71.66(2)(b) (b) If the employe is married, an exemption to which his or her spouse is entitled, or would be entitled if such spouse were an employe receiving wages, but only if such spouse does not have in effect a withholding exemption certificate claiming such exemption.
71.66(2)(c) (c) An exemption for each individual with respect to whom, on the basis of the facts existing, there may reasonably be expected to be allowable an exemption under s. 71.07 (8) for the taxable year.
71.66(2)(d) (d) An exemption as head of a family when on the basis of the facts existing such an exemption may reasonably be expected to be allowable under s. 71.07 (8) for the taxable year.
71.66(3) (3) An employer is not required to deduct and withhold any tax whenever an employe certifies to the employer, on a form prescribed by the secretary, that the employe incurred no liability for income tax imposed by this chapter for the employe's preceding taxable year and anticipates that the employe will incur no liability for the employe's current taxable year.
71.66(4) (4)
71.66(4)(a)(a) The department may verify any withholding exemption certificate, form or agreement filed by an employe with an employer directly from the books and records of any person or from any other sources of information. To ascertain the correctness of any withholding exemption certificate, form or agreement, the department may examine or cause to be examined by any agent or representative designated by it any books, papers, records or memoranda bearing on the certificate, form or agreement and may require the production of books, records and memoranda, and may require testimony and proof relevant to its investigation.
71.66(4)(b) (b) If it appears that a person has filed an incorrect certificate, form or agreement with an employer, the department may void the certificate, form or agreement by notifying the employer and employe. The employer shall then withhold based on the number of exemptions prescribed by the department in its notice. If an employe fails to furnish information requested by the department to verify the correctness of the certificate, form or agreement, the employe shall be considered as claiming no withholding exemptions and the employer shall withhold on that basis upon notification by the department to the employer and the employe.
71.66 History History: 1987 a. 312; 1991 a. 39.
71.67 71.67 General provisions.
71.67(1)(1)Agreement with U.S. secretary of treasury. The secretary of revenue is authorized to enter into an agreement with the secretary of the treasury of the United States pursuant to P.L. 82-587 enacted July 17, 1952.
71.67(2) (2)Provisions of this chapter apply. All provisions of this chapter on the following subjects relating to income taxes that are not in conflict with this subchapter apply to the administration of this subchapter: assessment, hearing and appeal procedures, preparation of assessments, certification of taxes due and correction of them, interest, penalties, collection, including s. 71.80 (3) and subch. XV, and refund procedures.
71.67(3) (3)Withheld amounts are funds held in trust for the state. Whenever any person is required to withhold any Wisconsin income tax from an employe, until such amount is deposited with the public depository prescribed by s. 71.65 (3) (a) or paid over to the department as prescribed by s. 71.65 (3) (b), the amount so withheld shall be held to be a special fund in trust for the state. The amount of such fund may be assessed and collected from such person by the department as income taxes are assessed and collected, and such collection shall not abate any penalty imposed.
71.67(4) (4)Withholding from lottery winnings.
71.67(4)(a)(a) The administrator of the lottery division in the department under ch. 565 shall withhold from any lottery prize of $2,000 or more an amount determined by multiplying the amount of the prize by the highest rate applicable to individuals under s. 71.06 (1). The administrator shall deposit the amounts withheld, on a monthly basis, as would an employer depositing under s. 71.65 (3) (a).
71.67(4)(b) (b) The administrator shall furnish to each payee whose winnings are subject to withholding under par. (a) during the year, on or before January 31 of the succeeding year, 2 legible copies of a written statement showing the following:
71.67(4)(b)1. 1. The name of the payer and that payer's Wisconsin income tax identification number, if any.
71.67(4)(b)2. 2. The name of the payee and that payee's social security number, if any.
71.67(4)(b)3. 3. The gross amount of lottery prize winnings that are subject to withholding under par. (a).
71.67(4)(b)4. 4. The total amount deducted and withheld as required under par. (a).
71.67(4)(c)1.1. The payee shall furnish the department of revenue with one copy of the written statement he or she receives under par. (b) along with his or her income or franchise tax return for the year.
71.67(4)(c)2. 2. The administrator shall furnish the department of revenue with a copy of the statement that he or she furnishes to the payee under par. (b).
71.67(5) (5)Withholding from pari-mutuel wager winnings.
71.67(5)(a)(a) Wager winnings. A person holding a license to sponsor and manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c) if the amount of the payment is more than $1,000.
71.67(5)(b) (b) Deposits. The licensee under s. 562.05 (1) (b) or (c) shall deposit the amounts withheld under this subsection as would an employer depositing under s. 71.65 (3).
71.67(5)(c) (c) Statement of winnings to payee. The licensee shall furnish to each payee whose winnings are subject to withholding under par. (a) during the year, on or before January 31 of the succeeding year, 2 legible copies of a written statement showing the following:
71.67(5)(c)1. 1. The name of the payer and that payer's Wisconsin income tax identification number, if any.
71.67(5)(c)2. 2. The name of the payee and that payee's social security number, if any.
71.67(5)(c)3. 3. The gross amount of pari-mutuel wager winnings that are subject to withholding under par. (a).
71.67(5)(c)4. 4. The total amount deducted and withheld as required under par. (a).
71.67(5)(d) (d) Statement furnished to the department.
71.67(5)(d)1.1. The payee shall furnish the department of revenue with one copy of the written statement he or she receives under par. (c) along with his or her income or franchise return for the year.
71.67(5)(d)2. 2. The licensee shall furnish the department of revenue with a copy of the statement that he or she furnishes to the payee under par. (c).
71.67(6) (6)Withholding registration; fee. Each employer who is required to withhold under this chapter shall obtain a valid certificate under s. 73.03 (50).
71.67(7) (7)Withholding from unemployment compensation.
71.67(7)(a)(a) The department of industry, labor and job development may, in accordance with s. 108.135, deduct and withhold from any unemployment compensation payment, on a form prepared by the department of industry, labor and job development, a portion of the payment as Wisconsin income tax. The department of industry, labor and job development shall deposit the amounts withheld, on a monthly basis, as provided in s. 108.135 (6).
71.67(7)(b) (b) The department of industry, labor and job development shall furnish to each claimant who receives benefits during any year, on or before January 31 of the succeeding year, at least one legible copy of a written statement showing all of the following:
71.67(7)(b)1. 1. The name of the claimant and that claimant's social security number.
71.67(7)(b)2. 2. The gross amount of unemployment compensation that is subject to withholding under par. (a).
71.67(7)(b)3. 3. The total amount deducted and withheld under par. (a).
71.67(7)(c)1.1. If the department of revenue so requires, the claimant shall furnish the department of revenue with one copy of the written statement that he or she receives under par. (b), along with his or her income tax return for the year.
71.67(7)(c)2. 2. The department of industry, labor and job development shall furnish the department of revenue with a copy of any statement that is furnished to the claimant under par. (b).
subch. XI of ch. 71 SUBCHAPTER XI
INFORMATION RETURNS
71.69 71.69 Capital stock transfers. All corporations doing business in this state shall file with the department, on or before March 15 of each year on forms prescribed by the department, a statement of such transfers of its capital stock as have been made by or to residents of this state during the preceding calendar year. Such statement shall contain the name and address of the seller, date of transfer, and the number of shares of stock transferred.
71.69 History History: 1987 a. 312.
71.70 71.70 Rents or royalties.
71.70(1)(1)Persons other than corporations. Persons other than corporations deducting rent or royalties in determining taxable income shall inform the department of the amounts and of the name and address of all natural persons who are residents of this state and to whom royalties of $600 or more were paid during the taxable year; and of the amounts and of the name and address of all natural persons to whom rent of $600 or more is paid during the taxable year for property having a situs in this state. Such information shall be filed at the time of filing the income tax return on which such payments are deducted or at such other time as the department prescribes.
71.70(2) (2)Corporations. All corporations doing business in this state shall file with the department, on or before March 15 of each year, any information relative to payments made within the preceding calendar year of rents and royalties to all natural persons taxable thereon under this chapter in amounts and in the manner and form prescribed by the department.
71.70 History History: 1987 a. 312; 1989 a. 31; 1991 a. 39.
71.71 71.71 Wages.
71.71(1)(1)Statement employer must furnish to employe.
71.71(1)(a)(a) Every person, partnership or limited liability company required to deduct and withhold from an employe under the general withholding provisions of subch. X shall furnish to each such employe in respect of the remuneration paid by such person, partnership or company to such employe during the calendar year, on or before January 31 of the succeeding year, or if his or her employment is terminated before the close of any such calendar year on the day on which the last payment of remuneration is made, 2 legible copies of a written statement showing the following:
71.71(1)(a)1. 1. The name of such person, partnership or limited liability company, and that person's, partnership's or company's Wisconsin income tax identification number, if any.
71.71(1)(a)2. 2. The name of such employe, and his or her social security number, if any.
71.71(1)(a)3. 3. The total amount of wages as defined in s. 71.63 (6).
71.71(1)(a)4. 4. The total amount deducted and withheld as required by the general withholding provisions of subch. X.
71.71(1)(b) (b) The employe shall furnish the department of revenue one copy of such written statement along with his or her return for the year.
71.71(2) (2)Statement employer must furnish to department. Every person required to deduct and withhold from an employe under subch. X shall furnish to the department of revenue at its offices in Madison, in respect to remuneration paid by such person to such employe during the calendar year, on or before January 31 of the succeeding year, one copy of the statement referred to in sub. (1).
71.71 History History: 1987 a. 312; 1991 a. 39; 1993 a. 112.
71.72 71.72 Statement of nonwage payments. Every resident of this state and every nonresident carrying on activities within this state, whether taxable or not under this chapter, who pays in any calendar year for services performed within this state by an individual remuneration which is excluded from the definition of wages in s. 71.63 (6), in the amount of $600 or more, shall, on or before January 31 of the succeeding year furnish the department of revenue at its offices in Madison, a statement in such form as required by the department, disclosing the name of the payor, the name and address of the recipient and the total amount paid in such year to such recipient. In any case in which an individual receives wages, as defined in s. 71.63 (6), and also remuneration for services which remuneration is excluded from such definition, both from the same payor, the wages and the excluded remuneration shall both be reported in the statement required by s. 71.71 (2) in a manner satisfactory to the department, regardless of the amount of the excluded remuneration.
71.72 History History: 1987 a. 312; 1991 a. 39.
71.73 71.73 General provisions.
71.73(1)(1)Penalties. Unless specifically provided in this subchapter, the penalties under subch. XIII apply for failure to comply with this subchapter, unless the context requires otherwise.
71.73(2) (2)Time extension. For good cause shown upon application by an employer, the department may grant an extension of time not exceeding 30 days in which to furnish employes the written statements required by s. 71.71 (1) or to file the copies of the statements as required by s. 71.71 (2) or 71.72.
71.73 History History: 1987 a. 312; 1991 a. 39.
subch. XII of ch. 71 SUBCHAPTER XII
ADMINISTRATIVE PROVISIONS APPLICABLE TO ALL ENTITIES
71.738 71.738 Definition. In this subchapter, "last day prescribed by law" means the unextended due date of the return, or of the claim made under subch. VIII.
71.738 History History: 1995 a. 428.
71.74 71.74 Department audits, additional assessments and refunds.
71.74(1)(1)Office audit. The department of revenue shall, as soon as practicable, office audit such returns as it deems advisable and if it is found from such office audit that a person has been over or under assessed, or found that no assessment has been made when one should have been made, the department of revenue shall correct or assess the income of such person. Any assessment, correction or adjustment made as a result of such office audit shall be presumed to be the result of an audit of the return only, and such office audit shall not be deemed a verification of any item in said return unless the amount of such item and the propriety thereof shall have been determined after hearing and review as provided in s. 71.88 (1) (a) and (2) (a). Such office audit shall not preclude the department of revenue from making field audits of the books and records of the taxpayer and from making further adjustment, correction and assessment of income.
71.74(2) (2)Field audit.
71.74(2)(a)(a) Whenever the department deems it advisable to verify any return directly from the books and records of any person, or from any other sources of information, the department may direct any return to be so verified.
71.74(2)(b) (b) For the purpose of ascertaining the correctness of any return or for the purpose of making a determination of the taxable income of any person, the department may examine or cause to be examined by any agent or representative designated by it, any books, papers, records or memoranda bearing on the income of the person, and may require the production of the books, papers, records or memoranda, and require the attendance of any person having knowledge in the premises, and may take testimony and require proof material for its information. Upon such information as it may be able to discover, the department shall determine the true amount of income received during the year or years under investigation.
71.74(2)(c) (c) If it appears upon such investigation that a person has been over or under assessed, or that no assessment has been made when one should have been made, the department shall make a correct assessment in the manner provided in this chapter.
71.74(3) (3)Default assessment. Any person required to make an income or franchise tax return, who fails, neglects or refuses to do so in the manner and form and within the time prescribed by this chapter, or makes a return that does not disclose the person's entire net income, shall be assessed by the department according to its best judgment.
71.74(4) (4)Assessment for failure of natural persons and fiduciaries to file information returns. The department may assess as an addition to taxable income the amount of deductions taken in arriving at federal adjusted gross income or federal taxable income by natural persons and fiduciaries for wages, rent or royalties, upon failure to file information returns concerning such payments where required under s. 71.65 (1) and (2) (a) or (b) and 71.70 (1). Such assessments shall be made and reviewed in the same manner as other income tax assessments.
71.74(5) (5)Assessment when prices affect taxable income. 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.
71.74(6) (6)Consolidated statements. For the purpose of this chapter, whenever 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 whose income 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.
71.74(7) (7)Additional assessments against dissolved corporation. If all or substantially all of the business or property of a corporation is transferred to one or more persons and the corporation is liquidated, dissolved, merged, consolidated or otherwise terminated, any tax imposed by this chapter on such corporation may be assessed and collected as prescribed in this section against the transferee or transferees of such business or property. Notice shall be given to such transferee or transferees under sub. (11) within the time specified in s. 71.77 irrespective of any other limitations imposed by law. If such corporation has dissolved, such notice may be served on any one of the last officers or members of the board of directors of such corporation.
71.74(8) (8)Adjustment of credits.
71.74(8)(a)(a) If an audit of a claim for a credit under s. 71.07, 71.28 or 71.47 or subch. VIII or IX indicates that an incorrect claim was filed, the department of revenue shall make a determination of the correct amount and notify the claimant of the determination and the reasons therefor under sub. (11) within 4 years of the last day prescribed by law for filing the claim. If the claim has been paid, or credited against income or franchise taxes otherwise payable, the credit shall be reduced or canceled, and the proper portion of any amount paid shall be similarly recovered by assessment as income or franchise taxes are assessed.
71.74(8)(b) (b) If a claim for a credit under s. 71.07, 71.28 or 71.47 or subch. VIII or IX is false or excessive and was filed with fraudulent intent, the claim shall be disallowed in full and, if the claim has been paid or a credit has been allowed against income or franchise taxes otherwise payable, the credit shall be canceled and the amount paid may be recovered by assessment as income or franchise taxes are assessed.
71.74(8)(c) (c) If a claim for a credit under s. 71.07, 71.28 or 71.47 or subch. VIII or IX is excessive and was negligently prepared, 10% of the corrected claim shall be disallowed and, if the claim has been paid or credited against income or franchise taxes otherwise payable, the credit shall be reduced or canceled and the proper portion of any amount paid shall be similarly recovered by assessment as income or franchise taxes are assessed.
71.74(8)(d) (d) If a claim for a state historic rehabilitation credit under s. 71.07 (9r) is false or excessive, the department of revenue shall disallow the claim in full. If a credit has been allowed against income taxes otherwise payable, the credit shall be canceled and the amount may be recovered by assessment as income taxes are assessed. Notwithstanding par. (a) and s. 71.77, the department shall notify the claimant of the determination and shall give reasons for the disallowance under sub. (11) within 4 years after the date that the state historical society notifies the department that the preservation or rehabilitation is not in compliance with s. 71.07 (9r) (b) 3. b. or 4., but that notification must be made within 6 years after the date that the physical work of construction, or destruction in preparation for construction, begins.
71.74(9) (9)Liability may be assessed to more than one person. If the department of revenue determines that a liability exists under this chapter and that the liability may be owed by more than one person, the department may assess the entire amount to each person, specifying that it is assessing in the alternative.
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