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 Act 395 and in section 3203 (47) (mp) of 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 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.
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)(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)(c)
(c) "Employee" has the meaning given in section
3121 (d) of the Internal Revenue Code.
Tax 2.957(2)(e)
(e) "Wages" has the meaning given in section
3121 (a) of the Internal Revenue Code.
Tax 2.957(3)(b)
(b) Registering to do business in Wisconsin with the department of financial institutions.
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)(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)(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)(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 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 2.97
Tax 2.97
Earned income credit eligibility. Tax 2.97(1)
(1)
General. Under s.
71.07 (9e) (ad),
(ah),
(ap) and
(at), Stats., certain persons may claim an earned income credit based on the person's earned income or federal adjusted gross income.
Tax 2.97(2)(a)2.
2. The amount of the person's net earnings from self-employment for the taxable year within the meaning of section
1402 (a) of the Internal Revenue Code, but net earnings shall be determined with regard to the deduction allowed to the person under section
164 (f) of the Internal Revenue Code.
Tax 2.97(2)(b)
(b) "Qualifying child" means, with respect to any person for any taxable year, an individual:
Tax 2.97(2)(b)2.
2. Who, except as provided in
sub. (5) (a) 3., has the same principal place of abode as the person for more than one-half of the taxable year.
Tax 2.97(3)(a)(a) Except as provided in
pars. (b),
(c) and
(d), a person who has a qualifying child for the taxable year may claim the earned income credit.
Tax 2.97(3)(b)
(b) A person may not claim the earned income credit for the taxable year if the person is the qualifying child of another person for that taxable year.
Tax 2.97 Note
Example: You and your daughter lived with your mother during the taxable year. Both you and your mother meet all the requirements for the earned income credit for the taxable year.
Tax 2.97 Note
Your daughter is your qualifying child. Both you and your daughter are qualifying children of your mother.
Tax 2.97 Note
You cannot take the earned income credit because you are your mother's qualifying child.
Tax 2.97(3)(c)
(c) If 2 or more persons would be treated as eligible for the credit with respect to the same qualifying child for taxable years beginning in the same calendar year, only the person with the highest federal adjusted gross income for the taxable year may claim the earned income credit with respect to the qualifying child.
Tax 2.97 Note
Example: You and your 5-year-old son moved in with your mother in April. You are not a qualifying child of your mother. Your son meets the conditions to be a qualifying child for both you and your mother. Your federal adjusted gross income for the taxable year was $7,000 and your mother's was $14,000. Since your mother's federal adjusted gross income was higher, only your mother may claim the earned income credit with respect to your son.
Tax 2.97(3)(d)
(d) A person who claims the foreign earned income exclusion under section
911 of the Internal Revenue Code for the taxable year may not claim the earned income credit.
Tax 2.97(4)(a)(a) The earned income of a person shall be computed without regard to any marital property laws.
Tax 2.97(4)(b)
(b) No amount received as a pension or annuity may be taken into account in computing earned income.
Tax 2.97(4)(c)
(c) No amount to which section
871 (a) of the Internal Revenue Code applies, relating to income of nonresident alien individuals not connected with United States business, may be taken into account in computing earned income.
Tax 2.97(5)(a)1.1. An individual bears a relationship to the person if the individual is any of the following:
Tax 2.97(5)(a)2.
2. Subdivision 1. does not apply to any individual who is married as of the end of the person's taxable year unless the person is entitled to a deduction under section
151 of the Internal Revenue Code for that taxable year with respect to the individual or would be so entitled but for paragraph (2) or (4) of section
152 (e) of the Internal Revenue Code.
Tax 2.97(5)(a)3.b.
b. Has the same principal place of abode as the person for the person's entire taxable year.
Tax 2.97(5)(a)4.
4. A child who is legally adopted or who is placed with a person by an authorized placement agency for adoption by the person shall be treated as a child by blood.
Tax 2.97(5)(b)
(b) Age requirements. An individual meets the requirements of this paragraph if the individual meets any of the following conditions:
Tax 2.97(5)(b)1.
1. Has not attained the age of 19 as of the end of the calendar year in which the taxable year of the person begins.
Tax 2.97(5)(b)2.
2. Is a student as defined in section
151 (c) (4) of the Internal Revenue Code who has not attained the age of 24 as of the end of the calendar year.
Tax 2.97(5)(b)3.
3. Is permanently and totally disabled as defined in section
22 (e) (3) of the Internal Revenue Code at any time during the taxable year.
Tax 2.97(5)(c)
(c) Identification requirements. The requirements of this paragraph are met if, as part of the tax return on which the credit is claimed:
Tax 2.97(5)(c)1.
1. The person provides the name and age of each qualifying child.
Tax 2.97(5)(c)2.
2. In the case of a qualifying child who has attained the age of one year before the end of the person's taxable year, the person provides the taxpayer identification number of the qualifying child.
Tax 2.97(5)(d)
(d) Abode must be in the United States. The requirements of
sub. (2) (b) 2. and
par. (a) 3. b. shall be met only if the principal place of abode is in the United States.
Tax 2.97 Note
Note: The provisions of this section are effective for taxable years beginning on or after January 1, 1994, as a result of the enactment of
1993 Wis. Act 16, which created s.
71.07 (9e) (ad),
(ah),
(ap) and
(at), Stats. Prior to the enactment of
1993 Wis. Act 16, the Wisconsin earned income credit was based on a percentage of the federal basic earned income credit.
Tax 2.97 History
History: Cr.
Register, January, 1995, No. 469, eff. 2-1-95.
