71.10
71.10
General provisions. 71.10(1)(1)
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, whether or not affiliated, and whether or not unitary) owned or controlled directly or indirectly by the same interests, the secretary or the secretary's delegate may distribute, apportion or allocate gross income, deductions, credits or allowances between or among such organizations, trades or businesses, if the secretary 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. The authority granted under this subsection is in addition to, and not a limitation of or dependent on, the provisions of
ss. 71.05 (6) (a) 24. and
(b) 45.,
71.26 (2) (a) 7. and
8.,
71.34 (1k) (j) and
(k),
71.45 (2) (a) 16. and
17., and
71.80 (23).
71.10(1m)
(1m) Transactions without economic substance. 71.10(1m)(a)(a) If any person, directly or indirectly, engages in a transaction or series of transactions without economic substance to create a loss or to reduce taxable income or to increase credits allowed in determining Wisconsin tax, the department shall determine the amount of a taxpayer's taxable income or tax so as to reflect what would have been the taxpayer's taxable income or tax if not for the transaction or transactions without economic substance causing the reduction in taxable income or tax.
71.10(1m)(b)
(b) A transaction has economic substance only if the taxpayer shows all of the following:
71.10(1m)(b)1.
1. The transaction changes the taxpayer's economic position in a meaningful way, apart from federal, state, local, and foreign tax effects.
71.10(1m)(b)2.
2. The taxpayer has a substantial nontax purpose for entering into the transaction and the transaction is a reasonable means of accomplishing the substantial nontax purpose. A transaction has a substantial nontax purpose if it has substantial potential for profit, disregarding any tax effects.
71.10(1m)(c)
(c) With respect to transactions between members of a controlled group as defined in section
267 (f) (1) of the Internal Revenue Code, such transactions shall be presumed to lack economic substance and the taxpayer shall bear the burden of establishing by clear and convincing evidence that a transaction or a series of transactions between the taxpayer and one or more members of the controlled group has economic substance.
71.10(2)
(2) Assessment of income distributable to a 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 person makes a complete return under this chapter.
71.10(4)
(4) Computation order. Notwithstanding any other provisions in this chapter, all persons other than corporations computing liability for the tax under
s. 71.02 shall make computations in the following order:
71.10(4)(f)
(f) Alternative minimum tax under
s. 71.08, including any surtax on alternative minimum tax.
71.10(4)(i)
(i) The total of claim of right credit under
s. 71.07 (1), farmland preservation credit under
ss. 71.57 to
71.61, farmland preservation credit, 2010 and beyond under
s. 71.613, homestead credit under
subch. VIII, farmland tax relief credit under
s. 71.07 (3m), dairy manufacturing facility investment credit under
s. 71.07 (3p), jobs tax credit under
s. 71.07 (3q), meat processing facility investment credit under
s. 71.07 (3r), woody biomass harvesting and processing credit under
s. 71.07 (3rm), food processing plant and food warehouse investment credit under
s. 71.07 (3rn), film production services credit under
s. 71.07 (5f), film production company investment credit under
s. 71.07 (5h), veterans and surviving spouses property tax credit under
s. 71.07 (6e), enterprise zone jobs credit under
s. 71.07 (3w), beginning farmer and farm asset owner tax credit under
s. 71.07 (8r), earned income tax credit under
s. 71.07 (9e), estimated tax payments under
s. 71.09, and taxes withheld under
subch. X.
71.10(5)(a)2.
2. "Endangered resources program" means purchasing or improving land or habitats for any native Wisconsin endangered or threatened species as defined in
s. 29.604 (2) (a) or
(b) or for any nongame species as defined in
s. 29.001 (60), conducting the natural heritage inventory program under
s. 23.27 (3), conducting wildlife and resource research and surveys and providing wildlife management services, providing for wildlife damage control or the payment of claims for damage associated with endangered or threatened species, repaying the general fund for amounts expended under
s. 20.370 (1) (fb) in fiscal year 1983-84 and the payment of administrative expenses related to the administration of this subsection.
71.10(5)(b)1.1. `Designation on return.' Subject to
sub. (5s), any individual filing an income tax return may designate on the return any amount of additional payment or any amount of a refund due that individual for the endangered resources program.
71.10(5)(b)2.
2. `Designation added to tax owed.' If the individual owes any tax, the individual shall remit in full the tax due and the amount designated on the return for the endangered resources program when the individual files a tax return.
71.10(5)(b)3.
3. `Designation deducted from refund.' Except as provided under
par. (d) if the individual is owed a refund for that year after crediting under
ss. 71.75 (9) and
71.80 (3), the department of revenue shall deduct the amount designated on the return for the endangered resources program from the amount of the refund.
71.10(5)(c)
(c)
Errors; failure to remit correct amount. If an individual who owes taxes fails to remit an amount equal to or in excess of the total of the actual tax due, after error corrections, and the amount designated on the return for the endangered resources program:
71.10(5)(c)1.
1. The department shall reduce the designation for the endangered resources program to reflect the amount remitted in excess of the actual tax due, after error corrections, if the individual remitted an amount in excess of the actual tax due, after error corrections, but less than the total of the actual tax due, after error corrections, and the amount originally designated on the return for the endangered resources program.
71.10(5)(c)2.
2. The designation for the endangered resources program is void if the individual remitted an amount equal to or less than the actual tax due, after error corrections.
71.10(5)(d)
(d)
Errors; insufficient refund. If an individual who is owed a refund which does not equal or exceed the amount designated on the return for the endangered resources program, after crediting under
ss. 71.75 (9) and
71.80 (3) and after error corrections, the department shall reduce the designation for the endangered resources program to reflect the actual amount of the refund the individual is otherwise owed, after crediting under
ss. 71.75 (9) and
71.80 (3) and after error corrections.
71.10(5)(e)
(e)
Conditions. If an individual places any conditions on a designation for the endangered resources program, the designation is void.
71.10(5)(f)
(f)
Void designation. If a designation for the endangered resources program is void, the department of revenue shall disregard the designation and determine amounts due, owed, refunded and received without regard to the void designation.
71.10(5)(g)
(g)
Tax return. The secretary of revenue shall provide a place for the designations under this subsection on the individual income tax return.
71.10(5)(h)
(h)
Certification of amounts. Annually, on or before September 15, the secretary of revenue shall certify to the department of natural resources and the department of administration:
71.10(5)(h)1.
1. The total amount of the administrative costs, including data processing costs, incurred by the department of revenue in administering this subsection during the previous fiscal year.
71.10(5)(h)3.
3. The total amount received from all designations for the endangered resources program made by taxpayers during the previous fiscal year.
71.10(5)(h)4.
4. The net amount remaining after the administrative costs, including data processing costs, under
subd. 1. are subtracted from the total received under
subd. 3.
71.10(5)(h)5.
5. From the moneys received from designations for the endangered resources program, an amount equal to the sum of administrative expenses, including data processing costs, certified under
subd. 1. shall be deposited in the general fund and credited to the appropriation under
s. 20.566 (1) (hp), and the net amount remaining certified under
subd. 4. shall be deposited in the conservation fund and credited to the appropriation under
s. 20.370 (1) (fs).
71.10(5)(h)6.
6. Amounts designated for the endangered resources program under this subsection are not subject to refund to the taxpayer unless the taxpayer submits information to the satisfaction of the department within 18 months after the date taxes are due or the date the return is filed, whichever is later, that the amount designated is clearly in error. Any refund granted by the department of revenue under this subdivision shall be deducted from the moneys received under this subsection in the fiscal year that the refund is certified.
71.10(5e)
(5e) Local professional football stadium district donation. 71.10(5e)(a)2.
2. "Football donation" means a designation made under this subsection, the net proceeds of which shall be deposited into the fund under
s. 229.8257 to be used for maintenance and operating costs of a football stadium under
s. 229.821 (6).
71.10(5e)(b)1.1. `Designation on return.' Subject to
sub. (5s), every individual filing an income tax return who has a tax liability or is entitled to a tax refund may designate on the return any amount of additional payment or any amount of a refund due that individual as a football donation.
71.10(5e)(b)2.
2. `Designation added to tax owed.' If the individual owes any tax, the individual shall remit in full the tax due and the amount designated on the return as a football donation when the individual files a tax return.
71.10(5e)(b)3.
3. `Designation deducted from refund.' Except as provided under
par. (d), if the individual is owed a refund for that year after crediting under
ss. 71.75 (9) and
71.80 (3), the department shall deduct the amount designated on the return as a football donation from the amount of the refund.
71.10(5e)(c)
(c)
Errors; failure to remit correct amount. If an individual who owes taxes fails to remit an amount equal to or in excess of the total of the actual tax due, after error corrections, and the amount designated on the return as a football donation:
71.10(5e)(c)1.
1. The department shall reduce the designation for the football donation to reflect the amount remitted in excess of the actual tax due, after error corrections, if the individual remitted an amount in excess of the actual tax due, after error corrections, but less than the total of the actual tax due, after error corrections, and the amount originally designated on the return as a football donation.
71.10(5e)(c)2.
2. The designation for the football donation is void if the individual remitted an amount equal to or less than the actual tax due, after error corrections.
71.10(5e)(d)
(d)
Errors; insufficient refund. If an individual who is owed a refund that does not equal or exceed the amount designated on the return as a football donation, after crediting under
ss. 71.75 (9) and
71.80 (3) and after error corrections, the department shall reduce the designation for the football donation to reflect the actual amount of the refund the individual is otherwise owed, after crediting under
ss. 71.75 (9) and
71.80 (3) and after error corrections.
71.10(5e)(e)
(e)
Conditions. If an individual places any conditions on a designation for the football donation, the designation is void.
71.10(5e)(f)
(f)
Void designation. If a designation for the football donation is void, the department shall disregard the designation and determine amounts due, owed, refunded and received without regard to the void designation.
71.10(5e)(g)
(g)
Tax return. The secretary of revenue shall provide a place for the designations under this subsection on the individual income tax return.
71.10(5e)(h)
(h)
Certification of amounts. Annually, on or before September 15, the secretary of revenue shall certify to the district board under
subch. IV of ch. 229 and the department of administration:
71.10(5e)(h)1.
1. The total amount of the administrative costs, including data processing costs, incurred by the department in administering this subsection during the previous fiscal year.
