LRB-3384/1
JTK:jrd:ks
1995 - 1996 LEGISLATURE
April 19, 1995 - Introduced by Senator Leean, cosponsored by Representative
Brancel. Referred to Committee on Finance.
SB148,1,2
1An Act relating to: the expenditure of $24,795.42 from the general fund for
2payment of a claim against the state made by Mary Johnson.
Analysis by the Legislative Reference Bureau
This bill directs expenditure of $24,795.42 from the general fund in payment
of a claim made by Mary Johnson against the department of revenue (DOR). The
claimant's husband, Floyd Johnson, failed to file income tax returns for taxable years
1985 to 1988. Pursuant to s. 71.74 (3), stats., DOR then served notices of estimated
tax liability for those years upon Mr. Johnson and assessed him for that liability. Mr.
Johnson paid some of the amounts assessed, but failed to pay other amounts, and did
not file returns stating the actual amounts of his income and taxes owed for those
years. DOR issued a warrant to levy upon and sell Mr. Johnson's residence to satisfy
the unpaid assessments, together with interest and costs assessed under s. 71.91 (5)
(d), stats. Based upon a reconstruction of Mr. Johnson's income for those years
performed by the internal revenue service, the claimant estimated that Mr. Johnson
overpaid his state income taxes for those years by $47,090.80. In addition, the
claimant alleges that Mr. Johnson was improperly charged $2,457 in interest on
taxes that were not due, and $43 in costs. Under s. 71.75 (5), stats., a taxpayer may
claim a refund for all or part of a credit issued to the taxpayer as a result of an
excessive assessment, together with interest and penalties, within 2 years of the date
of the assessment. Under s. 71.80 (3), stats., within 2 years after an overpayment
of taxes is credited to a taxpayer, a nonobligated spouse of the taxpayer may submit
to DOR evidence that all or part of the credit was derived from nonmarital property
of the nonobligated spouse, and DOR may thereupon pay the amount claimed to the
nonobligated spouse. Neither Mr. Johnson nor the claimant submitted claims to
DOR. The claims board recommended payment of 50% of the amount claimed to the
claimant ($24,795.42) based on equitable principles. See 1993 Senate Journal, p.
514.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB148,2,11
2(1) There is directed to be expended from the appropriation under section
320.505 (4) (d) of the statutes, as affected by the acts of 1993 and 1995, $24,795.42 in
4payment of a claim against the state made by Mary Johnson, Milwaukee, Wisconsin,
5to compensate her for income tax overpayments that were made by her husband, or
6that were obtained by levy against her husband's property, for taxable years 1985 to
71988, together with interest and costs. Acceptance of this payment releases this
8state, its officers, employes and agents from any further liability to the claimant
9resulting from overpayments of income taxes, and interest and costs assessed to
10collect the overpayments, by the claimant's husband, Mr. Floyd Johnson, for taxable
11years 1985 to 1988.
