SB55-SSA1-SA2,272,7 7" Section 2173d. 71.255 of the statutes is created to read:
SB55-SSA1-SA2,272,8 871.255 Combined reporting. (1) Definitions. In this section:
SB55-SSA1-SA2,272,129 (a) "Brother-sister parent corporation" means a parent corporation that is a
10member of a commonly controlled group, if any members of the commonly controlled
11group are not connected to the parent corporation by stock ownership as described
12in par. (d) 1. to 5.
SB55-SSA1-SA2,272,1513 (b) "Combined report" means a form prescribed by the department that
14specifies the income of each taxpayer member of a commonly controlled group
15operating as a unitary business.
SB55-SSA1-SA2,272,1716 (c) "Combined reporting group" means the members of a commonly controlled
17group that are included in a combined report under sub. (2).
SB55-SSA1-SA2,272,1918 (d) "Commonly controlled group" means any of the following, but does not
19include an insurer that is exempt from taxation under s. 71.45 (1):
SB55-SSA1-SA2,273,220 1. A parent corporation and any corporation or chain of corporations that are
21connected to the parent corporation by direct or indirect ownership by the parent
22corporation if the parent corporation owns stock representing more than 50% of the
23voting power of at least one of the connected corporations or if the parent corporation

1or any of the connected corporations owns stock that cumulatively represents more
2than 50% of the voting power of each of the connected corporations.
SB55-SSA1-SA2,273,53 2. Any 2 or more corporations if a common owner directly or indirectly owns
4stock representing more than 50% of the voting power of the corporations or the
5connected corporations.
SB55-SSA1-SA2,273,96 3. A partnership or limited liability company if a parent corporation or any
7corporation connected to the parent corporation by common ownership directly or
8indirectly owns shares representing more than 50% of the shares of the partnership
9or limited liability company.
SB55-SSA1-SA2,273,1110 4. Any 2 or more corporations if stock representing more than 50% of the voting
11power in each corporation are interests that cannot be separately transferred.
SB55-SSA1-SA2,273,1612 5. Any 2 or more corporations if stock representing more than 50% of the voting
13power is directly owned by, or for the benefit of, family members. In this subdivision,
14"family members" means an individual or a spouse related by blood, marriage or
15adoption within the 2nd degree of kinship as computed under s. 852.03 (2), 1995
16stats.
SB55-SSA1-SA2,273,1717 (e) "Corporation" has the meaning given in s. 71.22 (1) or 71.42 (1).
SB55-SSA1-SA2,273,1818 (f) "Department" means the department of revenue.
SB55-SSA1-SA2,273,2019 (g) "Designated agent" means the taxpayer member of a commonly controlled
20group who files a group return on behalf of the commonly controlled group.
SB55-SSA1-SA2,273,2221 (h) "Group return" means a tax return filed on behalf of the taxpayer members
22of a commonly controlled group.
SB55-SSA1-SA2,274,223 (i) "Intercompany transaction" means a transaction between corporations,
24partnerships, or limited liability companies that become members of the same

1commonly controlled group that is engaged in a unitary business immediately after
2the transaction.
SB55-SSA1-SA2,274,43 (im) "Partnership" means any entity considered a partnership under section
47701 of the Internal Revenue Code.
SB55-SSA1-SA2,274,65 (j) "Separate return" means a return filed by a corporation, regardless of
6whether the corporation is required to file a tax return under s. 71.24 or 71.44.
SB55-SSA1-SA2,274,97 (k) "Taxpayer member" means a corporation that is subject to tax under s. 71.23
8(1) or (2) or 71.43, that is a member of a combined reporting group, and that files a
9combined report under this section.
SB55-SSA1-SA2,274,1510 (L) "Top tier corporation" means a member of a commonly controlled group that
11is not connected with a parent corporation by stock ownership as described in par.
12(d) 1. to 5., is a parent corporation, or is a brother-sister parent corporation,
13regardless of whether it is doing business in this state or deriving income from
14sources in this state, and regardless of whether its income and apportionment factors
15are excluded from a combined report filed under this section.
SB55-SSA1-SA2,274,2416 (m) "Unitary business" means the business activities or operations of an entity
17that are of mutual benefit to, integrated with, or dependent upon or contribute to
18activities of at least one other entity, including transactions that serve an operational
19function, as determined by the department. Two or more businesses are presumed
20to be a unitary business if the businesses have unity of ownership, operation, and use
21as indicated by centralized management or a centralized executive force; centralized
22purchasing, advertising, or accounting; intercorporate sales or leases; intercorporate
23services; intercorporate debts; intercorporate use of proprietary materials;
24interlocking directorates; or interlocking corporate officers.
SB55-SSA1-SA2,275,8
1(2) Corporations required to use combined reporting. (a) Except as provided
2in par. (b), a corporation that is subject to the tax imposed under s. 71.23 (1) or (2)
3or 71.43, that is a member of a commonly controlled group, and that is engaged, in
4whole or in part, in a unitary business with one or more members of the commonly
5controlled group shall compute the corporation's income attributable to this state by
6using the income computation under s. 71.26 or 71.45, the apportionment formula
7under s. 71.25 (6) or 71.45 (3) and (3m), and the tax credits under s. 71.28 or 71.47
8of all of the following that are members of the commonly controlled group:
SB55-SSA1-SA2,275,139 1. Any corporation organized or incorporated under the laws of the United
10States, any state of the United States, the District of Columbia, the Commonwealth
11of Puerto Rico, any possession of the United States, or any subdivision of the United
12States, including corporations under sections 931 to 936 of the Internal Revenue
13Code.
SB55-SSA1-SA2,275,15142. Any domestic international sales corporation under sections 991 to 994 of the
15Internal Revenue Code.
SB55-SSA1-SA2,275,17163. Any foreign sales corporation under sections 921 to 927 of the Internal
17Revenue Code.
SB55-SSA1-SA2,275,19184. Any export trade corporation under sections 970 and 971 of the Internal
19Revenue Code.
SB55-SSA1-SA2,275,2420 5. Any corporation regardless of its place of incorporation if the average of its
21property factor under s. 71.25 (7) and its payroll factor under s. 71.25 (8), for property
22and payroll within the United States and computed on an annual basis, is at least
2320% during any part of the taxable year that a corporation is a member of the
24commonly controlled group.
SB55-SSA1-SA2,276,4
16. Any corporation not described in subds. 1. to 5. to the extent of the
2corporation's income within the United States and the corporation's property factor
3under s. 71.25 (7) and payroll factor under s. 71.25 (8) assignable to a location within
4the United States.
SB55-SSA1-SA2,276,155 (b) A corporation that is subject to the tax imposed under s. 71.23 (1) or (2) or
671.43, that is a member of a commonly controlled group, and that is engaged, in whole
7or in part, in a unitary business with one or more members of the commonly
8controlled group may compute the corporation's income attributable to this state by
9using the income computation under s. 71.26 or 71.45, the apportionment formula
10under s. 71.25 (6) or 71.45 (3) and (3m), and the tax credits under s. 71.28 or 71.47
11of all the members of the commonly controlled group, regardless of the country in
12which any member of the commonly controlled group is organized or incorporated or
13conducts business, if all top tier corporations that are members of the commonly
14controlled group elect under sub. (3) to compute the corporation's income as provided
15under this paragraph.
SB55-SSA1-SA2,276,23 16(3) Computation election. (a) A top tier corporation that is a member of a
17commonly controlled group may elect on the commonly controlled group's behalf, and
18in the manner prescribed by the department, to compute the income of each
19corporation that is a member of the commonly controlled group under sub. (2) (b).
20If more than one member of the commonly controlled group is a top tier corporation,
21an election under this subsection is not effective unless all top tier corporations elect
22on the commonly controlled group's behalf, and in the manner prescribed by the
23department, to compute income under sub. (2) (b).
SB55-SSA1-SA2,277,624 (b) A top tier corporation shall file an election made under par. (a) with the
25department before the last day of the taxable year. The top tier corporation shall

1designate a taxable year that corresponds with the taxable year of any taxpayer
2member that is subject to the tax imposed under s. 71.23 (1) or (2) or 71.43. If the
3top tier corporation fails to file the election before the last day of the taxable year
4designated under this paragraph, all members of the commonly controlled group to
5which the top tier corporation belongs, including the top tier corporation, shall
6compute income under sub. (2) (a).
SB55-SSA1-SA2,277,177 (c) Except as provided under par. (d), the members of the commonly controlled
8group subject to an election under this subsection shall compute their income under
9sub. (2) (b) for 5 taxable years, beginning with the taxable year designated under par.
10(b). Thereafter, the members of the commonly controlled group shall compute their
11income under sub. (2) (b) for periods of 5 taxable years and until any top tier
12corporation that is a member of the commonly controlled group notifies the
13department, in a manner prescribed by the department, before the last day of the last
14taxable year in any period of 5 taxable years that the top tier corporation is
15terminating the election under this subsection. A termination under this paragraph
16takes effect on the first day of the first taxable year beginning after the top tier
17corporation notifies the department under this paragraph.
SB55-SSA1-SA2,277,2218 (d) The department may grant a request by a top tier corporation to terminate
19an election under this subsection before the first period of 5 taxable years under par.
20(c) expires, if the top tier corporation shows good cause for granting the request, as
21determined by the department and consistent with section 1502 of the Internal
22Revenue Code.
SB55-SSA1-SA2,278,223 (e) Except as provided in par. (f), if an election by a top tier corporation on behalf
24of the members of a commonly controlled group under this subsection is terminated,
25no top tier corporation may make an election on behalf of the members of the same

1commonly controlled group until 5 taxable years have elapsed from the day that the
2termination of the original election took effect.
SB55-SSA1-SA2,278,73 (f) The department may grant a request by a top tier corporation to make an
4election under this subsection before the period of 5 taxable years under par. (e) have
5elapsed, if the top tier corporation shows good cause for granting the request, as
6determined by the department and consistent with section 1502 of the Internal
7Revenue Code.
SB55-SSA1-SA2,278,19 8(4) Accounting period. For purposes of this section, the income under ss. 71.26
9and 71.45, the apportionment factors under ss. 71.25 and 71.45 and the tax credits
10under ss. 71.28 and 71.47 of all corporations that are members of a combined
11reporting group shall be determined by using the same accounting period. If the
12combined reporting group has a common parent corporation, the accounting period
13of the common parent corporation shall be used to determine the income, the
14apportionment factors, and the tax credits of all the corporations that are members
15of the combined reporting group. If the combined reporting group has no common
16parent corporation, the income, the apportionment factors, and the tax credits of the
17combined reporting group shall be determined using the accounting period of the
18member of the combined reporting group that has the most significant operations on
19a recurring basis in this state, as determined by the department.
SB55-SSA1-SA2,279,3 20(5) Filing returns. (a) Corporations with the same accounting period.
21Corporations that must file a combined report under this section and that have the
22same accounting period may file a group return, as prescribed by the department,
23that reports the aggregate state franchise or state income tax liability of all of the
24members of the combined reporting group. Corporations that are required to file a
25combined report under this section may file separate returns reporting the

1respective apportionment of the corporation's state franchise or state income tax
2liability as determined under sub. (2) (a), if each corporation filing a separate return
3pays its own apportionment of its state franchise or state income tax liability.
SB55-SSA1-SA2,279,174 (b) Corporations with different accounting periods. Corporations that are
5required to file a combined report and that have different accounting periods shall
6file separate returns and shall use the actual figures from the corporations' financial
7records to determine the proper income and income-related computations to convert
8to a common accounting period. Corporations that are required to file a combined
9report may use a proportional method to convert income to a common accounting
10period if the results of the proportional method do not materially misrepresent the
11income apportioned to this state. The apportionment factors under ss. 71.25 and
1271.45 and the tax credits under ss. 71.28 and 71.47 shall be computed according to
13the same method used to determine the income under ss. 71.26 and 71.45 for the
14common accounting period. If a corporation performs an interim closing of its
15financial records to determine the income attributable to the common accounting
16period, the actual figures from the interim closing shall be used to convert the
17apportionment factors and tax credits to the common accounting period.
SB55-SSA1-SA2,280,918 (c) Designated agent. 1. For corporations that are subject to this section and
19that file a group return under par. (a), the parent corporation of the combined
20reporting group is the sole designated agent for each member of the combined
21reporting group including the parent corporation, if the parent corporation is a
22taxpayer member of the combined reporting group and income of the parent
23corporation is included on the group return. If the parent corporation is not a
24taxpayer member or if the parent corporation's income is not included on the group
25return, the taxpayer members may appoint a taxpayer member to be the designated

1agent. If the parent corporation of the combined reporting group is not eligible to be
2the designated agent and no taxpayer member is appointed to be the designated
3agent, the designated agent is the taxpayer member that has the most significant
4operations in this state on a recurring basis, as determined by the department. The
5designated agent, as determined under this subdivision, remains the designated
6agent until the designated agent is no longer a taxpayer member or until the
7taxpayer members appoint a different designated agent. If the designated agent
8changes, the combined reporting group shall notify the department of such a change,
9in a manner prescribed by the department.
SB55-SSA1-SA2,281,710 2. The designated agent shall file the group return under par. (a), shall file for
11any extensions under s. 71.24 (7) or 71.44 (3), shall file amended reports and claims
12for refund or credit, and shall send and receive all correspondence with the
13department regarding a group return. Any notice the department sends to the
14designated agent is considered a notice sent to all members of the combined reporting
15group. Any refund with respect to a group return shall be paid to and in the name
16of the designated agent and shall discharge any liability of the state to any member
17of a combined reporting group regarding the refund. The combined reporting group
18filing a group return under par. (a) shall pay all taxes, including estimated taxes, in
19the designated agent's name. The designated agent shall participate on behalf of the
20members of the combined reporting group in any investigation or hearing requested
21by the department regarding a group return and shall produce all information
22requested by the department regarding a group return. The designated agent may
23execute a power of attorney on behalf of the members of the combined reporting
24group. The designated agent shall execute waivers, closing agreements, and other
25documents regarding a group return filed under par. (a) and any waiver, agreement,

1or document executed by the designated agent shall be considered as executed by all
2members of the combined reporting group. If the department acts in good faith with
3a combined reporting group member that represents itself as the designated agent
4for the combined reporting group but that combined reporting group member is not
5the designated agent, any action taken by the department with that combined
6reporting group member has the same effect as if that combined reporting group
7member were the actual designated agent for the combined reporting group.
SB55-SSA1-SA2,281,118 (d) Part-year members. If a corporation becomes a member of a combined
9reporting group or ceases to be a member of a combined reporting group after the
10beginning of a common accounting period, the corporation's income shall be
11apportioned to this state as follows:
SB55-SSA1-SA2,281,2012 1. If the corporation is required to file 2 or more short period federal returns
13for the common accounting period, the income for the short period that the
14corporation was a member of a combined reporting group shall be determined as
15provided under sub. (2), the corporation shall join in filing a combined report for that
16short period, and the corporation may join in filing a group return for that short
17period. The income for the remaining short period shall be reported on a separate
18return under s. 71.25 or 71.45. If the corporation becomes a member of another
19combined reporting group in the remaining short period, the corporation's income
20shall be determined for the remaining short period as provided under sub. (2).
SB55-SSA1-SA2,281,2221 2. If the corporation is not required to file federal short period returns, the
22corporation shall file a separate return. Income shall be determined as follows:
SB55-SSA1-SA2,281,2423 a. As provided under sub. (2) for any period that the corporation was a member
24of a combined reporting group.
SB55-SSA1-SA2,282,2
1b. On a separate report under s. 71.25 or 71.45 for any period that the
2corporation was not a member of a combined reporting group.
SB55-SSA1-SA2,282,63 (e) Amended group return. The election to file a group return under this section
4applies to an amended group return that includes the same corporations that joined
5in the filing of the original group return. Under this section, an amended group
6return shall be filed as follows:
SB55-SSA1-SA2,282,157 1. If an election to file a group return that is in effect for a taxable year is
8revoked for the taxable year because the combined reporting group that filed the
9group return is not subject to sub. (2), as determined by the department, the
10designated agent for the combined reporting group may not file an amended group
11return. The designated agent and each corporation that joined in filing the group
12return shall file a separate amended return. To compute the tax due on a separate
13amended return, a corporation that files a separate amended return shall consider
14all of the payments, credits or other amounts, including refunds, that the designated
15agent allocated to the corporation.
SB55-SSA1-SA2,282,2016 2. If a change in tax liability under this section is the result of the removal of
17a corporation from a combined reporting group because the corporation was not
18eligible to be a member of the combined reporting group for the taxable year, as
19determined by the department, the designated agent shall file an amended group
20return and the ineligible corporation shall file a separate amended return.
SB55-SSA1-SA2,283,221 3. If a corporation erroneously fails to join in the filing of a group return, the
22designated agent shall file an amended group return that includes the corporation.
23If a corporation that erroneously fails to join in the filing of a group return has filed
24a separate return, the corporation shall file an amended separate return that shows

1no net income, overpayment or underpayment, and shows that the corporation has
2joined in the filing of a group return.
SB55-SSA1-SA2,283,4 3(6) Income computation under combined reporting. For the purposes of sub.
4(2), income attributable to this state shall be determined as follows:
SB55-SSA1-SA2,283,115 (a) Determine the net income of each member of a combined reporting group
6under s. 71.26 or 71.45, as appropriate, before deducting net business losses. A
7member of a combined reporting group may determine its loss or net income under
8s. 71.26 (3) (y), 71.45 (2) (a) 13., or 71.49 (2), as appropriate, regardless of the
9accounting method used to determine the loss or net income of other members of the
10combined reporting group. A unitary business with operations in a foreign country
11shall compute its loss or net income as provided by rule by the department.
SB55-SSA1-SA2,283,1312 (b) Adjust each member's income, as determined under par. (a), as provided
13under s. 71.30.
SB55-SSA1-SA2,283,1914 (c) From the amount determined under par. (b), subtract intercompany
15transactions, as provided by rule by the department, such that intercompany
16accounts of assets, liabilities, equities, income, costs or expenses are excluded from
17the income determination to accurately reflect the income, the apportionment
18factors and the tax credits in a combined report that is filed under this section. An
19intercompany transaction includes the following:
SB55-SSA1-SA2,283,2220 1. Income or gain from sales, exchanges, contributions, or other transfers of
21tangible or intangible property from a member of the combined reporting group to
22another member of the combined reporting group.
SB55-SSA1-SA2,283,2423 2. Annual rent paid by a member of the combined reporting group to another
24member of the combined reporting group.
SB55-SSA1-SA2,284,2
13. Annual license fees or royalties paid by a member of the combined reporting
2group to another member of the combined reporting group.
SB55-SSA1-SA2,284,53 4. Loans, advances, receivables, and similar items that one member of the
4combined reporting group owes to another member of the combined reporting group,
5including interest income and interest expense related to these items.
SB55-SSA1-SA2,284,76 5. Stock or other equity of a member of the combined reporting group that is
7owned or controlled by another member of the combined reporting group.
SB55-SSA1-SA2,284,98 6. Dividends paid out of earnings or profits and paid by a member of the
9combined reporting group to another member of the combined reporting group.
SB55-SSA1-SA2,284,1110 7. Management or service fees paid by a member of the combined reporting
11group to another member of the combined reporting group.
SB55-SSA1-SA2,284,1312 8. Income or expenses allocated or charged by a member of the combined
13reporting group to another member of the combined reporting group.
SB55-SSA1-SA2,284,1714 (d) From the amount determined under par. (c) for each member of a combined
15reporting group, subtract nonapportionable income, net of related expenses, and add
16nonapportionable losses, net of related expenses, to determine each member's
17apportionable net income or apportionable net loss.
SB55-SSA1-SA2,284,2018 (e) Calculate the apportionment factors under sub. (7) and multiply each
19member's apportionable net income or apportionable net loss, as determined under
20par. (d), by the member's apportionment fraction as determined under sub. (7).
SB55-SSA1-SA2,284,2321 (f) To the amount determined under par. (e), add each member's
22nonapportionable income attributable to this state and subtract each member's
23nonapportionable losses attributable to this state.
SB55-SSA1-SA2,284,2524 (g) If the combined reporting group is not filing a group return, combine the
25amounts determined under par. (f) for all members of the combined reporting group.
SB55-SSA1-SA2,285,3
1(h) If the combined reporting group is filing a group return, combine the
2amounts determined under par. (f) for all members of the combined reporting group
3that join in filing the group return.
SB55-SSA1-SA2,285,54 (i) From the amount determined under par. (g) or (h), as appropriate, subtract
5the combined reporting group's net operating loss as determined under sub. (8).
SB55-SSA1-SA2,285,7 6(7) Apportionment factor computation under combined reporting. For the
7purposes of sub. (2), this state's apportionment factors are determined as follows:
SB55-SSA1-SA2,285,108 (a) 1. Determine the numerator and the denominator of the apportionment
9factors as determined under s. 71.25 or 71.45, as appropriate, for each member of the
10combined reporting group, except as provided in subd. 2.
SB55-SSA1-SA2,285,2011 2. If a member of a combined reporting group is not subject to the tax imposed
12under s. 71.23 or 71.43 because it does not have sufficient connection to this state as
13a separate entity for income or franchise tax purposes, as determined by the
14department, the numerator of the member's sales factor under s. 71.25 (9) or
15apportionment factor under s. 71.45 (3) is zero. If a member of a combined reporting
16group is a corporation engaged in business wholly within this state, as provided
17under s. 71.25 (4), the numerator and denominator of the member's apportionment
18factors is the same. If a member of a combined reporting group is not subject to an
19income or franchise tax as a separate entity in the state to which a sale is attributed,
20the sale is attributed to this state.
SB55-SSA1-SA2,285,2221 (b) Subtract intercompany transactions under sub. (6) (c) from both the
22numerators and the denominators as determined under par. (a).
SB55-SSA1-SA2,285,2523 (c) Add the denominators of the apportionment factors for each member of the
24combined reporting group, as determined under par. (a), to arrive at the combined
25denominators.
SB55-SSA1-SA2,286,4
1(d) Compute the apportionment factors for each member of the combined
2reporting group by dividing the numerator of a member of the combined reporting
3group as determined under par. (a) by the combined denominator as determined
4under par. (c).
SB55-SSA1-SA2,286,13 5(8) Net business loss carry-over. (a) For taxable years beginning after
6December 31, 2001, any net business loss of a corporation that is a member of a
7combined reporting group as determined under sub. (6) for the taxable year that is
8not offset against the net income of the other members of the combined reporting
9group in the same taxable year may be carried forward as provided under s. 71.26
10(4), except that any net business loss carried forward to a subsequent taxable year
11may be offset against either the net income of the corporation that incurred the net
12business loss or the net income of the combined reporting group of which the
13corporation is a member, in the manner prescribed by rule by the department.
SB55-SSA1-SA2,286,1714 (b) A corporation that is a member of a combined reporting group may not carry
15forward a net business loss from a taxable year beginning before January 1, 2002,
16if the corporation was not subject to the tax imposed under s. 71.23 or 71.43 for the
17same taxable year.
SB55-SSA1-SA2,287,318 (c) A corporation that is a member of a combined reporting group and that
19incurred a Wisconsin net business loss in a taxable year beginning before January
201, 2002, that has not been offset against the corporation's net income in subsequent
21taxable years, may offset the remaining net business loss against the corporation's
22net income as determined under sub. (6) (i). If the corporation joins in filing a group
23return under sub. (5) and the corporation's remaining net business loss exceeds the
24corporation's net income as determined under sub. (6) (i) for the first taxable year
25beginning after December 31, 2001, that the corporation is subject to this section, the

1corporation may annually offset up to 20% of the remaining net business loss against
2the net income of the other members of the combined reporting group that join in
3filing a group return under sub. (5).
SB55-SSA1-SA2,287,13 4(9) Net income or loss for corporations with different accounting periods.
5If a taxpayer member has a different accounting period than the common accounting
6period of the combined reporting group, the combined reporting group shall assign
7the combined report income or loss for the combined reporting group, as determined
8under sub. (6) (i), proportionally to the number of months in the taxpayer member's
9taxable year that are wholly or partly within the combined reporting group's common
10accounting period. The total amount of income or loss assigned to a taxpayer member
11under this subsection for the common accounting period shall be used to attribute
12the taxpayer member's apportionable income to the combined reporting group for the
13common accounting period.
SB55-SSA1-SA2,287,15 14(10) Net tax liability. (a) A corporation that files a separate return under this
15section shall determine its net tax liability as follows:
SB55-SSA1-SA2,287,1716 1. Multiply the amount determined under sub. (6) (i) for the corporation by the
17tax rate under s. 71.27 or 71.46, as appropriate.
SB55-SSA1-SA2,287,2218 2. From the amount determined under subd. 1., subtract the corporation's tax
19credits under s. 71.28 or 71.47 based on the corporation's expenses. A corporation
20may not offset any of its tax credits, or tax credit carry forwards, against the tax
21liability of any other member of the combined reporting group to which the
22corporation belongs.
SB55-SSA1-SA2,287,2423 (b) A combined reporting group that files a group return under this section shall
24determine its net tax liability as follows:
SB55-SSA1-SA2,288,2
11. Multiply the amount determined under sub. (6) (i) for the combined reporting
2group by the tax rate under s. 71.27 or 71.46, as appropriate.
SB55-SSA1-SA2,288,43 2. From the amount determined under subd. 1., subtract the tax credits under
4s. 71.27 and 71.47 for all taxpayer members of the combined reporting group.
SB55-SSA1-SA2,288,11 5(11) Estimated tax payments. (a) For the first 2 taxable years that a group
6return is filed under this section, estimated taxes under s. 71.29 and 71.48 may be
7paid on a group basis or on a separate basis. The amount of any separate estimated
8taxes paid in the first 2 taxable years that a group return is filed shall be credited
9against the group's tax liability. The designated agent shall notify the department
10of any estimated taxes paid on a separate basis in the first 2 taxable years that a
11group return is filed.
SB55-SSA1-SA2,288,2412 (b) If a group return is filed for 2 consecutive taxable years, estimated taxes
13under s. 71.29 and 71.48 shall be paid on a group basis for each subsequent taxable
14year until such time as separate returns are filed by the corporations that were
15members of a combined reporting group that filed group returns under this section.
16For each taxable year in which combined estimated taxes are paid under this
17subsection, the department shall consider the combined reporting group filing a
18group return to be one taxpayer for purposes of computing interest on the
19underpayment of estimated taxes. If a corporation subject to this section files a
20separate return in a taxable year following a year in which the corporation joined in
21filing a group return, the amount of any estimated tax payments made on a group
22basis for the previous year shall be credited against the tax liability of the corporation
23that files a separate return, as allocated by the designated agent with the
24department's approval.
SB55-SSA1-SA2,289,5
1(c) If a combined reporting group pays estimated taxes on a group basis for a
2taxable year or for any part of a taxable year, and the members of the combined
3reporting group file separate returns for the taxable year, the designated agent, with
4the department's approval, shall allocate the estimated tax payments among the
5members of the combined reporting group.
SB55-SSA1-SA2,289,106 (d) If estimated taxes are paid on a group basis for a taxable year but the group
7does not file a group return for the taxable year and did not file a group return for
8the previous taxable year, the estimated tax shall be credited to the member of the
9combined reporting group that made the estimated tax payment on the group's
10behalf.
SB55-SSA1-SA2,289,1311 (e) If a combined reporting group that will file a group return applies for a
12refund of estimated taxes under s. 71.29 (3m), the department shall determine the
13combined reporting group's eligibility for a refund on a group basis.
SB55-SSA1-SA2,289,16 14(12) Interest for underpayment of estimated tax. (a) General. The amount
15of interest that is due for an underpayment of estimated taxes under sub. (11) shall
16be computed as follows:
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