SECTION 5. Tax 1.17 is repealed.
SECTION 6. Tax 2.01 is amended to read:
Residence. Individuals claiming a change of residence, i.e., domicile, from Wisconsin to another state shall file form I-827, “Residence Questionnaire", or the “Residence Questionnaire" which is a part of the 1NPR income tax form, with the Wisconsin department of revenue by attaching it to their Wisconsin income tax return for the year they claim to have changed residence, and shall furnish other information the department may require.
SECTION 7. Tax 2.03 (3) (b) 2. a. (Note), 2.04 (2) (d) (Note) and (dm) 1. (Note), (3), (4) (c) and (e), (5), (6) (a), (b), and (c) 1. (Note), (7), and (8) (b) 1. (Note) and (c) 2. (Note) are amended to read:
2.04 (2) (d) Note: Forms W-2, 1099-R, 9b, and 1099 that are not required to be filed electronically may be delivered in person to the Department of Revenue at 2135 Rimrock Road, Madison, Wisconsin or mailed to the department. Forms 9b or substitute forms filed on paper may be mailed to Wisconsin Department of Revenue, PO Box 89328920, Madison, WI 53708-893253708-8920. Other forms may be mailed to Wisconsin Department of Revenue, PO Box 8920, Madison, WI 53708-8920.
(3) Rents and royalties. Under ss. 71.70 and 71.80 (20), Stats., except as provided in par. (d), all persons making payments of rents and royalties of $600 or more to individuals who are residents of Wisconsin, regardless of where the property is located, and to nonresident individuals if the property is located in Wisconsin, shall file with the department, on form Form 9b or an approved substitute form, a statement of payments made in the preceding calendar year. As provided in sub. (6), the department may require such statement be filed electronically. The following shall also apply with respect to rents and royalties: (a) A copy of federal form Form 1099-MISC may be filed in lieu of Wisconsin form Form 9b.
(b) Corporations shall file the statement with the department by March 15January 31 and payers other than corporations shall file by April 15January 31.
Note: Forms not required to be filed electronically may be delivered in person to the Department of Revenue at 2135 Rimrock Road, Madison, Wisconsin or mailed to Wisconsin Department of Revenue, PO Box 89328920, Madison, WI 53708-893253708-8920.
(c) No A 30 day extension of time for filing forms Forms 9b or substitute forms to report payments of rents or royalties may be allowed.
(d) The requirement to file form Form 9b or a substitute form does not apply to persons other than corporations who do not deduct the payments in determining Wisconsin taxable income.
(4) (c) The winnings required to be reported in pars. (a) and (b) shall be reported on federal form Form W-2G or on an approved substitute form. As provided in sub. (6), the department may require such form be filed electronically.
(e) No extension of time for filing formsForms W-2G or substitute forms to report payments of lottery prize winnings or pari-mutuel wager winnings may be allowed.
(5) Disallowance of deductions. Items to be reported on formsForms W-2, 1099-R, 9b or substitute forms may be disallowed as deductions from gross income if not properly reported.
(6) Electronic filing requirement.
(a) Under s. 71.80 (20), Stats., if a person is required to file 5010 or more wage statements or 5010 or more of any one type of information return with the department, the person shall file the statements or the returns electronically, by means prescribed by the department. (b) If a payer participates in the combined federal/state filing program for formsForms 1099, the department shall waive the requirement to file those formsForms 1099 or comparable information returns electronically, unless the form reports Wisconsin withholding.
(7) Combined filing program. Payers who participate in the combined federal/state filing program with the internal revenue service and report to the internal revenue service items which are required to be filed on Wisconsin form Form 9b or a substitute form, are not required to file separate information returns for those items with the department of revenue, unless the form reports Wisconsin withholding.
(c) 2. Note: The requirement to file Wisconsin wage statements or information returns electronically for persons required to file 5010 or more wage statements or 5010 or more of any one type of information return with the department is effective January 1, 20102018, as a result of the repeal and recreation amendment of s. 71.80 (20), Stats., by 20092017 Wis. Act 2859. SECTION 8. Tax 2.07 (2) (g) (Note) and 2.08 (3) (b) are amended to read:
2.07 (2) (g) Note: The federal earned income tax credit, provided under section 32 of the Internal Revenue Code, is available to eligible individuals and married couples filing a joint income tax return, who have at least one qualifying child living with them. The federal credit consists of three parts, as follows: is A basic credit, computed based on the amount of adjusted gross income or earned income, and whether the individual or couple had no qualifying child, one qualifying child, or two or more qualifying children.
A health insurance credit, computed based on the amount of adjusted gross income or earned income, and the amount paid for health insurance that covered at least one qualifying child.
An extra credit for a child born during the taxable year, computed based on adjusted gross income or earned income.
2.08 (3) (b) Except as provided in pars. (c) and (d), the department may require a tax return preparer or tax preparation firm that prepared the threshold number, as described in subds. 1. to 3., of 50 or more Wisconsin individual income tax returns for the prior taxable year, to file individual income tax returns prepared by that tax return preparer or tax preparation firm electronically. The department shall notify tax return preparers and tax preparation firms by October 1 of any year of the requirement to file electronically. The requirement to file returns electronically shall be effective beginning January 1 of the year following notification. The threshold number of returns prepared in the prior taxable year is as follows:
1. For taxable year 2002, 200 or more returns.
2. For taxable years 2003 through 2009, 100 or more returns.
3. For taxable year 2010 and thereafter, 50 or more returns.
SECTION 9. Tax 2.08 (3) (ci) is created to read:
(ci) Except as provided in par. (d), the department may require the nonresident income or franchise tax withholding return filed by a pass-through entity be filed electronically. The department shall provide notification at least 90 days prior to the due date of the first income or franchise tax withholding return required to be filed electronically of the requirement to file electronically.
SECTION 10. Tax 2.08 (3) (d) 1. (Note) and (e) 2. (Note) are amended to read:
SECTION 11. Tax 2.105 (4) (b) is amended to read:
(b) Amended returns. If a taxpayer files an amended federal tax return and the changes on the amended federal tax return affect the amount of Wisconsin net franchise or income tax or economic development surcharge payable, the amount of a Wisconsin credit or a Wisconsin net operating loss, net business loss or capital loss carried forward, the taxpayer shall file with the department an amended Wisconsin return reflecting the same changes. A taxpayer filing an amended return with another state shall file an amended Wisconsin return if a credit has been allowed against Wisconsin taxes for taxes paid to that state and if the changes affect the amount of Wisconsin net franchise or income tax or economic development surcharge payable, the amount of a Wisconsin credit or a Wisconsin net operating loss, net business loss or capital loss carried forward. If the changes described in this paragraph relate to income, credits claimed or carried forward, net business losses or net business losses carried forward, capital losses or capital losses carried forward, or any other item that is required to be included in a combined report under s. 71.255 (1) (b), Stats., the designated agent of the combined group shall file an amended combined return. Changes to a net operating or business loss carryforward may not be made unless the change to the incurred loss was computed on a return that was filed within 4 years of the unextended due date for filing the original return for the taxable year in which the loss was incurred. Changes to a net operating or business loss carry-back may not be made unless the change to the loss is claimed within 4 years of the unextended due date for filing the original return for the taxable year to which the loss is carried back. The amended Wisconsin return shall be filed within 90 days after the date the amended return is filed with the internal revenue service or other state. SECTION 12. Tax 2.12 (3) (c) is amended to read:
(c) An amended Wisconsin return shall be filed with the department if either an amended federal return is filed or an amended return is filed with another state for which a credit for taxes has been allowed against Wisconsin taxes, and the changes to the amended federal or other state return affect the amount of Wisconsin net franchise or income tax or economic development surcharge payable, a Wisconsin credit or a Wisconsin net operating loss, net business loss or capital loss carried forward. Changes to a net operating or business loss carryforward may not be made unless the change to the incurred loss was computed on a return that was filed within 4 years of the unextended due date for filing the original return for the taxable year in which the loss was incurred. Changes to a net operating or business loss carry-back may not be made unless the change to the loss is claimed within 4 years of the unextended due date for filing the original return for the taxable year to which the loss is carried back.
SECTION 13. Tax 2.30 (2) (Example) is amended to read:
Example: For taxable year 19882017, “Internal Revenue Code" means the Internal Revenue Code in effect on December 31, 19872016.
SECTION 14. Tax 2.32 (2) (a) 1., 2., 3., 4., 5. and 6. are amended to read:
(a) 1. Gross receipts or sales reportable on line 1c of federal form Form 1120, U. S. corporation income tax return.
2. Gross dividends reportable on line 4 of federal form Form 1120.
3. Gross interest income reportable on line 5 of federal form Form 1120.
4. Gross rents reportable on line 6 of federal form Form 1120.
5. Gross royalties reportable on line 7 of federal form Form 1120.
6. The gross sales price from the disposition of capital assets and business assets includable in computing the net gain or loss on lines 8 and 9 of federal form Form 1120.
SECTION 15. Tax 2.32 (2) (a) 7. (Note) is repealed.
SECTION 16. Tax 2.32 (2) (b) 1., 2., 3., 4., 5., 6., 7., and 8., (c) 1., 2., 3., 4., 5., and 6., and (d) 1., 2., 3., 4., 5., and 6 are amended to read:
(b) 1. Gross receipts or sales reportable on line 1a of federal form Form 990-T, exempt organization business income tax return.
2. The gross sales price from the disposition of capital assets and business assets includable in computing the gain or loss on lines 4a and 4b of federal form Form 990-T.
3. Gross rents includable in computing rent income on line 6 of federal form Form 990-T.
4. Gross income from unrelated debt-financed property includable in computing unrelated debt-financed income on line 7 of federal form Form 990-T.
5. Gross interest, annuities, royalties and rents from controlled organizations includable in computing those items of income on line 8 of federal form Form 990-T.
6. Gross investment income includable in computing investment income on line 9 of federal form Form 990-T.
7. Gross exploited exempt activity income includable in computing that item of income on line 10 of federal form Form 990-T.
8. Gross advertising income includable in computing advertising income on line 11 of federal form Form 990-T.
(c) 1. Gross premiums earned reportable on lines 1 and 8 of schedule Schedule A on federal form Form 1120-PC, U. S. property and casualty insurance company income tax return.
2. Gross dividends reportable on line 2 of schedule Schedule A, or line 2 of schedule Schedule B if applicable, on of federal form Form 1120-PC.
3. Gross interest income reportable on line 3a of schedule Schedule A, or line 1a of schedule Schedule B if applicable, on of federal form Form 1120-PC.
4. Gross rents reportable on line 4 of schedule Schedule A, or line 3 of schedule Schedule B if applicable, on of federal form Form 1120-PC.
5. Gross royalties reportable on line 5 of schedule Schedule A, or line 4 of schedule Schedule B if applicable, on of federal form Form 1120-PC.
6. The gross sales price from the disposition of capital assets and business assets includable in computing the gain or loss on lines 6 and 7 of schedule Schedule A, or lines 5 and 7 of schedule Schedule B if applicable, on of federal form Form 1120-PC.
(d) 1. Gross receipts or sales reportable on line 1c of federal form Form 1120S, U. S. corporation income tax return for an S corporation.
2. Gross rents includable in computing the income from real estate and other rental activities reportable on lines 2 and 3a of schedule Schedule K on of federal form Form 1120S.
3. Gross interest income reportable on line 4 of schedule Schedule K on of federal form Form 1120S.
4. Ordinary dividends reportable on line 5a of schedule Schedule K on of federal form Form 1120S.
5. Gross royalties includable in computing royalty income reportable on line 6 of schedule Schedule K on of federal form Form 1120S.
6. The gross sales price from the disposition of capital assets and business assets includable in computing the gain or loss on line 4 of federal form Form 1120S and lines 7, 8a, and 9 of schedule Schedule K on of federal form Form 1120S.
SECTION 17. Tax 2.39 (6) (f) and (h) are amended to read:
2.39 (6) (f) Sales of services attributable to Wisconsin. Sales of services are attributable to Wisconsin if the benefit of the service is received in Wisconsin, as provided in ss. 71.04 (7) (dh) and 71.25 (9) (dh), Stats. (h) Receipts from intangible property for taxable years beginning on or after January 1, 2009. For taxable years beginning on or after January 1, 2009, the amount includable in the numerator of the sales factor for gross receipts from the sale of, license of, or allowing use of intangible property in this state is determined as provided in ss. 71.04 (7) (dj) and (dk) and 71.25 (9) (dj) and (dk), Stats. For purposes of applying these paragraphs, excluding ss. 71.04 (7) (dj) 2. and 71.25 (9) (dj) 2m., the following rules apply: SECTION 18. Tax 2.395 is repealed.
SECTION 19. Tax 2.49 (2) (hm) and (4) (x) 1. b. and c. are amended to read:
b. The service relates to tangible personal property that is located in this state at the time that the service is received or tangible personal property that is delivered directly or indirectly to customers in this state.
c. The service is provided to purchased by an individual who is physically present in this state at the time that the service is received.
SECTION 20. Tax 2.61 (4) (b) 1. and 4., (6) (a) 3., and (7) (h) are amended to read:
(4) (b) 1. For purposes of the water's edge rules in pars. (d) and (e), a corporation is an “80/20 corporation" if 80 percent or more of its worldwide gross income during the testing period is “active foreign business income" as defined in section 861(c)(1)(B) subchapter N of the Internal Revenue Code.
4. For purposes of this paragraph, a corporation's active foreign business income includes gross income attributed from subsidiary corporations as provided in section 861(c)(1)(B) subchapter N of the Internal Revenue Code, but only to the extent the gross income of the subsidiary corporations is derived from the combined group's unitary business.
(6) (a) 3. Add net capital gain includable in the combined unitary income, applying the loss limitation as described in par. (c) and using the federal basis of assets. Any differences between the federal and Wisconsin basis of assets, including basis differences that arise from the application of par. (f), are accounted for as Wisconsin modifications under subd. 6. The Wisconsin basis of a corporation's depreciable property for the first year the corporation becomes taxable in Wisconsin equals its federal basis as of the beginning of the taxable year in which the corporation becomes taxable in Wisconsin, as required under s. 71.265, Stats. The federal basis shall be computed under the Internal Revenue Code in effect for Wisconsin federal purposes as required under ss. 71.22 (4) and (4m), 71.42 (2), and 71.26 (3) (y), and 71.98 (3), Stats. (7) (h) Alternative apportionment. A qualifying combined group may petition the department to use an alternative apportionment method, as provided in s. Tax 2.64. SECTION 21. Tax 2.61 (7) (h) 1. and 2. are repealed.
SECTION 22. Tax 2.62 (2) (d) 1. is amended to read:
1. For any participant in the unitary business that is not a member of a commonly controlled group of corporations as provided in s. Tax 2.61 (3), the participant's income from the unitary business is generally apportioned in the manner provided by ss. Tax 2.39, 2.395, 2.45, 2.46, 2.465, 2.47, 2.475, 2.48, 2.49, 2.495, 2.50, or 2.502, as applicable. However, the participant may be required to apportion its income under the combined reporting rules provided in s. Tax 2.61 if certain conditions apply, as further explained in s. Tax 2.61 (2) (f). SECTION 23. Tax 2.64 (2) (b) 7., (c), and (e) 3. are amended to read:
