LRB-2000/2
MES:jlg:jf
1999 - 2000 LEGISLATURE
May 18, 1999 - Introduced by Senators Plache, Panzer, Wirch, Darling, Zien and
Roessler, cosponsored by Representatives F. Lasee, Bock, Olsen, Young,
Gunderson, Turner, Musser, Miller, Huber, Boyle, Lassa and J. Lehman.
Referred to Committee on Economic Development, Housing and Government
Operations.
SB161,1,3
1An Act to amend 71.92 (3) of the statutes;
relating to: authorizing payment
2schedules for delinquent taxpayers who enter into a compromise with the
3department of revenue.
Analysis by the Legislative Reference Bureau
Under current law, any taxpayer may petition the department of revenue
(DOR) to compromise delinquent income or franchise taxes, including any applicable
costs, penalties and interest. The petition must contain a sworn statement of the
taxpayer, and DOR may examine the taxpayer under oath regarding the matter. If
DOR determines that the taxpayer is unable to pay in full the amount due, based on
an examination of the taxpayer's financial statements and any other information
required by DOR, DOR is required to determine the amount that the taxpayer is able
to pay. DOR is then required to enter an order reducing the taxes, costs, penalties
and interest due in accordance with its determination. The compromise is effective
only if it is paid within ten days.
If within three years of the date of a compromise DOR determines that the
taxpayer has an income or property sufficient to enable the taxpayer to pay the
remainder of the tax, including costs, penalties and interest, DOR must reopen the
matter and order the payment in full of such taxes, costs, penalties and interest.
Before entering the order, however, DOR must provide the taxpayer with written
notice advising the taxpayer of DOR's intention and fixing a time and place for the
taxpayer to appear if the taxpayer desires a hearing. After entering the order, DOR
is required to make a record of the principal amount of the taxes, and penalties, costs
and interest, that are ordered to be paid and such taxes are immediately due, payable
and subject to interest.
Under the bill, a compromise is effective if it is paid, in a lump sum, within ten
days of the compromise or, a compromise is effective if it is paid within one year of
the compromise if DOR agrees to a payment schedule. Also under the bill, DOR must
reopen the matter within three years of the date of the final payment under a
payment schedule and order full payment from the taxpayer if DOR determines that
the taxpayer is able to pay the remainder of the tax and other costs.
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:
SB161, s. 1
1Section
1. 71.92 (3) of the statutes is amended to read:
SB161,3,152
71.92
(3) Any taxpayer may petition the department of revenue to compromise
3his or her delinquent income or franchise taxes including the costs, penalties and
4interest.
Such The petition shall set forth a sworn statement of the taxpayer and
5shall be in
such a form
as that the department
shall prescribe prescribes and the
6department may examine the petitioner under oath concerning the matter. If the
7department finds that the taxpayer is unable to pay the taxes, costs, penalties and
8interest in full it shall determine the amount the taxpayer is able to pay and shall
9enter an order reducing such taxes, costs, penalties and interest in accordance with
10such the determination.
Such The order shall provide that
such the compromise
11shall be, if paid in a lump sum, is effective only if paid within 10 days
or the order
12shall provide that the compromise is effective if paid within one year if the
13department agrees to set up a payment schedule. The department or its collection
14agents upon receipt of
such the order shall accept payment in accordance with the
15order. Upon payment
of the total amount due under the order, the department shall
16credit the unpaid portion of the principal amount of such taxes and make appropriate
17record of the unpaid amount of penalties, costs, and interest accrued to the date of
1such the order. If within 3 years of the date of
such the compromise order
or the date
2of a final payment under a payment schedule, whichever is later, the department
3shall ascertains ascertains that the taxpayer has an income or property sufficient to
4enable the taxpayer to pay the remainder of the tax including costs, penalty and
5interest the department shall reopen
said the matter and order the payment in full
6of such taxes, costs, penalties and interest. Before the entry of
such the order a notice
7shall be given to the taxpayer in writing advising of the intention of the department
8of revenue to reopen
such the matter and fixing a time and place for the appearance
9of the taxpayer if the taxpayer desires a hearing. Upon entry of
such the order the
10department of revenue shall make an appropriate record of the principal amount of
11such the taxes, penalties, costs and interest ordered to be paid and such taxes shall
12be immediately due and payable and shall thereafter be subject to the interest
13provided by s. 71.82 (2), and the department shall immediately proceed to collect the
14same together with the unpaid portion of penalty, costs, and interest accrued to the
15date of the compromise order.
