SB197-AA2,20,2016 3. For any year in which a combined reporting group files a group return, the
17department shall determine if the installment provisions under s. 71.29 (9) or (10)
18apply to the combined reporting group by using the aggregate of the amount of the
19tax liability and the amount of the net income of all members of the combined
20reporting group.
SB197-AA2,21,221 4. For estimated taxes paid under sub. (11) (c), the amount of interest that is
22due from a member of a combined reporting group for an underpayment of estimated
23taxes paid by the member shall be determined by using the member's separate items
24from the group return filed for the previous year and the member's allocated share
25of the combined estimated tax payments for the current year. The designated agent

1shall report the member's allocated share of the combined estimated tax payments
2for the current year to the department, in the manner prescribed by the department.
SB197-AA2,21,63 (b) Entering a group. If a corporation becomes a member of a combined
4reporting group during a common accounting period under sub. (4), the combined
5reporting group shall make the following adjustments to determine the amount of
6interest that is due for an underpayment of estimated taxes:
SB197-AA2,21,117 1. If a corporation becomes a member of a combined reporting group at the
8beginning of a common accounting period, the combined reporting group shall
9include with the corresponding items on the group return for the previous common
10accounting period the separate items shown on the corporation's return for the
11previous taxable year.
SB197-AA2,21,1612 2. If a corporation is not a member of a combined reporting group for an entire
13common accounting period, the combined reporting group shall include with the
14corresponding items on the group return for the current taxable year the
15corporation's separate items for that portion of the common accounting period that
16the corporation was not a member of the combined reporting group.
SB197-AA2,21,2217 3. To determine the separate items under subds. 1. and 2., if a corporation is
18a member of a combined reporting group during a portion of a common accounting
19period in which the corporation becomes a member of another combined reporting
20group, the corporation's separate items shall include the separate items that are
21attributed to the corporation by the designated agent of the first combined reporting
22group.
SB197-AA2,22,223 (c) Leaving a group. If a corporation leaves a combined reporting group during
24a common accounting period under sub. (4), the combined reporting group shall make

1the following adjustments to determine the amount of interest that is due for an
2underpayment of estimated taxes:
SB197-AA2,22,73 1. If a corporation leaves a combined reporting group before the first day of a
4common accounting period, the combined reporting group shall exclude the separate
5items that the designated agent of the combined reporting group attributed to the
6corporation for the preceding common accounting period from the corresponding
7items of the combined reporting group for the preceding common accounting period.
SB197-AA2,22,128 2. If a corporation leaves a combined reporting group after the first day of a
9common accounting period, the combined reporting group shall exclude the separate
10items that the designated agent of the combined reporting group attributed to the
11corporation for the common accounting period from the corresponding items of the
12combined reporting group for the current common accounting period.
SB197-AA2,22,2013 3. A corporation that leaves a combined reporting group shall use the separate
14items that the designated agent of the combined reporting group attributed to the
15corporation to determine the amount of interest that is owed for any underpayment
16of estimated taxes under sub. (11) for the first taxable year beginning after the day
17that the corporation leaves the combined reporting group or, for a corporation that
18has a different accounting period than the combined reporting group, for the portion
19of the corporation's separate taxable year that remains after the day that the
20corporation leaves the combined reporting group.
SB197-AA2,23,11 21(13) Assessment notice. If the department sends a notice of taxes that are
22owed by a combined reporting group to the designated agent of a combined reporting
23group, the notice shall name each corporation that joined in filing the group return
24related to the notice during any part of the period covered by the notice. The
25department's failure to name a corporation on a notice under this subsection shall

1not invalidate the notice as to the unnamed corporation. Any levy, lien, or other
2proceeding to collect the amount of a tax assessment under this section shall name
3the corporation from which the department shall collect the assessment. If a
4corporation that joined in the filing of a group return leaves the combined reporting
5group, the department shall send the corporation a copy of any notice sent to the
6combined reporting group under this subsection if the corporation notifies the
7department that the corporation is no longer a member of the combined reporting
8group and if the corporation requests in writing that the department send notices
9under this subsection to the corporation. The department's failure to comply with
10a corporation's request to receive a notice does not affect the tax liability of the
11corporation.
SB197-AA2,23,17 12(14) Liability for tax, interest, and penalty. If members of a combined
13reporting group file a group return, the members of the combined reporting group
14shall be jointly and severally liable for any combined tax, interest, or penalty. The
15liability of a member of a combined reporting group for any combined tax, interest,
16or penalty shall not be reduced by an agreement with another member of the
17combined reporting group or by an agreement with another person.
SB197-AA2,23,23 18(15) Presumptions and burden of proof. A commonly controlled group shall
19be presumed to be engaged in a unitary business and all of the income of the unitary
20business shall be presumed to be apportionable business income under this section.
21A corporation, partnership, or limited liability company has the burden of proving
22that it is not a member of a commonly controlled group that is subject to this section.
23The department shall promulgate rules to implement this subsection.
SB197-AA2,24,3 24(16) Information. (a) A member of a commonly controlled group shall retain
25any information, and provide such information to the department at the

1department's request, that the department considers necessary to administer this
2section, including all documents submitted to or obtained from the Internal Revenue
3Service or other states regarding income and taxing jurisdiction.
SB197-AA2,24,84 (b) A member of a commonly controlled group shall identify, at the department's
5request, the name, job title, and address of the member's principal officers or
6employees who have substantial knowledge of, and access to, documents that specify
7the pricing policies, profit centers, cost centers, and methods of allocating income and
8expenses among cost centers related to the operations of the member.
SB197-AA2,24,139 (c) A member of a commonly controlled group shall retain all information
10provided under par. (a) during any period for which the member's tax liability to this
11state is subject to adjustment, including any period in which the state may assess
12additional income or franchise taxes, an appeal of the member's tax assessment is
13pending, or a suit related to the member's tax liability is pending.
SB197-AA2,24,18 14(17) Corporations not filing. If a corporation that is required to report under
15this section directly or indirectly owns or controls any other corporation, or is directly
16or indirectly owned or controlled by another corporation, the department may
17require that such other corporations join in filing a combined report under this
18section.
SB197-AA2, s. 26e 19Section 26e. 71.26 (3) (x) of the statutes is amended to read:
SB197-AA2,24,2420 71.26 (3) (x) Sections 1501 to 1505, 1551, 1552, 1563 and 1564 (relating to
21consolidated returns) are excluded, except to the extent that they pertain to
22intercompany transactions and the carry forward of net business loss under s. 71.255
23and except that they are modified so that more than 50% ownership is substituted
24for at least 80% ownership
.
SB197-AA2, s. 26f 25Section 26f. 71.26 (4) of the statutes is amended to read:
SB197-AA2,25,17
171.26 (4) Net business loss carry-forward. A corporation, except a tax-option
2corporation or an insurer to which s. 71.45 (4) applies, may offset against its
3Wisconsin net business income any Wisconsin net business loss sustained in any of
4the next 15 preceding taxable years, if the corporation was subject to taxation under
5this chapter in the taxable year in which the loss was sustained, to the extent not
6offset by other items of Wisconsin income in the loss year and by Wisconsin net
7business income of any year between the loss year and the taxable year for which an
8offset is claimed. For purposes of this subsection Wisconsin net business income or
9loss shall consist of all the income attributable to the operation of a trade or business
10in this state, less the business expenses allowed as deductions in computing net
11income. The Wisconsin net business income or loss of corporations engaged in
12business within and without the state shall be determined under s. 71.255 or 71.25
13(6) and (10) to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25
14(5) (b) shall be included in Wisconsin net business loss; and nonapportionable income
15having a Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be
16included in other items of Wisconsin income and Wisconsin net business income for
17purposes of this subsection.
SB197-AA2, s. 26g 18Section 26g. 71.29 (2) of the statutes is amended to read:
SB197-AA2,25,2119 71.29 (2) Who shall pay. Every Except as provided in s. 71.255 (11), every
20corporation subject to tax under s. 71.23 (1) or (2) and every virtually exempt entity
21subject to tax under s. 71.125 or 71.23 (1) or (2) shall pay an estimated tax.
SB197-AA2, s. 26h 22Section 26h. 71.44 (1) (a) of the statutes is amended to read:
SB197-AA2,26,1523 71.44 (1) (a) Every Except as provided in par. (e), every corporation, except
24corporations all of whose income is exempt from taxation and except as provided in
25sub. (1m), shall furnish to the department a true and accurate statement, on or before

1March 15 of each year, except that returns for fiscal years ending on some other date
2than December 31 shall be furnished on or before the 15th day of the 3rd month
3following the close of such fiscal year and except that returns for less than a full
4taxable year shall be furnished on or before the date applicable for federal income
5taxes under the internal revenue code, in such manner and form and setting forth
6such facts as the department deems necessary to enforce this chapter. Every
7corporation that is required to furnish a statement under this paragraph and that
8has income that is not taxable under this subchapter shall include with its statement
9a report that identifies each item of its nontaxable income. The statement shall be
10subscribed by the president, vice president, treasurer, assistant treasurer, chief
11accounting officer or any other officer duly authorized so to act. In the case of a return
12made for a corporation by a fiduciary, the fiduciary shall subscribe the return. The
13fact that an individual's name is subscribed on the return shall be prima facie
14evidence that the individual is authorized to subscribe the return on behalf of the
15corporation.
SB197-AA2, s. 26j 16Section 26j. 71.44 (1) (e) of the statutes is created to read:
SB197-AA2,26,1917 71.44 (1) (e) A corporation that is a member of a commonly controlled group,
18as defined in s. 71.255 (1) (d), and engaged in a unitary business, as defined in s.
1971.255 (1) (m), shall file a tax return under s. 71.255.".
SB197-AA2,26,20 204. Page 16, line 2: after that line insert:
SB197-AA2,26,21 21" Section 32d. 71.46 (3) of the statutes is repealed.
SB197-AA2, s. 32e 22Section 32e. 71.48 of the statutes is amended to read:
SB197-AA2,27,3
171.48 Payments of estimated taxes. Sections Except as provided in s.
271.255 (11), ss.
71.29 and 71.84 (2) shall apply to insurers subject to taxation under
3this chapter.
SB197-AA2, s. 32f 4Section 32f. 71.84 (2) (a) of the statutes is amended to read:
SB197-AA2,27,155 71.84 (2) (a) Except as provided in s. 71.29 (7), in the case of any underpayment
6of estimated tax under s. 71.255, 71.29 or 71.48 there shall be added to the aggregate
7tax for the taxable year interest at the rate of 12% per year on the amount of the
8underpayment for the period of the underpayment. For corporations, except as
9provided in par. (b), "period of the underpayment" means the time period from the
10due date of the installment until either the 15th day of the 3rd month beginning after
11the end of the taxable year or the date of payment, whichever is earlier. If 90% of the
12tax shown on the return is not paid by the 15th day of the 3rd month following the
13close of the taxable year, the difference between that amount and the estimated taxes
14paid, along with any interest due, shall accrue delinquent interest under s. 71.91 (1)
15(a).".
SB197-AA2,27,16 165. Page 16, line 13: after that line insert:
SB197-AA2,27,19 17"(2m) Combined reporting. The treatment of sections 71.25 (9) (a), 71.255,
1871.26 (3) (x) and (4), 71.29 (2), 71.44 (1) (e), 71.46 (3), 71.48, and 71.84 (2) (a) of the
19statutes first applies retroactively to taxable years beginning on January 1, 2003.".
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