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 employee, 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 the person who claims the prize. 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),
(1m),
(1n),
(1p), or
(1q) if the amount of the payment is more than $1,000.
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)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(5m)
(5m) Withholding from payments to purchase assignment of lottery prize. A person that purchases an assignment of a lottery prize shall withhold from the amount of any payment made to purchase the assignment the amount that is determined by multiplying the amount of the payment by the highest rate applicable to individuals under
s. 71.06 (1) (a) to
(c),
(1m),
(1n),
(1p), or
(1q).
Subsection (5) (b),
(c) and
(d), as it applies to the amounts withheld under
sub. (5) (a), applies to the amount withheld under this subsection.
71.67(6)
(6) Withholding registration; fee. 71.67(6)(a)(a) Except as provided under
par. (b), 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 insurance. 71.67(7)(a)(a) The department of workforce development may, in accordance with
s. 108.135, deduct and withhold from any unemployment insurance payment, on a form prepared by the department of workforce development, a portion of the payment as Wisconsin income tax. The department of workforce 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 workforce 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 insurance that is subject to withholding 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 workforce development shall furnish the department of revenue with a copy of any statement that is furnished to the claimant under
par. (b).
71.67 Cross-reference
Cross-reference: See also s.
Tax 2.04, Wis. adm. code.
INFORMATION RETURNS
71.68
71.68
Definitions. In this subchapter:
71.68(1)
(1) “Department" means the department of revenue.
71.68(2)
(2) “File" means mail or deliver a document that the department prescribes to the department or, if the department prescribes another method of submitting or another destination, use that other method or submit to that other destination.
71.68 History
History: 1997 a. 27.
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 file a report that shows the amounts and 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 the amounts and 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 on or before February 28 of the year following the year in which the payments were made. The person who deducts rent or royalties shall, on or before January 31 of the year in which the report is required to be furnished, furnish the recipient with a copy of that report.
71.70(2)
(2) Corporations. All corporations doing business in this state shall file, on or before March 15, any information relative to payments made within the preceding calendar year of rents and royalties to all natural persons taxable thereon under this chapter. A corporation shall, on or before January 31 of the year in which the statement is required to be furnished to the department, furnish the recipient of the payment with a copy of that statement.
71.70 Cross-reference
Cross-reference: See also s.
Tax 2.04, Wis. adm. code.
71.71(1)(1)
Statement employer must furnish to employee. 71.71(1)(a)(a) Every person, partnership or limited liability company required to deduct and withhold from an employee under the general withholding provisions of
subch. X shall furnish to each such employee in respect of the remuneration paid by such person, partnership or company to such employee 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 employee, and his or her social security number, if any.
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 employee 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 file. Every person required to deduct and withhold from an employee under
subch. X shall file, in respect to remuneration paid by such person to such employee 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 Cross-reference
Cross-reference: See also s.
Tax 2.04, Wis. adm. code.
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 February 28 of the year following the year in which the payments were made, file a statement disclosing the name of the payor, the name and address of the recipient and the total amount paid in such year to such recipient. The person who pays for the services shall, on or before January 31 of the year in which the statement is required to be furnished to the department, furnish the recipient of the payment with a copy of that statement. 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 Cross-reference
Cross-reference: See also s.
Tax 2.04, Wis. adm. code.
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) Extensions. If an employer applies for an extension and shows good cause why an extension should be granted, the department of revenue may grant the following extensions for the following statements:
71.73(2)(a)
(a) Sixty days for filing a rent and royalty statement under
s. 71.70.
71.73(2)(c)
(c) Sixty days for filing a statement of nonwage payments under
s. 71.72.
ADMINISTRATIVE PROVISIONS APPLICABLE
TO ALL ENTITIES
71.738
71.738
Definitions. In this subchapter:
71.738(1m)
(1m) “Department" means the department of revenue.
71.738(2m)
(2m) “File" means mail or deliver a document that the department prescribes to the department or, if the department prescribes another method of submitting or another destination, use that other method or submit to that other destination.
71.738(3)
(3) “Last day prescribed by law" means the unextended due date of the return or of the claim made under
subch. VIII.
71.738(4)
(4) “Sign" means write one's signature or, if the department prescribes another method of authenticating, use that other method.
71.74
71.74
Department audits, additional assessments and refunds. 71.74(1)(1)
Office audit. The department 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 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 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)(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 file an income or franchise tax return, who fails, neglects or refuses to do so within the time prescribed by this chapter or files 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 Cross-reference
Cross-reference: See also s.
Tax 2.04, Wis. adm. code.
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.
