reglab/statecodes huggingface dataset:
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.45 - Apportionment in special cases

Current through June 24, 2024
When the business of any person, other than an interstate
				professional sports club or "financial organization" or "public utility," as
				defined in s.
				71.25(10),
				Stats., within Wisconsin is an integral part of a unitary business conducted
				within and without Wisconsin, but because of unusual or unique circumstances
				the portion of the income of the person derived from business transacted in
				Wisconsin cannot be ascertained with reasonable certainty by use of the
				apportionment formula provided in s.
				71.25(6),
				Stats., or by separate accounting in view of the unitary nature of the
				business, the department will substitute in the place of some or all of the
				statutory apportionment factors another factor or other factors as will
				reasonably apportion to Wisconsin the business income properly assignable to
				Wisconsin. In any case in which an apportionment of business income is made
				pursuant to this regulation the taxpayer, at the time of the assessment, will
				be apprised of the factors used in the formula adopted.
Section Tax 2.45 interpretss.
				  71.25(12),
				  Stats.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.46 - Apportionment of apportionable income of interstate air carriers

Current through June 24, 2024
(1) GENERAL. The
			 apportionable income of an air carrier engaged in business in and outside this
			 state shall be apportioned to Wisconsin as described in this section, except if
			 the air carrier is in a combined group, its Wisconsin share of the combined
			 group's apportionable income is computed as provided in s.
			 71.255(5),
			 Stats., and further detailed in s.
			 Tax
			 2.61(7).
Note
An air carrier that is a corporation may be
				in a combined group for taxable years beginning on or after January 1, 2009.
				See s.
				Tax
				2.61(2) for a description of
				corporations required to use combined reporting.
(2) DEFINITION. In this section, "engaged in
			 business in and outside this state" has the same meaning as in s.
			 Tax
			 2.39(2) (b).
(3) APPORTIONMENT FORMULA COMPUTATION. An air
			 carrier that is engaged in business in and outside this state shall apportion
			 its apportionable income to this state on the basis of the ratio obtained by
			 taking the arithmetical average of the following 3 ratios:
(a) The ratio which the aircraft arrivals and
			 departures within this state scheduled by such carrier during the calendar or
			 fiscal year bears to the total aircraft arrivals and departures within and
			 without this state scheduled by such carrier during the same period; provided
			 that in the case of nonscheduled operations all arrivals and departures shall
			 be substituted for scheduled arrivals and departures.
(b) The ratio which the revenue tons handled
			 by such carrier at airports within this state during the calendar or fiscal
			 year bears to the total revenue tons handled at airports within and without
			 this state during the same period.
(c) The ratio which such air carrier's
			 originating revenue within this state for the calendar or fiscal year bears to
			 the total originating revenue within and without this state for the same
			 period.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.465 - Apportionment of apportionable income of interstate air freight forwarders affiliated with a direct air carrier

Current through June 24, 2024
(1) GENERAL. The
			 apportionable income of a qualified air freight forwarder affiliated with a
			 direct air carrier and engaged in business in and outside this state shall be
			 apportioned to Wisconsin as described in this section, except if the qualified
			 air freight forwarder is in a combined group, its Wisconsin share of the
			 combined group's apportionable income is computed as provided in s.
			 71.255(5),
			 Stats., and further detailed in s.
			 Tax
			 2.61(7).
Note
A qualified air freight forwarder that is a
				corporation may be in a combined group for taxable years beginning on or after
				January 1, 2009. See s.
				Tax
				2.61(2) for a description of
				corporations required to use combined reporting.
(2) DEFINITIONS. In this section:
(a) An air freight forwarder is "affiliated"
			 with a direct air carrier if all of the following apply:
1. The air freight forwarder owns or controls
			 either directly or indirectly at least 80% of the ownership interests of the
			 direct air carrier, or at least 80% of the ownership interests of the air
			 freight forwarder is owned or controlled either directly or indirectly by the
			 direct air carrier, or at least 80% of the ownership interests of both the air
			 freight forwarder and the direct air carrier is owned or controlled either
			 directly or indirectly by the same interests.
2. The air freight forwarder is principally
			 engaged in the business of air freight forwarding.
3. The air freight forwarder's air freight
			 forwarding business is carried on principally with the direct air
			 carrier.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.47 - Apportionment of apportionable income of interstate motor carriers

Current through June 24, 2024
(1) GENERAL. The
			 apportionable income of a motor carrier engaged in business in and outside this
			 state shall be apportioned to Wisconsin as described in this section, except if
			 the motor carrier is in a combined group, its Wisconsin share of the combined
			 group's apportionable income is computed as provided in s.
			 71.255(5),
			 Stats., and further detailed in s.
			 Tax
			 2.61(7).
Note
A motor carrier that is a corporation may be
				in a combined group for taxable years beginning on or after January 1, 2009.
				See s.
				Tax
				2.61(2) for a description of
				corporations required to use combined reporting.
(1m) DEFINITIONS. In this section:
(a) "Engaged in business in and outside this
			 state" has the same meaning as in s.
			 Tax
			 2.39(2) (b).
(b) "Ton mile" means the movement of one ton
			 of persons or property, or both, the distance of one mile. For carriage of
			 persons, each person shall be considered the equivalent of 200
			 pounds.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.475 - Apportionment of apportionable income of interstate railroads and car line companies

Current through June 24, 2024
(1) GENERAL. The apportionable income of a
			 railroad or car line company engaged in business in and outside this state
			 shall be apportioned to Wisconsin as described in this section, except if the
			 company is in a combined group, its Wisconsin share of the combined group's
			 apportionable income is computed as provided in s.
			 71.255(5),
			 Stats., and further detailed in s.
			 Tax
			 2.61(7).
Note:
A railroad or car line company that is a
				corporation may be in a combined group for taxable years beginning on or after
				January 1, 2009. See s.
				Tax
				2.61(2) for a description of
				corporations required to use combined reporting.
(1m) DEFINITIONS.
(a) "Engaged in business in and outside this
			 state" has the same meaning as in s.
			 Tax
			 2.39(2) (b).
(b) "Gross receipts from carriage" means
			 gross receipts received for the carriage of property or persons net of
			 interline payments made to other railroads as a result of the interchange of
			 carriage between and among railroads. Gross receipts from carriage includes
			 interline payments received from other railroads.
(c) "Revenue ton mile" means the movement of
			 one net ton of property or persons, or both, the distance of one mile, for
			 consideration. For carriage of persons, each person shall be considered the
			 equivalent of 150 pounds, and the average weight of the contents of head end
			 cars, or "baggage cars," is considered to be 4 tons.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.48 - Apportionment of apportionable income of interstate pipeline companies

Current through June 24, 2024
(1) GENERAL.
			 With respect to the imposition of Wisconsin franchise or income tax measured by
			 or on net income, the apportionable income of a pipeline company engaged in
			 business in and outside this state shall be apportioned to Wisconsin on the
			 basis of the arithmetical average of the 3 factors in subs. (3), (4) and (5),
			 except if the pipeline company is in a combined group, its Wisconsin share of
			 the combined group's apportionable income is computed as provided in s.
			 71.255(5),
			 Stats., and further detailed in s.
			 Tax
			 2.61(7).
Note
A pipeline company that is a corporation may
				be in a combined group for taxable years beginning on or after January 1, 2009.
				See s.
				Tax
				2.61(2) for a description of
				corporations required to use combined reporting.
(2) DEFINITIONS. In this section:
(a) "Compensation" includes:
1. Wages, salaries, commissions and any other
			 form of remuneration paid to employees for personal services.
2. The value of board, rent, housing, lodging
			 and other benefits or services furnished to employees by the taxpayer in return
			 for personal services, provided that these amounts constitute income to the
			 recipient under the federal Internal Revenue Code for the year for which the
			 payroll factor is computed. In the case of employees not subject to the federal
			 Internal Revenue Code, such as citizens of foreign countries employed in
			 foreign countries, the determination of whether the benefits or services
			 constitute income to the employees shall be made as though the employees are
			 subject to the federal Internal Revenue Code.
3. Deductible management or service fees
			 paid, or management or service fees allocated by the department under s.
			 71.10(1),
			 71.30(2)
			 or
			 71.80(1)
			 (b), Stats., to a related corporation, as
			 defined in section 267 (f) (1) of the Internal Revenue Code, as consideration
			 for the performance of personal services. The recipient of these fees may not
			 include the compensation paid to its employees with respect to the personal
			 services in either the numerator or denominator of its payroll
			 factor.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.50 - Apportionment of apportionable income of interstate public utilities

Current through June 24, 2024
(1) SCOPE. A
			 public utility that is engaged in business both in and outside this state shall
			 apportion its apportionable income as provided in this section, except if the
			 public utility is in a combined group, its Wisconsin share of the combined
			 group's apportionable income is computed as provided in s.
			 71.255(5),
			 Stats., and further detailed in s.
			 Tax
			 2.61(7). Nonapportionable income
			 shall be allocated as provided in s.
			 71.25(5)
			 (b), Stats.
Note
A public utility that is a corporation may be
				in a combined group for taxable years beginning on or after January 1, 2009.
				See s.
				Tax
				2.61(2) for a description of
				corporations required to use combined reporting.
(2) DEFINITIONS. In this section:
(a) "Engaged in business in and outside this
			 state" has the same meaning as in s.
			 Tax
			 2.39(2) (b).
(b) "Payroll factor" means the payroll
			 fraction computed under s.
			 71.04(6)
			 or
			 71.25(8),
			 Stats., and s.
			 Tax
			 2.39.
(c)
			 "Property factor" means the property fraction computed under s.
			 71.04(5)
			 or
			 71.25(7),
			 Stats., and s.
			 Tax
			 2.39.
(d)
			 "Public utility" means any business entity that owns or operates any plant,
			 equipment, property, franchise, or license for the production, transmission,
			 sale, delivery, or furnishing of electricity, water, or steam the rates of
			 charges for goods or services of which have been established or approved by a
			 federal, state, or local government or governmental agency.
(e) "Sales factor" means the sales fraction
			 computed under ss.
			 71.04(4m)
			 and (7) or
			 71.25(6m)
			 and (9), Stats., and s.
			 Tax
			 2.39.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.60 - Definitions relating to combined reporting

Current through June 24, 2024
(1) PURPOSE. This
			 section provides definitions applicable to ss.
			 Tax
			 2.61,
			 2.62,
			 2.63,
			 2.64,
			 2.65,
			 2.66, and
			 2.67, which interpret the combined
			 reporting provisions of s.
			 71.255,
			 Stats.
(2) DEFINITIONS.
(a) "Combined group" has the meaning given in
			 s. 71.255(1) (a), Stats. The following subdivisions clarify this meaning:
1. If a group of corporations satisfies all
			 three conditions described in s.
			 Tax
			 2.61(2) (a), it is considered a
			 combined group even if the group is not eligible to apportion its income
			 because all corporations in the group do business solely in
			 Wisconsin.
2. A combined group
			 remains in existence for as long as two or more corporations meet all three
			 conditions described in s.
			 Tax
			 2.61(2) (a) with regard to the same
			 unitary business. The mere addition of new members or departure of existing
			 members does not create a new combined group.
3. Any commonly controlled group that has
			 made a controlled group election is a combined group, and each member of a
			 commonly controlled group that has made the controlled group election is a
			 combined group member.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.61 - Combined reporting

Current through June 24, 2024
(1) SCOPE. Section
			 71.255,
			 Stats., generally requires corporations that are commonly controlled and
			 engaged in a unitary business to compute their net income on a combined basis.
			 This section explains when combined reporting is required and how to compute a
			 corporation's net income and tax liability under combined reporting.
			 Subsections (2) to (4) describe who must use combined reporting and what income
			 is subject to combination. Subsections (5) to (9) explain how to compute the
			 taxable income of a combined group member, including net business loss
			 carryforwards. Subsection (10) provides rules relating to credits and credit
			 carryforwards.
(2) CORPORATIONS
			 REQUIRED TO USE COMBINED REPORTING.
(a)
General
. A corporation is required to use combined reporting
			 if it satisfies each of the following three conditions:
1. The corporation is a member of a "commonly
			 controlled group" as defined in s.
			 71.255(1)
			 (c), Stats. See sub. (3) for rules that apply
			 to identifying a commonly controlled group of corporations.
2. The corporation is engaged in a "unitary
			 business," as defined in s.
			 71.255(1)
			 (n), Stats., with one or more other
			 corporations in its commonly controlled group, or the commonly controlled group
			 makes a controlled group election. See s.
			 Tax
			 2.62 for rules to determine whether corporations are
			 engaged in a unitary business. See s.
			 Tax
			 2.63 for rules pertaining to the controlled group
			 election.
3. The corporation has
			 unitary business income that is subject to combination under the water's edge
			 rules described in sub. (4).
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.62 - Unitary business

Current through June 24, 2024
(1) SCOPE. Section
			 71.255(2)
			 (a), Stats., provides that a corporation
			 engaged in a unitary business with one or more other corporations in the same
			 commonly controlled group is generally required to determine its share of
			 income from that unitary business using a combined report. Section
			 71.255(1)
			 (n), Stats., defines "unitary business." The
			 purpose of this section is to provide further interpretation of the meaning of
			 "unitary business."
(2) GENERAL. A
			 unitary business is a single, commonly controlled economic enterprise for which
			 the components of the enterprise are sufficiently interdependent, integrated,
			 and interrelated through their activities to such a degree that if the
			 enterprise is doing business both within and outside a state, the state is
			 permitted under the U. S. Constitution to tax a fairly apportioned share of the
			 total net income of the enterprise.
(a)
Commonly controlled
. A unitary business may consist of a
			 single entity or a group of two or more related entities, including
			 corporations, tax-option corporations, partnerships, limited liability
			 companies, sole proprietorships, estates, and trusts. A group of related
			 entities may satisfy the commonly controlled requirement of a unitary business
			 if they are related in any of the following ways:
1. The entities are related under the
			 provisions of section 267 of the Internal Revenue Code which disallow losses on
			 sales between related persons. By reference, this includes the rules in section
			 707(b) of the Internal Revenue Code, relating to partnerships.
2. The entities are related under section
			 1563 of the Internal Revenue Code, which defines a "controlled group of
			 corporations" for federal income tax purposes.
3. The entities are corporations in the same
			 "commonly controlled group" for Wisconsin purposes. "Commonly controlled group"
			 has the meaning given in s.
			 71.255(1)
			 (c), Stats., as further interpreted by s.
			 Tax
			 2.61(3).
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.66 - Combined estimated tax payments

Current through June 24, 2024
(1) SCOPE. In
			 general, s.
			 71.255(7) (b)
			 5, Stats., provides that only the designated
			 agent of a combined group may make estimated tax payments applicable to a
			 combined return. This section provides exceptions to the general rule, explains
			 the estimated tax requirements, and provides rules for applying estimated
			 payments and overpayments.
(2)
			 SEPARATE ESTIMATED PAYMENTS.
(a)
When
			 separate estimated payments are allowed.
Although the designated agent
			 is always authorized to make estimated payments on behalf of any and all of its
			 combined group members, a combined group member other than the designated agent
			 may make estimated payments on its own behalf if any of the following apply:
1. For the first taxable year for which a
			 combined group files a combined return, any member of the group may make
			 estimated payments on its own behalf.
2. For the first taxable year for which a
			 corporation is a member of a combined group, that corporation may make
			 estimated payments on its own behalf.
3. Any combined group member may make
			 estimated payments on its own behalf to the extent those payments relate to
			 separate entity items.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.82 - Nexus

Current through June 24, 2024
(1) BACKGROUND AND SCOPE.
(a) Every domestic corporation, one
			 incorporated under Wisconsin's laws, except those exempt under ss.
			 71.26(1)
			 and
			 71.45(1),
			 Stats., and every licensed foreign corporation, one not incorporated in
			 Wisconsin, is required to file a complete corporation franchise or income tax
			 return, Form 4, 5S, or 6, regardless of whether or not business was
			 transacted.
(b) A foreign
			 corporation is "licensed" if it has obtained a Certificate of Authority from
			 the department of financial institutions to transact business in this state
			 pursuant to s.
			 180.1501,
			 Stats. A licensed foreign corporation is presumed to be subject to Wisconsin
			 franchise or income taxes.
(c) An
			 unlicensed foreign corporation is subject to Wisconsin franchise or income
			 taxes if it has nexus with Wisconsin. The purpose of this rule is to provide
			 guidelines for determining what constitutes nexus, that is, what business
			 activities are needed for a foreign corporation to be subject to Wisconsin
			 franchise or income taxes. The rule also explains how nexus applies to a
			 foreign corporation in the context of s.
			 71.255,
			 Stats., relating to combined reporting, and s.
			 77.93, Stats.,
			 relating to the economic development surcharge.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.85 - Penalty for failure to produce records under s. 71.80 (9m), Stats

Current through June 24, 2024
(1) GENERAL. A
			 person who fails to produce records or documents, as provided under ss.
			 71.74(2)
			 and
			 73.03(9),
			 Stats., that were requested by the department may be subject to any of the
			 following penalties under s.
			 71.80(9m),
			 Stats.:
(a) The disallowance of deductions,
			 credits, exemptions or income inclusion to which the requested records
			 relate.
(b) In addition to any
			 other penalties that the department may impose, a penalty for each violation
			 that is equal to the greater of $500 or 25% of the amount of the additional tax
			 on any adjustment made by the department that results from the person's failure
			 to produce the records.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.87 - Reduction of delinquent interest rate under s. 71.82 (2) (b), Stats

Current through June 24, 2024
(1) PROCEDURES.
			 The secretary may reduce the delinquent interest rate from 18% to 12% per year
			 when the secretary determines the reduction fair and equitable, if the person
			 from whom delinquent taxes are owing:
(a)
			 Requests the reduction in writing, addressed to the Wisconsin Department of
			 Revenue, Compliance Bureau, P.O. Box 8901, Madison, WI 53708.
(b) Clearly indicates why it is fair and
			 equitable for the rate of interest to be reduced. Information regarding one or
			 more of the factors under sub. (2) may be indicated.
(c) Is current in all return and report
			 filings and tax payments for all matters other than the delinquencies for which
			 interest reduction is being sought.
(d) Pays the taxes, reduced amount of
			 interest and any penalties associated with them within 30 days of receiving
			 notice from the department of the reduction.
(e) For combined group members, the
			 designated agent is charged with this responsibility.
Note:
See s.
				Tax
				2.65 for rules relating to the designated
				agent.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.88 - Interest rates

Current through June 24, 2024
(1) INTEREST ON UNPAID TAXES WHICH ARE NOT
			 DELINQUENT. Unpaid individual income or corporate franchise or income taxes
			 which are not delinquent but which are assessed by the department on or after
			 August 1, 1981 shall bear interest computed at the rate of 12% per year from
			 the due date of the taxes to the date paid or delinquent.
(2) INTEREST ON DELINQUENT TAXES. Any
			 individual income or corporate franchise or income tax delinquencies shall
			 include interest at the rate of 1.5% per month from the date on which the taxes
			 became delinquent until the taxes are paid.
(3) INTEREST ON REFUNDS.
(a) Any refund of individual income or
			 corporate franchise or income taxes shall include interest at the rate of 3%
			 per year from the due date of the return to the date paid by the department,
			 except as provided in pars. (b), (c), and (d).
(b) No interest may be allowed on income and
			 franchise taxes if the refund is certified on a refund roll within 90 days of
			 the due date of the return or the date the return was filed, whichever occurs
			 later. This treatment shall apply to a refund of taxes resulting from an
			 overpayment of estimated tax as well as from withheld taxes.
(c) No interest may be allowed on a refund of
			 income taxes that results from the carryback of a net operating loss.
(d) No interest may be allowed on refunds due
			 to a tax credit issued under ss.
			 71.07(3q), (3w), (3wm), and
			 (3y),
			 71.28(3q), (3w), (3wm), and
			 (3y), and
			 71.47(3q), (3w), and
			 (3y), Stats., and subch. VIII of ch. 71,
			 Stats.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.89 - Estimated tax requirements for short taxable years

Current through June 24, 2024
(1) GENERAL. Under
			 ss.
			 71.09
			 and
			 71.29,
			 Stats., certain corporations and persons other than corporations shall make
			 estimated tax payments. For short taxable years, estimated tax payments shall
			 be made in accordance with this section.
Note:
For taxable years beginning on or after
				January 1, 1994, and ending before April 1, 1999, estimated tax includes the
				temporary recycling surcharge under s.
				77.93,
				Stats.
(2) DEFINITIONS. In
			 this section:
(a) "Corporation" includes
			 corporations, tax-option (S) corporations, insurance companies, publicly traded
			 partnerships treated as corporations in section 7704 of the Internal Revenue
			 Code, limited liability companies treated as corporations under the Internal
			 Revenue Code, joint stock companies, associations, common law trusts, regulated
			 investment companies, real estate investment trusts, real estate mortgage
			 investment conduits, nuclear decommissioning trust funds and virtually exempt
			 entities as defined in s.
			 71.29(1)
			 (c), Stats.
(b) "Estimated tax payable" means the amount
			 calculated under s.
			 71.09(13)
			 or
			 71.29(9) or
			 (10), Stats.
(c) "Persons other than corporations"
			 includes individuals, estates, trusts other than those treated as corporations
			 in par. (a), partnerships except publicly traded partnerships treated as
			 corporations in section 7704 of the Internal Revenue Code and limited liability
			 companies treated as partnerships under the Internal Revenue Code.
(d) "Short taxable year" means a period of
			 less than 12 months.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.91 - Withholding; fiscal year taxpayers

Current through June 24, 2024
(1) Except as
			 provided in sub. (2), amounts withheld pursuant to ss.
			 71.64
			 and
			 71.67, Stats.,
			 in any calendar year shall be allowed as a credit for the taxable year
			 beginning in the calendar year. If more than one taxable year begins in a
			 calendar year, the amount shall be allowed as a credit for the last taxable
			 year beginning in that calendar year.
(2) Any employee who reports income for
			 taxation to the state of Wisconsin on a taxable year other than the calendar
			 year shall be allowed as a credit for the fiscal year amounts withheld by his
			 or her employer in the fiscal year, provided the employer, on or before the end
			 of the first month following the close of the fiscal year, shall voluntarily
			 furnish the employee with 2 legible copies and the department of revenue with
			 one legible copy of a written statement, adapted to the fiscal year, but
			 otherwise consistent with the written statement referred to in ss.
			 71.65(1)
			 and
			 71.71(1),
			 Stats., and the employee files a copy of the statement along with the fiscal
			 year return.
Section Tax 2.91 interpretss.
				  71.64,
				  71.65(1),
				  71.67 and
				  71.71(1),
				  Stats.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.93 - Withholding from wages of a deceased employee and from death benefit payments

Current through June 24, 2024
(1) GENERAL. Section
			 71.64(1)
			 (a), Stats., requires employers to withhold
			 Wisconsin income tax from payments of wages "to an employee". Various types of
			 payments are made to the estate or to beneficiaries of a deceased employee
			 which resulted from the deceased person's employment. The department shall
			 follow the federal internal revenue service's policy in determining whether
			 withholding of income tax is required from these payments.
(2) PAYMENTS SUBJECT TO WITHHOLDING. An
			 uncashed check originally received by a decedent prior to the date of death and
			 reissued subsequently to the decedent's personal representative shall be
			 subject to withholding of Wisconsin income tax.
(3) PAYMENTS NOT SUBJECT TO WITHHOLDING. The
			 following types of payments to a decedent's personal representative or heir
			 shall not be subject to withholding of Wisconsin income tax:
(a) Payments representing wages accrued to
			 the date of death but not paid until after death.
(b) Accrued vacation and sick pay.
(c) Termination and severance pay.
(d) Death benefits such as pensions,
			 annuities and distributions from a decedent's interest in an employer's
			 qualified stock bonus plan or profit sharing plan, as provided in s.
			 71.63(6)
			 (j), Stats.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.935 - Reduction of delinquent interest rate under s. 71.82 (2) (d), Stats

Current through June 24, 2024
(1) PROCEDURES.
			 The secretary may reduce the delinquent interest rate from 18% to 12% per year
			 when the secretary determines the reduction fair and equitable, if the person
			 from whom delinquent taxes are owing:
(a)
			 Requests the reduction in writing, addressed to the Wisconsin Department of
			 Revenue, Compliance Bureau, P.O. Box 8901, Madison, WI 53708.
(b) Clearly indicates why it is fair and
			 equitable for the rate of interest to be reduced. Information regarding one or
			 more of the factors under sub. (2) may be indicated.
(c) Is current in all return and report
			 filings and tax payments for all matters other than the delinquencies for which
			 interest reduction is being sought.
(d) Pays the withholding taxes, reduced
			 amount of interest and any penalties associated with them within 30 days of
			 receiving notice from the department of the reduction.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.94 - Tax-sheltered annuities

Current through June 24, 2024
(1) GENERAL.
(a) Payments for a tax-sheltered annuity
			 purchased for an employee by a public school system or by an exempt
			 educational, charitable or religious organization, which are excludable from
			 the employee's gross income in the year of payment under section 403 (b) of the
			 Internal Revenue Code, are also excludable in the year of payment for Wisconsin
			 income tax purposes.
Note
The exclusion from gross income as provided
				in sub. (1) (a) is effective January 1, 1965, when Wisconsin adopted the
				Internal Revenue Code as the basis for computing Wisconsin taxable income.
				Payments prior to January 1, 1965, were taxable for Wisconsin income tax
				purposes.
(b) All benefits
			 paid under tax sheltered annuity contracts, including withdrawals, death
			 benefits or annuities, are included in federal taxable income when received.
			 The Wisconsin treatment is described in subs. (2) and (3).
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.95 - Reporting of installment sales by natural persons and fiduciaries

Current through June 24, 2024
(1)
			 GENERAL. The Wisconsin tax treatment of installment sales by natural persons
			 and fiduciaries is determined under the Internal Revenue Code in effect under
			 s.
			 71.01(6),
			 Stats. Installment sales may be made of either real or personal property.
			 Because for Wisconsin purposes, at the time of the sale, the seller may be
			 either a resident or nonresident, and the property may be realty or personalty,
			 tangible or intangible, and may be located within or without Wisconsin, special
			 situations that are not addressed in the Internal Revenue Code may arise which
			 affect the reporting of the sale.
(2) SITUS OF INCOME. Under s.
			 71.04(1)
			 (a), Stats., all income or loss of resident
			 individuals shall follow the residence of the individual. A nonresident's
			 income or loss derived from the sale of real property or tangible personal
			 property follows the situs of the property. Interest income of a nonresident
			 and income from the sale of intangible personal property follows the
			 individual's residence.
(3)
			 TAXATION OF PROCEEDS FROM INSTALLMENT SALE OF INTANGIBLE PERSONAL PROPERTY.
(a)
Resident seller
. If the
			 seller is a Wisconsin resident, the portions of each installment payment that
			 represent gain and interest income from the sale which are received while the
			 seller is a resident of this state are taxable by Wisconsin. If the resident
			 seller abandons Wisconsin domicile and establishes residence in another state,
			 neither the gain nor interest payments received while a nonresident is taxable
			 by Wisconsin.
(b)
Nonresident seller
. If the seller is not a Wisconsin resident,
			 the portions of each installment payment that represent gain and interest
			 income from the sale are not taxable by Wisconsin. If the seller subsequently
			 becomes a Wisconsin resident after the sale, the portion of each installment
			 payment received after becoming a Wisconsin resident representing gain is not
			 taxable by Wisconsin, but the portion representing interest on the installment
			 note is taxable by Wisconsin.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.955 - Credit for taxes paid to other states

Current through June 24, 2024
(1) DEFINITION. In
			 this section, "state" means the 50 states of the United States and the District
			 of Columbia, but does not include the commonwealth of Puerto Rico or the
			 several territories organized by Congress.
(2) CREDITS ALLOWABLE.
(a) Except as provided in subs. (2m) and (3),
			 an income tax credit may be claimed by a Wisconsin resident individual, estate,
			 or trust for any net minimum tax or income tax paid to another state by the
			 resident upon income of the individual, estate or trust taxable by that
			 state.
(b) Except as provided in
			 subs. (2m) and (3), an income tax credit may be claimed by a Wisconsin resident
			 shareholder, partner, or member in a tax-option (S) corporation, partnership,
			 or limited liability company for any net minimum tax, income tax, or franchise
			 tax paid by that shareholder, partner, or member to another state on or
			 measured by income of the tax-option (S) corporation, partnership, or limited
			 liability company.
(c) Except as
			 provided in subs. (2m) and (3), an income or franchise tax credit may be
			 claimed by a tax-option (S) corporation, partnership, or limited liability
			 company which makes an election to be taxed at the entity level under s.
			 71.21(6)
			 (a) or
			 71.365(4m)
			 (a), Stats., for any net minimum tax, income
			 tax, or franchise tax paid by that entity to another state upon income of the
			 entity and net minimum tax, income tax, or franchise tax paid by that entity to
			 another state upon income of the entity on behalf of its Wisconsin resident
			 shareholders, partners, and members on a combined or composite return filed
			 with the other state.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.956

Current through June 24, 2024
Section Tax 2.956 interpretss.
				  71.07(9m) and
				  (9r),
				  71.28(6)
				  and
				  71.47(5) and
				  (6),
				  Stats.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.957 - Relocated business credit or deduction

Current through June 24, 2024
(1) PURPOSE. The
			 purpose of this section is to prescribe the method by which the percentage of
			 the workforce payroll of a business and the dollar amount of wages paid to such
			 workforce moved to this state during a taxable year shall be determined for
			 purposes of ss.
			 71.05(6)
			 (b) 47., 71.28 (9s), and 71.47 (9s), Stats.;
			 provide examples of actions that may indicate a business has relocated to this
			 state from another state or country; and limit the deduction provided for in s.
			 71.05(6)
			 (b) 47. am., b., and c., Stats.
Note:
Sections
				71.05(6)
				(b) 47., 71.28 (9s), and 71.47 (9s), Stats.,
				were repealed by 2021 a. 127.
(2) DEFINITIONS. In this section:
(a) "Business" means any organization or
			 enterprise operated for profit, including a sole proprietorship, partnership,
			 firm, business trust, joint venture, syndicate, corporation, limited liability
			 company, or association.
(b) "Doing
			 business in this state" has the meaning given in s.
			 71.22(1r),
			 Stats.
(c) "Employee" has the
			 meaning given in section 3121 (d) of the Internal Revenue Code.
(d) "Taxable year" has the meaning given in
			 ss.
			 71.01(12),
			 71.22(10),
			 and
			 71.42(5),
			 Stats.
(e) "Wages" has the meaning
			 given in section 3121 (a) of the Internal Revenue Code.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.96 - Extensions of time to file corporation franchise or income tax returns

Current through June 24, 2024
(1) DUE
			 DATES.
(a)
General
. Except
			 as provided in pars. (am) and (b), corporation franchise or income tax returns
			 are due on or before the 15th day of the 4th month following the close of a
			 corporation's taxable year unless an extension of time for filing has been
			 granted.
(am) For tax exempt
			 corporations with unrelated business taxable income, the franchise or income
			 tax return is due on or before the 15th day of the
			 5th month following the close of the corporation's
			 taxable year unless an extension of time for filing has been granted.
(b) Short-period returns. Corporation
			 franchise or income tax returns for periods of less than 12 months are due on
			 or before the federal due date.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.98 - Disaster area losses

Current through June 24, 2024
(1)
(a)
			 Hurricanes, fires, storms, floods, and other similar casualties may cause
			 persons to suffer losses from damage to property used in a trade or business or
			 for income-producing purposes for which insurance coverage is nominal or
			 nonexistent. Losses sustained from casualties of this kind may be deductible on
			 a federal and a Wisconsin income tax return.
(b) If a taxpayer sustains a casualty loss
			 from a disaster in an area subsequently determined by the president of the
			 United States to warrant federal assistance, section 165 (i) of the Internal
			 Revenue Code gives taxpayers the election to deduct the loss on the return for
			 the current tax year or on the return for the immediately preceding tax
			 year.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.986 - Registration of a business under s 73.03 (69), Stats

Current through June 24, 2024
(1) PURPOSE. This
			 section establishes the method of valuing property and the registration
			 deadline for purposes of s.
			 73.03(69),
			 Stats.
(2) DEFINITION. In this
			 section, "doing business in this state" has the meaning given in s.
			 71.22(1r),
			 Stats.
(3) METHOD OF VALUING
			 PROPERTY. For purposes of s.
			 73.03(69)
			 (b) 2, Stats., real and tangible personal
			 property owned by the business shall be valued at its original cost and real
			 and tangible personal property rented by the business shall be valued at an
			 amount equal to the annual rental paid by the business, less any annual rental
			 received by the business from sub-rentals, multiplied by 8.
(4) REGISTRATION DEADLINE.
(a) Except as provided in par. (b), a
			 business shall register with the department under s.
			 73.03(69),
			 Stats., on or before the close of the calendar year for which the business
			 desires registration. A business may not be registered for a calendar year if
			 the registration is not within the time provided in this subsection.
(b) A business that desires registration for
			 the calendar year in which it begins doing business in this state shall
			 register with the department during the following calendar year.
Example:
Business A begins doing business in
				Wisconsin on March 8, 2014. Business A must register with the department for
				calendar year 2014 between January 1, 2015, and December 31,
				2015.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.99

Current through June 24, 2024
Section Tax 2.99 interpretss.
				  71.07(3n),
				  71.28(3n),
				  and
				  71.47(3n),
				  Stats.
Sections
				  71.07(3n),
				  71.28(3n),
				  and
				  71.47(3n),
				  Stats., were created by 2003 Wis. Act 135, effective for taxable years that
				  begin after December 31, 2003, and before January 1, 2010.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 3 - Income Taxation, Deductions From Gross Income, Exclusions And Exemptions › Section Tax 3.02 - Pass-through entity withholding

Current through June 24, 2024
(1) PURPOSE. This
			 section provides additional guidance with respect to the treatment of
			 withholding tax for pass-through entities.
(2) CREDIT FOR NONRESIDENT ENTERTAINER,
			 LOTTERY, AND PARI-MUTUEL WITHHOLDING. A pass-through entity may elect to
			 allocate nonresident entertainer, lottery, and pari-mutuel withholding to its
			 nonresident partners, members, shareholders, or beneficiaries, but only to the
			 extent the income subject to withholding is allocated to those partners,
			 members, shareholders, or beneficiaries. A pass-through entity may credit
			 amounts withheld under ss.
			 71.64(5)
			 and
			 71.67(4) and
			 (5), Stats., or amounts paid or deposited
			 under s.
			 71.80(15) (b) or
			 (c), Stats., against the withholding amounts
			 required under s.
			 71.775(2),
			 Stats., to such extent, in the manner and form prescribed by the department.
Example:
Basement Rockers is a four-member rock
				band. Basement Rockers is a tax-option (S) corporation and its four rock stars
				are the corporation's shareholders. They are nonresidents of Wisconsin. The
				band plays in three different venues in Wisconsin during the taxable year and
				each venue pays the band $10,000. For Venue 1, neither a surety bond is filed
				nor cash deposited. The venue withholds 6% and immediately pays the amount
				withheld to the department. For Venue 2, a bond is not filed, cash is not
				deposited, and no amounts are withheld. For Venue 3, Basement Rockers files a
				surety bond for 6% of the total contract price. Basement Rockers may only elect
				to allocate to its shareholders the amounts for Venue 1 and Venue
				3.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 3 - Income Taxation, Deductions From Gross Income, Exclusions And Exemptions › Section Tax 3.03 - Dividends received deduction - corporations

Current through June 24, 2024
(1) PURPOSE. This
			 section clarifies the deduction from gross income allowed to corporations for
			 dividends received. Dividends may be deductible due to the recipient's
			 ownership of the payer corporation, as provided in sub. (3).
(2) DEFINITION. "Dividends received" means
			 gross dividends minus taxes on those dividends paid to a foreign nation and
			 claimed as a deduction under ch. 71, Stats.
(3) DIVIDENDS DEDUCTIBLE DUE TO OWNERSHIP. A
			 corporation may deduct from gross income 100 percent of the dividends received
			 from a payer corporation during a taxable year if both of the following occur:
(a) The dividends are paid on common stock of
			 the payer corporation.
(b) The
			 corporation receiving the dividends owns directly or indirectly during the
			 entire taxable year in which the dividends are received at least 70 percent of
			 the total combined voting stock of the payer corporation.
Note:
1)
			 Refer to s.
			 71.26(3)
			 (j), Stats.
2) Only cash dividends were deductible by the
			 recipient in taxable years 1980 through 1986. This limitation was eliminated by
			 1987 Wis. Act 27.
3) For taxable
			 years 1980 through 1983 the deduction was limited to 50% of the dividends
			 received.
4) For the taxable year
			 1984 the deduction was limited to 75% of the dividends received.
5) For taxable years 1985 and thereafter the
			 deduction equals 100% of the dividends received.
6) For taxable years beginning before January
			 1, 1993, the corporation receiving the dividends was required to own directly
			 or indirectly during the entire taxable year in which the dividends were
			 received at least 80% of the total combined voting stock of the payer
			 corporation. The percentage of ownership requirement was changed from 80% to
			 70% by 1993 Wis. Act 16.
Wisconsin Administrative Code › Department of Revenue › Chapter Tax 3 - Income Taxation, Deductions From Gross Income, Exclusions And Exemptions › Section Tax 3.04 - Subtraction for military pay received by members of a reserve component of the armed forces

Current through June 24, 2024
(1) PURPOSE. This section limits the
			 application of the phrase "called ... into special state service authorized by
			 the federal department of defense under (f), that is paid to the person for a
			 period of time during which the person is on active duty" as used in s.
			 71.05(6)
			 (b) 34., Stats., as created by .
(2) LIMITATION ON SUBTRACTION. A person who
			 is a member of a reserve component of the U.S. armed forces, who is serving on
			 active duty or full-time duty in the active guard reserve program under (f),
			 does not qualify for the subtraction.