AB1089: Bill Text

AB1089,10 Section 10. 71.82 (2) (d) of the statutes is amended to read:

AB1089,,26 71.82 (2) (d) Withholding tax. Of the amounts required to be withheld any amount not deposited or paid over to the department within the time required shall be deemed delinquent and deposit reports or withholding reports filed after the due date shall be deemed late. Delinquent deposits or payments shall bear interest at the rate of 1.5 percent per month from the date deposits or payments are required under this section until deposited or paid over to the department. The department shall provide by rule for reduction of interest on delinquent deposits to 12 6 percent per year in stated instances wherein the secretary of revenue determines reduction fair and equitable. In the case of a timely filed deposit or withholding report, withheld taxes shall become delinquent if not deposited or paid over on or before the due date of the report. In the case of no report filed or a report filed late, withheld taxes shall become delinquent if not deposited or paid over by the due date of the report. In the case of an assessment under s. 71.83 (1) (b) 2., the amount assessed shall become delinquent if not paid on or before the first day of the calendar month following the calendar month in which the assessment becomes final, but if the assessment is contested before the tax appeals commission or in the courts, it shall become delinquent on the 30th day following the date on which the order or judgment representing final determination becomes final.

AB1089,11 Section 11. 71.84 (1) of the statutes is amended to read:

AB1089,,28 71.84 (1) Individuals and fiduciaries. Except as provided in s. 71.09 (11), in the case of any underpayment of estimated tax by an individual, estate or trust, except as provided under s. 71.09, there shall be added to the aggregate tax for the taxable year interest at the rate of 12 6 percent per year on the amount of the underpayment for the period of the underpayment. In this subsection, “the period of the underpayment” means the time period from the due date of the installment until either the 15th day of the 4th month beginning after the end of the taxable year or the date of payment, whichever is earlier.

AB1089,12 Section 12. 71.84 (2) (a) of the statutes is amended to read:

AB1089,,30 71.84 (2) (a) Except as provided in s. 71.29 (7), in the case of any underpayment of estimated tax by a corporation under s. 71.29 or 71.48, there shall be added to the aggregate tax for the taxable year interest at the rate of 12 6 percent per year on the amount of the underpayment for the period of the underpayment. In this paragraph, “period of the underpayment” means the time period from the due date of the installment until either the date on which the corporation is required to file for federal income tax purposes, not including any extension, under the Internal Revenue Code or the date of payment, whichever is earlier. If 90 percent of the tax shown on the return is not paid by the date on which the corporation is required to file for federal income tax purposes, not including any extension, under the Internal Revenue Code, the difference between that amount and the estimated taxes paid, along with any interest due, shall accrue delinquent interest under s. 71.91 (1) (a).

AB1089,13 Section 13. 71.84 (2) (b) of the statutes is amended to read:

AB1089,,32 71.84 (2) (b) For 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, “period of the underpayment” means the time period from the due date of the installment until either the 15th day of the 5th month beginning after the end of the taxable year or the date of payment, whichever is earlier. If 90 percent of the tax shown on the return is not paid by the 15th day of the 5th month following the close of the taxable year, the difference between that amount and the estimated taxes paid along with any interest due, shall accrue delinquent interest under s. 71.91 (1) (a).

AB1089,14 Section 14. 71.84 (2) (c) of the statutes is amended to read:

AB1089,,34 71.84 (2) (c) If a refund under s. 71.29 (3m) results in an income or franchise tax liability that is greater than the amount of estimated taxes paid when reduced by the amount of the refund, the taxpayer shall add to the aggregate tax for the taxable year interest at an annual rate of 12 6 percent on the amount of the unpaid tax liability for the period beginning on the date the refund is issued and ending on either the date on which the taxpayer is required to file for federal income tax purposes, not including any extension, under the Internal Revenue Code or the date the tax liability is paid, whichever is earlier.

AB1089,15 Section 15. 71.90 (1) of the statutes is amended to read:

AB1089,,36 71.90 (1) Deposit. The department shall notify any person who files a petition for redetermination that the person may deposit the amount of an additional assessment, including any interest or penalty, with the department, or with a person that the department prescribes, at any time before the department makes its redetermination. The department shall notify spouses jointly except that, if the spouses have different addresses and if either spouse notifies the department in writing of those addresses, the department shall serve a duplicate of the original notice on the spouse who has the address other than the address to which the original notice was sent. Amounts deposited under this subsection shall be subject to the interest provided by s. 71.82 only to the extent of the interest accrued prior to the first day of the month succeeding the date of deposit. Any deposited amount which is refunded shall bear interest at the rate of 3 6 percent per year during the time the funds were on deposit. A person may also pay any portion of an assessment which is admitted to be correct and the payment shall be considered an admission of the validity of that portion of the assessment and may not be recovered in an appeal or in any other action or proceeding.

AB1089,16 Section 16. 71.91 (6) (e) 3. of the statutes is amended to read:

AB1089,,38 71.91 (6) (e) 3. For purposes of an adjudication under this paragraph, the assessment of the tax upon which the interest or lien of the department is based is conclusively presumed to be valid. Interest shall be allowed for judgments under this paragraph at the rate of 12 6 percent per year from the date the department receives the money wrongfully levied upon to the date of payment of the judgment or from the date of sale to the date of payment.

AB1089,17 Section 17. 71.91 (6) (f) 5. of the statutes is amended to read:

AB1089,,40 71.91 (6) (f) 5. Before the sale, the department shall determine a minimum price for which the property shall be sold. If no person offers for that property at the sale at least the amount of the minimum price, the state shall purchase the property for the minimum price; otherwise, the property shall be sold to the highest bidder. In determining the minimum price, the department shall take into account the expense of making the levy and sale in addition to the value of the property. If payment in full is required at the time of acceptance of a bid and is not paid then, the department shall sell the property in the manner provided under this paragraph. If the conditions of the sale permit part of the payment to be deferred and if that part is not paid within the prescribed period, the department may sue the purchaser in the circuit court for Dane County for the unpaid part of the purchase price and interest at the rate of 12 6 percent per year from the date of the sale or the department may declare the sale void and may sell the property again under this paragraph. If the property is sold again, the 2nd purchaser shall receive it free of any claim of the defaulting purchaser and the amount paid upon the bid price by the defaulting purchaser is forfeited.

AB1089,18 Section 18. 73.03 (6) of the statutes is amended to read:

AB1089,,42 73.03 (6) In its discretion to inspect and examine or cause an inspection and examination of the records of any town, city, village, or county officer whenever such officer shall have failed or neglected to return properly the information as required by sub. (5), within the time set by the department of revenue. Upon the completion of such inspection and examination the department of revenue shall transmit to the clerk of the town, city, village, or county a statement of the expenses incurred by the department of revenue to secure the necessary information. Duplicates of such statements shall be filed in the office of the secretary of administration. Within 60 days after the receipt of the above statement, the same shall be audited, as other claims of towns, cities, villages, and counties are audited, and shall be paid into the state treasury, in default of which the same shall become a special charge against such town, city, village, or county and be included in the next apportionment or certification of state taxes and charges, and collected with interest at the rate of 10 6 percent per year from the date such statements were certified by the department, as other special charges are certified and collected.

AB1089,19 Section 19. 76.075 of the statutes is amended to read:

AB1089,,44 76.075 Adjustments of assessments. Within 4 years after the due date, or extended due date, of the report under s. 76.04, any person subject to taxation under this subchapter may request the department to make, or the department may make, an adjustment to the data under s. 76.07 (4g) or (4r) submitted by the person. If an adjustment under this section results in an increase in the tax due under this subchapter, the person shall pay the amount of the tax increase plus interest on that amount at the rate of 1 0.5 percent per month from the due date or extended due date of the report under s. 76.04 until the date of final determination and interest at the rate of 1.5 percent per month from the date of final determination until the date of payment. If an adjustment under this section results in a decrease in the tax due under this subchapter, the department shall refund the appropriate amount plus interest at the rate of 0.25 0.5 percent per month from the due date or extended due date under s. 76.04 until the date of refund. Sections 71.74 (1) and (2) and 71.75 (6) and (7), as they apply to income and franchise tax adjustments, apply to adjustments under this section. Review of the adjustments is as stated in s. 76.08.

AB1089,20 Section 20. 76.13 (2) of the statutes is amended to read:

AB1089,,46 76.13 (2) Every tax roll upon completion shall be delivered to the secretary of administration. The department shall notify, by certified mail, all companies listed on the tax roll of the amount of tax due, which shall be paid to the department. The payment dates provided for in sub. (2a) shall apply. The payment of one-fourth of the tax of any company may, if the company has brought an action in the Dane County circuit court under s. 76.08, be made without delinquent interest as provided in s. 76.14 any time prior to the date upon which the appeal becomes final, but any part of the tax ultimately required to be paid shall bear interest from the original due date to the date the appeal became final at the rate of 12 6 percent per year and at 1.5 percent per month thereafter until paid. The taxes extended against any company after the same become due, with interest, shall be a lien upon all the property of the company prior to all other liens, claims, and demands whatsoever, except as provided in ss. 292.31 (8) (i) and 292.81, which lien may be enforced in an action in the name of the state in any court of competent jurisdiction against the property of the company within the state as an entirety.

AB1089,21 Section 21. 76.13 (2a) of the statutes is amended to read:

AB1089,,48 76.13 (2a) Taxes levied under this section shall be paid to the department in semiannual installments, on May 10 and November 10, on a partially estimated basis. The May 10 payment shall be at least 50 percent of the total tax assessed for the previous calendar year or 40 percent of the tax assessed for the current calendar year. Any amounts not paid when due shall become delinquent and shall be subject to interest under s. 76.14. The payment of 25 percent of the tax of any company may, if the company has brought an action in the Dane County circuit court under s. 76.08, be made without delinquent interest as provided in s. 76.14 any time prior to the date upon which the appeal becomes final, but any part thereof ultimately required to be paid shall bear interest from the original due date to the date the appeal becomes final at the rate of 12 6 percent per year and at 1.5 percent per month thereafter until paid. Companies with a tax liability under this section of less than $2,000 are not required to make semiannual payments but shall pay the full amount of taxes due on or before November 10.

AB1089,22 Section 22. 76.13 (3) of the statutes is amended to read:

AB1089,,50 76.13 (3) If the Dane County circuit court, after such roll is delivered to the secretary of administration, increases or decreases the assessment of any company, the department shall immediately redetermine the tax of the company on the basis of the revised assessment, and shall certify and deliver the revised assessment to the secretary of administration as a revision of the tax roll. If the amount of tax upon the assessment as determined by the court is less than the amount paid by the company, the secretary of administration shall refund the excess to the company with interest at the rate of 3 6 percent per year. If the amount of the tax upon the assessment as determined by the court is in excess of the amount of the tax as determined by the department, interest shall be paid on the additional amount at the rate of 12 6 percent per year from the date of entry of judgment to the date the judgment becomes final, and at 1.5 percent per month thereafter until paid.

AB1089,23 Section 23. 76.22 (2) of the statutes is amended to read:

AB1089,,52 76.22 (2) The action to recover taxes and interest and to enforce the same as a lien shall be an action in equity and shall be commenced and carried on and judgment entered according to the laws of the state and the rules and practice of courts of equity so far as applicable. No reference shall be made to take testimony or to hear, try and determine the issues of fact in the action. The judgment shall fix the amount of taxes and interest, adjudge the same a lien on the property of the company and provide for the sale of such property in 90 days after the entry of judgment upon publication of the notice of sale as a class 3 notice, under ch. 985. The judgment shall bear interest at the rate of 10 6 percent per year from the date of entry until finally paid.

AB1089,24 Section 24. 76.28 (4) (a) of the statutes is amended to read:

AB1089,,54 76.28 (4) (a) If after filing the reports specified in sub. (7) and after the department’s computation and assessment of license fees under sub. (2) it is determined that the amount of gross revenues reported is in error, the department shall compute the additional license fee to be paid or the amount of the overpayment of license fee to be refunded, as the case may be. If an additional license fee is due, the department shall give notice to the light, heat and power company against whom the license fee is to be levied. All such additional assessments and claims for refunds for excess license fees paid are subject to the same procedure for review and final determination as additional income or franchise tax assessments and claims for refunds under ch. 71 as far as the same may be applicable, except that appeals of denials of claims for refunds shall be made directly to the tax appeals commission and except that the additional license fees shall become delinquent 60 days after notice provided in this subsection or, if review proceedings are held, 60 days following final determination of the review proceedings. All additional license fees shall bear interest at the rate of 12 6 percent per year from the time they should have been paid to the date on which the additional fees shall become delinquent if unpaid.

AB1089,25 Section 25. 76.28 (4) (b) of the statutes is amended to read:

AB1089,,56 76.28 (4) (b) In the case of overpayments of license fees by any light, heat and power company under par. (a), the department shall certify the overpayments to the department of administration, which shall audit the amount of the overpayments and the secretary of administration shall pay the amounts determined by means of the audit. All refunds of license fees under this subsection shall bear interest at the annual rate of 3 6 percent from the date of the original payment to the date when the refund is made. The time for making additional levies of license fees or claims for refunds of excess license fees paid, in respect to any year, shall be limited to 4 years after the time the report for such year was filed.

AB1089,26 Section 26. 76.28 (11) of the statutes is amended to read:

AB1089,,58 76.28 (11) Payment before contesting. No action or proceeding, except a petition for redetermination under sub. (4), may be brought by a light, heat or power company against this state to contest any assessment of a tax under this section unless the taxpayer first pays to this state the amount of tax assessed. If the taxpayer prevails in an action or proceeding, this state shall settle with the taxpayer, including payment of interest at 3 6 percent per year on the amount of the money paid from the date of payment until the date of judgment.

AB1089,27 Section 27. 76.39 (4) (d) of the statutes is amended to read:

AB1089,,60 76.39 (4) (d) All refunds shall be certified by the department to the department of administration which shall audit the amount of the refunds and the secretary of administration shall pay the amount, together with interest at the rate of 3 6 percent per year from the date payment was made. All additional taxes shall bear interest at the rate of 12 6 percent per year from the time they should have been paid to the date upon which the additional taxes shall become delinquent if unpaid.

AB1089,28 Section 28. 76.48 (5) of the statutes is amended to read:

AB1089,,62 76.48 (5) Additional assessments may be made, if notice of such assessment is given, within 4 years of the date the annual return was filed, but if no return was filed, or if the return filed was incorrect and was filed with intent to defeat or evade the tax, an additional assessment may be made at any time upon the discovery of gross revenues by the department. Refunds may be made if a claim for the refund is filed in writing with the department within 4 years of the date the annual return was filed. Refunds shall bear interest at the rate of 3 6 percent per year and shall be certified by the department to the secretary of administration who shall audit the amounts of such overpayments and pay the amount audited. Additional assessments shall bear interest at the rate of 12 6 percent per year from the time they should have been paid to the date upon which they shall become delinquent if unpaid.

AB1089,29 Section 29. 77.59 (6) (c) of the statutes is amended to read:

AB1089,,64 77.59 (6) (c) The department shall notify any person who files a petition for redetermination that the person may deposit the entire deficiency determination, including any penalty or interest, with the department when the petition is filed or at any time before the department makes its redetermination. Any deposited amount which is refunded shall bear interest at the rate of 3 6 percent per year during the time the funds were on deposit. A person may also pay any portion of a deficiency determination admitted to be correct and the payment shall be considered an admission of the validity of that portion of the deficiency determination and may not be recovered in an appeal or in any other action or proceeding.

AB1089,30 Section 30. 77.60 (1) (a) of the statutes is renumbered 77.60 (1) (a) (intro.) and amended to read:

AB1089,,66 77.60 (1) (a) (intro.) Except as provided in par. (b), unpaid the following interest rates apply:

AB1089,,67 1. Unpaid taxes shall bear interest at the rate of 12 6 percent per year from the unextended due date of the return until paid or deposited with the department.

AB1089,,68 2. Taxes refunded to the seller shall bear interest at 3 6 percent per year from the due date of the return to the date on which the refund is certified on the refund rolls. An extension of time within which to file a return shall not extend the due date of the return for purposes of interest computation.

AB1089,,69 3. Taxes refunded to the buyer shall bear interest at 3 6 percent per year from the last day of the month following the month during which the buyer paid the tax to the date on which the refund is certified on the refund rolls.

AB1089,31 Section 31. 77.60 (1) (b) of the statutes is renumbered 77.60 (1) (b) 1. and amended to read:

AB1089,,71 77.60 (1) (b) 1. Any unpaid taxes for a calendar year or a fiscal year resulting from a field audit shall bear interest at the rate of 12 6 percent per year from the unextended due date of the taxpayer’s Wisconsin income or franchise tax return for that calendar or fiscal year or, if exempt the filing of an income or franchise tax return under ch. 71 is not required, from the 15th day of the 4th month of the year after the close of the calendar or fiscal year for which the taxes are due to the date on which the taxes are paid or, if unpaid, become delinquent, whichever is earlier.

AB1089,32 Section 32. 77.60 (1) (b) 2. of the statutes is created to read:

AB1089,,73 77.60 (1) (b) 2. Taxes refunded as a result of a field audit shall bear interest at the rate of 6 percent per year from the unextended due date of the taxpayer’s income or franchise tax return for that calendar or fiscal year or, if the filing of an income or franchise tax return under ch. 71 is not required, from the 15th day of the 4th month of the year after the close of the calendar or fiscal year to the date on which the refund is certified on the refund rolls.

AB1089,33 Section 33. 77.96 (5) of the statutes is amended to read:

AB1089,,75 77.96 (5) Each person subject to a surcharge under s. 77.93 shall, on or before the due date, including extensions, for filing under ch. 71, file an accurate statement of its gross tax liability. Payments made after the due date under sub. (2) and on or before the due date under this subsection are not delinquent but are subject to interest at the rate of 12 6 percent per year.

AB1089,34 Section 34. 78.68 (1) of the statutes is amended to read:

AB1089,,77 78.68 (1) Unpaid taxes shall bear interest at the rate of 12 6 percent per year from the due date of the tax until paid or deposited with the department, and all refunded taxes bear interest at the rate of 3 6 percent per year from the due date of the return to the date on which the refund is certified on the refund rolls.

AB1089,35 Section 35. 139.25 (1) of the statutes is amended to read:

AB1089,,79 139.25 (1) Interest and penalties. Unpaid taxes bear interest at the rate of 12 6 percent per year from the due date of the return until paid or deposited with the department, and all refunded taxes bear interest at the rate of 3 6 percent per year from the due date of the return to the date on which the refund is certified on the refund rolls.

AB1089,36 Section 36. 139.44 (9) of the statutes is amended to read:

AB1089,,81 139.44 (9) Unpaid taxes bear interest at the rate of 12 6 percent per year from the due date of the return until paid or deposited with the department, and all refunded taxes bear interest at the rate of 3 6 percent per year from the due date of the return to the date on which the refund is certified on the refund rolls.

AB1089,37 Section 37. 168.12 (6) (c) of the statutes is amended to read:

AB1089,,83 168.12 (6) (c) The department of revenue shall investigate the correctness and veracity of the representations in the claim and may require a claimant to submit records to substantiate the claim. The department of revenue shall either allow or deny a claim under this subsection not later than 60 days after the filing of the claim. If the department of revenue allows the claim, it shall pay the claimant the amount allowed from the moneys appropriated under s. 20.855 (4) (r). If the department of revenue does not pay the allowance by the 90th day after the date on which the purchaser files the claim, the department of revenue shall also pay interest on the unpaid claim beginning on that day, at the rate of 3 6 percent per year, from the moneys appropriated under s. 20.855 (4) (r).

AB1089,38 Section 38. 168.12 (6) (d) 2. of the statutes is amended to read:

AB1089,,85 168.12 (6) (d) 2. If the department of revenue has paid the claim, require the purchaser to refund to the department of revenue that portion of the amount paid under par. (c) to which the purchaser is not entitled and impose a penalty on the purchaser equal to 25 percent of the allowance, plus interest on the sum of the unpaid penalty and the amount required to be refunded, accruing from the date that the penalty is imposed, at the rate of 12 6 percent per year.

AB1089,39 Section 39. 168.12 (6) (e) 1. of the statutes is amended to read:

AB1089,,87 168.12 (6) (e) 1. If the claim has not been paid and the department of revenue allows no portion of the claim, impose a penalty on the purchaser equal to 50 percent of the amount claimed by the purchaser, plus interest on the unpaid penalty, accruing from the date that the penalty is imposed, at the rate of 12 6 percent per year.

AB1089,40 Section 40. 168.12 (6) (e) 3. of the statutes is amended to read:

AB1089,,89 168.12 (6) (e) 3. If the claim has been paid, require the purchaser to refund to the department of revenue that portion of the amount paid under par. (c) that the department of revenue determines was fraudulently obtained and impose a penalty on the purchaser equal to 50 percent of the amount claimed by the purchaser, plus interest on the sum of the unpaid penalty and the amount required to be refunded, accruing from the date that the penalty is imposed, at the rate of 12 6 percent per year.

AB1089,41 Section 41. Initial applicability.

AB1089,,91 (1) Interest on underpayments and overpayments. This act first applies to assessments issued and refunds paid on December 31, 2024, regardless of the taxable periods to which the assessments or refunds pertain.

AB1089,,92 (end)