71.28(4)(g)
(g)
Administration. The department of revenue has full power to administer the credits provided in this subsection and may take any action, conduct any proceeding and proceed as it is authorized in respect to income and franchise taxes imposed in this chapter. The income and franchise tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties apply to the credits under this subsection.
71.28(4)(h)
(h)
Timely claim. No credit may be allowed under this subsection unless it is claimed within the period specified in
s. 71.75 (2).
71.28(4)(i)
(i)
Nonclaimants. The credits under this subsection may not be claimed by a partnership, except a publicly traded partnership treated as a corporation under
s. 71.22 (1), limited liability company, except a limited liability company treated as a corporation under
s. 71.22 (1), or tax-option corporation or by partners, including partners of a publicly traded partnership, members of a limited liability company or shareholders of a tax-option corporation.
71.28(5)
(5) Research facilities credit. 71.28(5)(a)(a)
Credit. For taxable year 1986 and subsequent years, any corporation may credit against taxes otherwise due under this chapter an amount equal to 5% of the amount paid or incurred by that corporation during the taxable year to construct and equip new facilities or expand existing facilities used in this state for qualified research, as defined in section
41 of the internal revenue code. Eligible amounts include only amounts paid or incurred for tangible, depreciable property but do not include amounts paid or incurred for replacement property.
71.28(5)(b)
(b)
Calculation and administration. Subsection (4) (b) to
(i) as it relates to the credit under that subsection applies to the credit under this subsection.
71.28(6)
(6) Supplement to federal historic rehabilitation credit. 71.28(6)(a)(a) Any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 5% of the costs of qualified rehabilitation expenditures, as defined in section
47 (c) (2) of the internal revenue code, for certified historic structures on property located in this state if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, and the rehabilitated property is placed in service after June 30, 1989.
71.28(6)(c)
(c) No person may claim the credit under this subsection unless the claimant includes with the claimant's return evidence that the rehabilitation was approved by the secretary of the interior under
36 CFR 67.6 before the physical work of construction, or destruction in preparation for construction, began.
71.28(6)(d)
(d) The Wisconsin adjusted basis of the building shall be reduced by the amount of any credit awarded under this subsection. The Wisconsin adjusted basis of a partner's interest in a partnership, of a member's interest in a limited liability company or of stock in a tax-option corporation shall be adjusted to take into account adjustments made under this paragraph.
71.28(6)(e)
(e) The provisions of
sub. (4) (e),
(f),
(g) and
(h), as they apply to the credit under that subsection, apply to the credit under this subsection.
71.28(6)(f)
(f) A partnership, limited liability company or tax-option corporation may not claim the credit under this section. The individual partners, members of a limited liability company or shareholders in a tax-option corporation may claim the credit under this subsection based on eligible costs incurred by the partnership, limited liability company or tax-option corporation, in proportion to the ownership interest of each partner, member or shareholder. The partnership, limited liability company or tax-option corporation shall calculate the amount of the credit which may be claimed by each partner, member or shareholder and shall provide that information to the partner, member or shareholder.
71.28 History
History: 1987 a. 312;
1987 a. 411 ss.
88,
130 to
139;
1987 a. 422;
1989 a. 31,
44,
56,
100,
336,
359;
1991 a. 39,
292;
1993 a. 16,
112,
232,
491;
1995 a. 2;
1995 a. 27 ss.
3399r to
3404c,
9116 (5);
1995 a. 209,
227.
71.29
71.29
Payments of estimated taxes. 71.29(1)
(1)
Definitions. In this section:
71.29(1)(a)
(a) "Return" means a return that would show the tax properly due.
71.29(1)(b)
(b) "Tax shown on the return" and "tax for the taxable year" mean the net taxes imposed under
s. 71.23 (1) or
(2) after reduction for credits against those taxes but before reduction for amounts paid as estimated tax under this section plus the surcharge imposed under
s. 77.93 before reduction for amounts paid as estimated tax under this section for that surcharge.
71.29(1)(c)
(c) "Virtually exempt entity" means any entity, other than a corporation, that is subject to a tax under this chapter on unrelated business taxable income as defined under section
512 of the internal revenue code.
71.29(2)
(2) Who shall pay. Every corporation subject to tax under
s. 71.23 (1) or
(2) and every virtually exempt entity subject to tax under
s. 71.125 or
71.23 (1) or
(2) shall pay an estimated tax to the department of revenue at its offices in Madison unless the department, by rule, prescribes another place of payment.
71.29(3)
(3) Refund carry-forward. If a corporation or virtually exempt entity claims a refund on any tax return and, concurrent with or subsequent to filing the return upon which that refund is claimed, is required to pay an estimated tax, and at the time of paying that tax the refund has not been paid, the corporation or virtually exempt entity may deduct the amount of that refund from the first instalment of estimated taxes and may deduct any excess from the succeeding instalments.
71.29(3m)
(3m) Refunds. The department of revenue may refund estimated taxes after the completion of the taxable year to which the estimated taxes relate if the refund is at least 10% of the taxes estimated for that taxable year and is at least $500. A refund under this subsection may be subject to
s. 71.84 (2) (c).
71.29(4)
(4) Prepayments. Any instalment of the estimated tax under this section may be paid before the due date.
71.29(5)
(5) Short year. Application of this section to taxable years of less than 12 full months shall be made under the department of revenue's rules.
71.29(6)
(6) Overpayments. If the amount of an instalment payment of estimated tax exceeds the amount determined to be the correct amount of that payment, the overpayment shall be credited against the next unpaid instalment.
71.29(7)
(7) Exception to interest. No interest is required under
s. 71.84 (2) (a) or
(b) for a corporation or virtually exempt entity if any of the following conditions apply:
71.29(7)(a)
(a) The tax shown on the return or, if no return is filed, the tax is less than $500.
71.29(7)(b)
(b) The preceding taxable year was 12 months, the corporation or virtually exempt entity had no liability under
s. 71.125 or
71.23 (1) or
(2) for that year and the corporation or virtually exempt entity has a Wisconsin net income of less than $250,000 for the current taxable year.
71.29(8)
(8) Instalment due dates. Taxpayers shall make estimated payments in 4 instalments, on or before the 15th day of each of the following months:
71.29(9)
(9) Instalment amounts; income of less than $250,000. 71.29(9)(a)(a) For corporations or virtually exempt entities that have Wisconsin net incomes of less than $250,000, except as provided in
pars. (b) and
(c), the amount of each instalment required under
sub. (8) is 25% of the lower of the following amounts:
71.29(9)(a)1.
1. Ninety percent of the tax shown on the return for the taxable year or, if no return is filed, 90% of the tax for the taxable year.
71.29(9)(a)2.
2. The tax shown on the return for the preceding year.
71.29(9)(b)
(b) Paragraph (a) 2. does not apply if the preceding taxable year was less than 12 months or if the corporation did not file a return for the preceding year.
71.29(9)(c)
(c) If 22.5% for the first instalment, 45% for the 2nd instalment, 67.5% for the 3rd instalment and 90% for the 4th instalment of the tax for the taxable year computed by annualizing, under methods prescribed by the department of revenue, the corporation's income, or the virtually exempt entity's unrelated business taxable income, for the months in the taxable year ending before the instalment's due date is less than the instalment required under
par. (a), the corporation or virtually exempt entity may pay the amount under this paragraph rather than the amount under
par. (a). For purposes of computing annualized income under this paragraph, the apportionment percentage computed under
s. 71.25 (6) and
(10) to
(12) from the return filed for the previous taxable year may be used if that return was filed with the department of revenue on or before the due date of the instalment for which the income is being annualized and if the apportionment percentage on that previous year's return was greater than zero. For purposes of computing annualized income of corporations that are subject to a tax under this chapter on unrelated business taxable income, as defined under section
512 of the internal revenue code, and virtually exempt entities, the taxpayer's income for the months in the taxable year ending before the date one month before the due date for the instalment shall be used. Any corporation or virtually exempt entity that pays an amount calculated under this paragraph shall increase the next instalment computed under
par. (a) by an amount equal to the difference between the amount paid under this paragraph and the amount that would have been paid under
par. (a).
71.29(10)
(10) Instalment amounts; income of $250,000 or more. 71.29(10)(a)(a) Except as provided in
par. (c), for corporations or virtually exempt entities that have Wisconsin net incomes of $250,000 or more, the amount of each instalment required under
sub. (8) is 25% of the amount under
par. (b).
71.29(10)(b)
(b) Ninety percent of the tax shown on the return for the taxable year or, if no return is filed, 90% of the tax for the taxable year.
71.29(10)(c)
(c) If 22.5% for the first instalment, 45% for the 2nd instalment, 67.5% for the 3rd instalment and 90% for the 4th instalment of the tax for the taxable year computed by annualizing, under methods prescribed by the department of revenue, the corporation's income, or the virtually exempt entity's unrelated business taxable income, for the months in the taxable year ending before the instalment's due date is less than the instalment required under
par. (a), the corporation or virtually exempt entity may pay the amount under this paragraph rather than the amount under
par. (a). For purposes of computing annualized income under this paragraph, the apportionment percentage computed under
s. 71.25 (6) and
(10) to
(12) from the return filed for the previous taxable year may be used if that return is filed with the department of revenue on or before the due date of the instalment for which the income is being annualized and the apportionment percentage on that previous year's return is greater than zero or may be used if that return is filed with the department of revenue on or before the due date of the 3rd instalment, the apportionment percentage on that previous year's return is greater than zero and the apportionment percentage used in the computation of the first 2 instalments is not less than the apportionment percentage on that previous year's return. For purposes of computing annualized income of corporations that are subject to a tax under this chapter on unrelated business taxable income, as defined under section
512 of the internal revenue code, and virtually exempt entities, the taxpayer's income for the months in the taxable year ending before the date one month before the due date for the instalment shall be used. Any corporation or virtually exempt entity that pays an amount calculated under this paragraph shall increase the next instalment computed under
par. (a) by an amount equal to the difference between the amount paid under this paragraph and the amount that would have been paid under
par. (a).
71.29(11)
(11) Exception to final instalment. If a corporation or virtually exempt entity files a return for a calendar year on or before January 31 of the succeeding calendar year (or if a corporation or virtually exempt entity on a fiscal year basis files a return on or before the last day of the first month immediately succeeding the close of such fiscal year) and pays in full at the time of such filing the amount computed on the return as payable, then, if estimated taxes are not required to be paid on or before the 15th day of the 9th month of the taxable year but are required to be paid on or before the 15th day of the 12th month of the taxable year, such return shall be considered as payment.
71.30
71.30
General provisions. 71.30(1)(a)(a) A corporation shall use a method of accounting authorized under the internal revenue code and shall use the same method used for federal income tax purposes if that method is authorized under the internal revenue code.
71.30(1)(b)
(b) A corporation that changes its method of accounting while subject to taxation under this chapter shall make the adjustments required under the internal revenue code, except that in the last year that a corporation is subject to taxation under this chapter it shall take into account all of the remaining adjustments required by this chapter because of a change in method of accounting.
71.30(2)
(2) Allocation of gross income, deductions, credits between 2 or more businesses. In any case of 2 or more organizations, trades or businesses (whether or not incorporated, whether or not organized in the United States and whether or not affiliated) owned or controlled directly or indirectly by the same interests, the secretary or his or her delegate may distribute, apportion or allocate gross income, deductions, credits or allowances between or among such organizations, trades or businesses, if he or she determines that such distribution, apportionment or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of such organizations, trades or businesses.
71.30(3)
(3) Computations order. Notwithstanding any other provisions in this chapter, corporations computing liability for the tax under
s. 71.23 (1) or
(2) shall make computations in the following order:
71.30(3)(f)
(f) The total of farmers' drought property tax credit under
s. 71.28 (1fd), farmland preservation credit under
subch. IX, farmland tax relief credit under
s. 71.28 (2m) and estimated tax payments under
s. 71.29.
71.30(4)
(4) Defense contract renegotiation. If the renegotiation or price redetermination of any corporation defense contract or subcontract by the government of the United States or any agency thereof or the voluntary adjustment of prices, costs or profits on any such contract or subcontract results in a reduction of income, the amount of any repayment or credit pursuant to such renegotiation, price redetermination or adjustment, including any federal income taxes credited as a part thereof, shall be allowed as a deduction from the corporate taxable income of the year in which said income was reported for taxation. Any federal income tax previously paid upon any income so repaid or credited shall be disallowed as a deduction from income of the year in which such tax was originally deducted, to the extent that such tax constituted an allowable deduction for said year. Any corporate taxpayer affected by such renegotiation, price redetermination or voluntary adjustment may within one year after the final determination thereof file a claim for refund and secure the same without interest, and the department of revenue shall make appropriate adjustments on account of said tax deductions without interest, notwithstanding the limitations of
s. 71.75 or other applicable statutes.
71.30(5)
(5) Disc income combining. In the case of a parent corporation, its DISC or affiliate, the net income of a DISC derived from business transacted with its parent shall be combined with the income of the parent corporation and the net income of a DISC derived from business transacted with the parent's affiliated corporation shall be combined with the net income of the affiliated corporation to determine the amount of income subject to taxation under this chapter for the DISC, the parent corporation or the affiliate of the parent corporation as separate taxable entities. The net income of the parent corporation shall not include dividends received from the DISC paid from income previously combined for taxation under this subsection. "DISC" (domestic international sales corporation) has the meaning specified in section
992 of the internal revenue code as amended to December 31, 1979. For purposes of this subsection, a corporation is affiliated if at least 50% of its total combined voting stock is owned directly or indirectly by its parent corporation.
71.30(6)
(6) Instalment method; distributions and final year. A corporation entitled to use the instalment method of accounting shall take the unreported balance of gain on all instalment obligations into income in the taxable year of their distribution, transfer or acquisition by another person or for the final taxable year for which it files or is required to file a return under this chapter, whichever year occurs first.
71.30(7)
(7) Penalties. Unless specifically provided in this subchapter, the penalties under
subch. XIII apply for failure to comply with the provisions of this subchapter unless the context requires otherwise.
71.30(8)
(8) Pricing effect on taxable income. 71.30(8)(a)(a) When any corporation liable to taxation under this chapter conducts its business in such a manner as either directly or indirectly to benefit the members or stockholders thereof or any person interested in such business, by selling its products or the goods or commodities in which it deals at less than the fair price which might be obtained therefor, or where a corporation, a substantial portion of whose capital stock is owned either directly or indirectly by another corporation, acquires and disposes of the products of the corporation so owning a substantial portion of its stock in such a manner as to create a loss or improper net income, the department may determine the amount of taxable income to such corporation for the calendar or fiscal year, having due regard to the reasonable profits which but for such arrangement or understanding might or could have been obtained from dealing in such products, goods or commodities.
71.30(8)(b)
(b) For the purpose of this chapter, if a corporation which is required to file an income or franchise tax return is affiliated with or related to any other corporation through stock ownership by the same interests or as parent or subsidiary corporations or has income that is regulated through contract or other arrangement, the department of revenue may require such consolidated statements as in its opinion are necessary in order to determine the taxable income received by any one of the affiliated or related corporations.
71.30(9)
(9) Reserve account transfer to surplus. If any transfer of a reserve or other account or portion thereof is in effect a transfer to surplus, so much of such transfer as had been accumulated through deductions from the gross or taxable income of the years open to audit under
s. 71.74 (1) and
(2) shall be included in the gross or taxable income of such years, and so much of such transfer as has been accumulated through deductions from the gross or taxable income of the years following January 1, 1911, and not open to audit under
s. 71.74 (1) and
(2) shall be included in the gross or taxable income of the year in which such transfer was effected.
TAX-OPTION CORPORATIONS
71.32
71.32
Conformity. Unless specifically provided in this subchapter, tax-option corporations shall be subject to all of the provisions, requirements and liabilities of this chapter, so far as applicable, unless the context requires otherwise.
71.32 History
History: 1987 a. 312.
71.33
71.33
Intent. It is the intent of this subchapter and other subchapters relating to the treatment of tax-option corporations and their shareholders to prevent the double inclusion or omission of any item of income, deduction or basis.
71.33 History
History: 1987 a. 312.
71.34
71.34
Definitions. In this subchapter:
71.34(1)
(1) "Net income or loss" of a tax-option corporation means net income or loss computed under the internal revenue code, as defined under
sub. (1g), except that:
71.34(1)(ag)
(ag) 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.
71.34(1)(b)
(b) The items referred to in section
1366 (a) (1) (A) of the internal revenue code shall be included.
71.34(1)(c)
(c) The deduction referred to in sections
212 and
703 (a) (2) (E) of the internal revenue code shall be allowed.
71.34(1)(d)
(d) An addition or subtraction, as appropriate, shall be made for the net amount of state and federal differences including differences arising from the different basis of assets disposed of in a transaction in which gain or loss is recognized for state tax purposes, different depreciation methods or difference in basis of depreciable assets, different elections, or transitional adjustments due to differences in the statutes for taxable years 1986 and 1987 pertaining to the computation of net income of a tax-option corporation.
71.34(1)(e)
(e) An addition shall be made for the amount of credit computed under
s. 71.28 (3) and used by the corporation in the current year.
71.34(1)(f)
(f) An addition shall be made for the amount of interest, less related expenses, excluded by reason of section
103 of the internal revenue code (relating to interest received on state and municipal obligations and on volunteer fire department and mass transit obligations) or any other federal law.
71.34(1)(h)
(h) Section
162 of the internal revenue code (relating to trade or business expenses) is modified so that payments for wages, salaries, bonuses, interest or other expenses paid to an entertainer or entertainment corporation may be deducted only if the corporation complies with
ss. 71.63 (3) (b),
71.64 (4) and
(5) and
71.80 (15) (e).
