Amendment ASA1-AB473

LRBs0172/1

MES:cjs:pg

2003 - 2004 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO 2003 ASSEMBLY BILL 473

September 23, 2003 - Offered by Committee on Government Operations and Spending Limitations.

AB473-ASA1,1,5 An Act to amend 71.78 (2) and 139.91 (1); and to create 71.78 (4) (r), 73.03 (61), 76.30 (2) (i), 77.61 (5) (b) 12. and 139.91 (4) of the statutes; relating to: requiring the Department of Revenue to prepare and maintain a list of delinquent taxpayer accounts and to post on the Internet the names from the list.

Analysis by the Legislative Reference Bureau

This substitute amendment requires the Department of Revenue (DOR) to prepare and maintain a list of delinquent taxpayer accounts in excess of $25,000, subject to a number of exceptions, although DOR may set the threshold amount lower than $25,000. The delinquent taxpayer accounts are accounts with tax obligations that are unpaid for more than 90 days after all appeal rights have expired. The list must contain the names, addresses, type of tax due, and amount of tax due, including interest, penalties, fees, and costs for each person on the list. The substitute amendment also requires DOR to create and maintain a site on the Internet that contains the names on the list, with the associated delinquent taxpayer information. The Internet site must contain a special page for the names on the list of the 100 persons who owe the greatest amount of delinquent taxes. DOR is required to update the Internet site on a monthly basis.

Under the substitute amendment, DOR may not post on the Internet the name of any person who has reached an agreement or compromise with DOR or the Department of Justice, and is in compliance with that agreement, regarding the payment of delinquent taxes, or the name of any person who is protected by a stay that is in effect under the Federal Bankruptcy Code. To comply with these provisions, DOR is required to update the Internet site each business day.

Currently, if any person requests information on the net Wisconsin income tax, Wisconsin franchise tax, or Wisconsin gift tax reported as paid or payable in the returns filed by any person for any individual year, DOR is required to provide the information if the requester proves his or her identity and signs a statement setting forth the person's address and reason for making the request, and indicating that he or she understands the statutes regarding the divulgement, publication, or dissemination of the requested information. Under the substitute amendment, if DOR provides such information to a requester, the department must also provide information on any amount of delinquent taxes that the person owes as listed on the Internet site created in the substitute amendment.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB473-ASA1, s. 1 Section 1. 71.78 (2) of the statutes is amended to read:

AB473-ASA1,3,5 71.78 (2) Disclosure of net tax. The department shall make available upon suitable forms prepared by the department information setting forth the net Wisconsin income tax, Wisconsin franchise tax or Wisconsin gift tax reported as paid or payable in the returns filed by any individual or corporation, and any amount of delinquent taxes owed, as described in s. 73.03 (61), by any such individual or corporation, for any individual year upon request. Before the request is granted, the person desiring to obtain the information shall prove his or her identity and shall be required to sign a statement setting forth the person's address and reason for making the request and indicating that the person understands the provisions of this section with respect to the divulgement, publication or dissemination of information obtained from returns as provided in sub. (1). The use of a fictitious name is a violation of this section. Within 24 hours after any information from any such tax return has been so obtained, the department shall mail to the person from whose return the information has been obtained a notification which shall give the name and address of the person obtaining the information and the reason assigned for requesting the information. The department shall collect from the person requesting the information a fee of $4 for each return.

AB473-ASA1, s. 2 Section 2. 71.78 (4) (r) of the statutes is created to read:

AB473-ASA1,3,10 71.78 (4) (r) The secretary of revenue and employees of that department for the purpose of preparing and maintaining the list of persons with unpaid tax obligations as described in s. 73.03 (61) so that the list of such persons is available for public inspection.

AB473-ASA1, s. 3 Section 3. 73.03 (61) of the statutes is created to read:

AB473-ASA1,4,6 73.03 (61) To prepare and maintain a list of all persons who owe delinquent taxes, including interest, penalties, fees, and costs, to the department, in excess of $25,000, which are unpaid for more than 90 days after all appeal rights have expired, and to post the names of persons from this list on the Internet at a site that is created and maintained by the department for this purpose. The department may prepare and maintain a list of such persons who owe delinquent taxes, as described in this subsection, of $25,000 or less if the list contains all persons whose delinquency is at or above the lower threshold set by the department. The Internet site shall list the names, addresses, type of tax due, and amount of tax due, including interest, penalties, fees, and costs for each person who has one of the delinquent taxpayer accounts, and the Internet site shall also contain a special page for the persons who have the 100 largest delinquent taxpayer accounts. Except as otherwise provided in this subsection, the department shall update the Internet site on a monthly basis. The department may not post on the Internet the name of any person who has reached an agreement or compromise with the department, or the department of justice, under s. 71.92 and is in compliance with that agreement, regarding the payment of delinquent taxes, or the name of any person who is protected by a stay that is in effect under the Federal Bankruptcy Code; and the Internet posting shall be updated each business day, as defined in s. 562.01 (3m), to comply with these prohibitions.

AB473-ASA1, s. 4 Section 4. 76.30 (2) (i) of the statutes is created to read:

AB473-ASA1,4,11 76.30 (2) (i) The secretary of revenue and employees of that department for the purpose of preparing and maintaining the list of persons with unpaid tax obligations as described in s. 73.03 (61) so that the list of such persons is available for public inspection.

AB473-ASA1, s. 5 Section 5. 77.61 (5) (b) 12. of the statutes is created to read:

AB473-ASA1,4,16 77.61 (5) (b) 12. The secretary of revenue and employees of that department for the purpose of preparing and maintaining the list of persons with unpaid tax obligations as described in s. 73.03 (61) so that the list of such persons is available for public inspection.

AB473-ASA1, s. 6 Section 6. 139.91 (1) of the statutes is amended to read:

AB473-ASA1,4,20 139.91 (1) The Except as provided in sub. (4), the department may not reveal facts obtained in administering this subchapter, except that the department may publish statistics that do not reveal the identities of dealers.

AB473-ASA1, s. 7 Section 7. 139.91 (4) of the statutes is created to read:

AB473-ASA1,4,25 139.91 (4) The secretary of revenue and employees of that department may reveal facts obtained in administering this subchapter for the purposes of preparing and maintaining the list of persons with unpaid tax obligations as described in s. 73.03 (61) so that the list of such persons is available for public inspection.

AB473-ASA1, s. 8 Section 8. Effective date.

AB473-ASA1,5,3 (1) This act takes effect on the first day of the 6th month beginning after publication.

AB473-ASA1,5,4 (End)