SB197-SSA3,14,138 1. A parent corporation and any corporation or chain of corporations that are
9connected to the parent corporation by direct or indirect ownership by the parent
10corporation if the parent corporation owns stock representing more than 50% of the
11voting power of at least one of the connected corporations or if the parent corporation
12or any of the connected corporations owns stock that cumulatively represents more
13than 50% of the voting power of each of the connected corporations.
SB197-SSA3,14,1614 2. Any 2 or more corporations if a common owner directly or indirectly owns
15stock representing more than 50% of the voting power of the corporations or the
16connected corporations.
SB197-SSA3,14,2017 3. A partnership or limited liability company if a parent corporation or any
18corporation connected to the parent corporation by common ownership directly or
19indirectly owns more than a 50% interest in the capital and profits of the partnership
20or limited liability company.
SB197-SSA3,14,2221 4. Any 2 or more corporations if stock representing more than 50% of the voting
22power in each corporation are interests that cannot be separately transferred.
SB197-SSA3,15,223 5. Any 2 or more corporations if stock representing more than 50% of the voting
24power in each corporation is directly owned by, or for the benefit of, family members.
25In this subdivision, "family members" means an individual related by blood,

1marriage, or adoption within the 2nd degree of kinship as computed under s. 852.03
2(2), 1995 stats., or the spouse of such an individual.
SB197-SSA3,15,73 6. A corporation, partnership, or limited liability company if a parent
4corporation or any corporation connected to the parent corporation by common
5ownership does not hold more than a 50% ownership interest in the corporation,
6partnership, or limited liability company but effectively controls the corporation,
7partnership, or limited liability company.
SB197-SSA3,15,88 (e) "Corporation" has the meaning given in s. 71.22 (1) or 71.42 (1).
SB197-SSA3,15,99 (f) "Department" means the department of revenue.
SB197-SSA3,15,1210 (g) "Designated agent" means the taxpayer member of a commonly controlled
11group who files a group return on behalf of the taxpayer members of a combined
12reporting group.
SB197-SSA3,15,1413 (h) "Group return" means a tax return filed on behalf of the taxpayer members
14of a combined reporting group.
SB197-SSA3,15,1715 (i) "Intercompany transaction" means a transaction between corporations,
16partnerships, or limited liability companies that become members of the same
17combined reporting group immediately after the transaction.
SB197-SSA3,15,1918 (im) "Partnership" means any entity considered a partnership under section
197701 of the Internal Revenue Code.
SB197-SSA3,15,2220 (j) "Separate return" means a return filed by a corporation, regardless of
21whether the corporation is a member of a combined reporting group or is required
22to file a tax return under s. 71.24 or 71.44.
SB197-SSA3,15,2523 (k) "Taxpayer member" means a corporation that is subject to tax under s. 71.23
24(1) or (2) or 71.43, that is a member of a combined reporting group, and that files a
25combined report under this section.
SB197-SSA3,16,6
1(L) "Top tier corporation" means a member of a commonly controlled group that
2is not connected with a parent corporation by stock ownership or interest ownership
3as described in par. (d), is a parent corporation, or is a brother-sister parent
4corporation, regardless of whether it is doing business in this state or deriving
5income from sources in this state, and regardless of whether its income and
6apportionment factors are excluded from a combined report filed under this section.
SB197-SSA3,16,157 (m) "Unitary business" includes the business activities or operations of an
8entity that are of mutual benefit to, integrated with, or dependent upon or that
9contribute to activities of at least one other entity, including transactions that serve
10an operational function, as determined by the department. Two or more businesses
11are presumed to be a unitary business if the businesses have unity of ownership,
12operation, and use as indicated by centralized management or a centralized
13executive force; centralized purchasing, advertising, or accounting; intercorporate
14sales or leases; intercorporate services; intercorporate debts; intercorporate use of
15proprietary materials; interlocking directorates; or interlocking corporate officers.
SB197-SSA3,16,24 16(2) Corporations required to use combined reporting. (a) Except as provided
17in par. (b), and subject to sub. (6), a corporation that is subject to the tax imposed
18under s. 71.23 (1) or (2) or 71.43, that is a member of a commonly controlled group,
19and that is engaged, in whole or in part, in a unitary business with one or more
20members of the commonly controlled group shall compute the corporation's income
21attributable to this state by using the income computation under s. 71.26 or 71.45,
22the apportionment formula under s. 71.25 (6) or 71.45, and the tax credits under s.
2371.28 or 71.47 of all of the following that are members of the commonly controlled
24group:
SB197-SSA3,17,5
11. Any corporation organized or incorporated under the laws of the United
2States, any state of the United States, the District of Columbia, the Commonwealth
3of Puerto Rico, any possession of the United States, or any political subdivision of the
4United States, including corporations under sections 931 to 936 of the Internal
5Revenue Code.
SB197-SSA3,17,762. Any domestic international sales corporation under sections 991 to 994 of the
7Internal Revenue Code.
SB197-SSA3,17,983. Any foreign sales corporation under sections 921 to 927 of the Internal
9Revenue Code.
SB197-SSA3,17,11104. Any export trade corporation under sections 970 and 971 of the Internal
11Revenue Code.
SB197-SSA3,17,1612 5. Any corporation regardless of its place of incorporation if the average of its
13property factor under s. 71.25 (7) and its payroll factor under s. 71.25 (8), for property
14and payroll within the United States and computed on an annual basis, is at least
1520% during any part of the taxable year that a corporation is a member of the
16commonly controlled group.
SB197-SSA3,17,2017 6. Any corporation not described in subds. 1. to 5. to the extent of the
18corporation's income within the United States and the corporation's property factor
19under s. 71.25 (7) and payroll factor under s. 71.25 (8) assignable to a location within
20the United States.
SB197-SSA3,18,621 (b) A corporation that is subject to the tax imposed under s. 71.23 (1) or (2) or
2271.43, that is a member of a commonly controlled group, and that is engaged, in whole
23or in part, in a unitary business with one or more members of the commonly
24controlled group may, subject to sub. (6), compute the corporation's income
25attributable to this state by using the income computation under s. 71.26 or 71.45,

1the apportionment formula under s. 71.25 (6) or 71.45, and the tax credits under s.
271.28 or 71.47 of all the members of the commonly controlled group, regardless of the
3country in which any member of the commonly controlled group is organized or
4incorporated or conducts business, if all top tier corporations that are members of the
5commonly controlled group elect under sub. (3) to compute the corporation's income
6as provided under this paragraph.
SB197-SSA3,18,14 7(3) Computation election. (a) A top tier corporation that is a member of a
8commonly controlled group may elect on the commonly controlled group's behalf, and
9in the manner prescribed by the department, to compute the income of each
10corporation that is a member of the commonly controlled group under sub. (2) (b).
11If more than one member of the commonly controlled group is a top tier corporation,
12an election under this subsection is not effective unless all top tier corporations elect
13on the commonly controlled group's behalf, and in the manner prescribed by the
14department, to compute income under sub. (2) (b).
SB197-SSA3,18,2215 (b) A top tier corporation shall file an election made under par. (a) with the
16department before the last day of the taxable year. The top tier corporation shall
17designate a taxable year that corresponds with the taxable year of any taxpayer
18member that is subject to the tax imposed under s. 71.23 (1) or (2) or 71.43. If the
19top tier corporation fails to file the election before the last day of the taxable year
20designated under this paragraph, all members of the commonly controlled group to
21which the top tier corporation belongs, including the top tier corporation, shall
22compute income under sub. (2) (a).
SB197-SSA3,19,823 (c) Except as provided under par. (d), the members of the commonly controlled
24group subject to an election under this subsection shall compute their income under
25sub. (2) (b) for 7 taxable years, beginning with the taxable year designated under par.

1(b). Thereafter, the members of the commonly controlled group shall compute their
2income under sub. (2) (b) for periods of 7 taxable years and until any top tier
3corporation that is a member of the commonly controlled group notifies the
4department, in a manner prescribed by the department, before the last day of the last
5taxable year in any period of 7 taxable years that the top tier corporation is
6terminating the election under this subsection. A termination under this paragraph
7takes effect on the first day of the first taxable year beginning after the top tier
8corporation notifies the department under this paragraph.
SB197-SSA3,19,139 (d) The department may grant a request by a top tier corporation to terminate
10an election under this subsection before the first period of 7 taxable years under par.
11(c) expires, if the top tier corporation shows good cause for granting the request, as
12determined by the department and consistent with section 1502 of the Internal
13Revenue Code.
SB197-SSA3,19,1814 (e) Except as provided in par. (f), if an election by a top tier corporation on behalf
15of the members of a commonly controlled group under this subsection is terminated,
16no top tier corporation may make an election on behalf of the members of the same
17commonly controlled group until 7 taxable years have elapsed from the day that the
18termination of the original election took effect.
SB197-SSA3,19,2319 (f) The department may grant a request by a top tier corporation to make an
20election under this subsection before the period of 7 taxable years under par. (e) have
21elapsed, if the top tier corporation shows good cause for granting the request, as
22determined by the department and consistent with section 1502 of the Internal
23Revenue Code.
SB197-SSA3,20,10 24(4) Accounting period. For purposes of this section, the income under ss. 71.26
25and 71.45, the apportionment factors under ss. 71.25 and 71.45 and the tax credits

1under ss. 71.28 and 71.47 of all corporations that are members of a combined
2reporting group shall be determined by using the same accounting period. If the
3combined reporting group has a common parent corporation, the accounting period
4of the common parent corporation shall be used to determine the income, the
5apportionment factors, and the tax credits of all the corporations that are members
6of the combined reporting group. If the combined reporting group has no common
7parent corporation, the income, the apportionment factors, and the tax credits of the
8combined reporting group shall be determined using the accounting period of the
9member of the combined reporting group that has the most significant operations on
10a recurring basis in this state, as determined by the department.
SB197-SSA3,20,19 11(5) Filing returns. (a) Corporations with the same accounting period.
12Corporations that must file a combined report under this section and that have the
13same accounting period may file a group return, as prescribed by the department,
14that reports the aggregate state franchise or state income tax liability of all of the
15members of the combined reporting group. Corporations that are required to file a
16combined report under this section may file separate returns reporting the
17respective apportionment of the corporation's state franchise or state income tax
18liability as determined under sub. (2), if each corporation filing a separate return
19pays its own apportionment of its state franchise or state income tax liability.
SB197-SSA3,21,820 (b) Corporations with different accounting periods. Corporations that are
21required to file a combined report and that have different accounting periods shall
22file separate returns and shall use the actual figures from the corporations' financial
23records to determine the proper income and income-related computations to convert
24to a common accounting period. Corporations that are required to file a combined
25report may use a proportional method to convert income to a common accounting

1period if the results of the proportional method do not materially misrepresent the
2income apportioned to this state. The apportionment factors under ss. 71.25 and
371.45 and the tax credits under ss. 71.28 and 71.47 shall be computed according to
4the same method used to determine the income under ss. 71.26 and 71.45 for the
5common accounting period. If a corporation performs an interim closing of its
6financial records to determine the income attributable to the common accounting
7period, the actual figures from the interim closing shall be used to convert the
8apportionment factors and tax credits to the common accounting period.
SB197-SSA3,21,259 (c) Designated agent. 1. For corporations that are subject to this section and
10that file a group return under par. (a), the parent corporation of the combined
11reporting group is the sole designated agent for each member of the combined
12reporting group including the parent corporation, if the parent corporation is a
13taxpayer member of the combined reporting group and income of the parent
14corporation is included on the group return. If the parent corporation is not a
15taxpayer member or if the parent corporation's income is not included on the group
16return, the taxpayer members may appoint a taxpayer member to be the designated
17agent. If the parent corporation of the combined reporting group is not eligible to be
18the designated agent and no taxpayer member is appointed to be the designated
19agent, the designated agent is the taxpayer member that has the most significant
20operations in this state on a recurring basis, as determined by the department. The
21designated agent, as determined under this subdivision, remains the designated
22agent until the designated agent is no longer a taxpayer member or until the
23taxpayer members appoint a different designated agent. If the designated agent
24changes, the combined reporting group shall notify the department of such a change,
25in a manner prescribed by the department.
SB197-SSA3,22,23
12. The designated agent shall file the group return under par. (a), shall file for
2any extensions under s. 71.24 (7) or 71.44 (3), shall file amended reports and claims
3for refund or credit, and shall send and receive all correspondence with the
4department regarding a group return. Any notice the department sends to the
5designated agent is considered a notice sent to all members of the combined reporting
6group. Any refund with respect to a group return shall be paid to and in the name
7of the designated agent and shall discharge any liability of the state to any member
8of a combined reporting group regarding the refund. The combined reporting group
9filing a group return under par. (a) shall pay all taxes, including estimated taxes, in
10the designated agent's name. The designated agent shall participate on behalf of the
11members of the combined reporting group in any investigation or hearing requested
12by the department regarding a group return and shall produce all information
13requested by the department regarding a group return. The designated agent may
14execute a power of attorney on behalf of the members of the combined reporting
15group. The designated agent shall execute waivers, closing agreements, and other
16documents regarding a group return filed under par. (a) and any waiver, agreement,
17or document executed by the designated agent shall be considered as executed by all
18members of the combined reporting group. If the department acts in good faith with
19a combined reporting group member that represents itself as the designated agent
20for the combined reporting group but that combined reporting group member is not
21the designated agent, any action taken by the department with that combined
22reporting group member has the same effect as if that combined reporting group
23member were the actual designated agent for the combined reporting group.
SB197-SSA3,23,224 (d) Part-year members. If a corporation becomes a member of a combined
25reporting group or ceases to be a member of a combined reporting group after the

1beginning of a common accounting period, the corporation's income shall be
2apportioned to this state as follows:
SB197-SSA3,23,113 1. If the corporation is required to file 2 or more short period federal returns
4for the common accounting period, the income for the short period that the
5corporation was a member of a combined reporting group shall be determined as
6provided under sub. (2), the corporation shall join in filing a combined report for that
7short period, and the corporation may join in filing a group return for that short
8period. The income for the remaining short period shall be reported on a separate
9return under s. 71.26 or 71.45. If the corporation becomes a member of another
10combined reporting group in the remaining short period, the corporation's income
11shall be determined for the remaining short period as provided under sub. (2).
SB197-SSA3,23,1312 2. If the corporation is not required to file federal short period returns, the
13corporation shall file a separate return. Income shall be determined as follows:
SB197-SSA3,23,1514 a. As provided under sub. (2) for any period that the corporation was a member
15of a combined reporting group.
SB197-SSA3,23,1716 b. As a separate entity under s. 71.26 or 71.45 for any period that the
17corporation was not a member of a combined reporting group.
SB197-SSA3,23,2118 (e) Amended group return. The election to file a group return under this section
19applies to an amended group return that includes the same corporations that joined
20in the filing of the original group return. Under this section, an amended group
21return shall be filed as follows:
SB197-SSA3,24,522 1. If an election to file a group return that is in effect for a taxable year is
23revoked for the taxable year because the combined reporting group that filed the
24group return is not subject to sub. (2), as determined by the department, the
25designated agent for the combined reporting group may not file an amended group

1return. The designated agent and each corporation that joined in filing the group
2return shall file a separate amended return. To compute the tax due on a separate
3amended return, a corporation that files a separate amended return shall consider
4all of the payments, credits, or other amounts, including refunds, that the designated
5agent allocated to the corporation.
SB197-SSA3,24,106 2. If a change in tax liability under this section is the result of the removal of
7a corporation from a combined reporting group because the corporation was not
8eligible to be a member of the combined reporting group for the taxable year, as
9determined by the department, the designated agent shall file an amended group
10return and the ineligible corporation shall file a separate amended return.
SB197-SSA3,24,1611 3. If a corporation erroneously fails to join in the filing of a group return, the
12designated agent shall file an amended group return that includes the corporation.
13If a corporation that erroneously fails to join in the filing of a group return has filed
14a separate return, the corporation shall file an amended separate return that shows
15no net income, overpayment, or underpayment, and shows that the corporation has
16joined in the filing of a group return.
SB197-SSA3,24,18 17(6) Income computation under combined reporting. For the purposes of sub.
18(2), income attributable to this state shall be determined as follows:
SB197-SSA3,25,819 (a) Determine the net income of each member of a combined reporting group
20under s. 71.26 or 71.45, as appropriate, before deducting net business losses. A
21member of a combined reporting group may determine its net loss or net income
22under a method of accounting or an election authorized under s. 71.26 (3) (y), 71.30
23(1), 71.45 (2) (a) 13., or 71.49 (2), as appropriate, regardless of the accounting method
24used to determine the net loss or net income of other members of the combined
25reporting group. After a member establishes an accounting method, or makes any

1election under this section, the member's net loss or net income shall be consistently
2determined in the combined report of all members of the combined reporting group
3and in the group return filed by the taxpayer members or in the separate return filed
4by the members. If a corporation is engaged in 2 or more trades or businesses that
5are required to use different apportionment formulas under s. 71.25 or 71.45, the net
6income for each trade or business shall be computed separately. A unitary business
7with operations in a foreign country shall compute its net loss or net income as
8provided by rule by the department.
SB197-SSA3,25,109 (b) Adjust each member's income, as determined under par. (a), as provided
10under s. 71.30.
SB197-SSA3,25,1611 (c) From the amount determined under par. (b), subtract intercompany
12transactions, as provided by rule by the department, such that intercompany
13accounts of assets, liabilities, equities, income, costs, or expenses are excluded from
14the income determination to accurately reflect the income, the apportionment
15factors, and the tax credits in a combined report that is filed under this section. An
16intercompany transaction includes the following:
SB197-SSA3,25,1917 1. Income or gain from sales, exchanges, contributions, or other transfers of
18tangible or intangible property from a member of the combined reporting group to
19another member of the combined reporting group.
SB197-SSA3,25,2120 2. Annual rent paid by a member of the combined reporting group to another
21member of the combined reporting group.
SB197-SSA3,25,2322 3. Annual license fees or royalties paid by a member of the combined reporting
23group to another member of the combined reporting group.
SB197-SSA3,26,3
14. Loans, advances, receivables, and similar items that one member of the
2combined reporting group owes to another member of the combined reporting group,
3including interest income and interest expense related to these items.
SB197-SSA3,26,54 5. Stock or other equity of a member of the combined reporting group that is
5owned or controlled by another member of the combined reporting group.
SB197-SSA3,26,86 6. Except as provided by rule by the department, dividends paid out of earnings
7or profits and paid by a member of the combined reporting group to another member
8of the combined reporting group.
SB197-SSA3,26,109 7. Management or service fees paid by a member of the combined reporting
10group to another member of the combined reporting group.
SB197-SSA3,26,1211 8. Income or expenses allocated or charged by a member of the combined
12reporting group to another member of the combined reporting group.
SB197-SSA3,26,1613 (d) From the amount determined under par. (c) for each member of a combined
14reporting group, subtract nonapportionable income, net of related expenses, and add
15nonapportionable losses, net of related expenses, to determine each member's
16apportionable net income or apportionable net loss.
SB197-SSA3,26,1917 (e) Calculate the apportionment factors under sub. (7) and multiply each
18member's apportionable net income or apportionable net loss, as determined under
19par. (d), by the member's apportionment factor as determined under sub. (7).
SB197-SSA3,26,2120 (f) For each corporation, combine the amounts determined under par. (e) for
21each trade or business.
SB197-SSA3,26,2422 (g) To the amounts determined under par. (f), add each member's
23nonapportionable income attributable to this state and subtract each member's
24nonapportionable losses attributable to this state.
SB197-SSA3,27,2
1(h) If the combined reporting group is not filing a group return, combine the
2amounts determined under par. (g) for all members of the combined reporting group.
SB197-SSA3,27,53 (i) If the combined reporting group is filing a group return, combine the
4amounts determined under par. (g) for all members of the combined reporting group
5that join in filing the group return.
SB197-SSA3,27,76 (j) From the amount determined under par. (h) or (i), as appropriate, subtract
7the combined reporting group's net operating loss as determined under sub. (8).
SB197-SSA3,27,9 8(7) Apportionment factor computation under combined reporting. For the
9purposes of sub. (2), this state's apportionment factors are determined as follows:
SB197-SSA3,27,1210 (a) 1. Determine the numerator and the denominator of the apportionment
11factors as determined under s. 71.25 or 71.45, as appropriate, for each member of the
12combined reporting group, except as provided in subd. 2.
SB197-SSA3,27,2213 2. If a member of a combined reporting group is not subject to the tax imposed
14under s. 71.23 or 71.43 because it does not have sufficient connection to this state as
15a separate entity for income or franchise tax purposes, as determined by the
16department, the numerator of the member's sales factor under s. 71.25 (9) or
17apportionment factor under s. 71.45 (3) is zero. If a member of a combined reporting
18group is a corporation engaged in business wholly within this state, as provided
19under s. 71.25 (4), the numerator and denominator of the member's apportionment
20factors is the same. If a member of a combined reporting group is not subject to an
21income or franchise tax as a separate entity in the state to which a sale is attributed,
22the sale is attributed to this state.
SB197-SSA3,27,2423 (b) Subtract intercompany transactions under sub. (6) (c) from both the
24numerators and the denominators as determined under par. (a).
SB197-SSA3,28,3
1(c) Add the denominators of the apportionment factors for each member of the
2combined reporting group, as determined under par. (b), to arrive at the combined
3denominator.
SB197-SSA3,28,64 (d) Compute each corporation's apportionment factors by dividing the
5corporation's numerator as determined under par. (b) by the combined denominator
6as determined under par. (c).
SB197-SSA3,28,15 7(8) Net business loss carry-over. (a) For taxable years beginning after
8December 31, 2003, any net business loss of a corporation that is a member of a
9combined reporting group as determined under sub. (6) for the taxable year that is
10not offset against the net income of the other members of the combined reporting
11group in the same taxable year may be carried forward as provided under s. 71.26
12(4), except that any net business loss carried forward to a subsequent taxable year
13may be offset against either the net income of the corporation that incurred the net
14business loss or the net income of the combined reporting group of which the
15corporation is a member, in the manner prescribed by rule by the department.
SB197-SSA3,28,1916 (b) A corporation that is a member of a combined reporting group may not carry
17forward a net business loss from a taxable year beginning before January 1, 2004,
18if the corporation was not subject to the tax imposed under s. 71.23 or 71.43 for the
19same taxable year.
SB197-SSA3,29,520 (c) A corporation that is a member of a combined reporting group and that
21incurred a Wisconsin net business loss in a taxable year beginning before January
221, 2004, that has not been offset against the corporation's net income in subsequent
23taxable years, may offset the remaining net business loss against the corporation's
24net income as determined under sub. (6). If the corporation joins in filing a group
25return under sub. (5) and the corporation's remaining net business loss exceeds the

1corporation's net income as determined under sub. (6) for the first taxable year
2beginning after December 31, 2003, that the corporation is subject to this section, the
3corporation may annually offset up to 20% of the remaining net business loss against
4the net income of the other members of the combined reporting group that join in
5filing a group return under sub. (5).
SB197-SSA3,29,15 6(9) Net income or loss for corporations with different accounting periods.
7If a taxpayer member has a different accounting period than the common accounting
8period of the combined reporting group, the combined reporting group shall assign
9the combined report income or loss for the combined reporting group, as determined
10under sub. (6), proportionally to the number of months in the taxpayer member's
11taxable year that are wholly or partly within the combined reporting group's common
12accounting period. The total amount of income or loss assigned to a taxpayer member
13under this subsection for the portions of the common accounting period that are
14included in the taxpayer member's taxable period shall be aggregated or netted to
15determine the taxpayer member's apportionable income.
SB197-SSA3,29,17 16(10) Net tax liability. (a) A corporation that files a separate return under this
17section shall determine its net tax liability as follows:
SB197-SSA3,29,1918 1. Multiply the amount determined under sub. (6) (i) for the corporation by the
19tax rate under s. 71.27 or 71.46, as appropriate.
SB197-SSA3,29,2420 2. From the amount determined under subd. 1., subtract the corporation's tax
21credits under s. 71.28 or 71.47 based on the corporation's expenses. The corporation
22may not offset any of its tax credits, or tax credit carry forwards, against the tax
23liability of any other member of the combined reporting group to which the
24corporation belongs.
SB197-SSA3,30,2
1(b) A combined reporting group that files a group return under this section shall
2determine its net tax liability as follows:
SB197-SSA3,30,43 1. Multiply the amount determined under sub. (6) (i) for the combined reporting
4group by the tax rate under s. 71.27 or 71.46, as appropriate.
SB197-SSA3,30,65 2. From the amount determined under subd. 1., subtract the tax credits under
6ss. 71.28 and 71.47 for all taxpayer members of the combined reporting group.
SB197-SSA3,30,13 7(11) Estimated tax payments. (a) For the first 2 taxable years that a group
8return is filed under this section, estimated taxes under ss. 71.29 and 71.48 may be
9paid on a group basis or on a separate basis. The amount of any separate estimated
10taxes paid in the first 2 taxable years that a group return is filed shall be credited
11against the group's tax liability. The designated agent shall notify the department
12of any estimated taxes paid on a separate basis in the first 2 taxable years that a
13group return is filed.
SB197-SSA3,31,214 (b) If a group return is filed for 2 consecutive taxable years, estimated taxes
15under ss. 71.29 and 71.48 shall be paid on a group basis for each subsequent taxable
16year until such time as separate returns are filed by the corporations that were
17members of a combined reporting group that filed group returns under this section.
18For each taxable year in which combined estimated taxes are paid under this
19subsection, the department shall consider the combined reporting group filing a
20group return to be one taxpayer for purposes of computing interest on the
21underpayment of estimated taxes. If a corporation subject to this section files a
22separate return in a taxable year following a year in which the corporation joined in
23filing a group return, the amount of any estimated tax payments made on a group
24basis for the previous year shall be credited against the tax liability of the corporation

1that files a separate return, as allocated by the designated agent with the
2department's approval.
SB197-SSA3,31,73 (c) If a combined reporting group pays estimated taxes on a group basis for a
4taxable year or for any part of a taxable year, and the members of the combined
5reporting group file separate returns for the taxable year, the designated agent, with
6the department's approval, shall allocate the estimated tax payments among the
7members of the combined reporting group.
SB197-SSA3,31,128 (d) If estimated taxes are paid on a group basis for a taxable year but the group
9does not file a group return for the taxable year and did not file a group return for
10the previous taxable year, the estimated tax shall be credited to the member of the
11combined reporting group that made the estimated tax payment on the group's
12behalf.
SB197-SSA3,31,1513 (e) If a combined reporting group that will file a group return applies for a
14refund of estimated taxes under s. 71.29 (3m), the department shall determine the
15combined reporting group's eligibility for a refund on a group basis.
SB197-SSA3,31,18 16(12) Interest for underpayment of estimated tax. (a) General. The amount
17of interest that is due for an underpayment of estimated taxes under sub. (11) shall
18be computed as follows:
SB197-SSA3,31,2219 1. For the first year in which a combined reporting group files a group return,
20the amount of interest that is due for an underpayment of estimated taxes shall be
21determined by using the aggregate of the tax and income shown on the returns filled
22by the members of the combined reporting group for the previous year.
SB197-SSA3,32,223 2. For any year in which a combined reporting group files a group return, the
24department shall determine if the combined reporting group qualifies for the
25exception to interest under s. 71.29 (7) (b) by using the aggregate of the amount of

1the tax liability and the amount of the net income of all members of the combined
2reporting group.
SB197-SSA3,32,73 3. For any year in which a combined reporting group files a group return, the
4department shall determine if the installment provisions under s. 71.29 (9) or (10)
5apply to the combined reporting group by using the aggregate of the amount of the
6tax liability and the amount of the net income of all members of the combined
7reporting group.
SB197-SSA3,32,148 4. For estimated taxes paid under sub. (11) (c), the amount of interest that is
9due from a member of a combined reporting group for an underpayment of estimated
10taxes paid by the member shall be determined by using the member's separate items
11from the group return filed for the previous year and the member's allocated share
12of the combined estimated tax payments for the current year. The designated agent
13shall report the member's allocated share of the combined estimated tax payments
14for the current year to the department, in the manner prescribed by the department.
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