71.28(8r)(a)5.
5. “Farming" has the meaning given in section
464 (e) (1) of the Internal Revenue Code.
71.28(8r)(a)6.
6. “Lease amount" is the amount of the cash payment paid by a beginning farmer to an established farmer each year for leasing the established farmer's agricultural assets.
71.28(8r)(b)
(b)
Filing claims. For taxable years beginning after December 31, 2010, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s.
71.23 an amount equal to 15 percent of the lease amount received by the claimant in the taxable year. If the allowable amount of the claim exceeds the taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s.
20.835 (2) (en).
71.28(8r)(c)1.1. A claimant may only claim the credit under this subsection for the first 3 years of any lease of the claimant's agricultural assets to a beginning farmer.
71.28(8r)(c)2.
2. Along with a claimant's income tax return, a claimant shall submit to the department a certificate of eligibility provided under s.
93.53 (5) (c).
71.28(8r)(c)3.
3. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on the amounts received by the entities under par.
(b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.
71.28(8r)(d)2.
2. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013.
71.28(9s)(a)1.
1. “Claimant" means a person who files a claim under this subsection.
71.28(9s)(a)2.
2. “Locates to this state" means moving either 51 percent or more of the workforce payroll of the business or at least $200,000 of wages, as defined in section
3121 of the Internal Revenue Code, paid to such workforce to Wisconsin during the first taxable year to which a credit under this subsection relates.
71.28(9s)(b)
(b)
Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2010, and before January 1, 2014, for 2 consecutive taxable years beginning with the taxable year in which the claimant's business locates to this state from another state or another country and begins doing business in this state, a claimant may claim as a credit against the taxes imposed under s.
71.23, up to the amount of the taxes, the amount of the claimant's tax liability under this subchapter after applying all other allowable credits, deductions, and exclusions.
71.28(9s)(c)1.1. No person may claim a credit under this subsection if the person has done business in this state during any of the 2 taxable years preceding the first taxable year in which the person would otherwise be eligible to claim a credit under par.
(b).
71.28(9s)(c)2.
2. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection.
71.28(9s)(d)2.
2. The department shall promulgate rules to administer this subsection.
71.28 Cross-reference
Cross-reference: See also s.
Tax 2.957, Wis. adm. code.
71.28(9s)(d)3.
3. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013, except that a claimant who is first eligible to claim a credit under this subsection for taxable years beginning after December 31, 2012, and before January 1, 2014, may claim the credit in the following taxable year.
71.28(10)
(10) Employee college savings account contribution credit. 71.28(10)(a)1.
1. “Claimant" means a person who files a claim under this subsection.
71.28(10)(a)1m.
1m. “College savings account" means a college savings account, as described in s.
224.50.
71.28(10)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s.
71.23, up to the amount of those taxes, for each employee of the claimant, an amount equal to the amount the claimant paid into a college savings account owned by the employee in the taxable year in which the contribution is made.
71.28(10)(c)1.1. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts under par.
(b). A partnership, limited liability company, or tax-option corporation shall compute the amount of the credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.
71.28(10)(c)2.
2. The maximum amount of the credit per employee that a claimant may claim under this subsection is an amount equal to 25 percent of the amount the claimant contributed to the employee's college savings account up to a maximum contribution equal to 25 percent of the maximum amount that an individual contributor may deduct under s.
71.05 (6) (b) 32. a. per beneficiary.
71.28(10)(d)
(d)
Administration. Subsection
(4) (e) to
(h), as it applies to the credit under sub.
(4), applies to the credit under this subsection.
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;
1997 a. 27,
41,
237,
299;
1999 a. 5,
9;
2001 a. 16;
2003 a. 72,
99,
135,
255,
267,
326;
2005 a. 25,
74,
97,
361,
387,
452,
479,
483,
487;
2007 a. 20,
96,
97,
100;
2009 a. 2,
11,
28,
180,
185,
265,
267,
269,
276,
294,
295,
332,
401;
2011 a. 3,
15,
32,
67,
212,
213,
232,
237;
2011 a. 260 s.
80;
2013 a. 20,
54,
62,
116,
145,
165;
2013 a. 166 ss.
26,
77;
2015 a. 55,
186,
237;
2017 a. 58,
59,
176,
197;
2017 a. 364 ss.
16 to
18,
48;
2017 a. 365 s.
111;
2017 a. 366; s. 13.92 (1) (bm) 2.
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.
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 installment of estimated taxes and may deduct any excess from the succeeding installments.
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 percent 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 installment 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 Cross-reference
Cross-reference: See also s.
Tax 2.89, Wis. adm. code.
71.29(6)
(6) Overpayments. If the amount of an installment 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 installment.
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(7)(c)
(c) For taxable years beginning after December 31, 2008, the taxpayer qualifies for a federal extension of time to file under
26 USC 7508A due to a presidentially declared disaster or terroristic or military action.
71.29(7)(d)
(d) The taxpayer has underpaid the taxpayer's estimated taxes due to the change in the percentage under s.
71.28 (5n) (b) 3. This paragraph applies only to taxable years beginning after December 31, 2014, and before January 1, 2016.
71.29(8)
(8) Installment due dates. Taxpayers shall make estimated payments in 4 installments, on or before the 15th day of each of the following months:
71.29(8)(a)
(a) The 4th month of the taxable year, except that a taxpayer whose taxable year begins in April shall pay the installment in the 3rd month of the taxable year.
71.29(9)
(9) Installment 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 installment required under sub.
(8) is 25 percent 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 percent 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 percent for the first installment, 45 percent for the 2nd installment, 67.5 percent for the 3rd installment and 90 percent for the 4th installment 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 installment's due date is less than the installment 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 installment 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 installment shall be used. Any corporation or virtually exempt entity that pays an amount calculated under this paragraph shall increase the next installment 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) Installment 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 installment required under sub.
(8) is 25 percent 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 percent of the tax for the taxable year.
71.29(10)(c)
(c) If 22.5 percent for the first installment, 45 percent for the 2nd installment, 67.5 percent for the 3rd installment and 90 percent for the 4th installment 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 installment's due date is less than the installment 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 installment 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 installment, 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 installments 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 installment shall be used. Any corporation or virtually exempt entity that pays an amount calculated under this paragraph shall increase the next installment 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 installment. 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, whether or not affiliated, and whether or not unitary) 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. 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).
71.30(2m)
(2m) Transactions without economic substance. 71.30(2m)(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.
71.30(2m)(b)
(b) A transaction has economic substance only if the transaction is treated as having economic substance as determined under section
7701 (o) of the Internal Revenue Code, except that the tax effect shall be determined using federal, state, local, or foreign taxes, rather than only the federal income tax effect.
71.30(2m)(c)
(c) With respect to a transaction between members of a controlled group, as defined in section
267 (f) (1) of the Internal Revenue Code, the transaction shall be presumed to lack economic substance, and the taxpayer shall bear the burden of establishing by clear and satisfactory evidence that the transaction or the series of transactions between the taxpayer and one or more members of the controlled group has economic substance.
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:
