Statutory authority
Staff time required
76 hours.
Comparison with federal requirements
The proposed rule/board action conforms to and does not exceed federal regulations.
Revenue
Subject
Ss.
Tax 1.12 and
2.04, relating to electronic funds transfer, information returns, and wage statements.
Entities affected by the rule
Pass-through entities that have Wisconsin income allocable to a partner, member, shareholder, or beneficiary that is a nonresident of Wisconsin. This includes partnerships, limited liability companies, tax-option corporations, estates, and trusts that are treated as pass-through entities for federal income tax purposes.
Employers required to file Form WT-7, Employers Annual Reconciliation of Wisconsin Income Tax Withheld from Wages.
Accounting firms, payroll companies, and other entities that prepare and file Wisconsin returns for the above-listed entities.
Comparison with federal requirements
The department is not aware of any existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
Policy analysis
Objective of the rule. The objectives of the proposed rule are to:
•
Create a provision specifying that income and franchise tax withholding payments of pass-through entities are required to be made by electronic funds transfer (EFT).
•
Change a provision to specify that EFT payments made by automated clearing house (ACH) debit transfer may be initiated up until 4:00 p.m. on the due date of the payment.
•
Create a provision specifying that the department may require pass-through entities to file returns for nonresident withholding taxes by electronic means.
•
Create a provision specifying that the department may require Form WT-7, Employers Annual Reconciliation of Wisconsin Income Tax Withheld from Wages, to be filed by electronic means.
•
Update notes to list current street and mailing addresses.
Policy analysis:
Existing policies are as set forth in the rules.
In addition, new policies are being proposed, whereby the department may require that certain returns be filed by electronic means and certain payments be made by electronic funds transfer (EFT), as authorized under ss.
71.63 (3m),
71.738 (2), and
73.029, Wis. Stats.
If the rules are not changed, they will be incorrect in that they will not reflect current law, or current or proposed department policy.
Statutory authority
227.11 (2) (a), Stats.
Staff time required
The department estimates it will take approximately 100 hours to develop this rule order
