71.10(5km)(c)1.
1. The department shall reduce the designation for the Special Olympics 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 Special Olympics.
71.10(5km)(c)2.
2. The designation for the Special Olympics is void if the individual remitted an amount equal to or less than the actual tax due, after error corrections.
71.10(5km)(d)
(d)
Errors; insufficient refund. If an individual is owed a refund that does not equal or exceed the amount designated on the return for the Special Olympics, after crediting under ss.
71.75 (9) and
71.80 (3) and
(3m) and after error corrections, the department shall reduce the designation for the Special Olympics to reflect the actual amount of the refund that the individual is otherwise owed, after crediting under ss.
71.75 (9) and
71.80 (3) and
(3m) and after error corrections.
71.10(5km)(e)
(e)
Conditions. If an individual places any conditions on a designation for the Special Olympics, the designation is void.
71.10(5km)(f)
(f)
Void designation. If a designation for the Special Olympics is void, the department shall disregard the designation and determine amounts due, owed, refunded, and received without regard to the void designation.
71.10(5km)(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(5km)(h)
(h)
Certification of amounts. Annually, on or before September 15, the secretary of revenue shall certify to the department of administration and the state treasurer all of the following:
71.10(5km)(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.
71.10(5km)(h)2.
2. The total amount received from all designations for the Special Olympics made by taxpayers during the previous fiscal year.
71.10(5km)(h)3.
3. The net amount remaining after the administrative costs, including data processing costs, under subd.
1. are subtracted from the total received under subd.
2. 71.10(5km)(i)
(i)
Appropriations. From the moneys received from designations for the Special Olympics, an amount equal to the sum of administrative expenses, including data processing costs, certified under par.
(h) 1. shall be deposited in the general fund and credited to the appropriation account under s.
20.566 (1) (hp), and the net amount remaining that is certified under par.
(h) 3. shall be credited to the appropriation under s.
20.255 (3) (ge).
71.10(5km)(j)
(j)
Amounts subject to refund. Amounts designated for the Special Olympics 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 on which the taxes are due or the date on which the return is filed, whichever is later, that the amount designated is clearly in error. Any refund granted by the department under this paragraph shall be deducted from the moneys received under this subsection in the fiscal year for which the refund is certified.
71.10(5m)
(5m)
Multiple sclerosis programs checkoff. 71.10(5m)(a)2.
2. “Society" means the National Multiple Sclerosis Society.
71.10(5m)(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 for programs for people with multiple sclerosis.
71.10(5m)(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 programs for people with multiple sclerosis when the individual files a tax return.
71.10(5m)(b)3.
3. `Designation deducted from refund.' Except as provided in par.
(d), if the individual is owed a refund for that year after crediting under ss.
71.75 (9) and
71.80 (3) and
(3m), the department shall deduct the amount designated on the return for programs for people with multiple sclerosis from the amount of the refund.
71.10(5m)(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 programs for people with multiple sclerosis:
71.10(5m)(c)1.
1. The department shall reduce the designation for programs for people with multiple sclerosis 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 programs for people with multiple sclerosis.
71.10(5m)(c)2.
2. The designation for programs for people with multiple sclerosis is void if the individual remitted an amount equal to or less than the actual tax due, after error corrections.
71.10(5m)(d)
(d)
Errors; insufficient refund. If an individual is owed a refund that does not equal or exceed the amount designated on the return for programs for people with multiple sclerosis, after crediting under ss.
71.75 (9) and
71.80 (3) and
(3m) and after error corrections, the department shall reduce the designation for programs for people with multiple sclerosis to reflect the actual amount of the refund that the individual is otherwise owed, after crediting under ss.
71.75 (9) and
71.80 (3) and
(3m) and after error corrections.
71.10(5m)(e)
(e)
Conditions. If an individual places any conditions on a designation for programs for people with multiple sclerosis, the designation is void.
71.10(5m)(f)
(f)
Void designation. If a designation for programs for people with multiple sclerosis is void, the department shall disregard the designation and determine amounts due, owed, refunded, and received without regard to the void designation.
71.10(5m)(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(5m)(h)
(h)
Certification of amounts. Annually, on or before September 15, the secretary of revenue shall certify to the society, the department of administration, and the state treasurer all of the following:
71.10(5m)(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.
71.10(5m)(h)2.
2. The total amount received from all designations for programs for people with multiple sclerosis made by taxpayers during the previous fiscal year.
71.10(5m)(h)3.
3. The net amount remaining after the administrative costs, including data processing costs, under subd.
1. are subtracted from the total received under subd.
2. 71.10(5m)(i)
(i)
Appropriations, disbursement of funds to the society. From the moneys received from designations for programs for people with multiple sclerosis, an amount equal to the sum of administrative expenses, including data processing costs, certified under par.
(h) 1. shall be deposited in the general fund and credited to the appropriation account under s.
20.566 (1) (hp), and the net amount remaining that is certified under par.
(h) 3. shall be forwarded to the society, for disbursement under par.
(k).
71.10(5m)(j)
(j)
Amounts subject to refund. Amounts designated for programs for people with multiple sclerosis 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 on which the taxes are due or the date on which the return is filed, whichever is later, that the amount designated is clearly in error. Any refund granted by the department under this paragraph shall be deducted from the moneys received under this subsection in the fiscal year for which the refund is certified.
71.10(5m)(k)
(k)
Disbursements by the society. The society shall disburse all of the funds that it receives under par.
(i) to entities located in Wisconsin that operate health-related programs for people with multiple sclerosis, and the entities that receive the funds shall pledge to the society that they will use the money they receive solely for health-related programs for people with multiple sclerosis in Wisconsin.
71.10(5m)(L)
(L)
Report to legislature, governor. Not later than January 1, 2007, and annually thereafter, the society shall prepare a report detailing the entities to which the society distributed funds under par.
(k), the amount of money each entity received, and the health-related multiple sclerosis programs on which the money was spent. The report shall be distributed to the appropriate standing committees of the legislature in the manner provided under s.
13.172 (3) and to the governor.
71.10(5s)(a)(a) For taxable years beginning after December 31, 2011, individuals may not have the option of making a designation to more than 10 individual income checkoffs and the department may not place more than 10 checkoffs on the income tax form. If a checkoff is created for taxable years beginning after December 31, 2011, and before January 1, 2015, the department may not place it on the form, and no designations may be made to the checkoff, for a taxable year that begins before January 1, 2015, except that this limitation does not apply to a checkoff created in a bill that is introduced in both houses of the legislature before June 1, 2011. The limitations in this paragraph do not apply to the checkoff under sub.
(5fm).
71.10(5s)(b)
(b) For taxable years beginning after December 31, 2011, there may be no individual income tax checkoffs of a temporary nature other than the checkoff under sub.
(5fm).
71.10(5s)(c)
(c) Beginning in September 2014, based on the amounts certified by the secretary of revenue in August or September 2013, and 2014, as specified in subs.
(5) (h),
(5e) (h),
(5f) (h),
(5g) (h),
(5h) (h),
(5i) (h),
(5j) (h),
(5k) (h),
(5km) (h), and
(5m) (h), and for every 2-year period thereafter, the secretary of revenue shall rank the checkoffs based on the total amount of designations received for each checkoff for each 2-year period. For each 2-year period, beginning with 2014, the secretary of revenue shall rank every checkoff that is created under this section.
71.10(5s)(d)1.1. If more than 11 checkoffs exist under this section after August 14, 2014, and every 2 years thereafter, not including the checkoff under sub.
(5fm), only the 8 highest ranking checkoffs for which designations were made in the previous 2-year period may appear on the income tax form for the next 2 taxable years.
71.10(5s)(d)2.
2. The remaining 2 checkoffs for which designations may be made and which shall be placed on the income tax form for the next 2 taxable years, in place of the 2 lowest ranking checkoffs, shall be checkoffs that have not received any designations during the previous 2-year period.
71.10(5s)(d)3.
3. The 2 remaining checkoffs, described under subd.
2., shall be the 2 oldest checkoffs, based on the date each checkoff was placed on a list of checkoffs, maintained by the department, that are eligible to be placed on the form. If 2 or more checkoffs have been placed on the list at the same time, the oldest checkoff shall then be calculated according to their effective dates.
71.10(5s)(d)4.
4. If 10 checkoffs exist under this section after August 14, 2014, not including the checkoff under sub.
(5fm), those 10 checkoffs may appear on the income tax form for the next 2 taxable years.
71.10(5s)(d)5.
5. If 11 checkoffs exist under this section after August 14, 2014, not including the checkoff under sub.
(5fm), only the 9 highest ranking checkoffs for which designations were made in the previous 2-year period may appear on the income tax form for the next 2 taxable years. The remaining checkoff for which designations may be made and which shall be placed on the income tax form for the next 2 taxable years, in place of the lowest ranking checkoff, shall be a checkoff that has not received any designations during the previous 2-year period. This last checkoff shall be selected using the method described under subd.
3. 71.10(5s)(e)
(e) For any taxable year that begins after December 31, 2014, individuals may not make a designation for any checkoff which did not generate at least an average of $50,000 of designations per year over the most recent 3-year period as certified by the secretary of revenue under subs.
(5) (h) 3.,
(5e) (h) 2.,
(5f) (h) 2.,
(5fm) (h) 2.,
(5g) (h) 2.,
(5i) (h) 2.,
(5j) (h) 2.,
(5k) (h) 2.,
(5km) (h) 2., and
(5m) (h) 2. Once a checkoff is affected by this paragraph, no further checkoffs may be designated to that checkoff in any taxable year.
71.10(6)(a)(a)
Joint returns. Persons filing a joint return are jointly and severally liable for the tax, interest, penalties, fees, additions to tax and additional assessments under this chapter applicable to the return. Except as provided in par.
(e), a person shall be relieved of liability in regard to a joint return in the manner specified in section
6015 (a) to (d) and (f) of the Internal Revenue Code.
71.10(6)(b)
(b)
Separate returns. Except as provided in par.
(e), a spouse filing a separate return may be relieved of liability for the tax, interest, penalties, fees, additions to tax and additional assessments under this chapter in the manner specified in section
66 (c) of the Internal Revenue Code. The department may not apply ch.
766 in assessing a taxpayer with respect to marital property income the taxpayer did not report if that taxpayer failed to notify the taxpayer's spouse about the amount and nature of the income before the due date, including extensions, for filing the return for the taxable year in which the income was derived. The department shall include all of that marital property income in the gross income of the taxpayer and exclude all of that marital property income from the gross income of the taxpayer's spouse.
71.10(6)(c)
(c)
Marital property agreements. The department of revenue shall notify a taxpayer whose separate return is under audit that a marital property agreement or unilateral statement under ch.
766 is effective for tax purposes for any period during which both spouses are domiciled in this state only if it is filed with the department before any assessment resulting from the audit is issued. A marital property agreement or unilateral statement under ch.
766 does not affect the determination of the income that is taxable by this state, or of the person who is required to report taxable income to this state, during the period that one or both spouses are not domiciled in this state or if it was not filed with the department before an assessment was issued.
71.10(6)(d)
(d)
Part-year residents and nonresidents. If a spouse is not domiciled in this state for the entire taxable year, the tax liability and reporting obligation of both spouses during the period a spouse is not domiciled in this state shall be determined without regard to ch.
766 except as provided in this chapter.
71.10(6)(e)
(e)
Application for relief. A person who seeks relief from liability under par.
(a) or
(b) shall apply for relief with the department, on a form prescribed by the department, within 2 years after the date on which the department first begins collection activities after July 27, 2005.
71.10(6m)
(6m)
Returns of formerly married and remarried persons. 71.10(6m)(a)(a) Except as provided in par.
(c), a formerly married or remarried person filing a return for a period during which the person was married may be relieved of liability for the tax, interest, penalties, fees, additions to tax and additional assessments under this chapter from that period as if the person were a spouse under section
66 (c) of the Internal Revenue Code. The department may not apply ch.
766 in assessing the former spouse of the person with respect to marital property income that the former spouse did not report if that former spouse failed to notify the person about the amount and nature of the income before the due date, including extensions, for filing the return for the taxable year during which the income was derived. The department shall include all of that marital property income in the gross income of the former spouse and exclude all of that marital property income from the gross income of the person.
71.10(6m)(b)
(b) The department may not apply ch.
766 or s.
71.55 (1),
71.61 (1) or
71.80 (3) or
(3m) to collect from an individual for any tax liability owed to the department by the individual or by the former spouse of the individual if a judgment of divorce under ch.
767 apportions that liability to the former spouse of the individual and if the individual includes with his or her tax return a copy of that portion of the judgment of divorce that relates to the apportionment of tax liability.
71.10(6m)(c)
(c) A person who seeks relief from liability under par.
(a) shall apply for relief with the department as provided under sub.
(6) (e).
71.10(7)
(7)
Minnesota income tax reciprocity. 71.10(7)(a)
(a) For purposes of income tax reciprocity reached with the state of Minnesota under s.
71.05 (2), whenever the income taxes on residents of one state which would have been paid to the 2nd state without reciprocity exceed the income taxes on residents of the 2nd state which would have been paid to the first state without reciprocity, the state with the net revenue loss shall receive from the other state the amount of the loss. Interest shall be payable on all delinquent balances relating to taxable years beginning after December 31, 1977. The secretary of revenue may enter into agreements with the state of Minnesota specifying the reciprocity payment due date, conditions constituting delinquency, interest rates and the method of computing interest due on any delinquent amounts.
71.10(7)(b)
(b) The data used for computing the loss to either state shall be determined by the respective departments of revenue of both states on or before November 1 of the year following the close of the previous calendar year. If an agreement cannot be reached as to the amount of the loss, the secretary of revenue of this state and the commissioner of taxation of the state of Minnesota shall each appoint a member of a board of arbitration and these members shall appoint a 3rd member of the board. The board shall select one of its members as chairperson. The board may administer oaths, take testimony, subpoena witnesses and require their attendance, require the production of books, papers and documents and hold hearings at such places as it deems necessary. The board shall then make a determination as to the amount to be paid the other state which shall be conclusive. This state shall pay no more than one-half of the cost of such arbitration.
71.10(7)(c)
(c) For taxable years beginning after December 31, 2000, this state shall pay Minnesota interest on any reciprocity payment that is due under this subsection. Interest shall be calculated according to the Laws of Minnesota
2002 Chapter 377, or at another rate and under another method of calculation that is agreed to by Minnesota and Wisconsin.
71.10(7e)
(7e)
Illinois income tax reciprocity. 71.10(7e)(a)
(a) For purposes of income tax reciprocity reached with the state of Illinois under s.
71.05 (2), whenever the income taxes on residents of one state which would have been paid to the 2nd state without reciprocity exceed the income taxes on residents of the 2nd state which would have been paid to the first state without reciprocity, the state with the net revenue loss shall receive from the other state the amount of the loss. Interest shall be payable on all delinquent balances relating to taxable years beginning after December 31, 1999. The secretary of revenue may enter into agreements with the state of Illinois specifying the reciprocity payment due date, conditions constituting delinquency, interest rates and the method of computing interest due on any delinquent amounts.
71.10(7e)(b)
(b) The data used for computing the loss to either state shall be determined by the respective departments of revenue of both states on or before December 1 of the year following the close of the previous calendar year. If an agreement cannot be reached as to the amount of the loss, the secretary of revenue of this state and the director of taxation of the state of Illinois shall each appoint a member of a board of arbitration and these members shall appoint a 3rd member of the board. The board shall select one of its members as chairperson. The board may administer oaths, take testimony, subpoena witnesses and require their attendance, require the production of books, papers and documents and hold hearings at such places as it considers necessary. The board shall then make a determination as to the amount to be paid the other state which shall be conclusive. This state shall pay no more than 50 percent of the cost of such arbitration.
71.10(7e)(c)
(c) The payments under this subsection may be made only if the secretary of revenue of this state and the director of taxation of the state of Illinois enter into a written agreement relating to income tax reciprocity that applies to taxable years beginning after December 31, 1997.
71.10(7m)
(7m)
Discharge of indebtedness; modifications. If a person excludes from gross income an amount of income from a discharge of indebtedness because of discharges of debts described under section
108 (a) of the internal revenue code, the person shall make the adjustments specified in section
108 (b) of the internal revenue code, but the net operating loss under s.
71.01 (14), not the federal net operating loss, and Wisconsin credits, not federal credits, and the capital loss carry-forward as limited under s.
71.05 (10) (c), not the federal capital loss carry-forward, shall be applied, and the reduction rate for a credit carry-over is 6.93 percent, not 33 1/3 percent.
71.10(8)
(8)
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.
71.10(9)
(9)
Publication of standard deduction and tax brackets. The department of revenue shall annually publish notice of the standard deduction amounts and the brackets for the individual income tax in the administrative register.
71.10 History
History: 1987 a. 312;
1987 a. 411 ss.
94,
97,
176 to
179;
1987 a. 422 s.
4;
1989 a. 31,
56,
359;
1991 a. 39;
1993 a. 16,
184;
1995 a. 27,
209,
418,
453;
1997 a. 27,
63,
237,
248;
1999 a. 9,
167;
2001 a. 16,
109;
2003 a. 33,
99,
135,
176,
255,
321;
2005 a. 25,
49,
71,
74,
177,
178,
323,
361,
460,
479,
483;
2007 a. 1,
20,
96,
97;
2009 a. 2,
28,
89,
265,
269,
295,
332;
2011 a. 32,
76,
169,
212,
222,
232;
2011 a. 260 ss.
25,
80;
2013 a. 20,
62,
145;
2013 a. 165 s.
114;
2015 a. 55,
197,
218;
2017 a. 58,
59,
176,
197,
231,
364;
2019 a. 54;
2021 a. 58,
127.
SPECIAL PROVISIONS APPLICABLE TO FIDUCIARIES
71.12
71.12
Conformity. Unless specifically provided in this subchapter, fiduciaries shall be subject to all of the provisions, requirements and liabilities of this chapter, so far as applicable, unless the context requires otherwise.
71.12 History
History: 1987 a. 312.
71.122
71.122
Definition. In this subchapter, “Wisconsin taxable income" means federal taxable income, as defined in s.
71.01 (4), as modified under s.
71.05 (6) to
(12),
(19) and
(20).
71.122 History
History: 1997 a. 27.
71.125
71.125
Imposition of tax. 71.125(1)(1)
Except as provided in sub.
(2), the tax imposed by this chapter on individuals and the rates under s.
71.06 (1),
(1m),
(1n),
(1p),
(1q), and
(2) shall apply to the Wisconsin taxable income of estates or trusts, except nuclear decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.
71.125(2)
(2) Each electing small business trust, as defined in section
1361 (e) (1) of the Internal Revenue Code, is subject to tax at the highest rate under s.
71.06 (1),
(1m),
(1n),
(1p), or
(1q), whichever taxable year is applicable, on its income as computed under section
641 of the Internal Revenue Code, as modified by s.
71.05 (6) to
(12),
(19) and
(20).
71.13
71.13
Filing returns. 71.13(1)(1)
Estate or trust. Annual returns of income of an estate or a trust shall be made to the department by the fiduciary thereof at or before the time such income is required to be reported to the internal revenue service under the internal revenue code. Under such rules as the department prescribes, a return made by one of 2 or more joint fiduciaries shall be sufficient compliance with the requirements of this section. A return made pursuant to this subsection shall contain a statement that the fiduciary has sufficient knowledge of the affairs of the person for whom the return is made to enable him or her to make the return, and that the return is, to the best of his or her knowledge and belief, true and correct.
71.13(1m)
(1m)
Schedules to beneficiaries. Every fiduciary who is required to file a return under sub.
(1) shall, on or before the due date of the return, including extensions, provide a schedule to each beneficiary whose share of income, deductions, credits, or other items of the fiduciary may affect the beneficiary's tax liability under this chapter. The schedule shall separately indicate the beneficiary's share of each item.
71.13(2)
(2)
Returns required prior to closing estate or trust. 71.13(2)(a)
(a) A personal representative or trustee applying to a court having jurisdiction for a discharge of his or her trust and a final settlement of his or her accounts, before the application is granted, shall file all of the following with the department:
71.13(2)(a)1.
1. Returns of income received by the decedent, any previous guardian, personal representative, or trustee, during each of the years open to assessment under s.
71.77, if the returns had not previously been filed, including a return of income for the year of death to the date of death.
71.13(2)(a)2.
2. Returns of income received during the period of the personal representative's or trustee's administration or trust except for the final income tax year of the estate or trust.
71.13(2)(a)3.
3. Sales and use tax returns and withholding returns or reports that were required to be filed, if not previously filed.
71.13(2)(b)
(b) Upon receipt of the returns described in par.
(a), the department shall immediately determine the amount of taxes including interest, penalties, and costs to be payable, as well as any delinquent income, withholding, sales, and use taxes, penalties, interest, and costs due, and shall certify those amounts to the court. The court shall then enter an order directing the personal representative or trustee to pay the amounts found to be due by the department and take the department's receipt for the amount paid. The receipt shall be evidence of the payment and shall be filed with the court before a final distribution of the estate or trust is ordered and the personal representative or trustee is discharged. The filing of the receipt shall in no manner affect the obligation of the personal representative or trustee to file income, sales, and withholding returns covering transactions reportable during the final taxable year of the estate or trust and to pay income, sales, use and withholding taxes, penalties, interest, and costs due as the result of such transactions.
71.13(3)
(3)
Required filing may be dispensed with by court. Returns of income required to be made by sub.
(2) may be dispensed with by order of the court having jurisdiction in cases where it is clearly evident to the court that no income tax is due or to become due from the trust or estate.
