71.16
71.16
Allocation of modifications. The Wisconsin modifications applicable to the Wisconsin taxable income or Wisconsin adjusted gross income of estates, trusts and beneficiaries thereof with respect to income derived from such estates or trusts shall be computed and allocated as follows:
71.16(1)
(1) A modification or portion thereof which relates to an item of income, gain, loss or deduction which affects the computation of the federal distributable net income of the estate or trust for the current year shall be apportioned among and taken into account by the fiduciary and the beneficiary or beneficiaries in the same proportion that the item to which it relates is considered as distributed among them for federal income tax purposes.
71.16(2)
(2) Any remaining modifications or portions thereof shall be taken into account by the fiduciary.
71.16(3)
(3) If an additional assessment is made against the fiduciary or any beneficiary as a result of correction of an erroneous allocation of the modifications applicable to the income of an estate or trust, any overpayment resulting from consistent application of such correction to all other taxpayers interested in such estate or trust shall be refunded notwithstanding any rule of law which would otherwise bar such refund.
71.16 History
History: 1987 a. 312.
71.17
71.17
General provisions. 71.17(1)(1)
Assessment of trust income distributable to nonresident beneficiary. The income of a trust distributable or distributed to a nonresident beneficiary shall be assessed as the income of other nonresidents is assessed. No personal exemptions shall be allowed in assessing the income of such nonresident beneficiary unless that beneficiary makes a complete return under this chapter.
71.17(2)
(2) Lien on trust estate; income taxes levied against beneficiary. All income taxes levied against the income of beneficiaries shall be a lien on that portion of the trust estate or interest therein from which the income taxed is derived, and such taxes shall be paid by the fiduciary, if not paid by the distributee, before the same become delinquent. Every person who, as a fiduciary under the provisions of this subchapter, pays an income tax shall have all the rights and remedies of reimbursement for any taxes assessed against him or her or paid by him or her in such capacity, as provided in
s. 70.19 (1) and
(2).
71.17(3)
(3) Liability for payment of taxes due from decedent. Any income, withholding, sales, use or gift taxes, penalties, interest and costs found to be due from a decedent, an estate or a trust for any of the years open to assessment under
s. 71.77 and any delinquent income, withholding, sales, use or gift taxes, penalties, interest and costs found to be due shall be assessed against and paid by the executor, administrator, personal representative or trustee; any of such items found to be due after the executor, administrator, personal representative or trustee is discharged shall be assessed against and paid by the beneficiaries in the same ratio that their interest in the estate or trust bears to the total estate or trust.
71.17(4)
(4) Trusts established or maintained out-of-state; grantor liable for tax. The establishment or maintenance of a trust outside Wisconsin by a Wisconsin resident as grantor, the income from which trust is taxable to the grantor or to any person other than the trust under the internal revenue code, is hereby declared to be a tax avoidance device designed to avoid the legal application of the Wisconsin income tax to income properly taxable to the grantor or such other person. Any Wisconsin resident who is the grantor of such a trust shall be liable for the Wisconsin income tax on the income of such trust which is federally taxable to such grantor or other person under the internal revenue code.
71.17(5)
(5) Trusts that are exempt from federal income tax. Trusts exempt from federal income tax pursuant to subtitle A,
chapter 1, subchapter F of the internal revenue code shall to the same extent be exempt from taxation under this chapter.
71.17 History
History: 1987 a. 312;
1989 a. 31.
PARTNERSHIPS
AND LIMITED LIABILITY COMPANIES
71.19
71.19
Conformity. Unless specifically provided in this subchapter, partnerships and limited liability companies shall be subject to all of the provisions, requirements and liabilities of this chapter, so far as applicable, unless the context requires otherwise.
71.19 History
History: 1987 a. 312;
1993 a. 112.
71.20
71.20
Filing returns. 71.20(1)(1) Every partnership, except publicly traded partnerships treated as corporations under
s. 71.22 (1), and every limited liability company, except limited liability companies treated as corporations under
s. 71.22 (1), shall furnish to the department a true and accurate statement, on or before April 15 of each year, except that returns for fiscal years ending on some other date than December 31 shall be furnished on or before the 15th day of the 4th month following the close of such fiscal year, in such manner and form and setting forth such facts as the department deems necessary to enforce this chapter. The statement shall be subscribed by one of the members of the partnership or limited liability company.
71.20(2)
(2) Nothing in this section precludes the department of revenue from requiring any person other than a corporation to file an income tax return when in the judgment of the department a return should be filed.
71.20 History
History: 1987 a. 312,
411;
1993 a. 112.
71.21(1)(1) The net income of a partnership, except publicly traded partnerships treated as corporations under
s. 71.22 (1), and of a limited liability company, except limited liability companies treated as corporations under
s. 71.22 (1), shall be computed in the same manner and on the same basis as provided for computation of the income of persons other than corporations.
71.21(2)
(2) The standard deduction shall not be allowed in computing the taxable income of a partnership or of a limited liability company.
71.21(3)
(3) The credits under
s. 71.28 (4) and
(5) may not be claimed by a partnership, except a publicly traded partnership treated as a corporation under
s. 71.22 (1), or a limited liability company, except a limited liability company treated as a corporation under
s. 71.22 (1), or by partners, including partners of a publicly traded partnership, or members of a limited liability company.
71.21(4)
(4) Credits computed by a partnership under
s. 71.07 (2dd),
(2de),
(2di),
(2dj),
(2dL) and
(2ds) and passed through to partners or members shall be added to the partnership's or limited liability company's income.
71.21(5)
(5) Section
164 (a) (3) of the internal revenue code is modified so that state taxes and taxes of the District of Columbia that are value-added taxes, single business taxes or taxes on or measured by all or a portion of net income, gross income, gross receipts or capital stock are not deductible.
TAXATION OF CORPORATIONS
71.22
71.22
Definitions. In this chapter in regard to corporations and to nuclear decommissioning trust or reserve funds:
71.22(1)
(1) "Corporation" includes corporations, publicly traded partnerships treated as corporations in section
7704 of the internal revenue code, limited liability companies treated as corporations under the internal revenue code, joint stock companies, associations and common law trusts, unless the context requires otherwise.
71.22(2)
(2) "Entertainment corporation" means a domestic or foreign corporation which derives income from amusement, entertainment or sporting events in this state or from the services of an entertainer, as defined in
s. 71.01 (2).
71.22(3)
(3) "Gain" means gain as computed under the internal revenue code.
71.22(4)(d)(d) Except as provided in
sub. (4m) and
ss. 71.26 (2) (b) and
(3),
71.34 (1g) and
71.42 (2), "internal revenue code", for taxable years that begin after December 31, 1988, and before January 1, 1990, means the federal internal revenue code as amended to December 31, 1988, and as amended by
P.L. 101-73,
P.L. 101-140,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66 and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of
P.L. 99-514 and section 1008 (g) (5) of
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66. Amendments to the federal internal revenue code enacted after December 31, 1988, do not apply to this paragraph with respect to taxable years beginning after December 31, 1988, and before January 1, 1990, except that changes to the internal revenue code made by
P.L. 101-73,
P.L. 101-140,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66 apply for Wisconsin purposes at the same time as for federal purposes.
71.22(4)(e)
(e) Except as provided in
sub. (4m) and
ss. 71.26 (2) (b) and
(3),
71.34 (1g) and
71.42 (2), "internal revenue code", for taxable years that begin after December 31, 1989, and before January 1, 1991, means the federal internal revenue code as amended to December 31, 1989, and as amended by
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66 and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of
P.L. 99-514 and section 1008 (g) (5) of
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66. The internal revenue code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal internal revenue code enacted after December 31, 1989, do not apply to this paragraph with respect to taxable years beginning after December 31, 1989, and before January 1, 1991, except that changes to the internal revenue code made by
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66 apply for Wisconsin purposes at the same time as for federal purposes.
71.22(4)(f)
(f) Except as provided in
sub. (4m) and
ss. 71.26 (2) (b) and
(3),
71.34 (1g) and
71.42 (2), "internal revenue code", for taxable years that begin after December 31, 1990, and before January 1, 1992, means the federal internal revenue code as amended to December 31, 1990, and as amended by
P.L. 102-227,
P.L. 102-486 and
P.L. 103-66 and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of
P.L. 99-514 and section 1008 (g) (5) of
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227,
P.L. 102-486 and
P.L. 103-66. The internal revenue code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal internal revenue code enacted after December 31, 1990, do not apply to this paragraph with respect to taxable years beginning after December 31, 1990, and before January 1, 1992, except that changes to the internal revenue code made by
P.L. 102-227,
P.L. 102-486 and
P.L. 103-66 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 102-227,
P.L. 102-486 and
P.L. 103-66 apply for Wisconsin purposes at the same time as for federal purposes.
71.22(4)(g)
(g) Except as provided in
sub. (4m) and
ss. 71.26 (2) (b) and
(3),
71.34 (1g) and
71.42 (2), "internal revenue code", for taxable years that begin after December 31, 1991, and before January 1, 1993, means the federal internal revenue code as amended to December 31, 1991, excluding sections 103, 104 and 110 of
P.L. 102-227, and as amended by
P.L. 102-318,
P.L. 102-486 and
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13171 and 13174 of
P.L. 103-66, and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of
P.L. 99-514 and section 1008 (g) (5) of
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486 and
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13171 and 13174 of
P.L. 103-66. The internal revenue code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal internal revenue code enacted after December 31, 1991, do not apply to this paragraph with respect to taxable years beginning after December 31, 1991, and before January 1, 1993, except that changes to the internal revenue code made by
P.L. 102-318,
P.L. 102-486 and
P.L. 103-66 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 102-318,
P.L. 102-486 and
P.L. 103-66 apply for Wisconsin purposes at the same time as for federal purposes.
71.22(4)(h)
(h) Except as provided in
sub. (4m) and
ss. 71.26 (2) (b) and
(3),
71.34 (1g) and
71.42 (2), "internal revenue code", for taxable years that begin after December 31, 1992, and before January 1, 1994, means the federal internal revenue code as amended to December 31, 1992, excluding sections 103, 104 and 110 of
P.L. 102-227, and as amended by
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13113, 13150, 13171, 13174 and 13203 of
P.L. 103-66, and
P.L. 103-465 and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of
P.L. 99-514 and section 1008 (g) (5) of
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13113, 13150, 13171, 13174 and 13203 of
P.L. 103-66 and
P.L. 103-465. The internal revenue code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal internal revenue code enacted after December 31, 1992, do not apply to this paragraph with respect to taxable years beginning after December 31, 1992, and before January 1, 1994, except that changes to the internal revenue code made by
P.L. 103-66 and
P.L. 103-465 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 103-66 and
P.L. 103-465 apply for Wisconsin purposes at the same time as for federal purposes.
71.22(4)(i)
(i) Except as provided in
sub. (4m) and
ss. 71.26 (2) (b) and
(3),
71.34 (1g) and
71.42 (2), "internal revenue code", for taxable years that begin after December 31, 1993, and before January 1, 1995, means the federal internal revenue code as amended to December 31, 1993, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of
P.L. 103-66, and as amended by
P.L. 103-296,
P.L. 103-337,
P.L. 103-465 and
P.L. 104-7, excluding section 1 of
P.L. 104-7, and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of
P.L. 99-514 and section 1008 (g) (5) of
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465 and
P.L. 104-7, excluding section 1 of
P.L. 104-7. The internal revenue code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal internal revenue code enacted after December 31, 1993, do not apply to this paragraph with respect to taxable years beginning after December 31, 1993, and before January 1, 1995, except that changes to the internal revenue code made by
P.L. 103-296,
P.L. 103-337,
P.L. 103-465 and
P.L. 104-7, excluding section 1 of
P.L. 104-7, and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 103-296,
P.L. 103-337,
P.L. 103-465 and
P.L. 104-7, excluding section 1 of
P.L. 104-7, apply for Wisconsin purposes at the same time as for federal purposes.
71.22(4)(j)
(j) Except as provided in
sub. (4m) and
ss. 71.26 (2) (b) and
(3),
71.34 (1g) and
71.42 (2), "internal revenue code", for taxable years that begin after December 31, 1994, and before January 1, 1996, means the federal internal revenue code as amended to December 31, 1994, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66, and as amended by
P.L. 104-7 and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of
P.L. 99-514 and section 1008 (g) (5) of
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465 and
P.L. 104-7. The internal revenue code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal internal revenue code enacted after December 31, 1994, do not apply to this paragraph with respect to taxable years beginning after December 31, 1994, and before January 1, 1996, except that changes to the internal revenue code made by
P.L. 104-7 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 104-7 apply for Wisconsin purposes at the same time as for federal purposes.
71.22(4)(k)
(k) Except as provided in
sub. (4m) and
ss. 71.26 (2) (b) and
(3),
71.34 (1g) and
71.42 (2), "internal revenue code", for taxable years that begin after December 31, 1995, means the federal internal revenue code as amended to December 31, 1995, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66, and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of
P.L. 99-514 and section 1008 (g) (5) of
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465 and
P.L. 104-7. The internal revenue code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal internal revenue code enacted after December 31, 1995, do not apply to this paragraph with respect to taxable years beginning after December 31, 1995.
71.22(4m)(b)(b) For taxable years that begin after December 31, 1988, and before January 1, 1990, "internal revenue code", for corporations that are subject to a tax on unrelated business income under
s. 71.26 (1) (a), means the federal internal revenue code as amended to December 31, 1988, and as amended by
P.L. 101-73,
P.L. 101-140,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66 and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66. Amendments to the internal revenue code enacted after December 31, 1988, do not apply to this paragraph with respect to taxable years beginning after December 31, 1988, and before January 1, 1990, except that changes to the internal revenue code made by
P.L. 101-73,
P.L. 101-140,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66 apply for Wisconsin purposes at the same time as for federal purposes.
71.22(4m)(c)
(c) For taxable years that begin after December 31, 1989, and before January 1, 1991, "internal revenue code", for corporations that are subject to a tax on unrelated business income under
s. 71.26 (1) (a), means the federal internal revenue code as amended to December 31, 1989, and as amended by
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66 and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66. The internal revenue code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the internal revenue code enacted after December 31, 1989, do not apply to this paragraph with respect to taxable years beginning after December 31, 1989, and before January 1, 1991, except that changes to the internal revenue code made by
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 101-508,
P.L. 102-227 and
P.L. 103-66 apply for Wisconsin purposes at the same time as for federal purposes.
71.22(4m)(d)
(d) For taxable years that begin after December 31, 1990, and before January 1, 1992, "internal revenue code", for corporations that are subject to a tax on unrelated business income under
s. 71.26 (1) (a), means the federal internal revenue code as amended to December 31, 1990, and as amended by
P.L. 102-227,
P.L. 102-486 and
P.L. 103-66 and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227,
P.L. 102-486 and
P.L. 103-66. The internal revenue code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the internal revenue code enacted after December 31, 1990, do not apply to this paragraph with respect to taxable years beginning after December 31, 1990, and before January 1, 1992, except that changes to the internal revenue code made by
P.L. 102-227,
P.L. 102-486 and
P.L. 103-66 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 102-227,
P.L. 102-486 and
P.L. 103-66 apply for Wisconsin purposes at the same time as for federal purposes.
71.22(4m)(e)
(e) For taxable years that begin after December 31, 1991, and before January 1, 1993, "internal revenue code", for corporations that are subject to a tax on unrelated business income under
s. 71.26 (1) (a), means the federal internal revenue code as amended to December 31, 1991, excluding sections 103, 104 and 110 of
P.L. 102-227, and as amended by
P.L. 102-318,
P.L. 102-486 and
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13171 and 13174 of
P.L. 103-66, and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486 and
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13171 and 13174 of
P.L. 103-66. The internal revenue code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the internal revenue code enacted after December 31, 1991, do not apply to this paragraph with respect to taxable years beginning after December 31, 1991, and before January 1, 1993, except that changes to the internal revenue code made by
P.L. 102-318,
P.L. 102-486 and
P.L. 103-66 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 102-318,
P.L. 102-486 and
P.L. 103-66 apply for Wisconsin purposes at the same time as for federal purposes.
71.22(4m)(f)
(f) For taxable years that begin after December 31, 1992, and before January 1, 1994, "internal revenue code", for corporations that are subject to a tax on unrelated business income under
s. 71.26 (1) (a), means the federal internal revenue code as amended to December 31, 1992, excluding sections 103, 104 and 110 of
P.L. 102-227, and as amended by
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13113, 13150, 13171, 13174 and 13203 of
P.L. 103-66, and
P.L. 103-465 and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13113, 13150, 13171, 13174 and 13203 of
P.L. 103-66 and
P.L. 103-465. The internal revenue code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the internal revenue code enacted after December 31, 1992, do not apply to this paragraph with respect to taxable years beginning after December 31, 1992, and before January 1, 1994, except that changes to the internal revenue code made by
P.L. 103-66 and
P.L. 103-465 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 103-66 and
P.L. 103-465 apply for Wisconsin purposes at the same time as for federal purposes.
71.22(4m)(g)
(g) For taxable years that begin after December 31, 1993, and before January 1, 1995, "internal revenue code", for corporations that are subject to a tax on unrelated business income under
s. 71.26 (1) (a), means the federal internal revenue code as amended to December 31, 1993, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of
P.L. 103-66, and as amended by
P.L. 103-296,
P.L. 103-337,
P.L. 103-465 and
P.L. 104-7, excluding section 1 of
P.L. 104-7, and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465 and
P.L. 104-7, excluding section 1 of
P.L. 104-7. The internal revenue code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the internal revenue code enacted after December 31, 1993, do not apply to this paragraph with respect to taxable years beginning after December 31, 1993, and before January 1, 1995, except that changes to the internal revenue code made by
P.L. 103-296,
P.L. 103-337,
P.L. 103-465 and
P.L. 104-7, excluding section 1 of
P.L. 104-7, and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 103-296,
P.L. 103-337,
P.L. 103-465 and
P.L. 104-7, excluding section 1 of
P.L. 104-7, apply for Wisconsin purposes at the same time as for federal purposes.
71.22(4m)(h)
(h) For taxable years that begin after December 31, 1994, and before January 1, 1996, "internal revenue code", for corporations that are subject to a tax on unrelated business income under
s. 71.26 (1) (a), means the federal internal revenue code as amended to December 31, 1994, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66, and as amended by
P.L. 104-7 and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465 and
P.L. 104-7. The internal revenue code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the internal revenue code enacted after December 31, 1994, do not apply to this paragraph with respect to taxable years beginning after December 31, 1994, and before January 1, 1996, except that changes to the internal revenue code made by
P.L. 104-7, and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 104-7 apply for Wisconsin purposes at the same time as for federal purposes.
71.22(4m)(i)
(i) For taxable years that begin after December 31, 1995, "internal revenue code", for corporations that are subject to a tax on unrelated business income under
s. 71.26 (1) (a), means the federal internal revenue code as amended to December 31, 1995, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66, and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104 and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465 and
P.L. 104-7. The internal revenue code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the internal revenue code enacted after December 31, 1995, do not apply to this paragraph with respect to taxable years beginning after December 31, 1995.
71.22(5)
(5) Notwithstanding
s. 71.26 (2) and
(3), for corporations, at the taxpayer's option, "internal revenue code", for taxable year 1986 and subsequent taxable years, includes any revisions to the federal internal revenue code adopted after January 1, 1986, that relate to the taxation of income derived from any source as a direct consequence of participation in the milk production termination program created by section 101 of
P.L. 99-198.
71.22(5s)
(5s) "Last day prescribed by law" has the meaning given in
s. 71.738.
71.22(6)
(6) "Loss" means loss as computed under the internal revenue code.
71.22(7)
(7) "Nuclear decommissioning reserve fund" and "nuclear decommissioning trust fund" have the meanings under section
468A of the internal revenue code.
71.22(8)
(8) "Paid" or "actually paid" are to be construed in each instance in the light of the method used in computing taxable income whether on the accrual or receipt basis.
71.22(9)
(9) "Person" includes corporations, unless the context requires otherwise.
71.22(10)
(10) "Taxable year" means the taxable period upon the basis of which the taxable income of the taxpayer is computed for federal income tax purposes. The taxable year of a corporation that keeps its accounting records on the basis of a 52-53 week period ends on the last day of the month closest to the end of the 52-53 week period.
71.22(11)
(11) Except as provided in
s. 71.45 (2), "Wisconsin net income", for corporations engaged in business wholly within this state, means net income and, for corporations engaged in business both within and outside this state, means the amount assigned to this state under
s. 71.25 (6),
(10) (c) or
(13) or by a separate accounting or allocation, if allowed under
s. 71.25 (6), or by another method approved under
s. 71.25 (11) or
(12).
71.23
71.23
Imposition of tax. 71.23(1)(1)
Income tax. For the purpose of raising revenue for the state and the counties, cities, villages and towns, there shall be assessed, levied, collected and paid a tax as provided under this chapter on all Wisconsin net incomes of corporations which are not subject to the franchise tax under
sub. (2) and which own property within this state or whose business within this state during the taxable year, except as provided under
sub. (3), consists exclusively of foreign commerce, interstate commerce, or both; except as exempted under
s. 71.26 (1). This section shall not be construed to prevent or affect the correction of errors or omissions in the assessments of income for former years under
s. 71.74 (1) and
(2).
71.23(2)
(2) Franchise tax. For the privilege of exercising its franchise or doing business in this state in a corporate capacity, except as provided under
sub. (3), every domestic or foreign corporation, except corporations specified in
s. 71.26 (1), and every nuclear decommissioning trust or reserve fund shall annually pay a franchise tax according to or measured by its entire Wisconsin net income of the preceding taxable year at the rate set forth in
s. 71.27 (2). In addition, except as provided in
sub. (3) and
s. 71.26 (1), a corporation that ceases doing business in this state and a nuclear decommissioning trust or reserve fund that is terminated shall pay a special franchise tax according to or measured by its entire Wisconsin net income for the taxable year during which the corporation ceases doing business in this state or the nuclear decommissioning trust or reserve fund is terminated at the rates under
s. 71.27 (2). Every corporation organized under the laws of this state shall be deemed to be residing within this state for the purposes of this franchise tax. All provisions of this chapter and
ch. 73 relating to income taxation of corporations shall apply to franchise taxes imposed under this subsection, unless the context requires otherwise. The tax imposed by this subsection on national banking associations shall be in lieu of all taxes imposed by this state on national banking associations to the extent it is not permissible to tax such associations under federal law.
71.23(3)
(3) Activities that do not create nexus. A foreign corporation may do business, exercise its franchise and own property in this state to the limited extent referred to in the following activities, in addition to those activities permitted under
P.L. 86-272, without subjecting itself to the imposition of the income or franchise tax under
subs. (1) and
(2):
71.23(3)(a)
(a) The storage for any length of time in this state in or on property owned by a person other than the foreign corporation of its tangible personal property and the delivery of its tangible personal property to another person in this state when such storage and delivery is for fabricating, processing, manufacturing or printing by that other person in this state.
71.23(3)(b)
(b) The storage for any length of time in this state in or on property owned by a person other than the foreign corporation, and the shipment or delivery outside this state by another person in this state, of the entire amount of the foreign corporation's tangible personal property fabricated, processed, manufactured or printed in this state.
71.23(3)(c)
(c) If the foreign corporation is a publisher, the purchase from a printer of a printing service or of tangible personal property printed in this state for the publisher and the storage of the printed material for any length of time in this state in or on property owned by a person other than the publisher, whether or not the tangible personal property is subsequently resold or delivered in this state or shipped or delivered outside this state.
71.23 History
History: 1987 a. 312.
71.24
71.24
Filing returns; extensions; payment of tax. 71.24(1)(1)
Filing returns. Every corporation, except corporations all of whose income is exempt from taxation and except as provided in
sub. (1m), shall furnish to the department a true and accurate statement, on or before March 15 of each year, except that returns for fiscal years ending on some other date than December 31 shall be furnished on or before the 15th day of the 3rd month following the close of such fiscal year and except that returns for less than a full taxable year shall be furnished on or before the date applicable for federal income taxes under the internal revenue code, in such manner and form and setting forth such facts as the department deems necessary to enforce this chapter. Every corporation that is required to furnish a statement under this subsection and that has income that is not taxable under this subchapter shall include with its statement a report that identifies each item of its nontaxable income. The statement shall be subscribed by the president, vice president, treasurer, assistant treasurer, chief accounting officer or any other officer duly authorized so to act. In the case of a return made for a corporation by a fiduciary, the fiduciary shall subscribe the return. The fact that an individual's name is subscribed on the return shall be prima facie evidence that the individual is authorized to subscribe the return on behalf of the corporation.
71.24(1m)
(1m) Unrelated business income statement. Every corporation subject to a tax on unrelated business income under
s. 71.26 (1) (a), if that corporation is required to file for federal income tax purposes, shall furnish to the department of revenue a true and accurate statement on or before the date on or before which it is required to file for federal income tax purposes. The requirements about manner, form and subscription under
sub. (1) apply to statements under this subsection.
71.24(2)
(2) Copies of federal return. Each corporation that is required to file a return under this section shall file with that return a copy of its federal income tax return for the same taxable year.
71.24(3)
(3) Inactive corporations. Whenever a corporation has been completely inactive for an entire taxable year, in lieu of filing the statements and information otherwise required by this section, it may file a declaration, on a form to be provided by the department, subscribed by its president, if a resident of this state, and, if not a resident, then by another officer residing in this state, attesting to such inactivity. Such declaration must be filed prior to the otherwise due date for its Wisconsin return for such taxable year. Thereafter the corporation need not file such statements or information for any subsequent year unless specifically requested to do so by the department or unless in a subsequent year the corporation has been activated or reactivated.
71.24(4)
(4) Filing returns by receiver, trustee in bankruptcy or assignee. If a receiver, trustee in bankruptcy or assignee, by order of a court, by operation of law or otherwise, has possession of all or substantially all of the property or business of a corporation, whether or not such property or business is being operated, such receiver, trustee or assignee shall make the return of income for such corporation in the manner and form that corporations are required to make such returns.
71.24(5)
(5) Department may require filing. Nothing contained in this section shall preclude the department from requiring any corporation to file a return when in the judgment of the department a return should be filed.
71.24(6)(a)(a) Corporations may not change their basis of reporting from a calendar year to a fiscal year, from a fiscal year to a calendar year, or from one fiscal year to another without first obtaining the approval of the department of revenue unless the internal revenue service has approved the change or unless the change, including a change to a short taxable year, is required by the internal revenue code before approval by the internal revenue service and the reason for the change is explained in the first return filed for the new taxable year. Corporations that make changes on the basis of federal changes shall submit a copy of the internal revenue service's notice of approval, if prior federal approval, other than expeditious approval, was required, or requirement, if prior federal approval was not required or if the corporation qualifies for expeditious approval, to the department of revenue along with the return for the first taxable year for which the change applies.
71.24(6)(b)
(b) If a corporation changes its basis of reporting from a calendar year to a fiscal year a separate return shall be made for the period between the close of the last calendar year and the date designated as the close of the fiscal year. If the change is from a fiscal year to a calendar year, a separate return shall be made for the period between the close of the last fiscal year and the following December 31. If the change is from one fiscal year to another fiscal year a separate return shall be made for the period between the close of the former fiscal year and the date designated as the close of the new fiscal year. In no case shall a separate income or franchise tax return be made for a period of more than 12 months.
71.24(6)(c)
(c) If a separate corporation income tax return is made for a fractional part of a year for federal income tax purposes, the corporation shall file a separate Wisconsin income or franchise tax return for that fractional year. The income shall be computed and reported on the basis of the period for which the separate return is made, and that fractional part of a year shall constitute a taxable year, except that if a corporation terminates, under section
1362 (d) (1) or (2) of the internal revenue code, its election to be treated as an S corporation for federal income tax purposes the corporation may allocate its items of income, loss or deduction between its short taxable year as a tax-option corporation and its short taxable year as a nontax-option corporation according to the method under section
1362 (e) (2) of the internal revenue code.
71.24(6)(d)
(d) If a separate income [or franchise] tax return is made for a short period under
par. (b) on account of a change in the taxable year, the net income for such short period shall be placed on an annual basis using the method applicable for federal income taxes under section
443 (b) (1) of the internal revenue code.
71.24(7)
(7) Extensions. In the case of a corporation required to file a return, when sufficient reason is shown, the department of revenue may on written request allow an extension of 30 days or until the original due date of the corporation's federal return, whichever is later, if the corporation has not received an extension on its federal return. Any extension of time granted by law or by the internal revenue service for the filing of corresponding federal returns shall extend the time for filing under this subchapter to 30 days after the federal due date if a copy of any extension requested of the internal revenue service is filed with the return. Termination of an automatic extension by the internal revenue service, or its refusal to grant such automatic extension, shall similarly require that any returns due under this subchapter are due on or before 30 days after the date for termination fixed by the internal revenue service. Except for payments of estimated taxes, income or franchise taxes payable upon the filing of the tax return shall not become delinquent during such extension period, but shall be subject to interest at the rate of 12% per year during such period.
71.24(8)
(8) Payment of tax. All income and franchise taxes shall be paid to the department of revenue, at its office at Madison or at such other place the department designates.
71.24(9)(a)(a) Corporation franchise and income taxes not paid on or before the 15th day of the 3rd month following the close of the taxable year shall be deemed delinquent.
71.24(9)(b)
(b) Additional income or franchise taxes assessed under
s. 71.74 (1) to
(5),
(7) and
(8) shall become delinquent if not paid on or before the due date stated in the notice to the taxpayer.
71.24(10)
(10) Advance payments. The department of revenue shall accept in advance income or franchise taxes and surtaxes from taxpayers desirous of making such payments before the same shall become due and payable. Advance payment of taxes under this subsection shall not relieve the taxpayer from additional taxes which may result from subsequent legislation or from additional taxable income disclosed or discovered subsequent to such payment.
71.24(11)
(11) Small balances. No person is required to pay a balance due of less than $1.
71.25
71.25
Situs of income; allocation and apportionment. For purposes of determining the situs of income under this section:
