AB482,7,3
171.01 (7n) Notwithstanding sub. (6), a qualified retirement fund for a taxable
2year for federal income tax purposes is a qualified retirement fund for the taxable
3year for purposes of this subchapter.
AB482, s. 5 4Section 5 . 71.03 (6) (a) of the statutes is amended to read:
AB482,7,165 71.03 (6) (a) Reports required under this section shall be made on or before
6April 15, or April 30 if the person files an electronic return, following the close of a
7year referred to in sub. (2) (a), or if such person's fiscal year is other than the calendar
8year then on or before the 15th day, or the last day if the person files an electronic
9return,
of the 4th month following the close of such fiscal year, or if the return is for
10less than a full taxable year on the date applicable for federal income taxes under the
11internal revenue code Internal Revenue Code, to the department of revenue, in the
12manner and form prescribed by the department of revenue, whether notified to do
13so or not. Such persons shall be subject to the same penalties for failure to report as
14those who receive notice. If the taxpayer is unable to make his or her own return,
15the return shall be made by a duly authorized agent or by the guardian or other
16person charged with the care of the person or property of such taxpayer.
AB482, s. 6 17Section 6. 71.03 (7) (d) of the statutes is amended to read:
AB482,7,2418 71.03 (7) (d) For taxable years beginning after December 31, 2002, and before
19January 1, 2005 2007, for persons who served in support of Operation Iraqi Freedom
20or an operation that is a successor to Operation Iraqi Freedom in the United States,
21or for persons who qualify for a federal extension of time to file under 26 USC 7508,
22who served outside the United States because of their participation in Operation
23Iraqi Freedom or an operation that is a successor to Operation Iraqi Freedom in the
24Iraqi Freedom theater of operations.
AB482, s. 7 25Section 7 . 71.03 (8) (b) of the statutes is amended to read:
AB482,8,9
171.03 (8) (b) The final payment of taxes on incomes of persons other than
2corporations who file on a calendar year basis shall be made on or before April 15,
3or April 30 if the person files an electronic return,
following the close of the calendar
4year, except for persons electing to have the department compute their tax under sub.
5(4). If the return of a person other than a corporation is made on the basis of a fiscal
6year, such final payment shall be made on or before the 15th day, or the last day if
7the person files an electronic return,
of the 4th month following the close of such fiscal
8year, except for persons electing to have the department compute their tax under sub.
9(4).
AB482, s. 8 10Section 8. 71.07 (5d) (c) 3. of the statutes is repealed.
AB482, s. 9 11Section 9. 71.10 (6) (a) of the statutes is amended to read:
AB482,8,1712 71.10 (6) (a) Joint returns. Persons filing a joint return are jointly and severally
13liable for the tax, interest, penalties, fees, additions to tax and additional
14assessments under this chapter applicable to the return. A person shall be relieved
15of liability in regard to a joint return in the manner specified in section 6013 (e) 6015
16(a) to (d) and (f)
of the internal revenue code, notwithstanding the amount or
17percentage of the understatement
Internal Revenue Code.
AB482, s. 10 18Section 10. 71.10 (6) (b) of the statutes is amended to read:
AB482,9,419 71.10 (6) (b) Separate returns. A spouse filing a separate return may be
20relieved of liability for the tax, interest, penalties, fees, additions to tax and
21additional assessments under this chapter with regard to unreported marital
22property income
in the manner specified in section 66 (c) of the internal revenue code
23Internal Revenue Code. The department may not apply ch. 766 in assessing a
24taxpayer with respect to marital property income the taxpayer did not report if that
25taxpayer failed to notify the taxpayer's spouse about the amount and nature of the

1income before the due date, including extensions, for filing the return for the taxable
2year in which the income was derived. The department shall include all of that
3marital property income in the gross income of the taxpayer and exclude all of that
4marital property income from the gross income of the taxpayer's spouse.
AB482, s. 11 5Section 11. 71.10 (6) (e) of the statutes is created to read:
AB482,9,106 71.10 (6) (e) Application for relief. A person who seeks relief from liability
7under par. (a) or (b) shall apply for relief with the department, on a form prescribed
8by the department, within 2 years after the date on which the department first
9begins collection activities after the effective date of this paragraph .... [revisor
10inserts date].
AB482, s. 12 11Section 12. 71.10 (6m) (a) of the statutes is amended to read:
AB482,9,2312 71.10 (6m) (a) A formerly married or remarried person filing a return for a
13period during which the person was married may be relieved of liability for the tax,
14interest, penalties, fees, additions to tax and additional assessments under this
15chapter for unreported marital property income from that period as if the person
16were a spouse under section 66 (c) of the internal revenue code Internal Revenue
17Code
. The department may not apply ch. 766 in assessing the former spouse of the
18person with respect to marital property income that the former spouse did not report
19if that former spouse failed to notify the person about the amount and nature of the
20income before the due date, including extensions, for filing the return for the taxable
21year during which the income was derived. The department shall include all of that
22marital property income in the gross income of the former spouse and exclude all of
23that marital property income from the gross income of the person.
AB482, s. 13 24Section 13. 71.10 (6m) (c) of the statutes is created to read:
AB482,10,2
171.10 (6m) (c) A person who seeks relief from liability under par. (a) shall apply
2for relief with the department as provided under sub. (6) (e).
AB482, s. 14 3Section 14. 71.22 (5m) of the statutes is created to read:
AB482,10,64 71.22 (5m) Notwithstanding subs. (4) and (4m), a qualified retirement fund for
5a taxable year for federal income tax purposes is a qualified retirement fund for the
6taxable year for purposes of this subchapter.
AB482, s. 15 7Section 15. 71.34 (1m) of the statutes is created to read:
AB482,10,108 71.34 (1m) Notwithstanding sub. (1g), a qualified retirement fund for a taxable
9year for federal income tax purposes is a qualified retirement fund for the taxable
10year for purposes of this subchapter.
AB482, s. 16 11Section 16. 71.42 (2m) of the statutes is created to read:
AB482,10,1412 71.42 (2m) Notwithstanding sub. (2), a qualified retirement fund for a taxable
13year for federal income tax purposes is a qualified retirement fund for the taxable
14year for purposes of this subchapter.
AB482, s. 17 15Section 17. 71.63 (3) (c) of the statutes is amended to read:
AB482,10,1916 71.63 (3) (c) In regard to a single-owner entity that is disregarded as a separate
17entity under section 7701 of the Internal Revenue Code, the owner, not the entity, is
18an "employer"," except that, if the entity elects to be an employer for federal
19withholding tax purposes, the entity is the employer for purposes of this subchapter
.
AB482, s. 18 20Section 18. 71.65 (3) (h) of the statutes is created to read:
AB482,11,221 71.65 (3) (h) If a single-owner entity that is disregarded as a separate entity
22under section 7701 of the Internal Revenue Code is an employer subject to
23withholding under this subchapter and if the entity does not deduct, withhold,
24report, and deposit the tax as required under this subchapter, the owner of the

1single-owner entity is liable for any tax, interest, and penalties due under this
2subchapter.
AB482, s. 19 3Section 19. 71.65 (5) (a) 1. of the statutes is amended to read:
AB482,11,54 71.65 (5) (a) 1. Thirty days for filing a wage statement under sub. (1) or an
5annual reconciliation report under sub. (3) (a) or (d)
.
AB482, s. 20 6Section 20. 71.80 (18) of the statutes is amended to read:
AB482,11,197 71.80 (18) Timely filing defined. Documents and payments required or
8permitted by this chapter that are mailed shall be considered furnished, reported,
9filed or made on time, if mailed in a properly addressed envelope, with postage duly
10prepaid, which envelope is postmarked, or marked or recorded electronically as
11provided under section 7502 (f) (2) (c) of the Internal Revenue Code,
before midnight
12of the date prescribed for such furnishing, reporting, filing or making, provided such
13document or payment is actually received by the department or at the destination
14that the department or the department of administration prescribes within 5 days
15of such prescribed date. Documents and payments that are not mailed are timely if
16they are received on or before the due date by the department or at the destination
17that the department or the department of administration prescribes. For purposes
18of this subsection, "mailed" includes delivery by a delivery service designated under
19section 7502 (f) of the Internal Revenue Code.
AB482, s. 21 20Section 21. 71.88 (2) (b) of the statutes is amended to read:
AB482,12,521 71.88 (2) (b) Appeal of department's redetermination of credits. Any person
22aggrieved by the department of revenue's redetermination of a credit under s. 71.07
23(3m) or, (6), or (9e), 71.28 (1) or (2m) or 71.47 (1) or (2m) or subch. VIII or IX, except
24when the denial is based upon late filing of claim for credit or is based upon a
25redetermination under s. 71.55 (8) of rent constituting property taxes accrued as at

1arm's length, may appeal the redetermination to the tax appeals commission by
2filing a petition with the commission within 60 days after the redetermination, as
3provided under s. 73.01 (5) with respect to income or franchise tax cases, and review
4of the commission's decision may be had under s. 73.015. For appeals brought under
5this paragraph, the filing fee required under s. 73.01 (5) (a) does not apply.
AB482, s. 22 6Section 22. 72.23 of the statutes is renumbered 72.23 (1).
AB482, s. 23 7Section 23. 72.23 (2) of the statutes is created to read:
AB482,12,118 72.23 (2) The department or circuit court may waive interest on any additional
9tax arising from the discovery of property omitted in the inventory of total assets or
10in the original tax determination, if due diligence was exercised in determining the
11assets.
AB482, s. 24 12Section 24. 73.01 (4) (a) of the statutes is amended to read:
AB482,13,513 73.01 (4) (a) Subject to the provisions for judicial review contained in s. 73.015,
14the commission shall be the final authority for the hearing and determination of all
15questions of law and fact arising under sub. (5) and s. 72.86 (4), 1985 stats., and ss.
1670.38 (4) (a), 70.397, 70.64, and 70.995 (8), s. 76.38 (12) (a), 1993 stats., ss. 76.39 (4)
17(c), 76.48 (6), 76.91, 77.26 (3), 77.59 (5m) and (6) (b), 78.01, 78.22, 78.40, 78.555,
18139.02, 139.03, 139.06, 139.31, 139.315, 139.33, 139.76, 139.78, 341.405, and 341.45,
19subch. XIV of ch. 71, and subch. VII of ch. 77. Whenever with respect to a pending
20appeal there is filed with the commission a stipulation signed by the department of
21revenue and the adverse party, under s. 73.03 (25), or the department of
22transportation and the adverse party agreeing to an affirmance, modification, or
23reversal of the department of revenue's or department of transportation's position
24with respect to some or all of the issues raised in the appeal, the commission shall
25enter an order affirming or modifying in whole or in part, or canceling the assessment

1appealed from, or allowing in whole or in part or denying the petitioner's refund
2claim, as the case may be, pursuant to and in accordance with the stipulation filed.
3No responsibility shall devolve upon the commission, respecting the signing of an
4order of dismissal as to any pending appeal settled by the department of revenue or
5the department of transportation without the approval of the commission.
AB482, s. 25 6Section 25. 73.13 of the statutes is created to read:
AB482,13,7 773.13 Reducing nondelinquent taxes. (1) In this section:
AB482,13,88 (a) "Department" means the department of revenue.
AB482,13,109 (b) "Tax" means an amount that is owed to this state under s. 66.0615 (1m) (f)
103. or ch. 71, 72, 76, 77, 78, or 139, and that is not delinquent.
AB482,13,17 11(2) (a) A taxpayer may petition the department to reduce the taxpayer's taxes,
12including the costs, penalties, and interest related to the taxpayer's taxes. The
13petition shall set forth a sworn statement of the taxpayer and shall be in a form that
14the department prescribes. The department may examine the taxpayer under oath
15about the petition and may require the taxpayer to provide the department with
16financial statements and any other information requested by the department that
17is related to the petition.
AB482,14,318 (b) If the department determines that the taxpayer is unable to pay the taxes,
19costs, penalties, and interest in full, the department shall determine the amount that
20the taxpayer is able to pay and shall enter an order reducing the taxes in accordance
21with the department's determination. The order shall provide either that the order
22is effective only if the reduced taxes are paid in full within 10 days from the date on
23which the order is issued or that the order is effective only if the reduced taxes are
24paid according to a payment schedule that the department determines. The
25department or its collection agents, upon receipt of the order, shall accept payment

1in accordance with the order. Upon payment of the reduced taxes, the department
2shall credit the unpaid portion of the principal amount of the taxes and record the
3unpaid amount of costs, penalties, and interest accrued to the date of the order.
AB482,14,234 (c) If within 3 years from either the date of the order under par. (b) or the date
5of the final payment according to a payment schedule as determined under par. (b),
6whichever is later, the department ascertains that the taxpayer has an income or
7owns property sufficient to enable the taxpayer to pay the unpaid portion of the
8principal amount of the taxes due, including the costs, penalties, and interest
9recorded under par. (b), the department shall reopen the order under par. (b) and
10order the taxpayer to pay in full the unpaid portion of the principal amount of the
11taxes due, including the costs, penalties, and interest recorded under par. (b). Before
12the entry of the order for payment, the department shall send a written notice to the
13taxpayer, by certified mail, advising the taxpayer of the department's intention to
14reopen the order under par. (b) and fixing a time and place for the appearance of the
15taxpayer, if the taxpayer desires a hearing. If the department determines that the
16taxpayer is able to pay the unpaid portion of the principal amount of the taxes due,
17including the costs, penalties, and interest recorded under par. (b), the department
18shall enter the order for payment in full. The unpaid portion of the principal amount
19of the taxes due, including the costs, penalties, and interest recorded under par. (b),
20shall be due and payable immediately upon entry of the order for payment in full and
21shall thereafter be subject to the interest under s. 71.82 (2), as that subsection
22applies to delinquent income and franchise taxes under s. 71.82, and to the
23delinquent account fee under s. 73.03 (33m).
AB482, s. 26 24Section 26. 77.59 (4) (c) of the statutes is renumbered 77.59 (5m) and amended
25to read:
AB482,15,18
177.59 (5m) A seller who receives a refund under par. (a) or (b) of taxes that the
2seller has collected from buyers, who collects amounts as taxes erroneously from
3buyers, or who is entitled to a refund that is offset under sub. (5),
shall return submit
4the taxes and related interest to the buyers from whom the taxes were collected. The,
5or to the department if the seller cannot locate the buyers, within 90 days after the
6date of the refund, after the date of the offset, or after discovering that the seller has
7collected taxes erroneously from the buyers. If the seller does not submit the taxes
8and related interest to the department or the buyers within that period, the
seller
9shall return submit to the department any part of a refund or taxes that the seller
10does not return submit to a buyer or to the department along with a penalty of 25%
11of the amount not returned or submitted or, in the case of fraud, a penalty equal to
12the amount not returned in the case of fraud submitted. A person who collects
13amounts as taxes erroneously from buyers for a real property construction activity
14or nontaxable service may reduce the taxes and interest that he or she is required
15to submit to the buyer or to the department under this subsection for that activity
16or service by the amount of tax and interest subsequently due and paid on the sale
17of or the storage, use, or other consumption of tangible personal property that is used
18by the person in that activity or service and transferred to the buyer
.
AB482, s. 27 19Section 27. 77.59 (5) of the statutes is amended to read:
AB482,16,320 77.59 (5) The department may offset the amount of any refund for a period,
21together with interest on the refund, against deficiencies for another period, and
22against penalties and interest on the deficiencies, or against any amount of whatever
23kind, due and owing on the books of the department from the person claiming who
24is entitled to
the refund. If the refund is to be paid to a buyer, the department may
25also set off amounts in the manner in which it sets off income tax and franchise tax

1refunds under s. 71.93 and may set off amounts for child support or maintenance or
2both in the manner in which it sets off income taxes under ss. 49.855 and 71.93 (3),
3(6) and (7).
AB482, s. 28 4Section 28. 77.61 (14) of the statutes is amended to read:
AB482,16,155 77.61 (14) Documents and payments required or permitted under this
6subchapter that are mailed are timely furnished, filed or made if they are mailed in
7a properly addressed envelope with the postage duly prepaid, if the envelope is
8postmarked, or marked or recorded electronically as provided under section 7502 (f)
9(2) (c) of the Internal Revenue Code,
before midnight of the due date and if the
10document or payment is received by the department, or at the destination that the
11department prescribes, within 5 days after the prescribed date. Documents and
12payments that are not mailed are timely if they are received on or before the due date
13by the department or at the destination that the department designates. For
14purposes of this subsection, "mailed" includes delivery by a delivery service
15designated under section 7502 (f) of the Internal Revenue Code.
AB482, s. 29 16Section 29. 78.22 (4) of the statutes is amended to read:
AB482,17,217 78.22 (4) Late filing fee. Any person who fails to file a motor vehicle fuel floor
18tax return when due shall pay a late filing fee of $10. A return that is mailed is filed
19in time if it is mailed in a properly addressed envelope with 1st class postage duly
20prepaid and the envelope is officially postmarked, or marked or recorded
21electronically as provided under section 7502 (f) (2) (c) of the Internal Revenue Code,

22on the date due and the return is actually received by the department or at the
23destination that the department prescribes within 5 days of the due date. A return
24that is not mailed is timely if it is received on or before the due date by the department
25or at the destination that the department prescribes. For purposes of this subsection,

1"mailed" includes delivery by a delivery service designated under section 7502 (f) of
2the Internal Revenue Code.
AB482, s. 30 3Section 30. 78.39 (5d) of the statutes is created to read:
AB482,17,44 78.39 (5d) "Pay" has the meaning given in s. 78.005 (13b).
AB482, s. 31 5Section 31. 78.39 (5m) of the statutes is created to read:
AB482,17,66 78.39 (5m) "Sign" has the meaning given in s. 78.005 (13r).
AB482, s. 32 7Section 32. 110.20 (8) (e) of the statutes is amended to read:
AB482,17,138 110.20 (8) (e) The contractor shall collect, maintain and report data as the
9department requires. The department shall reserve the right to enter and inspect
10test station premises, equipment and records at all reasonable times in the discharge
11of its administrative duties. The department of revenue shall audit the records of
12the contractor annually and shall provide for the publication of the results of audits
13conducted under this paragraph in the official state newspaper.
AB482, s. 33 14Section 33. 139.03 (2x) (d) of the statutes is amended to read:
AB482,17,2515 139.03 (2x) (d) Late filing fee. Any person who fails to file a floor tax return
16when due shall pay a late filing fee of $10. A return that is mailed shall be considered
17filed in time if it is mailed in a properly addressed envelope with 1st class postage
18duly prepaid, if the envelope is officially postmarked, or marked or recorded
19electronically as provided under section 7502 (f) (2) (c) of the Internal Revenue Code,

20on the date due and if the return is actually received by the department or at the
21destination that the department prescribes within 5 days of the due date. A return
22that is not mailed is timely if it is received on or before the due date by the department
23or at the destination that the department prescribes. For purposes of this paragraph,
24"mailed" includes delivery by a delivery service designated under section 7502 (f) of
25the Internal Revenue Code.
AB482, s. 34
1Section 34. 139.05 (2a) of the statutes is amended to read:
AB482,18,132 139.05 (2a) The payments and returns under subs. (1) and (2) that are mailed
3are furnished, filed or made on time, and payments therein referred to are timely, if
4mailed in a properly addressed envelope, with first class postage duly prepaid, which
5envelope is officially postmarked, or marked or recorded electronically as provided
6under section 7502 (f) (2) (c) of the Internal Revenue Code,
before midnight on the
7date prescribed for such furnishing, filing or making of such payment, provided such
8statement, return or payment is actually received by the secretary of revenue or at
9the destination that the department prescribes within 5 days of the prescribed date.
10Payments and returns that are not mailed are timely if they are received on or before
11the due date by the department or at the destination that the department prescribes.
12For purposes of this subsection, "mailed" includes delivery by a delivery service
13designated under section 7502 (f) of the Internal Revenue Code.
AB482, s. 35 14Section 35. 139.315 (4) of the statutes is amended to read:
AB482,18,2415 139.315 (4) Late filing fee. Any person who fails to file a cigarette inventory
16tax return when due shall pay a late filing fee of $10. A return that is mailed is timely
17if it is mailed in a properly addressed envelope with 1st class postage prepaid, if the
18envelope is postmarked, or marked or recorded electronically as provided under
19section 7502 (f) (2) (c) of the Internal Revenue Code,
on the due date and if the return
20is actually received by the department or at the destination that the department
21prescribes within 5 days of the due date. A return that is not mailed is timely if it
22is received on or before the due date by the department or at the destination that the
23department prescribes. For purposes of this subsection, "mailed" includes delivery
24by a delivery service designated under section 7502 (f) of the Internal Revenue Code.
AB482, s. 36 25Section 36. 139.38 (5) of the statutes is amended to read:
AB482,19,11
1139.38 (5) If any permittee fails to file a report when due the permittee shall
2be required to pay a late filing fee of $10. A report that is mailed is filed in time if
3it is mailed in a properly addressed envelope with first class postage duly prepaid,
4which envelope is officially postmarked, or marked or recorded electronically as
5provided under section 7502 (f) (2) (c) of the Internal Revenue Code,
on the date due,
6and if the report is actually received by the secretary or at the destination that the
7department prescribes within 5 days of the due date. A report that is not mailed is
8timely if it is received on or before the due date by the secretary or at the destination
9that the department prescribes. For purposes of this subsection, "mailed" includes
10delivery by a delivery service designated under section 7502 (f) of the Internal
11Revenue Code.
AB482, s. 37 12Section 37. 139.75 (9m) of the statutes is created to read:
AB482,19,1313 139.75 (9m) "Sign" has the meaning given in s. 139.01 (9m).
AB482, s. 38 14Section 38. 560.205 (3) (d) of the statutes is amended to read:
AB482,19,2415 560.205 (3) (d) Rules. The department of commerce, in consultation with the
16department of revenue, shall promulgate rules to administer this section. The rules
17shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1.
18The rules shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may
19be claimed for investments in businesses certified under sub. (1) at $3,000,000 per
20taxable year for taxable years beginning after December 31, 2004. The rules shall
21also limit the aggregate amount of the tax credits under ss. 71.07 (5b), 71.28 (5b), and
2271.47 (5b) that may be claimed for investments paid to fund managers certified under
23sub. (2) at $3,500,000 per taxable year for taxable years beginning after December
2431, 2004.
AB482, s. 39 25Section 39. Initial applicability.
AB482,20,2
1(1) Notice of Appeal. The treatment of sections 70.07 (6) and 70.075 (6) of the
2statutes first applies to the property tax assessments as of January 1, 2005.
AB482,20,43 (2) Investment credits. The treatment of sections 71.07 (5d) (c) 3. and 560.205
4(3) (d) of the statutes first applies to taxable years beginning on January 1, 2005.
AB482,20,95 (3) Refunds and taxes collected erroneously. The treatment of sections 50.14
6(4), 73.01 (4) (a), and 77.59 (4) (c) and (5) of the statutes first applies to notices of
7refunds or notices of amounts due dated, offsets taken, and the discovery of amounts
8collected erroneously as taxes on the effective date of this subsection even if the
9notices, offsets, and amounts relate to sales that occurred after August 31, 1994.
AB482,20,1210 (4) Married persons' tax liability. The treatment of section 71.10 (6) (a) and
11(b) and (6m) (a) of the statutes first applies to tax liability that arises on the effective
12date of this subsection or that remains unpaid on the effective date of this subsection.
AB482,20,1413 (5) Reconciliation reports. The treatment of section 71.65 (5) (a) 1. of the
14statutes first applies to reconciliation reports that are due on January 31, 2006.
AB482,20,2015 (6) Income tax filing deadlines for electronic returns. The treatment of
16section 71.03 (6) (a) and (8) (b) of the statutes takes effect only if the secretary of
17revenue issues a written certification to the governor that the federal government
18has extended the income tax filing deadline for electronically filed individual income
19tax returns in a way that is similar to the changes made by Sections 5 and 7 of this
20act.
AB482,20,2221 (7) Appeal of redetermination. The treatment of section 71.88 (2) (b) of the
22statutes first applies to appeals filed on the effective date of this subsection.
AB482,20,2323 (End)
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