AB75-ASA1,970,1511 (g) For the 2011-2012 fiscal year, and for every succeeding fiscal year, the
12department shall prorate the per acre amounts specified in sub. (2) based on the
13department's estimated amount of eligible claims that will be filed for that fiscal
14year, and to account for any excess claims from the preceding fiscal year that are
15required to be paid under par. (f).
AB75-ASA1,970,2116 (h) If the payment to which an eligible claimant is entitled under sub. (2) is
17delayed because the claim was an excess claim, as described in par. (f), the claimant
18is not entitled to any interest payment under s. 71.82 with regard to the delayed
19claim or with regard to any other refund to which the claimant is entitled if that other
20refund claim is claimed on the same income tax return as the credit under this
21section.
AB75-ASA1,971,2 22(4) Administration. The department may enforce the credit under this section
23and may take any action, conduct any proceeding, and proceed as it is authorized in
24respect to taxes under this chapter. The income and franchise tax provisions in this

1chapter relating to assessments, refunds, appeals, collection, interest, and penalties
2apply to the credit under this section.
AB75-ASA1, s. 1777m 3Section 1777m. 71.63 (3) (d) of the statutes is created to read:
AB75-ASA1,971,54 71.63 (3) (d) With regard to ss. 71.64 (6m) and 71.65 (6), "employer" means a
5person described in s. 108.18 (2) (c).
AB75-ASA1, s. 1777o 6Section 1777o. 71.64 (6m) of the statutes is created to read:
AB75-ASA1,971,117 71.64 (6m) Withholding by certain contractors. If an employer files federal
8tax form 1099-MISC, Miscellaneous Income, on behalf of any independent
9contractor or single-member limited liability company providing construction
10services to the employer, the employer shall deduct and withhold 1 percent from the
11wages paid to the person on whose behalf the form is filed.
AB75-ASA1, s. 1777s 12Section 1777s. 71.64 (9) (a) of the statutes is amended to read:
AB75-ASA1,971,1813 71.64 (9) (a) The department shall prepare, promulgate and publish in the
14official state paper
on the department's Web site for a reasonable period of time,
15without regard to the requirements of ch. 227, rules establishing withholding tables
16prepared on a weekly, biweekly, semimonthly, monthly, and daily or miscellaneous
17pay period basis. Those rules shall also provide instructions for withholding with
18respect to quarterly, semiannual and annual pay periods.
AB75-ASA1, s. 1778 19Section 1778. 71.65 (5) (b) of the statutes is amended to read:
AB75-ASA1,972,220 71.65 (5) (b) No extension under par. (a) extends the time to deposit with the
21public depository or pay to the department amounts that are required to be deducted
22and withheld under this subchapter. The department for good cause may extend for
23a period, not to exceed one month, the time for making any return or paying any
24amount required to be paid under this subchapter. The extension may be granted

1at any time if the extension request is filed with the department within or before the
2period for which the extension is requested.
AB75-ASA1, s. 1778q 3Section 1778q. 71.65 (6) of the statutes is created to read:
AB75-ASA1,972,84 71.65 (6) Construction contractors. Any employer who willfully provides
5false information to the department, or who willfully and with intent to evade any
6requirement of this subchapter, misclassifies or attempts to misclassify an
7individual who is an employee of the employer as a nonemployee shall be fined
8$25,000 for each violation.
AB75-ASA1, s. 1779 9Section 1779. 71.74 (6) of the statutes is amended to read:
AB75-ASA1,972,1710 71.74 (6) Consolidated statements. For the purpose of this chapter, whenever
11a corporation which is required to file an income or franchise tax return is affiliated
12with or related to any other corporation through stock ownership by the same
13interests or as parent or subsidiary corporations, or whose income is regulated
14through contract or other arrangement, the department may require such
15consolidated statements as in its opinion are necessary in order to determine the
16taxable income received by any one of the affiliated or related corporations or to
17determine whether the corporations are a unitary business
.
AB75-ASA1, s. 1779g 18Section 1779g. 71.74 (11) of the statutes is amended to read:
AB75-ASA1,973,1019 71.74 (11) Notice of additional assessment. The department shall notify the
20taxpayer in writing of any additional assessment by office audit or field
21investigation. That notice shall be served as are circuit court summonses, or by
22registered mail, or by regular mail if the person assessed admits receipt or there is
23satisfactory evidence of receipt. In the case of joint returns, notice of additional
24assessment may be a joint notice and service on one spouse is proper notice to both
25spouses. If the spouses have different addresses at the time the notice of additional

1assessment is served and if either spouse notifies the department of revenue in
2writing of those addresses, the department shall serve a duplicate of the original
3notice on the spouse who has the address other than the address to which the original
4notice was sent, if no request for a redetermination or a petition for review has been
5commenced or finalized. For the spouse who did not receive the original notice,
6redetermination and appeal rights begin upon the service of a duplicate notice. If the
7taxpayer is a corporation and the department is unable to serve that taxpayer
8personally or by mail, the department may serve the notice by publishing a class 3
9notice, under ch. 985, in the official state newspaper
publication on the department's
10Web site for a reasonable period of time
.
AB75-ASA1, s. 1780 11Section 1780. 71.775 (4) (a) (intro.) of the statutes is amended to read:
AB75-ASA1,973,1612 71.775 (4) (a) (intro.) Each pass-through entity that is subject to the
13withholding under sub. (2) shall pay the amount of the tax withheld to file an annual
14return that indicates the withholding amount paid to the state during the
15pass-through entity's taxable year. The entity shall file the return with
the
16department no later than:
AB75-ASA1, s. 1781 17Section 1781. 71.775 (4) (b) of the statutes is repealed.
AB75-ASA1, s. 1782 18Section 1782. 71.775 (4) (bm) 1. of the statutes is created to read:
AB75-ASA1,973,2519 71.775 (4) (bm) 1. For the return under par. (a), the department shall allow an
20automatic extension of 7 months or until the corresponding due date of the
21pass-through entity's federal income tax return or return of partnership income,
22whichever is later. Except for payments of estimated taxes, and except as provided
23in subd. 2., withholding taxes payable upon filing the return are not delinquent
24during the extension period but shall be subject to interest at the rate of 12 percent
25per year during that period.
AB75-ASA1, s. 1783
1Section 1783. 71.775 (4) (bm) 2. of the statutes is created to read:
AB75-ASA1,974,72 71.775 (4) (bm) 2. For taxable years beginning after December 31, 2008, for
3persons who qualify for a federal extension of time to file under 26 USC 7508A due
4to a presidentially declared disaster or terroristic or military action, withholding
5taxes that are otherwise due from a pass-through entity under sub. (2) are not
6subject to 12 percent interest as otherwise provided under subd. 1. during the
7extension period and for 30 days after the end of the federal extension period.
AB75-ASA1, s. 1784 8Section 1784. 71.775 (4) (bn) of the statutes is created to read:
AB75-ASA1,974,149 71.775 (4) (bn) If a pass-through entity subject to withholding tax under sub.
10(2) does not file the return under par. (a) on or before the extension date provided in
11par. (bm), the pass-through entity is liable for the penalty provided in s. 71.83 (1),
12in addition to any unpaid tax, interest, and penalty otherwise assessable to a
13nonresident partner, member, shareholder, or beneficiary on income from the
14pass-through entity.
AB75-ASA1, s. 1785 15Section 1785. 71.775 (4) (c) of the statutes is renumbered 71.775 (4) (i).
AB75-ASA1, s. 1786 16Section 1786. 71.775 (4) (cm) of the statutes is created to read:
AB75-ASA1,974,1917 71.775 (4) (cm) Except as provided in par. (L), pass-through entities shall make
18estimated payments of the withholding tax under sub. (2) in 4 installments, on or
19before the 15th day of each of the following months:
AB75-ASA1,974,2020 1. The 3rd month of the taxable year.
AB75-ASA1,974,2121 2. The 6th month of the taxable year.
AB75-ASA1,974,2222 3. The 9th month of the taxable year.
AB75-ASA1,974,2323 4. The 12th month of the taxable year.
AB75-ASA1, s. 1787 24Section 1787. 71.775 (4) (d) of the statutes is renumbered 71.775 (4) (j) and
25amended to read:
AB75-ASA1,975,7
171.775 (4) (j) 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 determining whether interest under s. 71.84 applies to
6a nonresident partner, member, shareholder, or beneficiary, the amount withheld
7under sub. (2) is considered to be paid in 4 equal quarterly installments.
AB75-ASA1, s. 1788 8Section 1788. 71.775 (4) (dm) of the statutes is created to read:
AB75-ASA1,975,129 71.775 (4) (dm) Section 71.29 (3), (3m), (4), (5), (6), and (11), as it applies to
10estimated payments of income and franchise taxes for corporations, also applies to
11estimated payments of the withholding tax imposed under sub. (2) for pass-through
12entities.
AB75-ASA1, s. 1789 13Section 1789. 71.775 (4) (e) of the statutes is renumbered 71.775 (4) (k).
AB75-ASA1, s. 1790 14Section 1790. 71.775 (4) (em) of the statutes is created to read:
AB75-ASA1,975,2515 71.775 (4) (em) Except as provided in par. (fm), in the case of any underpayment
16of estimated withholding taxes under par. (cm), interest shall be added to the
17aggregate withholding tax for the taxable year at the rate of 12 percent per year on
18the amount of the underpayment for the period of the underpayment. In this
19paragraph, "period of the underpayment" means the time period beginning with the
20due date of the installment and ending on either the unextended due date of the
21return under par. (a) or the date of payment, whichever is earlier. If 90 percent of
22the tax due under sub. (2) for the taxable year is not paid by the unextended due date
23of the return under par. (a), the difference between that amount and the estimated
24taxes paid, along with any interest due, shall accrue delinquent interest in the same
25manner as income and franchise taxes under s. 71.82 (2) (a).
AB75-ASA1, s. 1791
1Section 1791. 71.775 (4) (f) of the statutes is repealed.
AB75-ASA1, s. 1792 2Section 1792. 71.775 (4) (fm) of the statutes is created to read:
AB75-ASA1,976,43 71.775 (4) (fm) No interest is required under par. (em) for a pass-through entity
4if any of the following conditions apply:
AB75-ASA1,976,55 1. The amount of withholding tax due under sub. (2) is less than $500.
AB75-ASA1,976,86 2. The amount of withholding tax due under sub. (2) is less than $5,000, the
7pass-through entity had no withholding tax liability under sub. (2) for the preceding
8taxable year, and the preceding taxable year was 12 months.
AB75-ASA1, s. 1793 9Section 1793. 71.775 (4) (g) of the statutes is created to read:
AB75-ASA1,976,1110 71.775 (4) (g) Except as provided under par. (h), the amount of each installment
11required under par. (cm) is 25 percent of the lesser of the following amounts:
AB75-ASA1,976,1312 1. Ninety percent of the withholding tax under sub. (2) that is due for the
13taxable year.
AB75-ASA1,976,1714 2. The withholding tax due under sub. (2) for the preceding taxable year, except
15that this subdivision does not apply if the preceding taxable year was less than 12
16months or if the pass-through entity did not file a return under par. (a) for the
17preceding taxable year.
AB75-ASA1, s. 1794 18Section 1794. 71.775 (4) (h) of the statutes is created to read:
AB75-ASA1,977,919 71.775 (4) (h) If 22.5 percent for the first installment, 45 percent for the 2nd
20installment, 67.5 percent for the 3rd installment, and 90 percent for the 4th
21installment of the tax due under sub. (2) for the taxable year; computed by
22annualizing, under methods prescribed by the department, the pass-through
23entity's income for the months in the taxable year ending before the installment's due
24date; is less than the installment required under par. (g), the pass-through entity
25may pay the amount under this paragraph, rather than the amount under par. (g).

1For purposes of computing annualized income under this paragraph, the
2apportionment percentage computed under s. 71.25 (6), (10), and (12) from the return
3under par. (a) filed for the previous taxable year may be used if that return was filed
4with the department on or before the due date of the installment for which the income
5is being annualized and if the apportionment percentage on that previous year's
6return was greater than zero. Any pass-through entity that pays an amount
7calculated under this paragraph shall increase the next installment computed under
8par. (g) by an amount equal to the difference between the amount paid under this
9paragraph and the amount that would have been paid under par. (g).
AB75-ASA1, s. 1795 10Section 1795. 71.775 (4) (L) of the statutes is created to read:
AB75-ASA1,977,2111 71.775 (4) (L) The department shall deem timely paid the estimated payments
12of the withholding tax imposed under sub. (2) that become due during the period
13beginning on January 1, 2009, and ending on the effective date of this paragraph ....
14[LRB inserts date], provided that such estimated tax payments are paid by the next
15installment due date that follows in sequence following the effective date of this
16paragraph .... [LRB inserts date]. However, if the next installment due date following
17the effective date of this paragraph .... [LRB inserts date], is less than 45 days after
18the effective date of this paragraph .... [LRB inserts date], such estimated payments,
19in addition to the payment due less than 45 days after the effective date of this
20paragraph .... [LRB inserts date], shall be deemed timely paid if paid by the next
21subsequent installment due date.
AB75-ASA1, s. 1796 22Section 1796. 71.80 (9m) of the statutes is created to read:
AB75-ASA1,978,523 71.80 (9m) Failure to produce records. A person who fails to produce records
24or documents, as provided under ss. 71.74 (2) and 73.03 (9), that support amounts
25or other information required to be shown on any return required under this chapter

1may be subject to any of the following penalties, as determined by the department,
2except that the department may not impose a penalty under this subsection if the
3person shows that under all facts and circumstances the person's response, or failure
4to respond, to the department's request was reasonable or justified by factors beyond
5the person's control:
AB75-ASA1,978,76 (a) The disallowance of deductions, credits, exemptions, or income inclusions
7to which the requested records relate.
AB75-ASA1,978,118 (b) In addition to any penalty imposed under sub. (4), a penalty for each
9violation of this subsection that is equal to the greater of $500 or 25 percent of the
10amount of the additional tax on any adjustment made by the department that results
11from the person's failure to produce the records.
AB75-ASA1,978,1412 (c) The department shall promulgate rules to administer this subsection and
13the rules shall include a standard response time, a standard for noncompliance, and
14penalty waiver provisions.
AB75-ASA1, s. 1797 15Section 1797. 71.80 (20) of the statutes is repealed and recreated to read:
AB75-ASA1,978,1916 71.80 (20) Electronic filing. If a person is required to file 50 or more wage
17statements or 50 or more of any one type of information return with the department,
18the person shall file the statements or the returns electronically, by means prescribed
19by the department.
AB75-ASA1, s. 1798 20Section 1798. 71.80 (24) of the statutes is created to read:
AB75-ASA1,979,1021 71.80 (24) Throwback transition. For persons subject to tax under this
22chapter whose sales factor includes sales under s. 71.04 (7) (a) or 71.25 (9) (a), (df)
233., or (dh) 4., the department shall deem timely paid the estimated tax payments
24attributable to the difference between the person's tax liability for the taxable year
25and the person's tax liability for the taxable year computed under ch. 71, 2007 stats.,

1for installments that become due during the period beginning on January 1, 2009,
2and ending on the effective date of this subsection .... [LRB inserts date], provided
3that such estimated tax payments are paid by the next installment due date that
4follows in sequence following the effective date of this subsection .... [LRB inserts
5date]. However, if the next installment due date that follows in sequence following
6the effective date of this subsection .... [LRB inserts date], is less than 45 days after
7the effective date of this subsection .... [LRB inserts date], such estimated tax
8payments, in addition to the payment due less than 45 days after the effective date
9of this subsection .... [LRB inserts date], shall be deemed timely paid if paid by the
10next subsequent installment due date.
AB75-ASA1, s. 1801 11Section 1801. 71.83 (1) (a) 10. of the statutes is created to read:
AB75-ASA1,979,1712 71.83 (1) (a) 10. `Failure to provide schedules.' If a person who is required to
13provide a schedule under s. 71.13 (1m), 71.20 (1m), or 71.36 (4) fails to provide the
14schedule by the due date, including any extension, or provides an incorrect or
15incomplete schedule, the person is subject to a $50 penalty for each violation, except
16that the department shall waive the penalty if the person shows the department that
17a violation resulted from a reasonable cause and not from willful neglect.
AB75-ASA1, s. 1802 18Section 1802. 71.83 (3) of the statutes is renumbered 71.83 (3) (a) and
19amended to read:
AB75-ASA1,980,1220 71.83 (3) (a) If any person required under this chapter to file an income or
21franchise tax return fails to file a return within the time prescribed by law, or as
22extended under s. 71.03 (7), 71.24 (7) or 71.44 (3), unless the return is filed under such
23an extension but the person fails to file a copy of the extension that is granted by or
24requested of the internal revenue service, the department shall add to the tax of the
25person $30 in the case of corporations and in the case of persons other than

1corporations $2 when the total normal income tax of the person is less than $10, $3
2when the tax is $10 or more but less than $20, $5 when the tax is $20 or more, except
3that $30 shall be added to the tax if the return is 60 or more days late
$50 to the
4person's tax if the return is filed under subch. I of this chapter or $150 to the person's
5tax if the return is filed under subch. IV or VII of this chapter
. If no tax is assessed
6against any such person the amount of this fee shall be collected as income or
7franchise taxes are collected. If any person who is required under s. 71.65 (3) to file
8a withholding report and deposit withheld taxes fails timely to do so; unless the
9person so required dies or the failure is due to a reasonable cause and not due to
10neglect; the department of revenue shall add $30 $50 to the amount due except that
11if the person is subject to taxation under subch. IV or VII of this chapter the
12department shall add $150 to the amount due
.
AB75-ASA1, s. 1803 13Section 1803. 71.83 (3) (b) of the statutes is created to read:
AB75-ASA1,980,1514 71.83 (3) (b) A partnership that fails to file a statement under s. 71.20 (1) by
15the due date, including any extension, is subject to a $50 fee.
AB75-ASA1, s. 1804 16Section 1804. 71.91 (8) of the statutes is created to read:
AB75-ASA1,980,1817 71.91 (8) Financial record matching program. (a) Definitions. In this
18subsection:
AB75-ASA1,980,2119 1. "Account" means a demand deposit account, checking account, negotiable
20withdrawal order account, savings account, time deposit account, or money market
21mutual fund account.
AB75-ASA1,980,2222 2. "Department" means the department of revenue.
AB75-ASA1,980,2323 3. "Financial institution" has the meaning given in s. 49.853 (1) (c).
AB75-ASA1,980,2424 4. "Ownership interest" has the meaning specified by the department by rule.
AB75-ASA1,981,5
15. "Person" includes any individual, firm, partnership, limited liability
2company, joint venture, joint stock company, association, public or private
3corporation, estate, trust, receiver, personal representative, and other fiduciary, and
4the owner of a single-owner entity that is disregarded as a separate entity under this
5chapter.
AB75-ASA1,981,156 (b) Matching program agreements. The department shall promulgate rules
7specifying procedures under which the department shall enter into agreements with
8financial institutions doing business in this state to operate the financial record
9matching program under this subsection. The information required under par. (c)
10shall be provided by electronic data exchange in the manner specified by the
11department by rule or by agreement between the department and the financial
12institution. If the financial institution requests reimbursement, the department
13shall reimburse a financial institution for costs associated with participating in the
14financial record matching program under this subsection in an amount not to exceed
15$125 for each calendar quarter that the institution participates in the program.
AB75-ASA1,982,216 (c) Financial institution matching. The department shall provide to the
17financial institution, with which it has an agreement under par. (b) at least quarterly,
18the names and social security numbers or federal employer identification numbers
19of delinquent debtors. The financial institution shall match this information against
20all accounts maintained at the financial institution. The financial institution shall
21notify the department of the name, social security or federal employer identification
22number, address, account number, account type, and account balance of any person
23with ownership interest in any account that matches any name or number provided
24by the department. The notice shall be provided in a manner specified by the

1department by rule or by agreement between the department and the financial
2institution.
AB75-ASA1,982,103 (e) Confidentiality. A financial institution participating in the financial
4institution matching program under this subsection and the employees, agents,
5officers, and directors of the financial institution, may use any information provided
6by the department only for the purpose of administering this subsection and shall
7be subject to the confidentiality provisions of ss. 71.78 (1) and 77.61 (5) (a). Any
8person violating this paragraph may be fined not less than $25 nor more than $500,
9or imprisoned in the county jail for not less than 10 days nor more than one year or
10both.
AB75-ASA1,982,1411 (f) Financial institution liability. A financial institution that provides
12information under par. (c) is not liable to any person for disclosing information to the
13department under this subsection or for any other action that the financial
14institution takes in good faith to comply with this subsection.
AB75-ASA1,982,2215 (g) Penalty. A financial institution that fails to provide any information
16required under par. (c) within 120 days from either the date that the information is
17due or from the date that the department requests the information may be subject
18to a $100 penalty for each occurrence of the financial institution's failure to provide
19account information about an account holder. The department may commence civil
20proceedings to enforce this subsection if a financial institution fails to provide any
21information required under par. (c) after 120 days from either the date that the
22information is due or from the date that the department requests the information.
AB75-ASA1, s. 1805 23Section 1805. 71.93 (1) (a) 8. of the statutes is created to read:
AB75-ASA1,983,324 71.93 (1) (a) 8. Any amount owed to a state agency and collected pursuant to
25a written agreement between the department of revenue and the state agency as

1provided under sub. (8) (b), if the debt has been reduced to a judgment or if the state
2agency or the department has provided the debtor reasonable notice and an
3opportunity to be heard with regard to the amount owed.
AB75-ASA1, s. 1806 4Section 1806. 71.93 (3) (a) of the statutes is amended to read:
AB75-ASA1,983,185 71.93 (3) (a) In administering this section the department shall first check with
6the state agency certifying the debt to determine whether the debt has been collected
7by other means. If the debt remains uncollected the
The department of revenue shall
8setoff any debt or other amount owed to the department, regardless of the origin of
9the debt or of the amount, its nature or its date. If after the setoff there remains a
10refund in excess of $10, the department shall set off the remaining refund against
11certified debts of other state agencies. If more than one certified debt exists for any
12debtor, the refund shall be first set off against the earliest debt certified, except that
13no child support or spousal support obligation submitted by an agency of another
14state may be set off until all debts owed to and certified by state agencies of this state
15have been set off. When all debts have been satisfied, any remaining refund shall
16be refunded to the debtor by the department. Any legal action contesting a setoff
17under this paragraph shall be brought against the state agency that certified the
18debt under sub. (2).
AB75-ASA1, s. 1807 19Section 1807. 71.93 (8) of the statutes is renumbered 71.93 (8) (a).
AB75-ASA1, s. 1808 20Section 1808. 71.93 (8) (b) of the statutes is created to read:
AB75-ASA1,984,921 71.93 (8) (b) 1. Except as provided in subd. 2., a state agency and the
22department of revenue shall enter into a written agreement to have the department
23collect any amount owed to the state agency that is more than 90 days past due,
24unless negotiations between the agency and debtor are actively ongoing, the debt is
25the subject of legal action or administrative proceedings, or the agency determines

1that the debtor is adhering to an acceptable payment arrangement. At least 30 days
2before the department pursues the collection of any debt referred by a state agency,
3either the department or the agency shall provide the debtor with a written notice
4that the debt will be referred to the department for collection. The department may
5collect amounts owed, pursuant to the written agreement, from the debtor in
6addition to offsetting the amounts as provided under sub. (3). The department shall
7charge each debtor whose debt is subject to collection under this paragraph an
8amount for administrative expenses and that amount shall be credited to the
9appropriation under s. 20.566 (1) (h).
AB75-ASA1,984,1210 2. The department may enter into agreements described under subd. 1. with
11the courts, the legislature, authorities, as defined in s. 16.41 (4), and local units of
12government.
AB75-ASA1,984,1413 3. Agreements required under subd. 1. shall be completed no later than July
141, 2010, except that an agreement may allow a delay or phase-in of referrals.
Loading...
Loading...