Amendment ASA1-AB40

AB40-ASA1,1440d Section 1440d. 71.80 (13) of the statutes is repealed.

AB40-ASA1,1440e Section 1440e. 71.82 (1) (b) of the statutes is amended to read:

AB40-ASA1,837,14 71.82 (1) (b) Except as otherwise specifically provided, in crediting overpayments of income and surtaxes against underpayments or against taxes to be subsequently collected and in certifying refunds of such taxes interest shall be added at the rate of 9% 3 percent per year from the date on which such taxes when assessed would have become delinquent if unpaid to the date on which such overpayment was certified for refund except that if any overpayment of tax is certified for refund within 90 days after the last date prescribed for filing the return of such tax or 90 days after the date of actual filing of the return of such tax, whichever occurs later, no interest shall be allowed on such overpayment. For purposes of this section the return of such tax shall not be deemed actually filed by an employee unless and until the employee has included the written statement required to be filed under s. 71.65 (1). However when any part of a tax paid on an estimate of income, whether paid in connection with a tentative return or not, is refunded or credited to a taxpayer, such refund or credit shall not draw interest.

AB40-ASA1,1441 Section 1441. 71.83 (1) (a) 11. of the statutes is created to read:

AB40-ASA1,837,19 71.83 (1) (a) 11. `Negligently filed claims.' A person who negligently files an incorrect claim for refund of tax, or credits, under this chapter is subject to a penalty of 25 percent of the difference between the amount claimed and the amount that should have been claimed.

AB40-ASA1,1442 Section 1442. 71.83 (1) (b) 7. of the statutes is created to read:

AB40-ASA1,837,24 71.83 (1) (b) 7. `Fraudulently filed claims.' A person who fraudulently files an incorrect claim for refund of tax, or credits, under this chapter is subject to a penalty of 100 percent of the difference between the amount claimed and the amount that should have been claimed.

AB40-ASA1,1443 Section 1443. 71.83 (2) (b) 1. of the statutes is amended to read:

AB40-ASA1,838,9 71.83 (2) (b) 1. `False income tax return; fraud.' Any person, other than a corporation or limited liability company, who renders a false or fraudulent income tax return with intent to defeat or evade any assessment required by this chapter, or to obtain a refund or credit with fraudulent intent, is guilty of a Class H felony and may be assessed the cost of prosecution. In this subdivision, "return" includes a separate return filed by a spouse with respect to a taxable year for which a joint return is filed under s. 71.03 (2) (g) to (L) after the filing of that separate return, and a joint return filed by the spouses with respect to a taxable year for which a separate return is filed under s. 71.03 (2) (m) after the filing of that joint return.

AB40-ASA1,1444 Section 1444. 71.83 (5) of the statutes is created to read:

AB40-ASA1,838,12 71.83 (5) Ineligibility to claim certain credits. (a) Definitions. In this subsection:

AB40-ASA1,838,15 1. "Credit" means the earned income tax credit under s. 71.07 (9e), the homestead credit under subch. VIII, the farmland preservation credit under subch. IX, or any refundable credit under s. 71.07, 71.28, or 71.47.

AB40-ASA1,838,17 2. "Fraudulent claim" means a claim for a credit, filed by a person, that is false or excessive and filed with fraudulent intent, as determined by the department.

AB40-ASA1,838,20 3. "Reckless claim" means a claim for a credit, filed by a person, that is improper, due to reckless or intentional disregard of the provisions in this chapter or of rules and regulations of the department, as determined by the department.

AB40-ASA1,838,24 (b) Disallowance period. 1. A person who files a fraudulent claim may not file a claim for a credit for 10 successive taxable years, beginning with the taxable year that begins immediately after the taxable year for which the department determined that the person filed a fraudulent claim.

AB40-ASA1,839,4 2. A person who files a reckless claim may not file a claim for a credit for 2 successive taxable years, beginning with the taxable year that begins immediately after the taxable year for which the department determined that the person filed a reckless claim.

AB40-ASA1,839,8 (c) Reinstatement. After the period described under par. (b) during which a person may not file a claim for a credit, the person may file a claim for a credit, subject to any requirements that the department may impose on the person to demonstrate that the person is eligible to claim the credit.

AB40-ASA1,1444d Section 1444d. 71.90 (1) of the statutes is amended to read:

AB40-ASA1,839,25 71.90 (1) Deposit. The department shall notify any person who files a petition for redetermination that the person may deposit the amount of an additional assessment, including any interest or penalty, with the department, or with a person that the department prescribes, at any time before the department makes its redetermination. The department shall notify spouses jointly except that, if the spouses have different addresses and if either spouse notifies the department in writing of those addresses, the department shall serve a duplicate of the original notice on the spouse who has the address other than the address to which the original notice was sent. Amounts deposited under this subsection shall be subject to the interest provided by s. 71.82 only to the extent of the interest accrued prior to the first day of the month succeeding the date of deposit. Any deposited amount which is refunded shall bear interest at the rate of 9% 3 percent per year during the time the funds were on deposit. A person may also pay any portion of an assessment which is admitted to be correct and the payment shall be considered an admission of the validity of that portion of the assessment and may not be recovered in an appeal or in any other action or proceeding.

AB40-ASA1,1445 Section 1445. 71.91 (6) (a) 1. of the statutes is renumbered 71.91 (6) (a) 1g.

AB40-ASA1,1446 Section 1446. 71.91 (6) (a) 1d. of the statutes is created to read:

AB40-ASA1,840,5 71.91 (6) (a) 1d. "Continuous levy" means a levy that is in effect from the date on which it is served on a 3rd party until the liability out of which the levy arose is satisfied or until the levy is released, whichever occurs first.

AB40-ASA1,1447 Section 1447. 71.91 (6) (a) 2n. of the statutes is created to read:

AB40-ASA1,840,8 71.91 (6) (a) 2n. "Noncontinuous levy" means a levy that is in effect on the date on which it is served on a 3rd party.

AB40-ASA1,1448 Section 1448. 71.91 (6) (b) of the statutes is amended to read:

AB40-ASA1,840,20 71.91 (6) (b) Powers of levy and distraint. If any person who is liable for any tax administered by the department neglects or refuses to pay that tax within 10 days after that tax becomes delinquent, the department may collect that tax and the expenses of the levy by levy upon, and sale of, any property belonging to that person or any property on which there is a lien as provided by sub. (4) in respect to that delinquent tax. Whenever any property that has been levied upon under this section is not sufficient to satisfy the claim of the department, the department may levy upon any other property liable to levy of the person against whom that claim exists until the taxes and expenses of the levy are fully paid. A levy imposed under this paragraph may be continuous or noncontinuous, except that a levy on commissions, wages, or salaries is continuous until the liability out of which it arose is satisfied.

AB40-ASA1,1449 Section 1449. 71.91 (6) (f) 1. of the statutes is amended to read:

AB40-ASA1,841,7 71.91 (6) (f) 1. As soon as practicable after obtaining property, the department shall notify, in writing the manner prescribed by the department, the owner of any real or personal property, and, at the possessor's request, the possessor of any personal property, obtained by the department under this subsection. That notice may be left at the person's usual place of residence or business. If the owner cannot be located or has no dwelling or place of business in this state, or if the property is obtained as a result of a continuous levy on commissions, wages or salaries, the department may mail a notice to the owner's last-known address. That notice shall specify the sum demanded and shall contain, in the case of personal property, an account of the property obtained and, in the case of real property, a description with reasonable certainty of the property seized.

AB40-ASA1,1450 Section 1450. 71.91 (6) (f) 2. of the statutes is amended to read:

AB40-ASA1,841,16 71.91 (6) (f) 2. As soon as practicable after obtaining property, the department shall notify the owner in the manner prescribed under subd. 1. and shall cause a notice of the sale to be published in a newspaper published or generally circulated within the county where the property was obtained. If there is no newspaper published or generally circulated in that county, the department shall post that notice at the city, town or village hall nearest the place where the property was obtained and in at least 2 other public places. That notice shall specify the property to be sold and the time, place, manner and conditions of the sale.

AB40-ASA1,1451 Section 1451. 71.93 (3) (a) of the statutes is renumbered 71.93 (3) (a) (intro.) and amended to read:

AB40-ASA1,841,23 71.93 (3) (a) (intro.) The department of revenue shall setoff any debt or other amount owed to the department, regardless of the origin of the debt or of the amount, its nature or its date. If after the setoff there remains a refund in excess of $10, the department shall set off the remaining refund against certified debts of other state agencies. entities in the following order:

AB40-ASA1,842,6 (am) If more than one certified debt exists for any debtor for the same type of debt specified under par. (a) 1. to 9., the refund shall be first set off against the earliest debt certified, except that no child support or spousal support obligation submitted by an agency of another state may be set off until all debts owed to and certified by state agencies of this state have been set off. When all debts have been satisfied, any remaining refund shall be refunded to the debtor by the department. Any legal action contesting a setoff under this paragraph shall be brought against the state agency entity that certified the debt under sub. (2).

AB40-ASA1,1452 Section 1452. 71.93 (3) (a) 1. to 9. of the statutes are created to read:

AB40-ASA1,842,9 71.93 (3) (a) 1. Debt under s. 49.855 (1), certified by the department of children and families under sub. (2).

AB40-ASA1,842,12 2. State agency debt collected pursuant to an agreement under sub. (8) and debt owed to the courts, the legislature, or an authority, as defined in s. 16.41 (4), collected pursuant to an agreement under sub. (8).

AB40-ASA1,842,14 3. Debt owed to local units of government collected pursuant to an agreement under sub. (8).

AB40-ASA1,842,16 4. Debt certified under sub. (2), other than child support debt certified by the department of children and families.

AB40-ASA1,842,18 5. Child support or spousal support obligations submitted by an agency of another state.

AB40-ASA1,842,19 6. Debt certified under s. 71.935 (2).

AB40-ASA1,842,21 7. Federal tax obligations collected pursuant to an agreement under s. 73.03 (52) (a).

AB40-ASA1,842,22 8. Tribal obligations collected pursuant to an agreement under s. 73.03 (52n).

AB40-ASA1,842,24 9. Tax and nontax obligations of other states, and of the local governmental units within those states, collected pursuant to an agreement under s. 73.03 (52m).

AB40-ASA1,1453 Section 1453. 71.93 (8) (b) 6. of the statutes is amended to read:

AB40-ASA1,843,6 71.93 (8) (b) 6. If the debtor owes debt to the department and to other entities, payments shall first apply to debts owed to the department, then to the state agencies, the courts, the legislature, and authorities, as defined in s. 16.41 (4), in the order in which the debts were referred to the department, and then to local units of government in the order in which the debts were referred to the department other entities in the order determined under sub. (3) (a).

AB40-ASA1,1453d Section 1453d. 71.98 (3) of the statutes is created to read:

AB40-ASA1,843,11 71.98 (3) Depreciation, depletion, and amortization. For taxable years beginning after December 31, 2013, and for purposes of computing depreciation, depletion, and amortization, the Internal Revenue Code means the federal Internal Revenue Code in effect on January 1, 2014.

AB40-ASA1,1453dm Section 1453dm. 71.98 (4) of the statutes is created to read:

AB40-ASA1,843,17 71.98 (4) Expensing of depreciable business assets. For taxable years beginning after December 31, 2013, sections 179, 179A, 179B, 179C, 179D, and 179E of the Internal Revenue Code and related to expensing of depreciable business assets. For purposes of this subsection, the Internal Revenue Code means the federal Internal Revenue Code in effect for the year in which property is placed in service.

AB40-ASA1,1453e Section 1453e. 71.98 (5) of the statutes is created to read:

AB40-ASA1,843,21 71.98 (5) Gain from small business stock. For stock acquired after December 31, 2013, section 1202 of the Internal Revenue Code, as amended to December 31, 2012, related to the exclusion for gain from certain small business stock.

AB40-ASA1,1453f Section 1453f. 72.36 of the statutes is created to read:

AB40-ASA1,843,25 72.36 Sunset. The tax imposed under this chapter does not apply to deaths occurring after December 31, 2012, unless the federal estate tax law is modified to provide a federal estate tax credit for state death taxes.

AB40-ASA1,1454 Section 1454. 73.03 (27) of the statutes is amended to read:

AB40-ASA1,844,7 73.03 (27) To With regard to taxes and fees administered by the department, to write off from the records of the department income, franchise, sales, use, withholding, motor fuel, gift, beverage and cigarette tax, fee, and economic development surcharge liabilities, following a determination by the secretary of revenue that they are not collectible. Taxes written off under this subsection remain legal obligations.

AB40-ASA1,1455 Section 1455. 73.03 (52) (a) of the statutes is amended to read:

AB40-ASA1,844,14 73.03 (52) (a) To enter into agreements with the Internal Revenue Service that provide for offsetting state tax refunds against federal tax obligations; and to charge a fee up to $25 per transaction for such offsets; and offsetting federal tax refunds against state tax obligations, and collecting the offset cost from the debtor, if the agreements provide that setoffs under ss. 71.93 and 71.935 occur before the setoffs under those agreements.

AB40-ASA1,1456 Section 1456. 73.03 (52m) of the statutes is amended to read:

AB40-ASA1,844,20 73.03 (52m) To enter into agreements with other states that provide for offsetting state tax refunds against tax and nontax obligations of other states, and of the local governmental units within those states, and offsetting tax refunds of other states against state tax and nontax obligations, if the agreements provide that setoffs under ss. 71.93 and 71.935 occur before the setoffs under those agreements.

AB40-ASA1,1457 Section 1457. 73.03 (63) of the statutes is amended to read:

AB40-ASA1,845,6 73.03 (63) Notwithstanding the amount limitations specified under s. 71.07 (5d) (c) 1. and s. 238.15 (3) (d) or s. 560.205 (3) (d), 2009 stats., or s. 238.15 (3) (d), in consultation with the department of commerce or the Wisconsin Economic Development Corporation, to carry forward to subsequent taxable years unclaimed credit amounts of the early stage seed investment credits under ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638 and the angel investment credit under s. 71.07 (5d). Annually, no later than July 1, the department of commerce or the Wisconsin Economic Development Corporation shall submit to the department of revenue its recommendations for the carry forward of credit amounts as provided under this subsection.

AB40-ASA1,1458 Section 1458. 73.03 (66) of the statutes is repealed.

AB40-ASA1,1459 Section 1459. 73.03 (69) of the statutes is created to read:

AB40-ASA1,845,12 73.03 (69) (a) To, effective on January 1, 2014, implement a program to register businesses for purposes of s. 71.05 (25) and (26). A business shall register electronically with the department each year for which the business desires registration.

AB40-ASA1,845,15 (b) A business may register under this subsection if, in the business's taxable year ending immediately before the date of the businesses registration, all of the following apply:

AB40-ASA1,845,18 1. The business has at least 2 full-time employees and the amount of payroll compensation paid by the business in this state is equal to at least 50 percent of the amount of all payroll compensation paid by the business.

AB40-ASA1,845,21 2. The value of real and tangible personal property owned or rented and used by the business in this state is equal to at least 50 percent of the value of all real and tangible personal property owned or rented and used by the business.

AB40-ASA1,845,22 (c) The department may adopt rules for the administration of this subsection.

AB40-ASA1,845,25 (d) For each year beginning after December 31, 2013, the department shall compile a list of businesses registered under this subsection and shall make the list available to the public at the department's Internet site.

AB40-ASA1,1460d Section 1460d. 73.03 (71) of the statutes is created to read:

AB40-ASA1,846,8 73.03 (71) (a) To determine the amount of additional revenue that the department collected from the taxes imposed under subch. III of ch. 77 as a result of any federal law to expand the state's authority to require out-of-state retailers to collect and remit the taxes imposed under subch. III of ch. 77 on purchases by Wisconsin residents during the first 12 months following the date on which the department begins collecting the additional revenue as a result of a change in federal law.

AB40-ASA1,846,16 (b) After the department makes the determination under par. (a), the department shall determine how much the individual income tax rates under s. 71.06 may be reduced in the following taxable year in order to eliminate the alternative minimum tax under s. 71.08 and decrease individual income tax revenue by the amount determined under par. (a). For purposes of this paragraph, the department shall calculate the tax rate reductions in proportion to the share of gross tax attributable to each of the tax brackets under s. 71.06 in effect during the most recently completed taxable year.

AB40-ASA1,846,21 (c) The department shall certify the determinations made under pars. (a) and (b) to the secretary of the department of administration, to the governor, and to the legislature and specify with that certification that the elimination of the alternative minimum tax and the new tax rates take effect in the taxable year following the taxable year in which the department makes the certification under this paragraph.

AB40-ASA1,1461 Section 1461. 73.0301 (1) (d) 6. of the statutes is amended to read:

AB40-ASA1,847,2 73.0301 (1) (d) 6. A license or certificate of registration issued by the department of financial institutions, or a division of it, under ss. 138.09, 138.12, 138.14, 202.12 to 202.14, 202.22, 217.06, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72, 224.725, 224.93 or under subch. IV of ch. 551.

AB40-ASA1,1462 Section 1462. 73.0301 (1) (d) 6m. of the statutes is created to read:

AB40-ASA1,847,4 73.0301 (1) (d) 6m. A certificate or registration issued under 168.23 (3).

AB40-ASA1,1462n Section 1462n. 73.0301 (1) (d) 12. of the statutes is amended to read:

AB40-ASA1,847,8 73.0301 (1) (d) 12. A license issued under s. 628.04, 628.92 (1), 632.69 (2), or 633.14, a registration under s. 628.92 (2), or a temporary license issued under s. 628.09.

AB40-ASA1,1463 Section 1463. 73.0301 (1) (e) of the statutes is amended to read:

AB40-ASA1,847,17 73.0301 (1) (e) "Licensing department" means the department of administration; the department of agriculture, trade and consumer protection; the board of commissioners of public lands; the department of children and families; the government accountability board; the department of financial institutions; the department of health services; the department of natural resources; the department of public instruction; the department of safety and professional services; the department of workforce development; the office of the commissioner of insurance; or the department of transportation.

AB40-ASA1,1464 Section 1464. 73.16 (1) (a) of the statutes is repealed.

AB40-ASA1,1465 Section 1465. 73.16 (1) (ab) of the statutes is created to read:

AB40-ASA1,847,20 73.16 (1) (ab) "Combined group" has the meaning given in s. 71.255 (1) (a).

AB40-ASA1,1466 Section 1466. 73.16 (3) of the statutes is created to read:

AB40-ASA1,848,2 73.16 (3) Relying on past audits. (a) A person who is subject to an audit determination by the department, including all other members of that person's combined group for purposes of determining the tax due under s. 71.23 for taxable years beginning after December 31, 2008, shall not be liable for any amount that the department asserts that the person owes if all of the following conditions are satisfied:

AB40-ASA1,848,6 1. The liability asserted by the department is the result of a tax issue during the period associated with a prior audit determination for which the person is subject to and the tax issue is the same as the tax issue during the period associated with the current audit determination.

AB40-ASA1,848,12 2. A department employee who was involved in the prior audit determination identified or reviewed the tax issue before completing the prior audit determination, as shown by any schedules, exhibits, audit reports, documents, or other written evidence pertaining to the audit determination, and the schedules, exhibits, reports, documents and other written evidence show that the department did not adjust the person's treatment of the tax issue.

AB40-ASA1,848,14 3. The liability asserted by the department as described under subd. 1. was not asserted in the prior audit determination.