SB458: Bill Text

LRB-3313/1

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2005 - 2006 LEGISLATURE

2005 Senate BILL 458

November 29, 2005 - Introduced by Senators Kapanke, Grothman and Olsen, cosponsored by Representatives Huebsch, Albers, Friske, Gunderson, Musser, Ott, Pettis and Pridemore. Referred to Committee on Job Creation, Economic Development and Consumer Affairs.

SB458,1,3 An Act to amend 71.80 (18); and to create 71.738 (2m) of the statutes; relating to: the timely filing of documents and payments with the Department of Revenue related to the income tax and franchise tax.

Analysis by the Legislative Reference Bureau

Under current law, for the purpose of paying income and franchise taxes, documents and payments that must be provided to the Department of Revenue (DOR) are considered to be provided on time, if DOR receives the document or payment on or before the due date or, if mailed, the envelope containing the document or payment is correctly addressed and postmarked before midnight of the due date. Under this bill, a document or payment that otherwise would be considered to be provided on time to DOR except for an inadvertent error, is considered to be provided on time and not subject to any interest or penalties related to late filings. Under the bill, an inadvertent error includes a taxpayer directing DOR to credit the payment of taxes to one of the taxpayer's accounts for which taxes are not due.

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:

SB458, s. 1 Section 1. 71.738 (2m) of the statutes is created to read:

SB458,2,3 71.738 (2m) "Inadvertent error" includes a taxpayer directing the department to credit the payment of taxes to one of the taxpayer's accounts for which taxes are not due.

SB458, s. 2 Section 2. 71.80 (18) of the statutes is amended to read:

SB458,2,17 71.80 (18) Timely filing defined. Documents and payments required or permitted by this chapter that are mailed shall be considered furnished, reported, filed or made on time, if mailed in a properly addressed envelope, with postage duly prepaid, which envelope is postmarked before midnight of the date prescribed for such furnishing, reporting, filing or making, provided such document or payment is actually received by the department or at the destination that the department or the department of administration prescribes within 5 days of such prescribed date. Documents and payments that are not mailed are timely if they are received on or before the due date by the department or at the destination that the department or the department of administration prescribes. Documents and payments that otherwise would have been considered furnished, reported, filed, or made on time as provided under this subsection except for an inadvertent error, are timely and not subject to any applicable interest or penalties under subch. XIII of this chapter.

SB458, s. 3 Section 3. Initial applicability.

SB458,2,20 (1) This act first applies to documents and payments that are due on the effective date of this subsection.

SB458,2,21 (End)