71.365(4)(a)(a) If persons who hold more than 50% of the shares on the day on which this election is made consent, a corporation that is an S corporation for federal income tax purposes and that does not have a qualified subchapter S subsidiary may elect, on or before the due date or extended due date of its return under this chapter, not to be a tax-option corporation for that taxable year and for later taxable years until its status is again changed.
71.365(4)(b)
(b) If persons who, on the day on which the election occurs, hold more than 50% of the shares of a corporation that has elected out under
par. (a) consent, a corporation that is an S corporation for federal income tax purposes may elect, on or before the due date or extended due date of its return under this chapter, to be a tax-option corporation for that taxable year, except that no corporation electing under
par. (a) and no successor of such a corporation may be a tax-option corporation for any of the next 4 taxable years after the taxable year to which its election under
par. (a) first applies.
71.365(5)
(5) Federal return copy. A tax-option corporation shall file with its state franchise or income tax return an exact copy of its federal income tax return for the same year and shall file any other return or statement filed with or made to, or any document received from, the U.S. internal revenue service, and any form required of that corporation and prescribed by the department of revenue, affecting the taxation of its shareholders.
71.365(6)
(6) Notice to shareholders of appeals and other proceedings. Any notice of determination by the department of any tax-option item may be contested by a tax-option corporation under
subch. XIV. A tax-option corporation shall timely notify all shareholders of any administrative or judicial proceeding about the determination of any tax-option item. Each shareholder may participate in any such proceeding and shall be bound by the final determination in that proceeding.
71.365(7)
(7) Qualified subchapter S subsidiaries. If a tax-option corporation elects to treat a subsidiary as a qualified subchapter S subsidiary for federal purposes, that election also applies for this chapter. If this state has jurisdiction to impose the taxes under this chapter on the qualified subchapter S subsidiary, this state has the jurisdiction to impose the taxes under this chapter on the tax-option corporation.
71.365(9)
(9) Adjustment under rules. A corporation that elects under
sub. (4) (a) not to be a tax-option corporation and a corporation that elects to become a tax-option corporation shall adjust its income, under rules promulgated by the department of revenue, for the taxable year for which that election is first effective to avoid the omission or double inclusion of any item of income, loss or deduction.
URBAN TRANSIT COMPANIES
71.37
71.37
Conformity. Unless otherwise provided in this subchapter or the context requires otherwise, urban transit companies are subject to this chapter.
71.37 History
History: 1987 a. 312.
71.38
71.38
Definition. In this subchapter, "urban mass transportation of passengers" means the transportation of passengers by means of vehicles having a passenger-carrying capacity of 10 or more persons including the operator, such capacity to be determined by dividing by 20 the total seating space measured in inches, when such transportation takes place entirely within contiguous cities, villages or towns and in cities, villages or towns contiguous to that in which the carrier has its principal place of business, or within or between cities, villages or towns located within a radius of 10 miles of the city, village or town in which the carrier has its principal place of business, or entirely within one city, village or town contiguous thereto, or within a county having a population of 500,000 or more or within such county and the counties contiguous thereto, or suburban operations classified as such by the department of transportation.
71.38 History
History: 1987 a. 312;
1993 a. 16,
246.
71.385
71.385
Determination of cost. The cost of property used and useful in providing urban mass transportation of passengers and the depreciation accrued on such property shall be determined on the basis of the reports and orders on file with the department of transportation.
71.385 History
History: 1987 a. 312;
1993 a. 16.
71.39
71.39
Imposition of tax. 71.39(1)(1)
Special tax; computation. In lieu of the income and franchise tax rates prescribed in
s. 71.27, there shall be assessed, levied and collected upon the taxable income of every corporation whose principal source (defined for purposes of this subchapter as being 50% or more) of gross income is the urban mass transportation of passengers a special income tax of 50% determined in accordance with this chapter, except that:
71.39(1)(a)
(a) United States income, excess or war profits and defense taxes shall be allowed as a deduction from gross income to the extent of the total payment actually made during the tax year.
71.39(1)(b)
(b) A deduction shall be allowed from such taxable income before the imposition of the special tax levied by this section, in an amount equivalent to 8% of the amount by which the cost of the property of such corporation used and useful in providing its urban mass transportation of passengers exceeds the cumulated amount of the depreciation accrued against such property as of the end of the fiscal year for which the income or franchise tax return is filed.
71.39(1)(c)
(c) An amount shall be added to such taxable income, before imposition of the special tax levied by this section, which amount shall be equivalent to the interest paid during the year in the operation of the business from which its income is derived.
71.39(2)
(2) Determination of net business loss. The addition to and deductions from income of urban transit companies under
sub. (1) shall be used in determining the Wisconsin net business loss of such companies to be offset against the Wisconsin net business income as determined under this section for purposes of
s. 71.26 (4).
71.39 History
History: 1987 a. 312;
1991 a. 39.
71.40
71.40
Filing of returns. The special income tax assessed under this subchapter shall be reported in an income or franchise tax return filed in accordance with this chapter, except as modified by this subchapter. The tax so reported and assessed shall be payable to the department of revenue.
71.40 History
History: 1987 a. 312;
1991 a. 39.
TAXATION OF INSURANCE COMPANIES
71.42
71.42
Definitions. In this subchapter:
71.42(1)
(1) "Corporation" means insurance corporations, insurance joint stock companies, insurance associations and insurance common law trusts, unless the context requires otherwise.
71.42(1m)
(1m) "Department" means the department of revenue.
71.42(2)(f)(f) For taxable years that begin after December 31, 1991, and before January 1, 1993, "Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 1991, excluding sections 103, 104 and 110 of
P.L. 102-227, and as amended by
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13171 and 13174 of
P.L. 103-66,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, and as indirectly affected by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13171 and 13174 of
P.L. 103-66,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, except that "Internal Revenue Code" does not include section 847 of the federal Internal Revenue Code. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1991, do not apply to this paragraph with respect to taxable years beginning after December 31, 1991, and before January 1, 1993, except that changes to the internal revenue code made by
P.L. 102-318,
P.L. 102-486,
P.L. 103-66,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277 and changes that indirectly affect the federal internal revenue code made by
P.L. 102-318,
P.L. 102-486,
P.L. 103-66,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, apply for Wisconsin purposes at the same time as for federal purposes.
71.42(2)(g)
(g) For taxable years that begin after December 31, 1992, and before January 1, 1994, "Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 1992, excluding sections 103, 104 and 110 of
P.L. 102-227, and as amended by
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13113, 13150, 13171, 13174 and 13203 of
P.L. 103-66,
P.L. 103-465,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, and as indirectly affected by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13113, 13150, 13171, 13174 and 13203 of
P.L. 103-66,
P.L. 103-465,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, except that "Internal Revenue Code" does not include section 847 of the federal Internal Revenue Code. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1992, do not apply to this paragraph with respect to taxable years beginning after December 31, 1992, and before January 1, 1994, except that changes to the Internal Revenue Code made by
P.L. 103-66,
P.L. 103-465,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277 and changes that indirectly affect the federal Internal Revenue Code made by
P.L. 103-66,
P.L. 103-465,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, apply for Wisconsin purposes at the same time as for federal purposes.
71.42(2)(h)
(h) For taxable years that begin after December 31, 1993, and before January 1, 1995, "Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 1993 excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of
P.L. 103-66, and as amended by
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7, excluding section 1 of
P.L. 104-7,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, and as indirectly affected by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486 and
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7, excluding section 1 of
P.L. 104-7,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, except that "Internal Revenue Code" does not include section 847 of the federal Internal Revenue Code. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1993, do not apply to this paragraph with respect to taxable years beginning after December 31, 1993, and before January 1, 1995, except that changes to the Internal Revenue Code made by
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7, excluding section 1 of
P.L. 104-7,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7, excluding section 1 of
P.L. 104-7,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, apply for Wisconsin purposes at the same time as for federal purposes.
71.42(2)(i)
(i) For taxable years that begin after December 31, 1994, and before January 1, 1996, "Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 1994, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66, and as amended by
P.L. 104-7,
P.L. 104-188, excluding sections 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, and as indirectly affected by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7,
P.L. 104-188, excluding sections 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, except that "Internal Revenue Code" does not include section 847 of the federal Internal Revenue Code. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1994, do not apply to this paragraph with respect to taxable years beginning after December 31, 1994, and before January 1, 1996, except that changes to the Internal Revenue Code made by
P.L. 104-7,
P.L. 104-188, excluding sections 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 104-7,
P.L. 104-188, excluding sections 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, apply for Wisconsin purposes at the same time as for federal purposes.
71.42(2)(j)
(j) For taxable years that begin after December 31, 1995, and before January 1, 1997, "Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 1995, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66, and as amended by
P.L. 104-188, excluding sections 1123, 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, and as indirectly affected by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7,
P.L. 104-188, excluding sections 1123, 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, except that "Internal Revenue Code" does not include section 847 of the federal Internal Revenue Code. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1995, do not apply to this paragraph with respect to taxable years beginning after December 31, 1995, and before January 1, 1997, except that changes to the Internal Revenue Code made by
P.L. 104-188, excluding sections 1123, 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 104-188, excluding sections 1123, 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, apply for Wisconsin purposes at the same time as for federal purposes.
71.42(2)(k)
(k) For taxable years that begin after December 31, 1996, and before January 1, 1998, "Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 1996, excluding sections 103, 104 and 110 of
P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of
P.L. 104-188, and as amended by
P.L. 105-33,
P.L. 105-34,
P.L. 105-206,
P.L. 105-277 and
P.L. 106-36, and as indirectly affected by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7,
P.L. 104-188, excluding sections 1123 (b), 1202 (c) 1204 (f), 1311 and 1605 (d) of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206,
P.L. 105-277 and
P.L. 106-36, except that "Internal Revenue Code" does not include section 847 of the federal Internal Revenue Code. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1996, do not apply to this paragraph with respect to taxable years beginning after December 31, 1996, and before January 1, 1998, except that changes to the Internal Revenue Code made by
P.L. 105-33,
P.L. 105-34,
P.L. 105-206,
P.L. 105-277 and
P.L. 106-36 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 105-33,
P.L. 105-34,
P.L. 105-206,
P.L. 105-277 and
P.L. 106-36, apply for Wisconsin purposes at the same time as for federal purposes.
71.42(2)(L)
(L) For taxable years that begin after December 31, 1997, and before January 1, 1999, "Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 1997, excluding sections 103, 104 and 110 of
P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of
P.L. 104-188, and as amended by
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, and as indirectly affected by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7,
P.L. 104-188, excluding sections 1123 (b), 1202 (c) 1204 (f), 1311 and 1605 (d) of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, except that "Internal Revenue Code" does not include section 847 of the federal Internal Revenue Code. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1997, do not apply to this paragraph with respect to taxable years beginning after December 31, 1997, and before January 1, 1999, except that changes to the Internal Revenue Code made by
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170 apply for Wisconsin purposes at the same time as for federal purposes.
71.42(2)(m)
(m) For taxable years that begin after December 31, 1998, and before January 1, 2000, "Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 1998, excluding sections 103, 104 and 110 of
P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of
P.L. 104-188, and as amended by
P.L. 106-36 and
P.L. 106-170, and as indirectly affected by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7,
P.L. 104-188, excluding sections 1123 (b), 1202 (c) 1204 (f), 1311 and 1605 (d) of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, except that "Internal Revenue Code" does not include section 847 of the federal Internal Revenue Code. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1998, do not apply to this paragraph with respect to taxable years beginning after December 31, 1998, and before January 1, 2000, except that changes to the Internal Revenue Code made by
P.L. 106-36 and
P.L. 106-170 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 106-36 and
P.L. 106-170 apply for Wisconsin purposes at the same time as for federal purposes.
71.42(2)(n)
(n) For taxable years that begin after December 31, 1999, "Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 1999, excluding sections 103, 104 and 110 of
P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of
P.L. 104-188, and as indirectly affected by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7,
P.L. 104-188, excluding sections 1123 (b), 1202 (c) 1204 (f), 1311 and 1605 (d) of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, except that "Internal Revenue Code" does not include section 847 of the federal Internal Revenue Code. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1999, do not apply to this paragraph with respect to taxable years beginning after December 31, 1999.
71.42(2s)
(2s) "Last day prescribed by law" has the meaning given in
s. 71.738.
71.42(3)
(3) "Life insurance" includes annuities.
71.42(3m)
(3m) "Pay" means mail or deliver funds to the department or, if the department prescribes another method of payment or another destination, use that other method or submit to that other destination.
71.42(4)
(4) "Person" includes corporations, unless the context requires otherwise.
71.42 History
History: 1987 a. 312;
1987 a. 411 ss.
5,
148,
149;
1989 a. 31,
336;
1991 a. 39,
269;
1993 a. 16,
437;
1995 a. 27,
380,
428;
1997 a. 27,
37,
237;
1999 a. 9,
194.
71.43
71.43
Imposition of tax. 71.43(1)(1)
Income tax. For the purpose of raising revenue for the state and the counties, cities, villages and towns, there shall be assessed, levied, collected and paid a tax as provided under this chapter on all Wisconsin net incomes of corporations that are not subject to the franchise tax under
sub. (2) and that own property within this state; that derive income from sources within this state or from activities that are attributable to this state; or whose business within this state during the taxable year, except as provided under
s. 71.23 (3), consists exclusively of foreign commerce, interstate commerce, or both, or that buy or sell lottery prizes if the winning tickets were originally bought in this state; except as exempted under
ss. 71.26 (1) and
71.45 (1). This section shall not be construed to prevent or affect the correction of errors or omissions in the assessments of income for former years under
s. 71.74 (1) and
(2).
71.43(2)
(2) Franchise tax on corporations. For the privilege of exercising its franchise, buying or selling lottery prizes if the winning tickets were originally bought in this state or doing business in this state in a corporate capacity, except as provided under
s. 71.23 (3), every domestic or foreign corporation, except corporations specified in
ss. 71.26 (1) and
71.45 (1), shall annually pay a franchise tax according to or measured by its entire Wisconsin net income of the preceding taxable year at the rates set forth in
s. 71.46 (2). In addition, except as provided in
ss. 71.23 (3),
71.26 (1) and
71.45 (1), a corporation that ceases doing business in this state shall pay a special franchise tax according to or measured by its entire Wisconsin net income for the taxable year during which the corporation ceases doing business in this state at the rate under
s. 71.46 (2). Every corporation organized under the laws of this state shall be deemed to be residing within this state for the purposes of this franchise tax. All provisions of this chapter and
ch. 73 relating to income taxation of corporations shall apply to franchise taxes imposed under this subsection, unless the context requires otherwise. The tax imposed by this subsection on insurance companies subject to taxation under this chapter shall be based on Wisconsin net income computed under
s. 71.45, and no other provision of this chapter relating to computation of taxable income for other corporations shall apply to such insurance companies. All other provisions of this chapter shall apply to insurance companies subject to taxation under this chapter unless the context clearly requires otherwise.
71.43 Annotation
Sub. (2) is discriminatory within the meaning of 31 U.S.C. 3124 (1) (a) and in violation of that provision. American Family Mutual Insurance Co. v. DOR,
214 Wis. 2d 576,
571 N.W.2d 710 (Ct. App. 1997).
71.44
71.44
Filing returns; extensions; payment of tax. 71.44(1)(a)(a) Every corporation, except corporations all of whose income is exempt from taxation and except as provided in
sub. (1m), shall furnish to the department a true and accurate statement, on or before March 15 of each year, except that returns for fiscal years ending on some other date than December 31 shall be furnished on or before the 15th day of the 3rd month following the close of such fiscal year and except that returns for less than a full taxable year shall be furnished on or before the date applicable for federal income taxes under the internal revenue code, in such manner and form and setting forth such facts as the department deems necessary to enforce this chapter. Every corporation that is required to furnish a statement under this paragraph and that has income that is not taxable under this subchapter shall include with its statement a report that identifies each item of its nontaxable income. The statement shall be subscribed by the president, vice president, treasurer, assistant treasurer, chief accounting officer or any other officer duly authorized so to act. In the case of a return made for a corporation by a fiduciary, the fiduciary shall subscribe the return. The fact that an individual's name is subscribed on the return shall be prima facie evidence that the individual is authorized to subscribe the return on behalf of the corporation.
71.44(1)(b)
(b) Each corporation that is required to file a return under this section shall file with that return a copy of its federal income tax return for the same taxable year.
71.44(1)(c)
(c) Whenever a corporation has been completely inactive for an entire taxable year, in lieu of filing the statements and information otherwise required by this section, it may file a declaration, on a form to be provided by the department, subscribed by its president, if a resident of this state, and, if not a resident, then by another officer residing in this state, attesting to such inactivity. Such declaration must be filed prior to the otherwise due date for its Wisconsin return for such taxable year. Thereafter the corporation need not file such statements or information for any subsequent year unless specifically requested to do so by the department or unless in a subsequent year the corporation has been activated or reactivated. If a corporation files a false declaration of complete inactivity, or, after filing a declaration, becomes activated or reactivated and fails to file timely statements and information hereunder covering such year or years of activity or reactivity its officers at the time of such filing or failure shall be jointly and severally liable for a civil penalty of $25 for such filing or each such failure, which penalty may be assessed and collected as income or franchise taxes are assessed and collected.
71.44(1)(d)
(d) Nothing contained in this subsection shall preclude the department from requiring any corporation to file a return when in the judgment of the department a return should be filed.
71.44(1m)
(1m) Unrelated business income. Every corporation subject to a tax on unrelated business income under
s. 71.26 (1) (a), if that corporation is required to file for federal income tax purposes, shall furnish to the department of revenue a true and accurate statement on or before the date on or before which it is required to file for federal income tax purposes. The requirements about manner, form and subscription under
sub. (1) apply to statements under this subsection.
71.44(2)
(2) Changing accounting periods. 71.44(2)(a)(a) Corporations may not change their basis of reporting from a calendar year to a fiscal year, from a fiscal year to a calendar year, or from one fiscal year to another without first obtaining the approval of the department of revenue unless the internal revenue service has approved the change or unless the change, including a change to a short taxable year, is required by the internal revenue code before approval by the internal revenue service and the reason for the change is explained in the first return filed for the new taxable year. Corporations that make changes on the basis of federal changes shall submit a copy of the internal revenue service's notice of approval, if prior federal approval, other than expeditious approval, was required, or requirement, if prior federal approval was not required or if the corporation qualifies for expeditious approval, to the department of revenue along with the return for the first taxable year for which the change applies.
71.44(2)(b)
(b) If a corporation changes its basis of reporting from a calendar year to a fiscal year a separate return shall be made for the period between the close of the last calendar year and the date designated as the close of the fiscal year. If the change is from a fiscal year to a calendar year, a separate return shall be made for the period between the close of the last fiscal year and the following December 31. If the change is from one fiscal year to another fiscal year a separate return shall be made for the period between the close of the former fiscal year and the date designated as the close of the new fiscal year. In no case shall a separate income or franchise tax return be made for a period of more than 12 months.
71.44(2)(c)
(c) If a separate corporation income tax return is made for a fractional part of a year for federal income tax purposes, the corporation shall file a separate Wisconsin income or franchise tax return for that fractional year. The income shall be computed and reported on the basis of the period for which the separate return is made, and that fractional part of a year shall constitute a taxable year, except that if a corporation terminates, under section
1362 (d) (1) or (2) of the internal revenue code, its election to be treated as an S corporation for federal income tax purposes the corporation may allocate its items of income, loss or deduction between its short taxable year as a tax-option corporation and its short taxable year as a nontax-option corporation according to the method under section
1362 (e) (2) of the internal revenue code.
71.44(2)(d)
(d) If a separate income or franchise tax return is made for a short period under
par. (b) on account of a change in the taxable year, the net income for such short period shall be placed on an annual basis using the method applicable for federal income taxes under section
443 (b) (1) of the internal revenue code.
71.44(3)
(3) Extensions. In the case of a corporation required to file a return, when sufficient reason is shown, the department of revenue may on written request allow an extension of 30 days or until the original due date of the corporation's federal return, whichever is later, if the corporation has not received an extension on its federal return. Any extension of time granted by law or by the internal revenue service for the filing of corresponding federal returns shall extend the time for filing under this subchapter to 30 days after the federal due date if a copy of any extension requested of the internal revenue service is filed with the return. Termination of an automatic extension by the internal revenue service, or its refusal to grant such automatic extension, shall similarly require that any returns due under this subchapter are due on or before 30 days after the date for termination fixed by the internal revenue service. Except for payments of estimated taxes, income or franchise taxes payable upon the filing of the tax return shall not become delinquent during such extension period, but shall be subject to interest at the rate of 12% per year during such period.
71.44(4)(b)(b) Corporation franchise and income taxes not paid on or before the 15th day of the 3rd month following the close of the taxable year shall be deemed delinquent.
71.44(4)(c)
(c) The department of revenue shall accept in advance income or franchise taxes and surtaxes from taxpayers desirous of making such payments before the same shall become due and payable. Advance payment of taxes under this provision shall not relieve the taxpayer from additional taxes which may result from subsequent legislation or from additional taxable income disclosed or discovered subsequent to such payment.
71.44(4)(d)
(d) No person is required to pay a balance due of less than $1.
71.45
71.45
Income computation. 71.45(1)(1)
Exempt and excludable income. There shall be exempt from taxation under this subchapter income of insurers exempt from federal income taxation pursuant to section
501 (c) (15) of the internal revenue code, town mutuals organized under or subject to
ch. 612, foreign insurers, and domestic insurers engaged exclusively in life insurance business, domestic insurers insuring against financial loss by reason of nonpayment of principal, interest and other sums agreed to be paid under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, deed of trust or other instrument constituting a lien or charge on real estate and corporations organized under
ch. 185, but not including income of cooperative sickness care associations organized under
s. 185.981, or of a service insurance corporation organized under
ch. 613, that is derived from a health maintenance organization as defined in
s. 609.01 (2) or a limited service health organization as defined in
s. 609.01 (3), or operating under
subch. I of ch. 616 which are bona fide cooperatives operated without pecuniary profit to any shareholder or member, or operated on a cooperative plan pursuant to which they determine and distribute their proceeds in substantial compliance with
s. 185.45. This subsection does not apply to income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state.
71.45(1t)
(1t) Exemption from the income tax. The interest and income from the following obligations are exempt from the tax imposed under
s. 71.43 (1):
71.45(1t)(e)
(e) Those issued under
s. 234.65 to fund an economic development loan to finance construction, renovation or development of property that would be exempt under
s. 70.11 (36).
71.45(1t)(g)
(g) Those issued under
s. 66.0621 by a local professional baseball park district or a local professional football stadium district or a local cultural arts district.
71.45 Note
NOTE: Par. (g) is shown as affected by two acts of the 1999 legislature and as merged by the revisor under s. 13.93 (2) (c).
71.45(2)
(2) Determination of net income. 71.45(2)(a)(a) Insurers subject to taxation under this chapter shall pay a tax according to or measured by net income. Such tax is payable under
s. 71.44 (1). Except as provided in
sub. (5), "net income" of an insurer subject to taxation under this chapter means federal taxable income as determined in accordance with the provisions of the internal revenue code adjusted as follows:
71.45(2)(a)1.
1. By adding to federal taxable income the amount of any loss carry-forward or carry-back, including any capital loss carry-forward or carry-back, deducted in the calculation of federal taxable income.
71.45(2)(a)2.
2. By adding to federal taxable income, if not already included therein, the amount of any federal tax refund or portion thereof previously applied to reduce the amount of tax payable under this chapter.
71.45(2)(a)3.
3. For insurers subject to taxation under
s. 71.43 (1), by adding to federal taxable income the amount of any interest income, except interest under
sub. (1t), that is not included in federal taxable income except the amount of any interest income which is by federal law exempt from taxation by this state and, for insurers subject to taxation under
s. 71.43 (2), by adding to federal taxable income the amount of any interest income which is not included in federal taxable income.
71.45(2)(a)4.
4. By adding to federal taxable income an amount equal to dividend income received during the taxable year to the extent such dividend income was used as a deduction in determining federal taxable income.
71.45(2)(a)5.
5. By adding to federal taxable income the amount of taxes imposed by this or any other state, or the District of Columbia, that are value-added taxes, single business taxes or taxes on or measured by net income, gross income, gross receipts or capital stock, if any, that are deducted in the calculation of federal taxable income except that gross receipts taxes assessed in lieu of property taxes are deductible from gross income.
71.45(2)(a)5m.
5m. By adding to federal taxable income the amount of the environmental tax that is imposed under section
59A of the internal revenue code and that is deducted in calculating federal taxable income.
71.45(2)(a)6.
6. By adding or subtracting, as appropriate, the difference between the federal basis and the Wisconsin basis of any asset sold, exchanged, abandoned or otherwise disposed of in a taxable transaction during the taxable year.
71.45(2)(a)7.
7. By adding or subtracting, as appropriate, the amount required to reflect the fact that property that, under s.
71.01 (4) (g) 7. to
10., 1985 stats., is required to be depreciated for taxable years 1983 to 1986 under the internal revenue code as amended to December 31, 1980, shall continue to be depreciated under the internal revenue code as amended to December 31, 1980.
71.45(2)(a)8.
8. By subtracting from federal taxable income dividends received that are deductible under
s. 71.26 (3) (j) and are included in federal taxable income.
