AB775: Bill Text

AB775,9,15 71.74 (2) (b) For the purpose of ascertaining the correctness of any return or for the purpose of making a determination of the taxable income of any person, the department may examine or cause to be examined by any agent or representative designated by it, any books, papers, records or memoranda bearing on the income of the person, and may require the production of the books, papers, records or memoranda, and require the attendance of any person having knowledge in the premises, and may take testimony and require proof material for its information. The department may determine any person's liability for a tax under this chapter on the basis of sampling, whether or not the person being audited has complete records of transactions and whether or not the person being audited consents. Upon such information as it may be able to discover, the department shall determine the true amount of income received during the year or years under investigation.

AB775, s. 18 Section 18. 71.77 (8) of the statutes is amended to read:

AB775,9,21 71.77 (8) For purposes of this section, a return filed before the last day prescribed by law for the filing thereof of the return shall be considered as filed on such last day, and a return filed after the last day prescribed by law shall be considered as filed on the date that the return is received by the department of revenue.

AB775, s. 19 Section 19. 71.83 (1) (a) 1m. of the statutes is created to read:

AB775,9,25 71.83 (1) (a) 1m. `Failure to file information return.' If a person fails to file a return required under subch. XI by the prescribed due date, including any extension, or files an incorrect or incomplete return, that person may be subject to a penalty of $10 for each violation. A penalty shall be waived if the person shows that a violation is due to reasonable cause and not due to wilful neglect.

AB775, s. 20 Section 20. 71.90 (1) of the statutes is amended to read:

AB775,10,18 71.90 (1) Deposit with the department. The department shall notify any person who files a petition for redetermination that the person may deposit the entire amount of an additional the assessment, including any interest or penalty, with the department 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% 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.

AB775, s. 21 Section 21. 71.91 (1) (b) of the statutes is amended to read:

AB775,11,7 71.91 (1) (b) Withholding. Any amount not deposited or paid over to the department within the time required shall be deemed delinquent and deposit reports or withholding reports filed after the due date shall be deemed late. In the case of a timely filed deposit or withholding report, withheld taxes shall become delinquent if not deposited or paid over on or before the due date of the report. In the case of no report filed or a report filed late, withheld taxes shall become delinquent if not deposited or paid over by the due date of the report. In the case of an assessment under s. 71.83 (1) (b) 2., the amount assessed shall become delinquent if not paid on or before the first day of the calendar month following the calendar month in which the assessment becomes final due date specified in the notice of deficiency, but if the assessment is contested before the tax appeals commission or in the courts, it shall become delinquent on the 30th day following the date on which the order or judgment representing final determination becomes final.

AB775, s. 22 Section 22. 71.91 (7) (b) of the statutes is amended to read:

AB775,12,11 71.91 (7) (b) The department may give notice to any employer deriving income having a taxable situs in this state (regardless of whether any such income is exempt from taxation) to the effect that an employe of such employer is delinquent in a certain amount with respect to state taxes, including penalties, interest and costs. Such notice may be served by certified mail, or by delivery by an employe of the department of revenue. Upon receipt of such notice of delinquency, the employer shall withhold from compensation due, or to become due to the employe, the total amount shown by the notice. The department may arrange between direct the employer and the employe for a withholding of an amount not less than 10% of the total to withhold part of the amount due the employe each pay period, until the total amount as shown by the notice, plus interest, has been withheld. The employer shall may not withhold more than 25% of the compensation due any employe for any one pay period, except that, if the employe leaves the employ of the employer or gives notice of his or her intention to do so, or is discharged for any reason, the employer shall withhold the entire amount otherwise payable to such employe, or so much thereof as may be necessary to equal the unwithheld balance of the amount shown in the notice of delinquency, plus delinquent interest. In crediting amounts withheld against delinquent taxes of an employe, the department shall apply amounts withheld in the following order: costs, penalties, delinquent interest, delinquent tax. The "compensation due" any employe for purposes of determining the 25% maximum withholding for any one pay period shall include all wages, salaries and fees constituting income, including wages, salaries, income advances or other consideration paid for future services, when paid to an employe, less amounts payable pursuant to a garnishment action with respect to which the employer was served prior to being served with the notice of delinquency and any amounts covered by any irrevocable and previously effective assignment of wages, of which amounts and the facts relating to such assignment the employer shall give notice to the department within 10 days after service of the notice of delinquency.

AB775, s. 23 Section 23. 71.91 (7) (d) of the statutes is amended to read:

AB775,13,3 71.91 (7) (d) The employer shall, on or before the last day of the next month after every calendar quarter the month during which an amount was withheld, remit to the department the that amount withheld during the calendar quarter. Any amount withheld from an employe by an employer shall immediately be a trust fund for this state. Should any employer, after notice, wilfully fail to withhold in accordance with the notice and this subsection, or wilfully fail to remit any amount withheld, as required by this subsection, such employer shall be liable for the total amount set forth in the notice together with delinquent interest as though the amount shown by the notice was due by such employer as a direct obligation to the state for delinquent taxes, and may be collected by any means provided by law including the means provided for the collection of delinquent income or franchise taxes. However, no amount required to be paid by an employer by reason of his or her failure to remit under this subsection paragraph may be deducted from the gross income of such employer. Any amount collected from the employer for failure to withhold or for failure to remit under this subsection shall be credited as tax, costs, penalties and interest paid by the employe.

AB775, s. 24 Section 24. 71.91 (7) (h) of the statutes is amended to read:

AB775,13,11 71.91 (7) (h) The department may, by written notice served personally or by mail, require any employer, as defined in s. 71.63 (3), to withhold from the compensation due or to become due to any entertainer or entertainment corporation the amount of any delinquent state taxes, including costs, penalties and interest, shown by the notice. The employer shall send the money withheld to the department when the department specifies on or before the last day of the month after the month during which an amount was withheld.

AB775, s. 25 Section 25. 77.53 (9g) of the statutes is created to read:

AB775,13,18 77.53 (9g) Every person who is not required to register under sub. (9) or under s. 77.52 (7) and who incurs at least $300 in use tax liability during the year or, if that person files franchise or income tax returns on a fiscal year basis, during that person's fiscal year shall register with the department within 60 days after they incur that amount of liability and shall provide the information that the department requires.

AB775, s. 26 Section 26. 77.60 (2) (c) of the statutes is amended to read:

AB775,13,25 77.60 (2) (c) In the case of deficiency determinations, on or before the first day of the calendar month following the calendar month in which the determination becomes final due date specified in the notice of deficiency, except that if the determination is contested before the tax appeals commission or in the courts, on or before the 30th day following the date on which the order or judgment representing the final determination, becomes final.

AB775, s. 27 Section 27. 78.80 (1) of the statutes is amended to read:

AB775,14,15 78.80 (1) The department, or any deputy, employe or agent appointed in writing, is authorized at any time during the business day to examine the books, records, papers, receipts, invoices, storage tanks and any equipment of any licensee under s. 78.09 or 78.47, broker, dealer, general aviation fuel licensee or other person, purchaser or common carrier, pertaining to motor vehicle fuel, crude petroleum or general aviation fuel or alternate fuels to verify the truth and accuracy of any statement, report or return, or to ascertain whether or not the taxes imposed by this chapter have been paid or to determine the financial responsibility of any licensee for the payment of motor vehicle fuel or general aviation fuel or alternate fuels taxes. The department is further authorized to may redetermine taxes and to may allow credits for overpayments due to error. The department may determine any person's liability for a tax under this chapter on the basis of sampling, whether or not the person being audited has complete records of transactions and whether or not the person being audited consents.

AB775, s. 28 Section 28. Initial applicability.

AB775,14,19 (1) Entertainer wages deduction denial. The treatment of sections 71.26 (3) (e) and 71.34 (1) (h) of the statutes and the creation of section 71.26 (3) (e) 3. of the statutes first apply to taxable years beginning on January 1, 1996.

AB775,14,21 (2) Filing extensions. The treatment of sections 71.24 (7) and 71.44 (3) of the statutes first applies to taxable years beginning on January 1, 1996.

AB775,14,23 (3) Information returns. The treatment of section 71.83 (1) (a) 1m. of the statutes first applies to taxable years beginning on January 1, 1996.

AB775,15,3 (4) Reports of nontaxable income. The treatment of sections 71.24 (1) and 71.44 (1) (a) of the statutes first applies to taxable years beginning on January 1, 1996.

AB775, s. 29 Section 29. Effective dates. This act takes effect on the day after publication, except as follows:

AB775,15,7 (1) Use tax. The treatment of section 77.53 (9g) of the statutes takes effect on the January 1 after publication.

AB775,15,10 (2) Withholding of delinquent taxes The treatment of section 71.91 (7) (b), (d) and (h) of the statutes takes effect on the first day of the 3rd month beginning after publication.

AB775,15,11 (End)