SB1, s. 2118
1Section 2118. 71.49 (1) (ds) of the statutes is created to read:
SB1,995,22 71.49 (1) (ds) Ethanol and biodiesel fuel pump credit under s. 71.47 (5j).
SB1, s. 2119 3Section 2119. 71.49 (1) (epa) of the statutes is created to read:
SB1,995,44 71.49 (1) (epa) Electronic medical records credit under s. 71.47 (5i).
SB1, s. 2120 5Section 2120. 71.49 (1) (epp) of the statutes is renumbered 71.49 (1) (eps) and
6amended to read:
SB1,995,77 71.49 (1) (eps) Film production services credit under s. 71.47 (5f) (b) 1. and 3.
SB1, s. 2121 8Section 2121. 71.49 (1) (f) of the statutes is amended to read:
SB1,995,139 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47
10(1fd), farmland preservation credit under subch. IX, farmland tax relief credit under
11s. 71.47 (2m), dairy manufacturing facility investment credit under s. 71.47 (3p),
12enterprise zone jobs credit under s. 71.47 (3w), film production services credit under
13s. 71.47 (5f) (b) 2.,
and estimated tax payments under s. 71.48.
SB1, s. 2127 14Section 2127. 71.738 (1d) of the statutes is repealed.
SB1, s. 2128 15Section 2128. 71.738 (2d) of the statutes is repealed.
SB1, s. 2129 16Section 2129. 71.74 (14) of the statutes is amended to read:
SB1,996,717 71.74 (14) Additional remedy to collect tax. The department may also
18proceed under s. 71.91 (5) for the collection of any additional assessment of income
19or franchise taxes or surtaxes, after notice thereof has been given under sub. (11) and
20before the same shall have become delinquent, when it has reasonable grounds to
21believe that the collection of such additional assessment will be jeopardized by delay.
22In such cases notice of the intention to so proceed shall be given by registered mail
23to the taxpayer, and the warrant of the department shall not issue if the taxpayer
24within 10 days after such notice furnishes a bond in such amount, not exceeding
25double the amount of the tax, and with such sureties as the department shall

1approve, conditioned upon the payment of so much of the additional taxes as shall
2finally be determined to be due, together with interest thereon as provided by s. 71.82
3(1) (a). Nothing in this subsection shall affect the review of additional assessments
4provided by ss. 71.88 (1) (a) and (2) (a), 71.89 (2), 73.01, and 73.015, and any amounts
5collected under this subsection shall be deposited with the secretary of
6administration
department and disbursed after final determination of the taxes as
7are amounts deposited under s. 71.90 (2).
SB1, s. 2130 8Section 2130. 71.765 of the statutes is repealed.
SB1, s. 2131 9Section 2131. 71.775 (3) (a) 2. of the statutes is amended to read:
SB1,996,1310 71.775 (3) (a) 2. The partner, member, shareholder, or beneficiary has no
11Wisconsin income other than his or her
partner's, member's, shareholder's, or
12beneficiary's
share of income from the pass-through entity that is attributable to this
13state and his or her share of such income is less than $1,000.
SB1, s. 2132 14Section 2132. 71.775 (3) (a) 3. of the statutes is created to read:
SB1,996,2215 71.775 (3) (a) 3. The nonresident partner, member, shareholder, or beneficiary
16files an affidavit with the department, in the form and manner prescribed by the
17department, whereby the nonresident partner, member, shareholder, or beneficiary
18agrees to file a Wisconsin income or franchise tax return and be subject to the
19personal jurisdiction of the department, the tax appeals commission, and the courts
20of this state for the purpose of determining and collecting Wisconsin income and
21franchise taxes, including estimated tax payments, together with any related
22interest and penalties.
SB1, s. 2133 23Section 2133. 71.775 (4) (b) 2. of the statutes is amended to read:
SB1,997,1024 71.775 (4) (b) 2. A pass-through entity that pays the tax withheld under sub.
25(2) as provided under subd. 1. is not subject to an underpayment of estimated tax

1under s. 71.09 or 71.29, if 90 percent of the tax that is due for the current taxable year
2is paid by the unextended due date or if 100 percent of the tax that is due for the
3taxable year immediately preceding the current taxable year is paid by the
4unextended due date and the taxable year immediately preceding the current
5taxable year was a 12-month period. Interest
Except as provided in par. (f), interest
6at the rate of 12 percent shall be imposed on the unpaid amount of the tax withheld
7due under sub. (2) during any extension period and interest at the rate of 18 percent
8shall be imposed on the unpaid amount of the tax withheld due under sub. (2) for the
9period beginning with the extended due date and ending with the date that the
10unpaid amount is paid in full.
SB1, s. 2134 11Section 2134. 71.775 (4) (d) of the statutes is amended to read:
SB1,997,2012 71.775 (4) (d) A nonresident partner, member, shareholder, or beneficiary of a
13pass-through entity may claim a credit, as prescribed by the department, on his or
14her Wisconsin income or franchise tax return for the amount withheld under sub. (2)
15on his or her behalf for the tax period for which the income of the pass-through entity
16is reported
. For purposes of this paragraph determining whether interest under s.
1771.84 applies to a nonresident partner, member, shareholder, or beneficiary
, the
18amount withheld under sub. (2) is considered to be paid on the last day of the
19pass-through entity's taxable year for which the tax is paid
in 4 equal quarterly
20installments
.
SB1, s. 2135 21Section 2135. 71.775 (4) (f) of the statutes is amended to read:
SB1,998,722 71.775 (4) (f) If a pass-through entity subject to withholding under this section
23fails to withhold pay the tax as required by this section, the pass-through entity shall
24be liable for any unpaid tax, interest, and penalties otherwise assessable to the
25nonresident partner, member, shareholder, or beneficiary with respect to income

1from the pass-through entity
. If a nonresident partner, member, shareholder, or
2beneficiary of the pass-through entity files a return and pays the tax due, the
3pass-through entity shall not be liable for the tax, but shall be liable for any interest
4and penalties otherwise applicable for failure to withhold, as
the penalty provided
5under ss. 71.82 (2) (d) and s. 71.83 (1) (a) 1. and for any interest otherwise assessable
6to the nonresident partner, member, shareholder, or beneficiary with respect to
7income from the pass-through entity
.
SB1, s. 2135e 8Section 2135e. 71.78 (2) of the statutes is amended to read:
SB1,999,89 71.78 (2) Disclosure of net tax. The department shall make available upon
10suitable forms prepared by the department information setting forth the net
11Wisconsin income tax, Wisconsin franchise tax, or Wisconsin gift tax reported as paid
12or payable in the returns filed by any individual or corporation, and any amount of
13delinquent taxes owed, as described in s. 73.03 (62), by any such individual or
14corporation, for any individual year upon request. When making available
15information setting forth the delinquent taxes owed by an individual or corporation,
16the information shall include interest, penalties, fees, and costs, which are unpaid
17for more than 90 days after all appeal rights have expired, except that such
18information may not be provided for any person who has reached an agreement or
19compromise with the department, or the department of justice, under s. 71.92 and
20is in compliance with that agreement, regarding the payment of delinquent taxes,
21or the name of any person who is protected by a stay that is in effect under the Federal
22Bankruptcy Code.
Before the request is granted, the person desiring to obtain the
23information shall prove his or her identity and shall be required to sign a statement
24setting forth the person's address and reason for making the request and indicating
25that the person understands the provisions of this section with respect to the

1divulgement, publication or dissemination of information obtained from returns as
2provided in sub. (1). The use of a fictitious name is a violation of this section. Within
324 hours after any information from any such tax return has been so obtained, the
4department shall mail to the person from whose return the information has been
5obtained a notification which shall give the name and address of the person obtaining
6the information and the reason assigned for requesting the information. The
7department shall collect from the person requesting the information a fee of $4 for
8each return.
SB1, s. 2136 9Section 2136. 71.80 (20) of the statutes is amended to read:
SB1,999,1510 71.80 (20) Magnetic media Electronic filing. If the internal revenue service
11requires a person to file information returns or wage statements on magnetic media
12or in other machine-readable form
electronically for federal income tax purposes, the
13person shall also file the comparable state information returns or wage statements
14on magnetic media or in other machine-readable form electronically with the
15department of revenue for income or franchise tax purposes.
SB1, s. 2137 16Section 2137. 71.805 of the statutes is created to read:
SB1,999,18 1771.805 Tax avoidance transactions voluntary compliance program. (1)
18Definitions. In this section:
SB1,999,2519 (a) "Tax avoidance transaction" means a transaction, plan, or arrangement
20devised for the principal purpose of avoiding federal or Wisconsin income or
21franchise tax. "Tax avoidance transaction" includes a listed transaction as provided
22under U.S. department of the treasury regulations as of the effective date of this
23paragraph .... [revisor inserts date], and may include a transaction, as determined
24by the department, that provides a tax benefit for Wisconsin income or franchise tax
25purposes without providing a similar benefit for federal income tax purposes.
SB1,1000,3
1(b) "Taxpayer" means a person who is subject to the taxes imposed under this
2chapter and who has a tax liability attributable to using a tax avoidance transaction
3for any taxable year beginning before January 1, 2007.
SB1,1000,5 4(2) Penalty waiver or abatement. All of the following apply with regard to a
5taxpayer who satisfies the conditions under sub. (3):
SB1,1000,96 (a) Except as provided under sub. (4) (b), the department shall waive or abate
7all penalties that are applicable to the underreporting or underpayment of Wisconsin
8income or franchise taxes attributable to using a tax avoidance transaction for any
9taxable year for which the taxpayer satisfies the conditions under sub. (3).
SB1,1000,1210 (b) The department shall not seek a criminal prosecution against the taxpayer
11with respect to using a tax avoidance transaction for any taxable year for which the
12taxpayer satisfies the conditions under sub. (3).
SB1,1000,17 13(3) Taxpayer eligibility. A taxpayer is eligible for the benefits described under
14sub. (2) (a) and (b), if, during the period beginning on the first day of the 3rd month
15beginning after publication .... [revisor inserts date], and ending on the last day of
16the 7th month beginning after publication .... [revisor inserts date], the taxpayer
17does the following:
SB1,1000,2318 (a) Files an amended Wisconsin tax return for each taxable year for which the
19taxpayer has previously filed a Wisconsin tax return that uses a tax avoidance
20transaction to underreport the taxpayer's Wisconsin income or franchise tax liability
21and the amended return reports the total Wisconsin net income and tax for the
22taxable year, computed without regard to any tax avoidance transaction and without
23regard to any other adjustment that is unrelated to any tax avoidance transaction.
SB1,1001,624 (b) Pays, in full, for each taxable year for which an amended return is filed
25under par. (a), the entire amount of Wisconsin income or franchise tax and interest

1due that is attributable to using a tax avoidance transaction, except that the
2secretary of revenue may enter into an agreement with the taxpayer to make
3payments in installments. A taxpayer who does not comply with an installment
4agreement provided under this paragraph is ineligible to receive the benefits
5described under sub. (2) (a) and (b) and the total amount of tax, interest, and
6penalties shall be immediately due and payable.
SB1,1001,12 7(4) Limitations and administration. (a) A taxpayer who receives the benefits
8described under sub. (2) may not file an appeal or a claim for credit or refund with
9respect to the tax avoidance transactions for the taxable years for which the taxpayer
10satisfied the conditions under sub. (3), except to the extent that a timely filed appeal
11or claim for a refund results from an adjustment to the taxpayer's federal income tax
12liability regarding such transactions.
SB1,1001,1713 (b) The department may not waive or abate a penalty as provided under sub.
14(2) (a) if the penalty relates to an amount of Wisconsin income and franchise tax that
15is attributable to a tax avoidance transaction and assessed and paid prior to the first
16day of the 3rd month beginning after publication .... [revisor inserts date], or after
17the last day of the 7th month beginning after publication .... [revisor inserts date].
SB1, s. 2138 18Section 2138. 71.81 of the statutes is created to read:
SB1,1001,19 1971.81 Disclosing reportable transactions. (1) Definitions. In this section:
SB1,1001,2520 (a) "Listed transaction" means any reportable transaction that is the same as,
21or substantially similar to, a transaction, plan, or arrangement specifically identified
22by the U.S. secretary of the treasury as a listed transaction, for purposes of section
236011 of the Internal Revenue Code and that is specifically identified by the U.S.
24secretary of the treasury as a listed transaction on or after the date the transaction
25occurred.
SB1,1002,5
1(b) "Material advisor" means any person who provides any material aid,
2assistance, or advice with respect to organizing, managing, promoting, selling,
3implementing, insuring, or carrying out any reportable transaction and who, directly
4or indirectly, derives gross income from providing such aid, assistance, or advice in
5an amount that exceeds the threshold amount.
SB1,1002,106 (c) "Reportable transaction" means any transaction, plan, or arrangement,
7including a listed transaction, for which a taxpayer is required to submit information
8to the department because the taxpayer is required to disclose the transaction, plan,
9or arrangement for federal income tax purposes for the taxable year in which the
10transaction occurred, as provided under U.S. department of treasury regulations.
SB1,1002,1311 (d) "Tax shelter" means any entity, plan, or arrangement, if avoiding or evading
12federal income tax or Wisconsin income or franchise tax is a significant purpose of
13the entity, plan, or arrangement.
SB1,1002,1414 (e) "Threshold amount" means the following:
SB1,1002,1615 1. In the case of a reportable transaction, not including a listed transaction,
16from which the tax benefits are provided primarily to an individual, $50,000.
SB1,1002,1817 2. In the case of a listed transaction from which the tax benefits are provided
18primarily to an individual, $10,000.
SB1,1002,2119 3. In the case of a reportable transaction, not including a listed transaction,
20from which the tax benefits are provided primarily to an entity and not an individual,
21$250,000.
SB1,1002,2322 4. In the case of a listed transaction, from which the tax benefits are provided
23primarily to an entity and not an individual, $25,000.
SB1,1003,16 24(2) Disclosure. For each taxable year in which a taxpayer has participated in
25a reportable transaction, the taxpayer shall file with the department a copy of any

1form required by the internal revenue service for disclosing the reportable
2transaction for federal income tax purposes no later than 60 days after the date for
3which the taxpayer is required to file the form for federal income tax purposes, except
4that, if the taxpayer has filed a form with the internal revenue service on or before
5the effective date of this subsection .... [revisor inserts date], the taxpayer shall file
6a copy of the form with the department no later than the last day of the 7th month
7beginning after publication .... [revisor inserts date]. The department may require
8that forms filed with the department under this subsection be filed separately from
9this state's income or franchise tax return. This subsection applies to any reportable
10transaction entered into on or after January 1, 2001, or any reportable transaction
11entered into prior to January 1, 2001, that reduced the taxpayer's tax liability for
12taxable years beginning on or after January 1, 2001, for any taxable year for which
13the transaction remains undisclosed and for which the statute of limitations on
14assessment, including any extension provided under sub. (6), has not expired as of
15the date that is 60 days after the effective date of this subsection .... [revisor inserts
16date].
SB1,1003,19 17(3) Penalty for failing to disclose. (a) Any taxpayer who does not file the
18form under sub. (2) and who is required to file the form is subject to the following
19penalty:
SB1,1003,2220 1. If the taxpayer participated in a reportable transaction that is not a listed
21transaction, the lesser of $15,000 or 10 percent of the tax benefit obtained from the
22reportable transaction.
SB1,1003,2323 2. If the taxpayer participated in a listed transaction, $30,000.
SB1,1004,424 (b) The secretary of revenue may waive or abate any penalty imposed under
25this subsection, or any portion of such penalty, related to a reportable transaction

1that is not a listed transaction, if the waiver or abatement promotes compliance with
2this section and effective tax administration. Notwithstanding any other law or rule,
3a determination by the secretary of revenue under this paragraph may not be
4reviewed in any judicial proceeding.
SB1,1004,145 (c) The penalties imposed under this subsection apply to any failure to disclose
6a listed transaction entered into on or after January 1, 2001, or entered into prior to
7January 1, 2001, that reduced the taxpayer's tax liability for taxable years beginning
8on or after January 1, 2001, including transactions that were not listed transactions
9when entered into, but became listed transactions before the effective date of this
10paragraph .... [revisor inserts date], or any other reportable transaction entered into
11after the effective date of this paragraph .... [revisor inserts date], for any taxable
12year for which the statute of limitations on assessment, including any extension
13under sub. (6), has not expired as of the effective date of this paragraph .... [revisor
14inserts date].
SB1,1004,20 15(4) Understatement penalty. (a) If a taxpayer has a reportable transaction
16understatement, as determined in par. (b), the taxpayer shall pay, in addition to any
17tax owed with regard to the reportable transaction, an amount equal to either 20
18percent of the reportable transaction understatement or, in the case of a reportable
19transaction that is not disclosed as provided in sub. (2), 30 percent of the reportable
20transaction understatement.
SB1,1004,2221 (b) A taxpayer has a reportable transaction understatement if the following
22calculation results in a positive number:
SB1,1005,623 1. Multiply the taxpayer's highest applicable tax rate under s. 71.06, 71.27, or
2471.46, by the amount of any increase in Wisconsin taxable income that results from
25the difference between the proper tax treatment of a reportable transaction and the

1taxpayer's treatment of the transaction as shown on the taxpayer's tax return,
2including any amended return the taxpayer files before the date on which the
3department first contacts the taxpayer regarding an examination of the taxable year
4for which the amended return is filed. For purposes of this subdivision, the amount
5of any increase in Wisconsin taxable income for a taxable year includes any reduction
6in the amount of loss available for carry-forward to the subsequent year.
SB1,1005,107 2. Add the amount determined under subd. 1. to the amount of any decrease
8in the aggregate amount of Wisconsin income or franchise tax credits that results
9from the difference between the proper tax treatment of a reportable transaction and
10the taxpayer's treatment of the transaction as shown on the taxpayer's tax return.
SB1,1005,2411 (c) The secretary of revenue may waive or abate any penalty imposed under this
12subsection, or any portion of such penalty, if the taxpayer demonstrates to the
13department that the taxpayer had reasonable cause to act the way the taxpayer did,
14and in good faith, with regard to the tax treatment for which the taxpayer is subject
15to a penalty under this subsection and all facts relevant to the tax treatment are
16adequately disclosed in the filing under sub. (2), except that, if the taxpayer does not
17fully disclose such facts under sub. (2), the taxpayer's penalty may be waived or
18abated under this paragraph if the taxpayer demonstrates to the department that
19the taxpayer reasonably believed that the tax treatment for which the taxpayer is
20subject to a penalty under this subsection was more likely than not the proper
21treatment and substantial authority exists or existed for the tax treatment for which
22the taxpayer is subject to a penalty under this subsection. Notwithstanding any
23other law or rule, a determination by the secretary of revenue under this paragraph
24may not be reviewed in any judicial proceeding.
SB1,1006,7
1(d) The penalties under par. (a) apply to any reportable transaction
2understatement from a reportable transaction, including a listed transaction,
3entered into on or after January 1, 2001, or entered into prior to January 1, 2001, that
4reduced the taxpayer's tax liability for taxable years beginning on or after January
51, 2001, for any taxable year for which the statute of limitations on assessment,
6including any extension provided under sub. (6), has not expired as of the effective
7date of this paragraph .... [revisor inserts date].
SB1,1006,15 8(5) Additional understatement penalty. (a) 1. In addition to the penalty under
9sub. (4) (a), a taxpayer who files an amended return after the last day of the 7th
10month beginning after publication .... [revisor inserts date], and before the taxpayer
11is contacted by the internal revenue service or the department regarding a reportable
12transaction is subject to a penalty in an amount equal to 50 percent of the interest
13assessed under s. 71.82 on any reportable transaction understatement, as
14determined under sub. (4) (b), for the tax period for which the taxpayer files an
15amended return.
SB1,1006,2316 2. If the internal revenue service or the department contacts a taxpayer after
17the last day of the 7th month beginning after publication .... [revisor inserts date],
18regarding a reportable transaction and the taxpayer is contacted before the taxpayer
19files an amended return with respect to that transaction, the taxpayer is subject to
20a penalty in an amount equal to the interest assessed under s. 71.82 on any
21reportable transaction understatement, as determined under sub. (4) (b), for the tax
22period for which the internal revenue service or the department contacts the
23taxpayer.
SB1,1007,524 (b) The penalties under par. (a) apply to any reportable transaction
25understatement resulting from a reportable transaction, including a listed

1transaction, entered into on or after January 1, 2001, or entered into prior to January
21, 2001, that reduced the taxpayer's tax liability for taxable years beginning on or
3after January 1, 2001, for any taxable year for which the statute of limitations on
4assessment, including any extension provided under sub. (6), has not expired as of
5the effective date of this paragraph .... [revisor inserts date].
SB1,1007,196 (c) The secretary of revenue may waive or abate any penalty imposed under this
7subsection, or any portion of such penalty, if the taxpayer demonstrates to the
8department that the taxpayer had reasonable cause to act the way the taxpayer did,
9and in good faith, with regard to the tax treatment for which the taxpayer is subject
10to a penalty under this subsection and all facts relevant to the tax treatment are
11adequately disclosed in the filing under sub. (2), except that, if the taxpayer does not
12fully disclose such facts under sub. (2), the taxpayer's penalty may be waived or
13abated under this paragraph if the taxpayer demonstrates to the department that
14the taxpayer reasonably believed that the tax treatment for which the taxpayer is
15subject to a penalty under this subsection was more likely than not the proper
16treatment and substantial authority exists or existed for the tax treatment for which
17the taxpayer is subject to a penalty under this subsection. Notwithstanding any
18other law or rule, a determination by the secretary of revenue under this paragraph
19may not be reviewed in any judicial proceeding.
SB1,1008,3 20(6) Statute of limitations extension. (a) Except as provided in par. (b), if a
21taxpayer fails to provide any information regarding a reportable transaction, other
22than a listed transaction, under sub. (2), the time for assessing any tax imposed
23under this chapter with respect to that transaction shall expire no later than the date
24that is 6 years after the date on which the return for the taxable year in which the
25reportable transaction occurred was filed. If a taxpayer fails to provide any

1information regarding a listed transaction, under sub. (2), the time for assessing any
2tax imposed under this chapter with respect to that transaction shall expire on the
3latest of the following dates:
SB1,1008,54 1. The date that is 6 years after the date on which the return for the taxable
5year in which the listed transaction occurred was filed.
SB1,1008,76 2. The date that is 12 months after the date on which the taxpayer provides
7information regarding the listed transaction under sub. (2).
SB1,1008,98 3. The date that is 12 months after the date on which the taxpayer's material
9advisor provides, at the department's request, the list described in sub. (7) (b).
SB1,1008,1410 4. The date that is 4 years after the date on which the department discovers
11a listed transaction that was a listed transaction on the date the transaction occurred
12for which the taxpayer did not provide the information described under sub. (2) or
13for which the taxpayer's material advisor did not provide the information described
14under sub (7) (b).
SB1,1008,1615 (b) Any limitation determined under par. (a) may be extended by a written
16agreement between the taxpayer and the department as provided under s. 71.77 (5).
SB1,1008,2017 (c) This subsection applies to any reportable transaction, including a listed
18transaction entered into on or after January 1, 2001, or entered into prior to January
191, 2001, that reduced the taxpayer's tax liability for taxable years beginning on or
20after January 1, 2001.
SB1,1009,4 21(7) Material advisor. (a) Each material advisor who is required to disclose a
22reportable transaction under section 6111 of the Internal Revenue Code shall file a
23copy of the disclosure with the department no later than 60 days after the date for
24which the material advisor is required to file the disclosure with the internal revenue
25service, except that, if a material advisor files the disclosure with the internal

1revenue service on or before the effective date of this paragraph .... [revisor inserts
2date], the material advisor shall file a copy of the disclosure with the department no
3later than the last day of the 7th month beginning after publication .... [revisor
4inserts date].
SB1,1009,145 (b) Each material advisor shall maintain a list that identifies each Wisconsin
6taxpayer for whom the person provided services as a material advisor with respect
7to a reportable transaction, regardless of whether the taxpayer is required to file the
8form under sub. (2). Any material advisor who is required to maintain a list under
9this paragraph shall provide the list to the department after receiving the
10department's written request to provide the list and shall retain the information
11contained in the list for 7 years or for the period determined by the department by
12rule. If 2 or more material advisors are required under this paragraph to maintain
13identical lists, the department may provide that only one of the material advisors
14maintain the list.
SB1,1009,2115 (c) This subsection applies to reportable transactions, not including listed
16transactions, for which a material advisor provides services after the effective date
17of this paragraph .... [revisor inserts date], and listed transactions for which a
18material advisor provides services, and were entered into, on or after January 1,
192001, or were entered into prior to January 1, 2001, and that reduced the taxpayer's
20tax liability for taxable years beginning on or after January 1, 2001, regardless of
21when the transactions became listed transactions.
SB1,1009,25 22(8) Material advisor penalties. (a) If a person who is required to file a
23disclosure with the department as provided under sub. (7) (a) fails to file the
24disclosure or files a disclosure containing false or incomplete information, the person
25is subject to a penalty equal to the following amounts:
SB1,1010,2
11. If the disclosure relates to a reportable transaction that is not a listed
2transaction, $15,000.
SB1,1010,33 2. If the disclosure relates to a listed transaction, $100,000.
SB1,1010,104 (b) Any person who is required to maintain a list under sub. (7) (b) and who fails
5to provide the list to the department no later than 20 business days after the date on
6which the person receives the department's request to provide the list, as provided
7under sub. (7) (b), shall pay a penalty to the department in an amount that is equal
8to $10,000 for each day that the person does not provide the list, beginning with the
9day that is 21 business days after the date on which the person receives the
10department's request.
SB1,1010,1911 (c) The secretary of revenue may waive or abate any penalty imposed under this
12subsection, or any portion of such penalty, related to a reportable transaction that
13is not a listed transaction, if the waiver or abatement promotes compliance with this
14section and effective tax administration or, with regard to the penalty imposed under
15par. (b), if, on each day after the time for providing the list without incurring a
16penalty has expired, the person demonstrates to the department that the person's
17failure to provide the list on that day is because of reasonable cause.
18Notwithstanding any other law or rule, a determination by the secretary of revenue
19under this paragraph may not be reviewed in any judicial proceeding.
SB1,1011,6 20(9) Tax shelter promotion. (a) Beginning on the effective date of this
21paragraph .... [revisor inserts date], any person who organizes or assists in
22organizing a tax shelter, or directly or indirectly participates in the sale of any
23interest in a tax shelter, and who makes or provides or causes another person to make
24or provide, in connection with such organization or sale, a statement that the person
25knows or has reason to know is false or fraudulent as to any material matter

1regarding the allowability of any tax deduction or credit, the excludability of any
2income, the manipulation of any allocation or apportionment rule, or the securing of
3any other tax benefit resulting from holding an interest in the entity or participating
4in the plan or arrangement, shall pay a penalty to the department, with respect to
5each sale or act of organization described under this paragraph, in an amount equal
6to 50 percent of the person's gross income derived from the sale or act.
SB1,1011,127 (b) For purposes of administering this chapter, beginning on the effective date
8of this paragraph .... [revisor inserts date], a written communication to any person,
9director, officer, employee, agent, or representative of the person, or any other person
10holding a capital or profits interest in the person, regarding the promotion of, or
11advice with respect to, the person's direct or indirect participation in any tax shelter
12is not considered a confidential or privileged communication.
SB1,1011,16 13(11) Injunction. The department may commence an action in the circuit court
14of Dane County to enjoin a person from taking any action, or failing to take any
15action, that is subject to a penalty under this section or in violation of this section or
16any rules that the department promulgates pursuant to this section.
SB1, s. 2139 17Section 2139. 71.83 (1) (a) 1. of the statutes is amended to read:
SB1,1012,318 71.83 (1) (a) 1. `Failure to file.' In case of failure to file any return required
19under s. 71.03, 71.24 or, 71.44, or 71.775 on the due date prescribed therefor,
20including any applicable extension of time for filing, unless it is shown that the
21failure is due to reasonable cause and not due to willful neglect, there shall be added
22to the amount required to be shown as tax on the return 5% of the amount of the tax
23if the failure is for not more than one month, with an additional 5% for each
24additional month or fraction thereof during which the failure continues, not
25exceeding 25% in the aggregate. For purposes of this subdivision, the amount of tax

1required to be shown on the return shall be reduced by the amount of any part of the
2tax which is paid on or before the due date prescribed for payment and by the amount
3of any credit against the tax which may be claimed upon the return.
SB1, s. 2139e 4Section 2139e. 71.83 (1) (a) 6. of the statutes is amended to read:
SB1,1012,105 71.83 (1) (a) 6. `Retirement plans.' Any natural person who is liable for a
6penalty for federal income tax purposes under section 72 (m) (5), (q), (t), and (v), 4973,
74974, 4975, or 4980A of the internal revenue code Internal Revenue Code is liable
8for 33% of the federal penalty unless the income received is exempt from taxation
9under s. 71.05 (1) (a) or (ae). The penalties provided under this subdivision shall be
10assessed, levied, and collected in the same manner as income or franchise taxes.
SB1, s. 2140 11Section 2140. 71.90 (2) of the statutes is amended to read:
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