June 14, 2005 - Introduced by Representatives Kerkman, Albers, Bies, Hines,
Hubler, Kreibich, Lehman, Musser, Townsend, Toles, Pridemore and
Gielow, cosponsored by Senators Roessler, A. Lasee, Lassa, Miller and
Hansen. Referred to Committee on Ways and Means.
AB482,2,4
1An Act to repeal 71.07 (5d) (c) 3.;
to renumber 72.23;
to renumber and amend
277.59 (4) (c);
to amend 50.14 (4), 70.07 (6), 70.075 (6), 71.03 (6) (a), 71.03 (7) (d),
371.03 (8) (b), 71.10 (6) (a), 71.10 (6) (b), 71.10 (6m) (a), 71.63 (3) (c), 71.65 (5) (a)
41., 71.80 (18), 71.88 (2) (b), 73.01 (4) (a), 77.59 (5), 77.61 (14), 78.22 (4), 110.20
5(8) (e), 139.03 (2x) (d), 139.05 (2a), 139.315 (4), 139.38 (5) and 560.205 (3) (d);
6and
to create 71.01 (7n), 71.10 (6) (e), 71.10 (6m) (c), 71.22 (5m), 71.34 (1m),
771.42 (2m), 71.65 (3) (h), 72.23 (2), 73.13, 78.39 (5d), 78.39 (5m) and 139.75 (9m)
8of the statutes;
relating to: appealing a determination by the board of
9assessors, claiming angel and early stage investment tax credits, employers
10who must withhold state income taxes, benefits to persons serving in Operation
11Iraqi Freedom, eliminating the requirement that the Department of Revenue
12audit the records of contractors who perform emissions inspections, the liability
13of married persons filing a joint income tax return, the payment of the alternate
14fuel tax and the tobacco products tax, estate tax interest, qualified retirement
1systems, reducing nondelinquent taxes, extending the time for filing a tax
2reconciliation report, delivering tax-related documents and related payments,
3appeal of redetermination of earned income tax credits, granting rule-making
4authority, and providing a penalty.
Analysis by the Legislative Reference Bureau
Property taxes
Under current law, a person who owns property in a first class city or in certain
second class cities and who wants to appeal his or her property tax assessment, must
first appeal the assessment to the city assessor. The city assessor reviews the appeal
and makes a recommendation to the board of assessors. The board of assessors
considers the city assessor's recommendation and, ultimately, notifies the property
owner of the board's determination regarding the property owner's appeal. The
property owner may appeal the determination of the board of assessors to the board
of review by providing a notice of appeal to the commissioner of assessments within
ten days. Current law, however, is not clear as to whether the notice to appeal to the
board of review is due within ten days from the date that the board of assessors issues
its determination or from the date that the property owner receives the
determination of the board of assessors.
This bill specifies that a property owner may appeal the determination of the
board of assessors to the board of review by providing a notice of appeal to the
commissioner of assessments within 15 days from the date that the board of
assessors issues its determination.
Reducing taxes
Under current law, any taxpayer may petition the Department of Revenue
(DOR) to reduce delinquent taxes, including any applicable costs, penalties, and
interest. If DOR determines that the taxpayer is unable to pay in full the amount
due, based on an examination of the taxpayer under oath, the taxpayer's financial
statements, and any other information required by DOR, DOR determines the
amount that the taxpayer is able to pay and then enters an order reducing the taxes,
costs, penalties, and interest owed by the taxpayer.
If within three years from either the date on which DOR enters the order that
reduces the taxpayer's taxes or the date of the final payment according to a payment
schedule determined by DOR, whichever is later, DOR determines that the taxpayer
has an income or owns property that is sufficient to enable the taxpayer to pay the
remainder of the original delinquent taxes, including costs, penalties, and interest,
DOR must reopen the order and order the payment in full of such taxes, costs,
penalties, and interest.
This bill expands current law so that DOR is authorized to reduce any taxes,
costs, penalties, and interest that are due from a taxpayer, regardless of whether the
taxes, costs, penalties, and interest are delinquent.
Income and franchise taxes
Under current law, spouses that file a joint income tax return are both liable for
the payment of any tax related to that return. However, DOR may relieve a person
of any tax liability related to a joint return, in a manner specified by the Internal
Revenue Code (IRC) and adopted by this state. Generally, DOR may relieve a person
of any tax liability related to a joint return if the person's spouse did not notify the
person of any tax liability or understatement of taxes related to the joint return. This
bill corrects an outdated reference to the sections of the Internal Revenue Code that
relate to a spouse's tax liability for a joint income tax return. The bill also requires
a spouse to apply for relief from tax liability within two years from the date on which
DOR begins collection activities on the spouse's tax liability or within two years from
the effective date of the provision, whichever is later.
Under current law, a person may claim an individual income tax credit equal
to 12.5 percent of the person's investment in a qualified new business venture, as
certified by the Department of Commerce. Current law refers to this investment as
a "bona fide angel investment." In addition, a person may claim an income or
franchise tax credit equal to 25 percent of the amount that the person pays to a fund
manager who invests the amount in a qualified new business venture, as certified
by the Department of Commerce. Current law refers to this investment as an "early
stage seed investment."
Under current law, a person who claims the bona fide angel investment credit
and who is not a resident of this state or who is a part-year resident of this state must
prorate the amount of the bona fide angel investment credit based on his or her
Wisconsin adjusted gross income as compared to his or her federal adjusted gross
income. Nonresidents and part-year residents who claim the early stage seed
investment credit, however, are not required to prorate the amount of the credit.
This bill eliminates the requirement that nonresidents and part-year residents
prorate the bona fide angel investment credit.
Under current law, the Department of Commerce must promulgate rules to
limit the aggregate amount of bona fide angel investment credits to $3,000,000 per
taxable year and the aggregate amount of early stage seed investment credits to
$3,500,000 per taxable year. Under the bill, the Department of Commerce must
promulgate rules to limit the aggregate amount of bona fide angel investment credits
to $3,000,000 per calendar year and the aggregate amount of early stage seed
investment credits to $3,500,000 per calendar year.
Under current law, every employer must withhold state income taxes from the
pay of each employee and remit the taxes to DOR. In the case of a single-owner entity
that is disregarded as a separate entity under the Internal Revenue Code, the owner
of the entity is considered to be the employer for purposes of withholding and
remitting state income taxes. In addition, an employer must file a tax reconciliation
report with DOR on an annual basis. Under current law, DOR cannot grant an
extension for filing the report.
Under this bill, the owner of a single-owner entity that is disregarded as a
separate entity under IRC is considered to be the employer for purposes of
withholding and remitting state income taxes, unless the entity has elected to be an
employer for the purpose of withholding federal income taxes. This bill also allows
DOR to grant a 30-day extension for filing an annual reconciliation report.
This bill clarifies that a qualified retirement fund for federal income tax
purposes is a qualified retirement fund for state income tax purposes.
Sales and use taxes
Under current law, if a seller makes a claim for a refund of sales taxes or use
taxes and the claim is honored, the seller is required to pass along the refund and
related interest to the buyers and to submit to DOR the portion of the refund that
could not be passed on, along with a penalty. Under current law, if a seller receives
a sales or use tax refund as the result of an audit, the seller is not required to submit
the refund and related interest to the buyers. Also, a seller is not required to submit
to the buyers sales or use taxes that are collected erroneously.
This bill requires a seller who receives any refund of sales or use taxes, or who
collects sales or use taxes erroneously, to submit such a refund or taxes to the buyer,
or to DOR if the buyer cannot be located, within 90 days after receiving a refund or
after discovering that the seller has collected taxes erroneously. Any portion of a
refund or taxes not submitted to the buyer, or to DOR if the buyer cannot be located,
within that 90 days must be submitted to DOR, along with a penalty.
Other taxation
Under current law, an estate tax that is not paid on the date on which it is due
is subject to interest at the rate of 12 percent a year from the date of the decedent's
death. Under the bill, DOR may waive the interest imposed on any additional estate
taxes that arise from the discovery of property omitted in the inventory of the estate's
total assets or in the original tax determination, if due diligence was exercised in
determining the assets.
Under current law, generally, a tax-related document or payment that DOR
must receive by a specified date is timely received, if the document or payment is
mailed in a properly addressed envelope; the sender pays the postage; the envelope
is postmarked on the day that the document or payment is due; and the document
or payment is received within five days from the date on which the document or
payment is due.
Under this bill, mailing a tax-related document or payment includes using a
delivery service that has been approved by the Internal Revenue Service, for federal
tax purposes.
Under current law, a person may appeal DOR's redetermination of various tax
credits without paying a $25 filing fee. Under this bill, a person may appeal DOR's
redetermination of an earned income tax credit without paying the filing fee.
This bill eliminates the requirement that the DOR audit the records of persons
who perform emissions inspections under a contract with the Department of
Transportation.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB482, s. 1
1Section
1. 50.14 (4) of the statutes is amended to read:
AB482,5,82
50.14
(4) Sections 77.59 (1) to
(5)
(5m), (6) (intro.), (a) and (c) and (7) to (10),
377.60 (1) to (7), (9) and (10), 77.61 (9) and (12) to (14) and 77.62, as they apply to the
4taxes under subch. III of ch. 77, apply to the assessment under this section, except
5that the amount of any assessment collected under s. 77.59 (7) in excess of
6$14,300,000 in fiscal year 2003-04, in excess of $13,800,000 in fiscal year 2004-05,
7and, beginning July 1, 2005, in excess of
45% 45 percent in each fiscal year shall be
8deposited in the Medical Assistance trust fund.
AB482, s. 2
9Section
2. 70.07 (6) of the statutes is amended to read:
AB482,6,510
70.07
(6) The board of assessors shall remain in session until all corrections
11and changes have been made, including all those resulting from investigations by
12committees of objections to valuations filed with the commissioner of assessments
13as provided in this subsection, after which the commissioner of assessments shall
14prepare the assessment rolls as corrected by the board of assessors and submit them
15to the board of review not later than the 2nd Monday in October. The person
16assessed, having been notified of the determination of the board of assessors as
17required in sub. (4), shall be deemed to have accepted the determination unless the
18person notifies the commissioner of assessments in writing, within
10 15 days
from
19the date that the notice of determination was issued under sub. (4), of the desire to
20present testimony before the board of review. After the board of review has met, the
21commissioner of assessments may appoint committees of the board of assessors to
1investigate any objections to the amount or valuation of any real or personal property
2which have been filed with the commissioner of assessments. The committees may
3at the direction of the commissioner of assessments report their investigation and
4recommendations to the board of review and any member of any such committee
5shall be a competent witness in any hearing before the board of review.
AB482, s. 3
6Section
3. 70.075 (6) of the statutes is amended to read:
AB482,6,227
70.075
(6) The board of assessors shall remain in session until all corrections
8and changes have been made, including all those resulting from investigations by
9committees of objections to valuations filed with the city assessor as provided in this
10section, after which the city assessor shall prepare the assessment rolls as corrected
11by the board of assessors and submit them to the board of review not later than the
12last Monday in July. A person assessed who has been notified of the determination
13of the board of assessors as required in sub. (4) is deemed to have accepted such
14determination unless the person notifies the city assessor in writing, within
10 15 15days
from the date that the notice of determination was issued under sub. (4), of a
16desire to present testimony before the board of review. After the board of review
17meets, the city assessor may appoint committees of the board of assessors to
18investigate any objections to the amount or valuation of any real or personal property
19which are referred to the city assessor by the board of review. The committees so
20appointed may at the city assessor's direction report their investigation and
21recommendations to the board of review and any member of any such committee
22shall be a competent witness in any hearing before the board of review.
AB482, s. 4
23Section
4. 71.01 (7n) of the statutes is created to read:
AB482,7,3
171.01
(7n) Notwithstanding sub. (6), a qualified retirement fund for a taxable
2year for federal income tax purposes is a qualified retirement fund for the taxable
3year for purposes of this subchapter.
AB482, s. 5
4Section
5
. 71.03 (6) (a) of the statutes is amended to read:
AB482,7,165
71.03
(6) (a) Reports required under this section shall be made on or before
6April 15
, or April 30 if the person files an electronic return, following the close of a
7year referred to in sub. (2) (a), or if such person's fiscal year is other than the calendar
8year then on or before the 15th day
, or the last day if the person files an electronic
9return, of the 4th month following the close of such fiscal year, or if the return is for
10less than a full taxable year on the date applicable for federal income taxes under the
11internal revenue code Internal Revenue Code, to the department of revenue, in the
12manner and form prescribed by the department of revenue, whether notified to do
13so or not. Such persons shall be subject to the same penalties for failure to report as
14those who receive notice. If the taxpayer is unable to make his or her own return,
15the return shall be made by a duly authorized agent or by the guardian or other
16person charged with the care of the person or property of such taxpayer.
AB482, s. 6
17Section
6. 71.03 (7) (d) of the statutes is amended to read:
AB482,7,2418
71.03
(7) (d) For taxable years beginning after December 31, 2002, and before
19January 1,
2005 2007, for persons who served in support of Operation Iraqi Freedom
20or an operation that is a successor to Operation Iraqi Freedom in the United States,
21or for persons who qualify for a federal extension of time to file under
26 USC 7508,
22who served outside the United States because of their participation in Operation
23Iraqi Freedom or an operation that is a successor to Operation Iraqi Freedom in the
24Iraqi Freedom theater of operations.
AB482, s. 7
25Section
7
. 71.03 (8) (b) of the statutes is amended to read:
AB482,8,9
171.03
(8) (b) The final payment of taxes on incomes of persons other than
2corporations who file on a calendar year basis shall be made on or before April 15
,
3or April 30 if the person files an electronic return, following the close of the calendar
4year, except for persons electing to have the department compute their tax under sub.
5(4). If the return of a person other than a corporation is made on the basis of a fiscal
6year, such final payment shall be made on or before the 15th day
, or the last day if
7the person files an electronic return, of the 4th month following the close of such fiscal
8year, except for persons electing to have the department compute their tax under sub.
9(4).
AB482, s. 8
10Section
8. 71.07 (5d) (c) 3. of the statutes is repealed.
AB482, s. 9
11Section
9. 71.10 (6) (a) of the statutes is amended to read:
AB482,8,1712
71.10
(6) (a)
Joint returns. Persons filing a joint return are jointly and severally
13liable for the tax, interest, penalties, fees, additions to tax and additional
14assessments under this chapter applicable to the return. A person shall be relieved
15of liability in regard to a joint return in the manner specified in section
6013 (e) 6015
16(a) to (d) and (f) of the
internal revenue code, notwithstanding the amount or
17percentage of the understatement Internal Revenue Code.
AB482, s. 10
18Section
10. 71.10 (6) (b) of the statutes is amended to read:
AB482,9,419
71.10
(6) (b)
Separate returns. A spouse filing a separate return may be
20relieved of liability for the tax, interest, penalties, fees, additions to tax and
21additional assessments under this chapter
with regard to unreported marital
22property income in the manner specified in section
66 (c) of the
internal revenue code 23Internal Revenue Code. The department may not apply ch. 766 in assessing a
24taxpayer with respect to marital property income the taxpayer did not report if that
25taxpayer failed to notify the taxpayer's spouse about the amount and nature of the
1income before the due date, including extensions, for filing the return for the taxable
2year in which the income was derived. The department shall include all of that
3marital property income in the gross income of the taxpayer and exclude all of that
4marital property income from the gross income of the taxpayer's spouse.
AB482, s. 11
5Section
11. 71.10 (6) (e) of the statutes is created to read:
AB482,9,106
71.10
(6) (e)
Application for relief. A person who seeks relief from liability
7under par. (a) or (b) shall apply for relief with the department, on a form prescribed
8by the department, within 2 years after the date on which the department first
9begins collection activities after the effective date of this paragraph .... [revisor
10inserts date].
AB482, s. 12
11Section
12. 71.10 (6m) (a) of the statutes is amended to read:
AB482,9,2312
71.10
(6m) (a) A formerly married or remarried person filing a return for a
13period during which the person was married may be relieved of liability for the tax,
14interest, penalties, fees, additions to tax and additional assessments under this
15chapter
for unreported marital property income from that period as if the person
16were a spouse under section
66 (c) of the
internal revenue code Internal Revenue
17Code. The department may not apply ch. 766 in assessing the former spouse of the
18person with respect to marital property income that the former spouse did not report
19if that former spouse failed to notify the person about the amount and nature of the
20income before the due date, including extensions, for filing the return for the taxable
21year during which the income was derived. The department shall include all of that
22marital property income in the gross income of the former spouse and exclude all of
23that marital property income from the gross income of the person.
AB482, s. 13
24Section
13. 71.10 (6m) (c) of the statutes is created to read:
AB482,10,2
171.10
(6m) (c) A person who seeks relief from liability under par. (a) shall apply
2for relief with the department as provided under sub. (6) (e).
AB482, s. 14
3Section
14. 71.22 (5m) of the statutes is created to read:
AB482,10,64
71.22
(5m) Notwithstanding subs. (4) and (4m), a qualified retirement fund for
5a taxable year for federal income tax purposes is a qualified retirement fund for the
6taxable year for purposes of this subchapter.
AB482, s. 15
7Section
15. 71.34 (1m) of the statutes is created to read:
AB482,10,108
71.34
(1m) Notwithstanding sub. (1g), a qualified retirement fund for a taxable
9year for federal income tax purposes is a qualified retirement fund for the taxable
10year for purposes of this subchapter.
AB482, s. 16
11Section
16. 71.42 (2m) of the statutes is created to read:
AB482,10,1412
71.42
(2m) Notwithstanding sub. (2), a qualified retirement fund for a taxable
13year for federal income tax purposes is a qualified retirement fund for the taxable
14year for purposes of this subchapter.
AB482, s. 17
15Section
17. 71.63 (3) (c) of the statutes is amended to read:
AB482,10,1916
71.63
(3) (c) In regard to a single-owner entity that is disregarded as a separate
17entity under section
7701 of the Internal Revenue Code, the owner, not the entity, is
18an "employer
"," except that, if the entity elects to be an employer for federal
19withholding tax purposes, the entity is the employer for purposes of this subchapter.
AB482, s. 18
20Section
18. 71.65 (3) (h) of the statutes is created to read:
AB482,11,221
71.65
(3) (h) If a single-owner entity that is disregarded as a separate entity
22under section
7701 of the Internal Revenue Code is an employer subject to
23withholding under this subchapter and if the entity does not deduct, withhold,
24report, and deposit the tax as required under this subchapter, the owner of the
1single-owner entity is liable for any tax, interest, and penalties due under this
2subchapter.
AB482, s. 19
3Section
19. 71.65 (5) (a) 1. of the statutes is amended to read:
AB482,11,54
71.65
(5) (a) 1. Thirty days for filing a wage statement under sub. (1)
or an
5annual reconciliation report under sub. (3) (a) or (d).
AB482, s. 20
6Section
20. 71.80 (18) of the statutes is amended to read:
AB482,11,197
71.80
(18) Timely filing defined. Documents and payments required or
8permitted by this chapter that are mailed shall be considered furnished, reported,
9filed or made on time, if mailed in a properly addressed envelope, with postage duly
10prepaid, which envelope is postmarked
, or marked or recorded electronically as
11provided under section 7502 (f) (2) (c) of the Internal Revenue Code, before midnight
12of the date prescribed for such furnishing, reporting, filing or making, provided such
13document or payment is actually received by the department or at the destination
14that the department or the department of administration prescribes within 5 days
15of such prescribed date. Documents and payments that are not mailed are timely if
16they are received on or before the due date by the department or at the destination
17that the department or the department of administration prescribes.
For purposes
18of this subsection, "mailed" includes delivery by a delivery service designated under
19section 7502 (f) of the Internal Revenue Code. AB482, s. 21
20Section
21. 71.88 (2) (b) of the statutes is amended to read:
AB482,12,521
71.88
(2) (b)
Appeal of department's redetermination of credits. Any person
22aggrieved by the department of revenue's redetermination of a credit under s. 71.07
23(3m)
or, (6),
or (9e), 71.28 (1) or (2m) or 71.47 (1) or (2m) or subch. VIII or IX, except
24when the denial is based upon late filing of claim for credit or is based upon a
25redetermination under s. 71.55 (8) of rent constituting property taxes accrued as at
1arm's length, may appeal the redetermination to the tax appeals commission by
2filing a petition with the commission within 60 days after the redetermination, as
3provided under s. 73.01 (5) with respect to income or franchise tax cases, and review
4of the commission's decision may be had under s. 73.015. For appeals brought under
5this paragraph, the filing fee required under s. 73.01 (5) (a) does not apply.
AB482, s. 22
6Section
22. 72.23 of the statutes is renumbered 72.23 (1).
AB482, s. 23
7Section
23. 72.23 (2) of the statutes is created to read:
AB482,12,118
72.23
(2) The department or circuit court may waive interest on any additional
9tax arising from the discovery of property omitted in the inventory of total assets or
10in the original tax determination, if due diligence was exercised in determining the
11assets.
AB482, s. 24
12Section
24. 73.01 (4) (a) of the statutes is amended to read:
AB482,13,513
73.01
(4) (a) Subject to the provisions for judicial review contained in s. 73.015,
14the commission shall be the final authority for the hearing and determination of all
15questions of law and fact arising under sub. (5) and s. 72.86 (4), 1985 stats., and ss.
1670.38 (4) (a), 70.397, 70.64, and 70.995 (8), s. 76.38 (12) (a), 1993 stats., ss. 76.39 (4)
17(c), 76.48 (6), 76.91, 77.26 (3), 77.59
(5m) and (6) (b), 78.01, 78.22, 78.40, 78.555,
18139.02, 139.03, 139.06, 139.31, 139.315, 139.33, 139.76, 139.78, 341.405, and 341.45,
19subch. XIV of ch. 71, and subch. VII of ch. 77. Whenever with respect to a pending
20appeal there is filed with the commission a stipulation signed by the department of
21revenue and the adverse party, under s. 73.03 (25), or the department of
22transportation and the adverse party agreeing to an affirmance, modification, or
23reversal of the department of revenue's or department of transportation's position
24with respect to some or all of the issues raised in the appeal, the commission shall
25enter an order affirming or modifying in whole or in part, or canceling the assessment
1appealed from, or allowing in whole or in part or denying the petitioner's refund
2claim, as the case may be, pursuant to and in accordance with the stipulation filed.
3No responsibility shall devolve upon the commission, respecting the signing of an
4order of dismissal as to any pending appeal settled by the department of revenue or
5the department of transportation without the approval of the commission.
AB482, s. 25
6Section
25. 73.13 of the statutes is created to read:
AB482,13,7
773.13 Reducing nondelinquent taxes.
(1) In this section:
AB482,13,88
(a) "Department" means the department of revenue.
AB482,13,109
(b) "Tax" means an amount that is owed to this state under s. 66.0615 (1m) (f)
103. or ch. 71, 72, 76, 77, 78, or 139, and that is not delinquent.
AB482,13,17
11(2) (a) A taxpayer may petition the department to reduce the taxpayer's taxes,
12including the costs, penalties, and interest related to the taxpayer's taxes. The
13petition shall set forth a sworn statement of the taxpayer and shall be in a form that
14the department prescribes. The department may examine the taxpayer under oath
15about the petition and may require the taxpayer to provide the department with
16financial statements and any other information requested by the department that
17is related to the petition.
AB482,14,318
(b) If the department determines that the taxpayer is unable to pay the taxes,
19costs, penalties, and interest in full, the department shall determine the amount that
20the taxpayer is able to pay and shall enter an order reducing the taxes in accordance
21with the department's determination. The order shall provide either that the order
22is effective only if the reduced taxes are paid in full within 10 days from the date on
23which the order is issued or that the order is effective only if the reduced taxes are
24paid according to a payment schedule that the department determines. The
25department or its collection agents, upon receipt of the order, shall accept payment
1in accordance with the order. Upon payment of the reduced taxes, the department
2shall credit the unpaid portion of the principal amount of the taxes and record the
3unpaid amount of costs, penalties, and interest accrued to the date of the order.
AB482,14,234
(c) If within 3 years from either the date of the order under par. (b) or the date
5of the final payment according to a payment schedule as determined under par. (b),
6whichever is later, the department ascertains that the taxpayer has an income or
7owns property sufficient to enable the taxpayer to pay the unpaid portion of the
8principal amount of the taxes due, including the costs, penalties, and interest
9recorded under par. (b), the department shall reopen the order under par. (b) and
10order the taxpayer to pay in full the unpaid portion of the principal amount of the
11taxes due, including the costs, penalties, and interest recorded under par. (b). Before
12the entry of the order for payment, the department shall send a written notice to the
13taxpayer, by certified mail, advising the taxpayer of the department's intention to
14reopen the order under par. (b) and fixing a time and place for the appearance of the
15taxpayer, if the taxpayer desires a hearing. If the department determines that the
16taxpayer is able to pay the unpaid portion of the principal amount of the taxes due,
17including the costs, penalties, and interest recorded under par. (b), the department
18shall enter the order for payment in full. The unpaid portion of the principal amount
19of the taxes due, including the costs, penalties, and interest recorded under par. (b),
20shall be due and payable immediately upon entry of the order for payment in full and
21shall thereafter be subject to the interest under s. 71.82 (2), as that subsection
22applies to delinquent income and franchise taxes under s. 71.82, and to the
23delinquent account fee under s. 73.03 (33m).
AB482, s. 26
24Section
26. 77.59 (4) (c) of the statutes is renumbered 77.59 (5m) and amended
25to read:
AB482,15,18
177.59
(5m) A seller who receives a refund
under par. (a) or (b) of taxes that the
2seller has collected from buyers
, who collects amounts as taxes erroneously from
3buyers, or who is entitled to a refund that is offset under sub. (5), shall
return submit 4the taxes and related interest to the buyers from whom the taxes were collected
. The,
5or to the department if the seller cannot locate the buyers, within 90 days after the
6date of the refund, after the date of the offset, or after discovering that the seller has
7collected taxes erroneously from the buyers. If the seller does not submit the taxes
8and related interest to the department or the buyers within that period, the seller
9shall
return submit to the department any part of a refund
or taxes that the seller
10does not
return submit to a buyer
or to the department along with a penalty of 25%
11of the amount not
returned or submitted or, in the case of fraud, a penalty equal to
12the amount not
returned in the case of fraud submitted. A person who collects
13amounts as taxes erroneously from buyers for a real property construction activity
14or nontaxable service may reduce the taxes and interest that he or she is required
15to submit to the buyer or to the department under this subsection for that activity
16or service by the amount of tax and interest subsequently due and paid on the sale
17of or the storage, use, or other consumption of tangible personal property that is used
18by the person in that activity or service and transferred to the buyer.