SB40-ASA1, s. 2116n 6Section 2116n. 71.49 (1) (bn) of the statutes is created to read:
SB40-ASA1,1021,77 71.49 (1) (bn) Community rehabilitation program credit under s. 71.47 (5k).
SB40-ASA1, s. 1829 8Section 1829. 71.49 (1) (dd) of the statutes is created to read:
SB40-ASA1,1021,109 71.49 (1) (dd) Dairy manufacturing facility investment credit under s. 71.47
10(3p).
SB40-ASA1, s. 1830 11Section 1830. 71.49 (1) (ds) of the statutes is created to read:
SB40-ASA1,1021,1212 71.49 (1) (ds) Ethanol and biodiesel fuel pump credit under s. 71.47 (5j).
SB40-ASA1, s. 1831 13Section 1831. 71.49 (1) (epa) of the statutes is created to read:
SB40-ASA1,1021,1414 71.49 (1) (epa) Electronic medical records credit under s. 71.47 (5i).
SB40-ASA1, s. 1832 15Section 1832. 71.49 (1) (epp) of the statutes is renumbered 71.49 (1) (eps) and
16amended to read:
SB40-ASA1,1021,1717 71.49 (1) (eps) Film production services credit under s. 71.47 (5f) (b) 1. and 3.
SB40-ASA1, s. 1833 18Section 1833. 71.49 (1) (f) of the statutes is amended to read:
SB40-ASA1,1021,2219 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47
20(1fd), farmland preservation credit under subch. IX, farmland tax relief credit under
21s. 71.47 (2m), enterprise zone jobs credit under s. 71.47 (3w), film production services
22credit under s. 71.28 (5f) (b) 2.,
and estimated tax payments under s. 71.48.
SB40-ASA1, s. 2121s 23Section 2121s. 71.54 (1) (f) (intro.) of the statutes is amended to read:
SB40-ASA1,1022,3
171.54 (1) (f) 2001 and thereafter. (intro.) The Subject to sub. (2m), the amount
2of any claim filed in 2001 and thereafter and based on property taxes accrued or rent
3constituting property taxes accrued during the previous year is limited as follows:
SB40-ASA1, s. 2121t 4Section 2121t. 71.54 (2) (b) 3. of the statutes is amended to read:
SB40-ASA1,1022,65 71.54 (2) (b) 3. In Subject to sub. (2m), in calendar year 1990 or any subsequent
6calendar year, $1,450.
SB40-ASA1, s. 1834 7Section 1834. 71.54 (2m) of the statutes is created to read:
SB40-ASA1,1022,218 71.54 (2m) Indexing for inflation; 2007 and thereafter. (a) For taxable years
9beginning after December 31, 2006, the dollar amounts for the threshold income
10under sub. (1) (f) 1. and 2., the maximum household income under sub. (1) (f) 3., and
11the maximum property taxes under sub. (2) (b) 3. shall be increased each year by a
12percentage equal to the percentage change between the U.S. consumer price index
13for all urban consumers, U.S. city average, for the month of August of the previous
14year and the U.S. consumer price index for all urban consumers, U.S. city average,
15for the month of August 2005, as determined by the federal department of labor.
16Each amount that is revised under this paragraph shall be rounded to the nearest
17multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount
18is a multiple of $5, such an amount shall be increased to the next higher multiple of
19$10. The department of revenue shall annually adjust the changes in dollar amounts
20required under this paragraph and incorporate the changes into the income tax
21forms and instructions.
SB40-ASA1,1023,222 (b) The department of revenue shall annually adjust the slope under sub. (1)
23(f) 2. such that as a claimant's income increases from the threshold income as
24calculated under par. (a), to an amount that exceeds the maximum household income
25as calculated under par. (a), the credit that may be claimed is reduced to $0 and the

1department of revenue shall incorporate the changes into the income tax forms and
2instructions.
SB40-ASA1, s. 1835 3Section 1835. 71.738 (1d) of the statutes is repealed.
SB40-ASA1, s. 1836 4Section 1836. 71.738 (2d) of the statutes is repealed.
SB40-ASA1, s. 1837 5Section 1837. 71.74 (14) of the statutes is amended to read:
SB40-ASA1,1023,216 71.74 (14) Additional remedy to collect tax. The department may also
7proceed under s. 71.91 (5) for the collection of any additional assessment of income
8or franchise taxes or surtaxes, after notice thereof has been given under sub. (11) and
9before the same shall have become delinquent, when it has reasonable grounds to
10believe that the collection of such additional assessment will be jeopardized by delay.
11In such cases notice of the intention to so proceed shall be given by registered mail
12to the taxpayer, and the warrant of the department shall not issue if the taxpayer
13within 10 days after such notice furnishes a bond in such amount, not exceeding
14double the amount of the tax, and with such sureties as the department shall
15approve, conditioned upon the payment of so much of the additional taxes as shall
16finally be determined to be due, together with interest thereon as provided by s. 71.82
17(1) (a). Nothing in this subsection shall affect the review of additional assessments
18provided by ss. 71.88 (1) (a) and (2) (a), 71.89 (2), 73.01, and 73.015, and any amounts
19collected under this subsection shall be deposited with the secretary of
20administration
department and disbursed after final determination of the taxes as
21are amounts deposited under s. 71.90 (2).
SB40-ASA1, s. 1838 22Section 1838. 71.765 of the statutes is repealed.
SB40-ASA1, s. 1839 23Section 1839. 71.775 (3) (a) 2. of the statutes is amended to read:
SB40-ASA1,1024,224 71.775 (3) (a) 2. The partner, member, shareholder, or beneficiary has no
25Wisconsin income other than his or her
partner's, member's, shareholder's, or

1beneficiary's
share of income from the pass-through entity that is attributable to this
2state and his or her share of such income is less than $1,000.
SB40-ASA1, s. 1840 3Section 1840. 71.775 (3) (a) 3. of the statutes is created to read:
SB40-ASA1,1024,114 71.775 (3) (a) 3. The nonresident partner, member, shareholder, or beneficiary
5files an affidavit with the department, in the form and manner prescribed by the
6department, whereby the nonresident partner, member, shareholder, or beneficiary
7agrees to file a Wisconsin income or franchise tax return and be subject to the
8personal jurisdiction of the department, the tax appeals commission, and the courts
9of this state for the purpose of determining and collecting Wisconsin income and
10franchise taxes, including estimated tax payments, together with any related
11interest and penalties.
SB40-ASA1, s. 1841 12Section 1841. 71.775 (4) (b) 2. of the statutes is amended to read:
SB40-ASA1,1024,2413 71.775 (4) (b) 2. A pass-through entity that pays the tax withheld under sub.
14(2) as provided under subd. 1. is not subject to an underpayment of estimated tax
15under s. 71.09 or 71.29, if 90 percent of the tax that is due for the current taxable year
16is paid by the unextended due date or if 100 percent of the tax that is due for the
17taxable year immediately preceding the current taxable year is paid by the
18unextended due date and the taxable year immediately preceding the current
19taxable year was a 12-month period. Interest
Except as provided in par. (f), interest
20at the rate of 12 percent shall be imposed on the unpaid amount of the tax withheld
21due under sub. (2) during any extension period and interest at the rate of 18 percent
22shall be imposed on the unpaid amount of the tax withheld due under sub. (2) for the
23period beginning with the extended due date and ending with the date that the
24unpaid amount is paid in full.
SB40-ASA1, s. 1842 25Section 1842. 71.775 (4) (d) of the statutes is amended to read:
SB40-ASA1,1025,9
171.775 (4) (d) A nonresident partner, member, shareholder, or beneficiary of a
2pass-through entity may claim a credit, as prescribed by the department, on his or
3her Wisconsin income or franchise tax return for the amount withheld under sub. (2)
4on his or her behalf for the tax period for which the income of the pass-through entity
5is reported
. For purposes of this paragraph determining whether interest under s.
671.84 applies to a nonresident partner, member, shareholder, or beneficiary
, the
7amount withheld under sub. (2) is considered to be paid on the last day of the
8pass-through entity's taxable year for which the tax is paid
in 4 equal quarterly
9installments
.
SB40-ASA1, s. 1843 10Section 1843. 71.775 (4) (f) of the statutes is amended to read:
SB40-ASA1,1025,2111 71.775 (4) (f) If a pass-through entity subject to withholding under this section
12fails to withhold pay the tax as required by this section, the pass-through entity shall
13be liable for any unpaid tax, interest, and penalties otherwise assessable to the
14nonresident partner, member, shareholder, or beneficiary with respect to income
15from the pass-through entity
. If a nonresident partner, member, shareholder, or
16beneficiary of the pass-through entity files a return and pays the tax due, the
17pass-through entity shall not be liable for the tax, but shall be liable for any interest
18and penalties otherwise applicable for failure to withhold, as
the penalty provided
19under ss. 71.82 (2) (d) and s. 71.83 (1) (a) 1. and for any interest otherwise assessable
20to the nonresident partner, member, shareholder, or beneficiary with respect to
21income from the pass-through entity
.
SB40-ASA1, s. 1844 22Section 1844. 71.80 (20) of the statutes is amended to read:
SB40-ASA1,1026,323 71.80 (20) Magnetic media Electronic filing. If the internal revenue service
24requires a person to file information returns or wage statements on magnetic media
25or in other machine-readable form
electronically for federal income tax purposes, the

1person shall also file the comparable state information returns or wage statements
2on magnetic media or in other machine-readable form electronically with the
3department of revenue for income or franchise tax purposes.
SB40-ASA1, s. 1845 4Section 1845. 71.805 of the statutes is created to read:
SB40-ASA1,1026,6 571.805 Tax avoidance transactions voluntary compliance program. (1)
6Definitions. In this section:
SB40-ASA1,1026,137 (a) "Tax avoidance transaction" means a transaction, plan, or arrangement
8devised for the principal purpose of avoiding federal or Wisconsin income or
9franchise tax. "Tax avoidance transaction" includes a listed transaction as provided
10under U.S. department of the treasury regulations as of the effective date of this
11paragraph .... [revisor inserts date], and may include a transaction, as determined
12by the department, that provides a tax benefit for Wisconsin income or franchise tax
13purposes without providing a similar benefit for federal income tax purposes.
SB40-ASA1,1026,1614 (b) "Taxpayer" means a person who is subject to the taxes imposed under this
15chapter and who has a tax liability attributable to using a tax avoidance transaction
16for any taxable year beginning before January 1, 2007.
SB40-ASA1,1026,18 17(2) Penalty waiver or abatement. All of the following apply with regard to a
18taxpayer who satisfies the conditions under sub. (3):
SB40-ASA1,1026,2219 (a) Except as provided under sub. (4) (b), the department shall waive or abate
20all penalties that are applicable to the underreporting or underpayment of Wisconsin
21income or franchise taxes attributable to using a tax avoidance transaction for any
22taxable year for which the taxpayer satisfies the conditions under sub. (3).
SB40-ASA1,1026,2523 (b) The department shall not seek a criminal prosecution against the taxpayer
24with respect to using a tax avoidance transaction for any taxable year for which the
25taxpayer satisfies the conditions under sub. (3).
SB40-ASA1,1027,3
1(3) Taxpayer eligibility. A taxpayer is eligible for the benefits described under
2sub. (2) (a) and (b), if, during the period beginning on October 1, 2007, and ending
3on February 29, 2008, the taxpayer does the following:
SB40-ASA1,1027,94 (a) Files an amended Wisconsin tax return for each taxable year for which the
5taxpayer has previously filed a Wisconsin tax return that uses a tax avoidance
6transaction to underreport the taxpayer's Wisconsin income or franchise tax liability
7and the amended return reports the total Wisconsin net income and tax for the
8taxable year, computed without regard to any tax avoidance transaction and without
9regard to any other adjustment that is unrelated to any tax avoidance transaction.
SB40-ASA1,1027,1710 (b) Pays, in full, for each taxable year for which an amended return is filed
11under par. (a), the entire amount of Wisconsin income or franchise tax and interest
12due that is attributable to using a tax avoidance transaction, except that the
13secretary of revenue may enter into an agreement with the taxpayer to make
14payments in installments. A taxpayer who does not comply with an installment
15agreement provided under this paragraph is ineligible to receive the benefits
16described under sub. (2) (a) and (b) and the total amount of tax, interest, and
17penalties shall be immediately due and payable.
SB40-ASA1,1027,21 18(4) Limitations and administration. (a) A taxpayer who receives the benefits
19described under sub. (2) may not file an appeal or a claim for credit or refund with
20respect to the tax avoidance transactions for the taxable years for which the taxpayer
21satisfied the conditions under sub. (3).
SB40-ASA1,1027,2522 (b) The department may not waive or abate a penalty as provided under sub.
23(2) (a) if the penalty relates to an amount of Wisconsin income and franchise tax that
24is attributable to a tax avoidance transaction and assessed or paid prior to October
251, 2007, or after February 29, 2008.
SB40-ASA1, s. 1846
1Section 1846. 71.81 of the statutes is created to read:
SB40-ASA1,1028,2 271.81 Disclosing reportable transactions. (1) Definitions. In this section:
SB40-ASA1,1028,83 (a) "Listed transaction" means any reportable transaction that is the same as,
4or substantially similar to, a transaction, plan, or arrangement specifically identified
5by the U.S. secretary of the treasury as a listed transaction, for purposes of section
66011 of the Internal Revenue Code and that is specifically identified by the U.S.
7secretary of the treasury as a listed transaction on or after the date the transaction
8occurred.
SB40-ASA1,1028,139 (b) "Material advisor" means any person who provides any material aid,
10assistance, or advice with respect to organizing, managing, promoting, selling,
11implementing, insuring, or carrying out any reportable transaction and who, directly
12or indirectly, derives gross income from providing such aid, assistance, or advice in
13an amount that exceeds the threshold amount.
SB40-ASA1,1028,1814 (c) "Reportable transaction" means any transaction, plan, or arrangement,
15including a listed transaction, for which a taxpayer is required to submit information
16to the department because the taxpayer is required to disclose the transaction, plan,
17or arrangement for federal income tax purposes for the taxable year in which the
18transaction occurred, as provided under U.S. department of treasury regulations.
SB40-ASA1,1028,2119 (d) "Tax shelter" means any entity, plan, or arrangement, if avoiding or evading
20federal income tax or Wisconsin income or franchise tax is a significant purpose of
21the entity, plan, or arrangement.
SB40-ASA1,1028,2222 (e) "Threshold amount" means the following:
SB40-ASA1,1028,2423 1. In the case of a reportable transaction, not including a listed transaction,
24from which the tax benefits are provided primarily to an individual, $50,000.
SB40-ASA1,1029,2
12. In the case of a listed transaction from which the tax benefits are provided
2primarily to an individual, $10,000.
SB40-ASA1,1029,53 3. In the case of a reportable transaction, not including a listed transaction,
4from which the tax benefits are provided primarily to an entity and not an individual,
5$250,000.
SB40-ASA1,1029,76 4. In the case of a listed transaction, from which the tax benefits are provided
7primarily to an entity and not an individual, $25,000.
SB40-ASA1,1029,24 8(2) Disclosure. For each taxable year in which a taxpayer has participated in
9a reportable transaction, the taxpayer shall file with the department a copy of any
10form required by the internal revenue service for disclosing the reportable
11transaction for federal income tax purposes no later than 60 days after the date for
12which the taxpayer is required to file the form for federal income tax purposes, except
13that, if the taxpayer has filed a form with the internal revenue service on or before
14the effective date of this subsection .... [revisor inserts date], the taxpayer shall file
15a copy of the form with the department no later than February 29, 2008. The
16department may require that forms filed with the department under this subsection
17be filed separately from this state's income or franchise tax return. This subsection
18applies to any reportable transaction entered into on or after January 1, 2001, or any
19reportable transaction entered into prior to January 1, 2001, that reduced the
20taxpayer's tax liability for taxable years beginning on or after January 1, 2001, for
21any taxable year for which the transaction remains undisclosed and for which the
22statute of limitations on assessment, including any extension provided under sub.
23(6), has not expired as of the date that is 60 days after the effective date of this
24subsection .... [revisor inserts date].
SB40-ASA1,1030,3
1(3) Penalty for failing to disclose. (a) Any taxpayer who does not file the
2form under sub. (2) and who is required to file the form is subject to the following
3penalty:
SB40-ASA1,1030,64 1. If the taxpayer participated in a reportable transaction that is not a listed
5transaction, the lesser of $15,000 or 10 percent of the tax benefit obtained from the
6reportable transaction.
SB40-ASA1,1030,77 2. If the taxpayer participated in a listed transaction, $30,000.
SB40-ASA1,1030,138 (b) The secretary of revenue may waive or abate any penalty imposed under
9this subsection, or any portion of such penalty, related to a reportable transaction
10that is not a listed transaction, if the waiver or abatement promotes compliance with
11this section and effective tax administration. Notwithstanding any other law or rule,
12a determination by the secretary of revenue under this paragraph may not be
13reviewed in any judicial proceeding.
SB40-ASA1,1030,2314 (c) The penalties imposed under this subsection apply to any failure to disclose
15a listed transaction entered into on or after January 1, 2001, or entered into prior to
16January 1, 2001, that reduced the taxpayer's tax liability for taxable years beginning
17on or after January 1, 2001, including transactions that were not listed transactions
18when entered into, but became listed transactions before the effective date of this
19paragraph .... [revisor inserts date], or any other reportable transaction entered into
20after the effective date of this paragraph .... [revisor inserts date], for any taxable
21year for which the statute of limitations on assessment, including any extension
22under sub. (6), has not expired as of the effective date of this paragraph .... [revisor
23inserts date].
SB40-ASA1,1031,4 24(4) Understatement penalty. (a) If a taxpayer has a reportable transaction
25understatement, as determined in par. (b), the taxpayer shall pay, in addition to any

1tax owed with regard to the reportable transaction, an amount equal to either 20
2percent of the reportable transaction understatement or, in the case of a reportable
3transaction that is not disclosed as provided in sub. (2), 30 percent of the reportable
4transaction understatement.
SB40-ASA1,1031,65 (b) A taxpayer has a reportable transaction understatement if the following
6calculation results in a positive number:
SB40-ASA1,1031,157 1. Multiply the taxpayer's highest applicable tax rate under s. 71.06, 71.27, or
871.46, by the amount of any increase in Wisconsin taxable income that results from
9the difference between the proper tax treatment of a reportable transaction and the
10taxpayer's treatment of the transaction as shown on the taxpayer's tax return,
11including any amended return the taxpayer files before the date on which the
12department first contacts the taxpayer regarding an examination of the taxable year
13for which the amended return is filed. For purposes of this subdivision, the amount
14of any increase in Wisconsin taxable income for a taxable year includes any reduction
15in the amount of loss available for carry-forward to the subsequent year.
SB40-ASA1,1031,1916 2. Add the amount determined under subd. 1. to the amount of any decrease
17in the aggregate amount of Wisconsin income or franchise tax credits that results
18from the difference between the proper tax treatment of a reportable transaction and
19the taxpayer's treatment of the transaction as shown on the taxpayer's tax return.
SB40-ASA1,1032,820 (c) The secretary of revenue may waive or abate any penalty imposed under this
21subsection, or any portion of such penalty, if the taxpayer demonstrates to the
22department that the taxpayer had reasonable cause to act the way the taxpayer did,
23and in good faith, with regard to the tax treatment for which the taxpayer is subject
24to a penalty under this subsection and all facts relevant to the tax treatment are
25adequately disclosed in the filing under sub. (2), except that, if the taxpayer does not

1fully disclose such facts under sub. (2), the taxpayer's penalty may be waived or
2abated under this paragraph if the taxpayer demonstrates to the department that
3the taxpayer reasonably believed that the tax treatment for which the taxpayer is
4subject to a penalty under this subsection was more likely than not the proper
5treatment and substantial authority exists or existed for the tax treatment for which
6the taxpayer is subject to a penalty under this subsection. Notwithstanding any
7other law or rule, a determination by the secretary of revenue under this paragraph
8may not be reviewed in any judicial proceeding.
SB40-ASA1,1032,159 (d) The penalties under par. (a) apply to any reportable transaction
10understatement from a reportable transaction, including a listed transaction,
11entered into on or after January 1, 2001, or entered into prior to January 1, 2001, that
12reduced the taxpayer's tax liability for taxable years beginning on or after January
131, 2001, for any taxable year for which the statute of limitations on assessment,
14including any extension provided under sub. (6), has not expired as of the effective
15date of this paragraph .... [revisor inserts date].
SB40-ASA1,1032,22 16(5) Additional understatement penalty. (a) 1. In addition to the penalty
17under sub. (4) (a), a taxpayer who files an amended return after February 29, 2008,
18and before the taxpayer is contacted by the internal revenue service or the
19department regarding a reportable transaction is subject to a penalty in an amount
20equal to 50 percent of the interest assessed under s. 71.82 on any reportable
21transaction understatement, as determined under sub. (4) (b), for the tax period for
22which the taxpayer files an amended return.
SB40-ASA1,1033,423 2. If the internal revenue service or the department contacts a taxpayer after
24February 29, 2008, regarding a reportable transaction and the taxpayer is contacted
25before the taxpayer files an amended return with respect to that transaction, the

1taxpayer is subject to a penalty in an amount equal to the interest assessed under
2s. 71.82 on any reportable transaction understatement, as determined under sub. (4)
3(b), for the tax period for which the internal revenue service or the department
4contacts the taxpayer.
SB40-ASA1,1033,115 (b) The penalties under par. (a) apply to any reportable transaction
6understatement resulting from a reportable transaction, including a listed
7transaction, entered into on or after January 1, 2001, or entered into prior to January
81, 2001, that reduced the taxpayer's tax liability for taxable years beginning on or
9after January 1, 2001, for any taxable year for which the statute of limitations on
10assessment, including any extension provided under sub. (6), has not expired as of
11the effective date of this paragraph .... [revisor inserts date].
SB40-ASA1,1033,2512 (c) The secretary of revenue may waive or abate any penalty imposed under this
13subsection, or any portion of such penalty, if the taxpayer demonstrates to the
14department that the taxpayer had reasonable cause to act the way the taxpayer did,
15and in good faith, with regard to the tax treatment for which the taxpayer is subject
16to a penalty under this subsection and all facts relevant to the tax treatment are
17adequately disclosed in the filing under sub. (2), except that, if the taxpayer does not
18fully disclose such facts under sub. (2), the taxpayer's penalty may be waived or
19abated under this paragraph if the taxpayer demonstrates to the department that
20the taxpayer reasonably believed that the tax treatment for which the taxpayer is
21subject to a penalty under this subsection was more likely than not the proper
22treatment and substantial authority exists or existed for the tax treatment for which
23the taxpayer is subject to a penalty under this subsection. Notwithstanding any
24other law or rule, a determination by the secretary of revenue under this paragraph
25may not be reviewed in any judicial proceeding.
SB40-ASA1,1034,9
1(6) Statute of limitations extension. (a) Except as provided in par. (b), if a
2taxpayer fails to provide any information regarding a reportable transaction, other
3than a listed transaction, under sub. (2), the time for assessing any tax imposed
4under this chapter with respect to that transaction shall expire no later than the date
5that is 6 years after the date on which the return for the taxable year in which the
6reportable transaction occurred was filed. If a taxpayer fails to provide any
7information regarding a listed transaction, under sub. (2), the time for assessing any
8tax imposed under this chapter with respect to that transaction shall expire on the
9latest of the following dates:
SB40-ASA1,1034,1110 1. The date that is 6 years after the date on which the return for the taxable
11year in which the listed transaction occurred was filed.
SB40-ASA1,1034,1312 2. The date that is 12 months after the date on which the taxpayer provides
13information regarding the listed transaction under sub. (2).
SB40-ASA1,1034,1514 3. The date that is 12 months after the date on which the taxpayer's material
15advisor provides, at the department's request, the list described in sub. (7) (b).
SB40-ASA1,1034,2016 4. The date that is 4 years after the date on which the department discovers
17a listed transaction that was a listed transaction on the date the transaction occurred
18for which the taxpayer did not provide the information described under sub. (2) or
19for which the taxpayer's material advisor did not provide the information described
20under sub (7) (b).
SB40-ASA1,1034,2221 (b) Any limitation determined under par. (a) may be extended by a written
22agreement between the taxpayer and the department as provided under s. 71.77 (5).
SB40-ASA1,1035,223 (c) This subsection applies to any reportable transaction, including a listed
24transaction entered into on or after January 1, 2001, or entered into prior to January

11, 2001, that reduced the taxpayer's tax liability for taxable years beginning on or
2after January 1, 2001.
SB40-ASA1,1035,10 3(7) Material advisor. (a) Each material advisor who is required to disclose a
4reportable transaction under section 6111 of the Internal Revenue Code shall file a
5copy of the disclosure with the department no later than 60 days after the date for
6which the material advisor is required to file the disclosure with the internal revenue
7service, except that, if a material advisor files the disclosure with the internal
8revenue service on or before the effective date of this paragraph .... [revisor inserts
9date], the material advisor shall file a copy of the disclosure with the department no
10later than February 29, 2008.
SB40-ASA1,1035,2011 (b) Each material advisor shall maintain a list that identifies each Wisconsin
12taxpayer for whom the person provided services as a material advisor with respect
13to a reportable transaction, regardless of whether the taxpayer is required to file the
14form under sub. (2). Any material advisor who is required to maintain a list under
15this paragraph shall provide the list to the department after receiving the
16department's written request to provide the list and shall retain the information
17contained in the list for 7 years or for the period determined by the department by
18rule. If 2 or more material advisors are required under this paragraph to maintain
19identical lists, the department may provide that only one of the material advisors
20maintain the list.
SB40-ASA1,1036,221 (c) This subsection applies to reportable transactions, not including listed
22transactions, for which a material advisor provides services after the effective date
23of this paragraph .... [revisor inserts date], and listed transactions for which a
24material advisor provides services, and were entered into, on or after January 1,
252001, or were entered into prior to January 1, 2001, and that reduced the taxpayer's

1tax liability for taxable years beginning on or after January 1, 2001, regardless of
2when the transactions became listed transactions.
SB40-ASA1,1036,6 3(8) Material advisor penalties. (a) If a person who is required to file a
4disclosure with the department as provided under sub. (7) (a) fails to file the
5disclosure or files a disclosure containing false or incomplete information, the person
6is subject to a penalty equal to the following amounts:
SB40-ASA1,1036,87 1. If the disclosure relates to a reportable transaction that is not a listed
8transaction, $15,000.
SB40-ASA1,1036,99 2. If the disclosure relates to a listed transaction, $100,000.
SB40-ASA1,1036,1610 (b) Any person who is required to maintain a list under sub. (7) (b) and who fails
11to provide the list to the department no later than 20 business days after the date on
12which the person receives the department's request to provide the list, as provided
13under sub. (7) (b), shall pay a penalty to the department in an amount that is equal
14to $10,000 for each day that the person does not provide the list, beginning with the
15day that is 21 business days after the date on which the person receives the
16department's request.
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