LRB-4237/1
MES:kmg:km
1995 - 1996 LEGISLATURE
October 5, 1995 - Introduced by Representatives Skindrud, Gard, Ainsworth,
Albers, Duff, Goetsch, Grothman, Kreibich, Ladwig, F. Lasee, Olsen, Owens
and Schneiders, cosponsored by Senator Buettner. Referred to Committee on
Children and Families.
AB602,1,3
1An Act to renumber 71.10 (6m);
to amend 71.80 (3m) (b) 3.; and
to create 71.10
2(6m) (b) of the statutes;
relating to: the tax liability of formerly married
3persons.
Analysis by the Legislative Reference Bureau
Under current law, if a married couple is granted a divorce, the divorce
judgment may apportion the couple's outstanding income tax liability between the
parties or to one of the parties. The judgment may also apportion the outstanding
tax liability of one of the parties to the other party as part of the settlement. If the
obligated party fails to pay the outstanding liability specified in the divorce
judgment, the department of revenue (DOR) may apply an income tax overpayment,
credit or refund, that would otherwise be payable to the nonobligated party, to the
former couple's tax liability.
Under this bill, DOR may not apply such an overpayment, credit or refund, that
is otherwise due the nonobligated party, to an outstanding tax liability that is
apportioned to the person's former spouse under the terms of a divorce judgment if
that person includes a copy of the judgment with his or her income tax return.
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:
AB602, s. 1
4Section
1. 71.10 (6m) of the statutes is renumbered 71.10 (6m) (a).
AB602, s. 2
5Section
2. 71.10 (6m) (b) of the statutes is created to read:
AB602,2,6
171.10
(6m) (b) The department may not apply ch. 766 or s. 71.55 (1), 71.61 (1)
2or 71.80 (3) or (3m) to assess an individual for any tax liability owed to the
3department by the individual or by the former spouse of the individual if a judgment
4of divorce under ch. 767 apportions that liability to the former spouse of the
5individual and if the individual includes with his or her tax return a copy of that
6portion of the judgment of divorce that relates to the apportionment of tax liability.
AB602, s. 3
7Section
3. 71.80 (3m) (b) 3. of the statutes is amended to read:
AB602,2,98
71.80
(3m) (b) 3. In respect to an amount subject to s. 71.10 (6) (a) and (b) and
9(6m)
(a).
AB602,2,12
11(1)
This act first applies to a judgment of divorce that is entered on the effective
12date of this subsection.
