Tax 2.96(1)(a)(a) General.
Except as provided in pars. (am)
, 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.
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.
(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.
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.
(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.
(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
Tax 2.96 Note
See s. Tax 2.66
for rules relating to the payment of estimated taxes by combined groups.
(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.
(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 1 1/2% 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
(c) Late filing fee.
A corporation return filed after the extension period is subject to a $150 late filing fee.
Tax 2.96 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.
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.
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.
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.
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
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
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
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
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 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.
Registration of a business under s. 73.03 (69), Stats. Tax 2.986(1)(1)
This section establishes the method of valuing property and the registration deadline for purposes of s. 73.03 (69)
In this section, “doing business in this state" has the meaning given in s. 71.22 (1r)
Method of valuing property.
For purposes of s. 73.03 (69) (b) 2.
, Stats., real and tangible personal property owned by the business shall be valued at its original cost and real and tangible personal property rented by the business shall be valued at an amount equal to the annual rental paid by the business, less any annual rental received by the business from sub-rentals, multiplied by 8.
Except as provided in par. (b)
, a business shall register with the department under s. 73.03 (69)
, Stats., on or before the close of the calendar year for which the business desires registration. A business may not be registered for a calendar year if the registration is not within the time provided in this subsection.
A business that desires registration for the calendar year in which it begins doing business in this state shall register with the department during the following calendar year.
Tax 2.986 Note
Example: Business A begins doing business in Wisconsin on March 8, 2014. Business A must register with the department for calendar year 2014 between January 1, 2015, and December 31, 2015.
Tax 2.986 History
History: CR 14-005
: cr. Register August 2014 No. 704
, eff. 9-1-14.
Dairy and livestock farm investment credit. Tax 2.99 Note
Note: 2005 Wis. Act 25
renamed the “dairy investment credit" the “dairy and livestock farm investment credit," effective for taxable years beginning on or after January 1, 2006. The term “dairy and livestock farm investment credit" as used in this section refers to the “dairy investment credit" for taxable years prior to January 1, 2006.
“Amount the claimant paid in the taxable year" means the purchase price of facilities or equipment acquired and first placed in service in this state during taxable years that begin after December 31, 2003, and before January 1, 2017.
“Dairy farm modernization or expansion" has the meaning as given in ss. 71.07 (3n)
, 71.28 (3n)
, and 71.47 (3n)
, Stats. “Dairy farm modernization or expansion" refers only to those facilities or equipment in this state used exclusively on the claimant's dairy farm related to the dairy animals located on the claimant's dairy farm. “Dairy farm modernization or expansion" does not include the purchase of:
Vehicles licensed for highway use, snowmobiles, and all-terrain vehicles.
“First placed in service" has the meaning as given under Treas. Reg. section 1.167 (a)-11 (e) (1) (i) for purposes of computing depreciation.
Tax 2.99 Note
Note: Treas. Reg. s. 1.167 (a)-11 (e) (1) (i) provides, in part, that property is first placed in service when first placed in a condition or state of readiness and availability for a specifically assigned function.
“Milk production" means the activity of producing and handling milk on the claimant's dairy farm in this state for human consumption, but does not include activities such as transporting, pasteurizing, or homogenizing milk or making butter, cheese, ice cream or other dairy products.
“Used exclusively related to dairy animals" means used in this state on the claimant's dairy farm to the exclusion of all other uses except for other uses not exceeding 5% of total use.
Tax 2.99 History
Emerg. cr. eff. 9-17-04; CR 04-115
: cr. Register March 2005 No. 591
, eff. 4-1-05; CR 12-011
: am. (title), (1), (2) (a) Register July 2012 No. 679
, eff. 1-8-12.