to other states on Wisconsin income tax return form 1 or form 1NPR. The credit may not exceed the Wisconsin net tax. To support the credit claimed, the following information shall be attached to form 1 or form 1NPR:
Tax 2.955(4)(a) (a) For a Wisconsin resident individual, estate, or trust, attach copies of the other state's income tax return and the wage statements, if any, to the Wisconsin income tax return.
Tax 2.955(4)(b) (b) For a Wisconsin resident shareholder in a tax-option (S) corporation, the federal subchapter S status of which is recognized by the other state:
Tax 2.955(4)(b)1. 1. If a Wisconsin resident shareholder files an individual income tax return with that state, attach a copy of the other state's income tax return to the Wisconsin income tax return.
Tax 2.955(4)(b)2. 2. If the corporation files a combined or composite return with that state on behalf of its shareholders who are nonresidents of that state and pays the tax on their proportionate share of the income earned there, attach to the Wisconsin income tax return either a copy of the Wisconsin schedule 5K-1 on which is shown the shareholder's share of tax paid to that state, or a letter as provided in par. (d).
Tax 2.955(4)(b)3. 3. If the corporation files a corporate income or franchise tax return with that state and pays tax on or measured by income earned there that is attributable to its shareholders who are nonresidents of that state, attach to the Wisconsin income tax return either a copy of the Wisconsin schedule 5K-1 on which is shown the shareholder's share of tax paid to that state, or a letter as provided in par. (d).
Tax 2.955(4)(c) (c) For a Wisconsin resident shareholder in a tax-option (S) corporation, the federal subchapter S status of which is not recognized by the other state, if the corporation pays an income or franchise tax on or measured by the income earned there, attach to the Wisconsin income tax return either a copy of the Wisconsin schedule 5K-1 on which is shown the shareholder's share of tax paid to that state, or a letter as provided in par. (d).
Tax 2.955(4)(d) (d) If the tax-option (S) corporation is not subject to Wisconsin's income or franchise tax, a Wisconsin resident shareholder shall attach to the Wisconsin income tax return a letter provided by the corporation in lieu of Wisconsin schedule 5K-1 as required in pars. (b) 2. and 3. and (c). The letter shall include a schedule showing the shareholder's proportionate share of the items of income taxable by that state, the adjusted gross income, and the net tax paid.
Tax 2.955(5) (5)Year in which to claim income tax credit. The credit for income tax paid to another state shall be claimed on the Wisconsin return for the year in which the out-of-state income is considered taxable Wisconsin income.
Tax 2.955 Note Example: A Wisconsin resident receives income of $4,000 in 1992 from rental property located in Iowa. The person files a 1992 declaration of estimated tax of $200 with Iowa, with $150 of estimated tax payments being made in 1992 and the fourth quarter payment of $50 being made in January 1993. The Iowa income of $4,000 is reported as income on the 1992 Iowa and Wisconsin returns. The 1992 Iowa income tax return shows the following:
Tax 2.955 Note 1992 Iowa Return
Tax 2.955 Note Iowa Rental Income $4,000
Tax 2.955 Note Iowa Net Tax $ 185
Tax 2.955 Note Estimated Tax Payments 200
Tax 2.955 Note Refund $ 15
Tax 2.955 Note The taxpayer may claim a credit for net income tax paid to other states of $185 on the 1992 Wisconsin return, even though a part of the tax was paid in 1993.
Tax 2.955 Note Note: Section Tax 2.955 interprets s. 71.07 (7), Stats.
Tax 2.955 History History: Cr. Register, December, 1978, No. 276, eff. 1-1-79; am. (4) (b), Register, January, 1981, No. 301, eff. 2-1-81; r. (2) (a) and (b), (3) (b), am. (2) (c), (3) (d) and (4), renum. (3) (c) to be (3) (b), r. and recr. (5), Register, September, 1983, No. 333, eff. 10-1-83; am. (1), (2), (3) (a) and (b), (4) (intro.), renum. (3) (cv) to be (3) (d), cr. (2) (b), (3) (c), (4) (c) and (d), r. and recr. (4) (a) and (b), Register, June, 1990, No. 414, eff. 7-1-90; am. (3) (intro.), (a), (4) (b) 2., 3., (c) and (d), Register, April, 1993, No. 448, eff. 5-1-93.
Tax 2.956 Tax 2.956 Historic structure and rehabilitation of nondepreciable historic property credits.
Tax 2.956(1) (1)Purpose. This section clarifies the phrase "first applies . . . for projects begun after December 31, 1988" as used in the initial applicability of s. 71.07 (9m) and (9r), Stats., as created by 1987 Wis. Acts 395 and 399, respectively. The initial applicability is provided in section 71 of 1987 Wis. Act 395 and in section 3203 (47) (mp) of 1987 Wis. Act 399.
Tax 2.956(2) (2)Definition of "begun". In the initial applicability of s. 71.07 (9m) and (9r), Stats., the date a project is "begun" means the date on which the physical work of rehabilitation commences. The physical work of rehabilitation commences when actual construction, or destruction in preparation for construction, commences. The term "physical work of rehabilitation," however, does not include preliminary activities such as planning, designing, securing financing, exploring, researching, developing plans and specifications, or stabilizing a building to prevent deterioration, such as placing boards over broken windows.
Tax 2.956 Note Note: Section Tax 2.956 interprets ss. 71.07 (9m) and (9r), 71.28 (6) and 71.47 (5) and (6), Stats.
Tax 2.956 History History: Emerg. cr. 12-28-88; cr. Register, June, 1989, No. 402, eff. 7-26-89; corrections in (1) and (2) made under s. 13.93 (2m) (b) 7., Stats., Register October 2002 No. 562; correction in (1) made under s. 13.92 (4) (b) 7., Stats., Register August 2013 No. 692.
Tax 2.957 Tax 2.957 Relocated business credit or deduction.
Tax 2.957(1)(1)Purpose. The purpose of this section is to prescribe the method by which the percentage of the workforce payroll of a business and the dollar amount of wages paid to such workforce moved to this state during a taxable year shall be determined for purposes of ss. 71.05 (6) (b) 47., 71.28 (9s), and 71.47 (9s), Stats.; provide examples of actions that may indicate a business has relocated to this state from another state or country; and limit the deduction provided for in s. 71.05 (6) (b) 47. am., b., and c., Stats.
Tax 2.957(2) (2)Definitions. In this section:
Tax 2.957(2)(a) (a) "Business" means any organization or enterprise operated for profit, including a sole proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation, limited liability company, or association.
Tax 2.957(2)(b) (b) "Doing business in this state" has the meaning given in s. 71.22 (1r), Stats.
Tax 2.957(2)(c) (c) "Employee" has the meaning given in section 3121 (d) of the Internal Revenue Code.
Tax 2.957(2)(d) (d) "Taxable year" has the meaning given in ss. 71.01 (12), 71.22 (10), and 71.42 (5), Stats.
Tax 2.957(2)(e) (e) "Wages" has the meaning given in section 3121 (a) of the Internal Revenue Code.
Tax 2.957(3) (3)Relocation to this state. For purposes of ss. 71.05 (6) (b) 47., 71.28 (9s), and 71.47 (9s), Stats., actions that may indicate a business has relocated to this state from another state or country include the following:
Tax 2.957(3)(a) (a) Registering with the department, as provided in s. 73.03 (50), Stats.
Tax 2.957(3)(b) (b) Registering to do business in Wisconsin with the department of financial institutions.
Tax 2.957(4) (4)Doing business in this state. For purposes of ss. 71.05 (6) (b) 47., 71.28 (9s), and 71.47 (9s), Stats., doing business in this state for any portion of a taxable year means doing business in this state for the entire taxable year, as provided in s. 71.22 (1r), Stats.
Tax 2.957(5) (5)Workforce payroll. For purposes of ss. 71.05 (6) (b) 47. a., 71.28 (9s) (a) 2., and 71.47 (9s) (a) 2., Stats., the determination as to whether 51% or more of the workforce payroll of a business has moved to this state during a taxable year shall be made using a fraction, the numerator of which is the total amount of wages paid by the business during the taxable year to employees of the business who are residents of this state, and the denominator of which is the total amount of wages paid by the business during the taxable year to all employees of the business.
Tax 2.957 Note Example: During the taxable year in which Business A begins doing business in Wisconsin, Business A pays $6,000,000 of wages to employees of Business A who are residents of Wisconsin and $10,000,000 of total wages to all employees of Business A. Sixty (60) percent of the workforce payroll of Business A moved to Wisconsin during the taxable year (6,000,000/10,000,000).
Tax 2.957(6) (6)Workforce wages. For purposes of ss. 71.05 (6) (b) 47. a., 71.28 (9s) (a) 2., and 71.47 (9s) (a) 2., Stats., the determination as to whether at least $200,000 of wages paid to the workforce of a business has moved to this state during a taxable year shall be made using the total amount of wages paid by the business during the taxable year to employees of the business who are residents of this state.
Tax 2.957 Note Example: During the taxable year in which Business B begins doing business in Wisconsin, Business B pays $250,000 of wages to employees of Business B who are residents of Wisconsin. Wages of $250,000 paid to the workforce of Business B moved to Wisconsin during the taxable year.
Tax 2.957(7) (7)Limitation on deduction. No modification may be made under s. 71.05 (6) (b) 47. am., b., or c., Stats., if the amount otherwise eligible for the modification is less than zero.
Tax 2.957 Note Example: Partner B determines the amount otherwise eligible for the modification under s. 71.05 (6) (b) 47. b., Stats., is a loss of $5,000. Partner B may not make a modification under s. 71.05 (6) (b) 47. b., Stats.
Tax 2.957 History History: EmR1104: emerg. cr. eff. 4-7-11; CR 11-023: cr. Register November 2011 No. 671, eff. 12-1-11.
Tax 2.96 Tax 2.96 Extensions of time to file corporation franchise or income tax returns.
Tax 2.96(1) (1)Due dates.
Tax 2.96(1)(a)(a) General. Except as provided in pars. (am) and (b), corporation franchise or income tax returns are due on or before the 15th day of the 3rd month following the close of a corporation's taxable year unless an extension of time for filing has been granted.
Tax 2.96(1)(am) (am) For tax exempt corporations with unrelated business taxable income, the franchise or income tax return is due on or before the 15th day of the 5th month following the close of the corporation's taxable year unless an extension of time for filing has been granted.
Tax 2.96(1)(b) (b) Short-period returns. Corporation franchise or income tax returns for periods of less than 12 months are due on or before the federal due date.
Tax 2.96(2) (2)Extensions.
Tax 2.96(2)(a)(a) Automatic extension. For corporation franchise or income tax returns, an automatic extension is allowed for a period of 7 months or until the original due date of the corporation's corresponding federal return, whichever is later. If any extension is obtained for federal purposes, that extension also applies for Wisconsin purposes and is further extended for another 30 days after the federal due date. A copy of federal extension form 7004, or other federal extension form, if applicable, shall be attached to any Wisconsin franchise or income tax return filed under extension, even if the extension was not requested for federal purposes.
Tax 2.96(2)(b) (b) Combined returns. For corporations required to use combined reporting under s. 71.255, Stats., any extension granted to the designated agent of the combined group is considered granted to each corporation in the combined group.
Tax 2.96(2)(c) (c) Estimated tax payment. A taxpayer who desires to minimize interest charges during the extension period may pay the estimated tax liability on or before the original due date of the franchise or income tax return. The estimated tax liability includes the economic development surcharge imposed under s. 77.93, Stats.
Tax 2.96 Note Note: See s. Tax 2.66 for rules relating to the payment of estimated taxes by combined groups.
Tax 2.96(3) (3)Interest charges and late filing fees.
Tax 2.96(3)(a)(a) Regular interest. Except as provided in par. (b), additional tax due with the complete return and the economic development surcharge imposed under s. 77.93, Stats., which are not paid by the original due date are subject to interest at 12% per year during the extension period and 1 1/2% per month from the end of the extension period until the date of payment.
Tax 2.96(3)(b) (b) Delinquent interest. If 90% of the tax shown on the return is not paid by the unextended due date of the return, the difference between that amount and the estimated taxes paid along with any interest due is subject to interest at 11/2% per month until paid regardless of any extension granted for filing the return. The tax shown on the return includes the economic development surcharge imposed under s. 77.93, Stats.
Tax 2.96(3)(c) (c) Late filing fee. A corporation return filed after the extension period is subject to a $150 late filing fee.
Tax 2.96 Note Note: Section Tax 2.96 interprets ss. 71.24 (7), 71.255 (7), and 71.44 (3), Stats.
Tax 2.96 History History: Cr. Register, February, 1978, No. 266, eff. 3-1-78; am. (1), (2) (a) and (c), (3) (a) and (c), (4) and (5), Register, September, 1983, No. 333, eff. 10-1-83; am. (1), (2) (a) and (b), (4) and (5), r. (2) (c), renum. (2) (d) to be (2) (c), Register, February, 1990, No. 410, eff. 3-1-90; r. and recr. Register, December, 1995, No. 480, eff. 1-1-96; CR 10-095: am. (1) (a), (3) (a), (b), cr. (1) (am), r. and recr. (2), r. (4) Register November 2010 No. 659, eff. 12-1-10; CR 12-011: am. (2) (c), (3) (a) to (c) Register July 2012 No. 679, eff. 8-1-12.
Tax 2.96 Annotation Cross Reference: See s. Tax 2.60 for combined reporting definitions relating to this section. See s. Tax 2.65 for rules relating to the designated agent. See s. Tax 2.66 for rules relating to the payment of estimated taxes by combined groups. See s. Tax 2.67 for rules relating to the filing of a combined return.
Tax 2.98 Tax 2.98 Disaster area losses.
Tax 2.98(1)(a) (a) Hurricanes, fires, storms, floods, and other similar casualties may cause persons to suffer losses from damage to property used in a trade or business or for income-producing purposes for which insurance coverage is nominal or nonexistent. Losses sustained from casualties of this kind may be deductible on a federal and a Wisconsin income tax return.
Tax 2.98(1)(b) (b) If a taxpayer sustains a casualty loss from a disaster in an area subsequently determined by the president of the United States to warrant federal assistance, section 165 (i) of the Internal Revenue Code gives taxpayers the election to deduct the loss on the return for the current tax year or on the return for the immediately preceding tax year.
Tax 2.98(2)(a)(a) The Wisconsin income tax treatment is determined under the federal Internal Revenue Code in effect under s. 71.22 (4), Stats., for corporations and s. 71.01 (6), Stats., for individuals.
Tax 2.98(2)(b) (b) If a corporation, designated agent of a combined group, or an individual desires to make the election after having filed a Wisconsin income tax return for the preceding taxable year, the casualty loss may be claimed by filing an amended Wisconsin return for that year.
Tax 2.98 Note Note: For taxable years prior to 1987, the Wisconsin corporation tax law was contained in ch. 71, Stats., and was not referenced to the federal law in regard to disaster losses. Therefore, the election provisions in the Internal Revenue Code were not available to corporations for Wisconsin franchise and income tax purposes for those years. The amendment allowing disaster losses for corporations was enacted by 1987 Wis. Act 27.
Tax 2.98 Note Note: The treatment described in this section became effective with 1986 individual income tax returns filed in taxable year 1987. Section 71.02 (2) (me), 1985 Stats., was again renumbered, s. 71.01 (16), Stats., by 1987 Wis. Act 312. For 1985 and prior year income tax returns filed in 1986 and prior taxable years, disaster area losses from damage to property used for personal purposes were also allowed, as an itemized deduction.
Tax 2.98 Note Note: As an example of Note 2) on March 23, 1976, the president of the United States declared that 22 Wisconsin counties warranted assistance by the federal government under the Disaster Relief Act of 1974. This resulted from the damage during the severe rain and ice storm which occurred March 1 through 12, 1976 in the following 22 counties: - See PDF for table PDF
Tax 2.98 Note An individual who sustained a casualty loss from this disaster in any of these 22 counties, regardless of where that individual resided, could have elected to deduct the loss on the individual's 1975 Wisconsin income tax return. The election had to have been made on or before April 15, 1977 for calendar year taxpayers, assuming the due date for filing the 1975 Wisconsin return was not extended beyond April 15, 1977. If the election was not made, the loss was deductible on the taxpayer's 1976 return.
Tax 2.98 Note Note: Tax 2.98 explains some federal provisions relating to disaster area losses and how the Wisconsin law for individuals conforms to the federal law, however, it does not explain all the details regarding casualty losses. Internal Revenue Service Publication 547, entitled Casualties, Disasters, and Thefts may be helpful in understanding such details as how to deduct a casualty loss, what to do if the loss exceeds income, how to adjust the basis of property damaged or replaced, how to report the amount received from insurance or other sources, and related casualty loss problems.
Tax 2.98 Note Note: Section Tax 2.98 interprets ss. 71.01 (6), 71.22 (4), and 71.255 (7) (b) Stats.
Tax 2.98 History History: Cr. Register, April, 1978, No. 268, eff. 5-1-78; r. (2), renum. (3) to be (2) and am. (2) (a) 1. and (b), Register, September, 1983, No. 333, eff. 10-1-83; am. (1) (a), r. (2) (b), renum. (2) (a) 1. and 2. to be (2) (a) and (b) and am., Register, February, 1990, No. 410, eff. 3-1-90; CR 10-095: am. (2) (b) Register November 2010 No. 659, eff. 12-1-10; CR 13-012: am. (1) (b) Register August 2013 No. 692, eff. 9-1-13.
Tax 2.985 Tax 2.985 Electronic medical records credit.
Tax 2.985(1)(1)Purpose and scope. The purpose and scope of this section is to establish procedures for all of the following:
Tax 2.985(1)(a) (a) Certifying health care providers as eligible for the electronic medical records credit under ss. 71.07 (5i), 71.28 (5i), and 71.47 (5i), Stats.
Tax 2.985(1)(b) (b) Filing an application for the electronic medical records credit under ss. 71.07 (5i), 71.28 (5i), and 71.47 (5i), Stats., including the method of application and information required.
Tax 2.985(1)(c) (c) Allocating the electronic medical records tax credit to health care providers certified under this section.
Tax 2.985(2) (2)Definitions. In this section:
Tax 2.985(2)(a) (a) "Claimant" has the meaning given in ss. 71.07 (5i) (a), 71.28 (5i) (a), and 71.47 (5i) (a), Stats.
Tax 2.985(2)(b) (b) "Electronic medical record" means an electronic record of health-related information that includes patient demographic and clinical health information and has the capacity to provide clinical decision support; to support physician order entry; to capture and query information relevant to health care quality; and to exchange and integrate electronic health information with and from other sources.
Tax 2.985(2)(c) (c) "Health care provider" has the meaning given in s. 146.81 (1) (a) to (p), Stats.
Tax 2.985(2)(d) (d) "Taxable year" has the meaning given in ss. 71.01 (12), 71.22 (10), and 71.42 (5), Stats.
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