Chapter Tax 1

Tax 1.12(9)(a)2. 2. Clearly indicates why the requirement causes an undue hardship.

Tax 1.12(9)(a)3. 3. Is current in all return and report filings and tax payments.

Tax 1.12(9)(b) (b) In determining whether the EFT requirement causes an undue hardship, the secretary of revenue may consider the following factors:

Tax 1.12(9)(b)1. 1. Unusual circumstances which may prevent the payer from using the EFT method.

Tax 1.12 Annotation Examples: Examples of unusual circumstances include:

Tax 1.12 Note 1) The person does not have access to a telephone or computer.

Tax 1.12 Note 2) The person is physically unable to use a telephone or computer.

Tax 1.12 Note 3) The telephone system available to the person is incompatible with the department’s telephone system used for EFT payments, deposits, or both.

Tax 1.12(9)(b)2. 2. Any other factor which the secretary determines is pertinent.

Tax 1.12 Note Note: Section Tax 1.12 interprets ss. 71.01 (8r), 71.255 (7) (b), 71.42 (3m), 71.63 (1m) and (5m), 71.65 (3) (a), 73.029, 77.58 (1m), 77.61 (14), 77.96 (5m), 78.12 (5), 78.55 (5m), 139.01 (5m), 139.30 (8m) and 139.75 (5m), Stats.

Tax 1.12 History History: Cr. Register, September, 1999, No. 525, eff. 10-1-99; CR 04-049: am. (4) (a) (intro.), cr. (4) (a) 12. Register April 2005 No. 592, eff. 5-1-05; emerg. cr. (3) (fm) and (4) (a) 13., am. (4) (a) (intro.) and (7) (a) 2., eff. 12-28-05; CR 06-001: cr. (3) (fm) and (4) (a) 13., am. (4) (a) (intro.) and (7) (a) 2. Register June 2006 No. 606, eff. 7-1-06; CR 07-027: am. (1), (2), (3) (g), (4) (a) (intro.), (b) and (7) (intro.), cr. (4) (a) 14., Register October 2007 No. 622, eff. 11-1-07; CR 10-095: cr. (3) (cg), (cr), (4) (a) 15. to 18., (c), am. (3) (d), (4) (a) (intro.), 1. to 11., 12. (intro.), 13., r. (5), (6), renum. (8), (10) to be (6), (8), renum. (7), (9), (11) to be (5), (7), (9) and am. Register November 2010 No. 659, eff. 12-1-10; CR 12-014: am. (8) (c) Register August 2012 No. 680, eff. 9-1-12; correction in (3) (fm) made under s. 13.92 (4) (b) 7., Stats., Register August 2022 No. 800.

Tax 1.13 Tax 1.13 Power of attorney.

Tax 1.13(1) (1) Power of attorney.

Tax 1.13(1)(a) (a) A power of attorney or other written authorization executed by the taxpayer shall be required by the Wisconsin department of revenue for the taxpayer’s representative, on behalf of the taxpayer, to:

Tax 1.13(1)(a)1. 1. Inspect confidential information, e.g., tax returns and audit reports.

Tax 1.13(1)(a)2. 2. Receive notices, assessments, determinations, redeterminations, tax forms, billings, refunds, communications and correspondence containing confidential information.

Tax 1.13(1)(a)3. 3. Represent the taxpayer at conferences.

Tax 1.13(1)(a)4. 4. Execute a waiver to extend the statutory period for assessment or collection of a tax.

Tax 1.13(1)(a)5. 5. Execute any other waivers or agreements in behalf of the taxpayer.

Tax 1.13(1)(b) (b) The power of attorney requirement applies to income, franchise, withholding, sales and use, county sales and use, estate, motor fuel, general aviation fuel, special fuel, fermented malt beverage, intoxicating liquor, cigarette and tobacco products tax matters of individuals, partnerships and corporations, including (S) corporations, and homestead and farmland preservation credit matters, and unclaimed property matters.

Tax 1.13(1)(c) (c) A power of attorney or other written authorization executed by a designated agent of a combined group is considered executed by each member of the combined group with respect to combined returns within the scope of the power of attorney or other written authorization.

Tax 1.13(2) (2) Exceptions.

Tax 1.13(2)(a) (a) A power of attorney is not required for a taxpayer’s representative to inspect confidential information or to represent the taxpayer at conferences, if the representative is accompanied by the taxpayer or, if a corporation, by an officer or authorized employee of the corporation.

Tax 1.13(2)(b) (b) Generally a power of attorney is not required in the case of a trustee, receiver, guardian, administrator or executor of an estate, or a representative appointed by a court.

Tax 1.13(4) (4) Form of power of attorney.

Tax 1.13(4)(a) (a) Form A-222. Wisconsin’s power of attorney form, Form A-222, is available from the Wisconsin department of revenue’s web site or from any Wisconsin department of revenue office.

Tax 1.13(4)(b) (b) Alternate form. Use of the Wisconsin power of attorney form is not mandatory. However, the department prefers that this form or another similar form be used. An alternative form may be used, but must include all of the following:

Tax 1.13(4)(b)1. 1. The name of the representative.

Tax 1.13(4)(b)2. 2. A clear description of the scope of authority granted to the representative.

Tax 1.13(4)(b)3. 3. A notarized signature of the taxpayer, except federal Forms 2848 and 8655, SSTGB Form F0023, and other forms approved by the department that do not require the signature to be notarized.

Tax 1.13(4)(c) (c) Expression of authority. The Wisconsin power of attorney form or substitute form shall clearly express the scope of the authority granted to the taxpayer’s representative and the Wisconsin matter covered (e.g., income, sales, or franchise tax or unclaimed property).

Tax 1.13 Note Note: Forms may be obtained from the department of revenue’s web site at www.revenue.wi.gov.

Tax 1.13 Note Note: Section Tax 1.13 interprets ss. 71.78 (4) (e), 71.255 (7) (b), 72.06, 77.61 (5) (b) 5. a., 77.76 (3), 78.80 (3), 139.11 (4), 139.38 (6) and 139.82 (6), Stats.

Tax 1.13 History History: Cr. Register, February, 1978, No. 266, eff. 3-1-78; am. (1) (b), Register, September, 1983, No. 333, eff. 10-1-83; am. (1) (a) 1. and (b), (3) (a) and (4), Register, July, 1987, No. 379, eff. 8-1-87; am. (1) (a) 2. and (b), (2) (b), (3) (a) and (4) (b), Register, February, 1990, No. 410, eff. 3-1-90; CR 10-095: cr. (1) (c), am. (4) (a) Register November 2010 No. 659, eff. 12-1-10; CR 17-019: am. (1) (b), (4) (b), Register June 2018 No. 750 eff. 7-1-18; CR 19-141: am. (1) (b), r. (3) (a), (b), am. (4) (a), renum. (4) (b) to (4) (b) (intro.) and am., cr. (4) (b) 1. to 3., (c) Register September 2020 No. 777, eff. 10-1-20; r. (3) (title), cr. (4) (c) (title) under s. 13.92 (4) (b) 2., Stats., Register September 2020 No. 777; CR 21-085: am. (1) (b) Register August 2022 No. 800, eff. 9-1-22; CR 22-044: am. (1) (b) Register June 2023 No. 810, eff. 7-1-23.

Tax 1.14 Tax 1.14 Petition for redetermination.

Tax 1.14(1) (1) Scope. A person feeling aggrieved by a notice of additional assessment of income, franchise, withholding, state, county or stadium sales or use, premier resort area, local exposition, motor vehicle fuel, alternate fuels, general aviation fuel, fermented malt beverages, liquor, cigarette, tobacco products or controlled substances tax or petroleum inspection, state rental vehicle or dry cleaning fee, by a notice of reduced homestead, farmland preservation or other credits, or by a notice of refund or denial of refund may petition the department for redetermination. This section describes the administrative provisions related to the petition for department redetermination.

Tax 1.14(2) (2) Format of the petition. The petition for redetermination shall be in writing and shall set forth clearly and concisely the specific grievances to the assessment, reduced credit, refund or denial of refund, including a statement of the relevant facts and propositions of law upon which the grievance is based. Every petition shall be signed by the taxpayer or by a duly authorized representative.

Tax 1.14(3) (3) Filing deadline.

Tax 1.14(3)(a) (a) To be considered “timely filed” a petition for redetermination shall be filed within 60 days after receipt of a notice of additional assessment, reduced credit, refund or denial of refund. Except as provided in par. (b), a petition for redetermination is “filed” within the proper statutory 60-day time period only if it is actually received by the department, or at the destination that the department prescribes, within the 60-day period, or it is mailed in a properly addressed envelope, with postage prepaid, the envelope is postmarked before midnight of the 60th day and the petition is actually received by the department, or at the destination that the department prescribes, within 5 business days of the prescribed 60th day date.

Tax 1.14(3)(b) (b) In lieu of being received by the department or at a destination prescribed by the department, a petition for redetermination may be received at a destination prescribed by the department of administration if the petition for redetermination relates to a notice of additional assessment, reduced credit, refund or refund denial of income, franchise, withholding, motor vehicle fuel, alternate fuels, general aviation fuel, fermented malt beverages, liquor, cigarette, tobacco products or controlled substances tax, homestead, farmland preservation or other credit or state rental vehicle fee.

Tax 1.14(4) (4) Deposit or payment.

Tax 1.14(4)(a) (a) Deposit. Any person who files a petition for redetermination may elect to deposit the amount of additional assessment, including interest and penalty, with the department, or with a person that the department prescribes, at any time before the department makes its redetermination. Any deposited amount that is later refunded shall bear interest at the statutory rate.

Tax 1.14(4)(b) (b) Payment. A person may also pay any portion of the assessment admitted to be correct together with interest computed to the date of payment. However, the payment shall be considered an admission that the paid portion of the assessment is correct. The admitted portion that is paid may not be recovered in an appeal or in any other action or proceeding.

Tax 1.14(5) (5) Informal conference. A taxpayer may request in a petition for redetermination or at any time before the department has acted on the petition, an informal conference at which the facts and issues involved in the assessment or determination may be discussed. The conference shall be held at a time and place determined by the department.

Tax 1.14(6) (6) Closing stipulations. If the informal conference specified in sub. (5) results in an agreement as to facts and issues and the applicable law, the taxpayer and the department may enter into a closing stipulation.

Tax 1.14(7) (7) Combined groups. To the extent a notice of additional assessment of income or franchise tax, or any other notice under sub. (1), results from amounts required to be included in a combined return under s. 71.255, Stats., any act described in this section which is executed by the designated agent of the combined group is considered an act executed by all members of the combined group.

Tax 1.14 Note Note: Section Tax 1.14 interprets ss. 66.0615 (1m) (f) 2., 71.255 (7) (b), 71.80 (18), 71.88 (1), 71.90 (1), 77.59 (6), 77.61 (14), 77.76 (2), 77.982 (2), 77.991 (2), 77.9941 (4), 77.9951 (2), 77.9964 (2), 78.67, 78.69, 139.094, 139.11 (2m), 139.355, 139.38 (2m), 139.83, 139.835, and 168.12 (9), Stats.

Tax 1.14 History History: 1-2-56; am. Register, February, 1975, No. 230, eff. 3-1-75; am. Register, July, 1978, No. 271, eff. 8-1-78; renum. (1) and (2) to be (2) and (3) and am., cr. (1) and (4), (5) and (6) renum. from Tax 3.92 and 3.93 and am., Register, June, 1990, No. 414, eff. 7-1-90; CR 02-033: renum. from Tax 3.91 and am. Register October 2002 No. 562, eff. 11-1-02; CR 10-095: cr. (7) Register November 2010 No. 659, eff. 12-1-10.

Tax 1.15 Tax 1.15 Enforcement of rules against a small business that has commited a minor violation.

Tax 1.15(1) (1) Purpose. This section discloses the discretion the department will follow in the enforcement of rules against a small business that has committed a minor violation.

Tax 1.15(2) (2) Definitions. In this section:

Tax 1.15(2)(a) (a) “Minor violation” has the meaning given in s. 227.04 (1) (a), Stats.

Tax 1.15(2)(b) (b) “Small business” has the meaning given in s. 227.114 (1), Stats.

Tax 1.15(3) (3) Discretion the department will follow. The enforcement of rules against a small business that has committed a minor violation, including the assessment of a penalty, forfeiture, fine, or interest, shall be done on a case-by-case basis. Each case shall be determined on its merits as evaluated by the department, taking into consideration all relevant factors. Factors shall include:

Tax 1.15(3)(a) (a) The difficulty and cost of compliance with the rule by the small business.

Tax 1.15(3)(b) (b) The financial capacity of the small business, including the ability of the small business to pay the amount of any penalty that may be imposed.

Tax 1.15(3)(c) (c) The compliance options available, including options for achieving voluntary compliance with the rule.

Tax 1.15(3)(d) (d) The level of public interest and concern.

Tax 1.15(3)(e) (e) The opportunities available to the small business to understand and comply with the rule.

Tax 1.15(3)(f) (f) Fairness to the small business and to other persons, including competitors and the public.

Tax 1.15(4) (4) Scope of discretion allowed. The department shall allow the discretion described in sub. (3) to be considered in all situations in which a small business has committed a minor violation, except in a situation where any of the following apply:

Tax 1.15(4)(a) (a) The violation results in a substantial economic advantage for the small business.

Tax 1.15(4)(b) (b) The small business has violated the same rule or guideline more than 3 times in the past 5 years.

Tax 1.15(4)(c) (c) The violation may result in an imminent endangerment to the environment, or to public health or safety.

Tax 1.15(5) (5) Voluntary disclosure. The department encourages a small business that has committed a minor violation to voluntarily disclose the minor violation. On a case-by-case basis, considering all relevant factors, the department may exercise discretion to:

Tax 1.15(5)(a) (a) Enter into a written agreement with the small business that restricts the statute of limitations.

Tax 1.15(5)(b) (b) Waive penalties.

Tax 1.15(5)(c) (c) Reduce the number of periods for which returns shall be filed.

Tax 1.15 Note Note: Section Tax 1.15 interprets s. 227.04, Stats.

Tax 1.15 History History: CR 06-087: cr. Register November 2006 No. 611, eff. 12-1-06; CR 16-046: am. (title), (1), r. and recr. (2) to (4), am. (5) (intro.) Register January 2018 No. 745, eff. 2-1-18.

Tax 1.16 Tax 1.16 Financial record matching program.

Tax 1.16(1) (1) Purpose. The purpose of this section is to specify procedures under which the department shall enter into agreements with financial institutions doing business in this state to operate the financial record matching program under s. 71.91 (8), Stats.

Tax 1.16(2) (2) Definitions. In this section:

Tax 1.16(2)(a) (a) Pursuant to s. 71.91 (8) (a) 1., Stats., “account” means a demand deposit account, checking account, negotiable withdrawal order account, savings account, time deposit account, or money market mutual fund account.

Tax 1.16(2)(b) (b) “Financial institution” has the meaning given in s. 49.853 (1) (c), Stats.

Tax 1.16(3) (3) Procedures.

Tax 1.16(3)(a) (a) A financial institution doing business in this state shall enter into an agreement with the department to participate in the exchange of data on a quarterly basis. To the extent feasible, the information required under this agreement shall be submitted by electronic means prescribed by the department. The financial institution shall sign the agreement and return the agreement to the department within 20 business days of receipt of the agreement. The department shall review the agreement and, if all conditions have been met, shall sign the agreement and provide the financial institution with a copy of the signed agreement. Any changes to the conditions of the agreement shall be submitted by the financial institution or the department at least 60 days prior to the effective date of the change.

Tax 1.16(3)(b) (b) A financial institution shall elect one of the following options for the exchange of data described in par. (a):

Tax 1.16(3)(b)1. 1. ‘State matching option.’ This option is also known as the “all accounts method.” If this option is elected, the agreement described in par. (a) shall include the following:

Tax 1.16(3)(b)1.a. a. The financial institution agrees to provide an electronic file to the department or department’s agent on a quarterly basis. The file contains the name, social security number or federal employer identification number of all persons having an ownership interest in an account maintained at the financial institution, together with a description of each person’s interest.

Tax 1.16(3)(b)1.b. b. The department or department’s agent will perform a match against the delinquent debtor file. Upon the request of the department or the department’s agent, the financial institution shall provide the department, for each delinquent debtor who matches information provided by the financial institution under subd. 1. a., the delinquent debtor’s address of record, account number, account type and the balance of the account.

Tax 1.16(3)(b)1.c. c. The department or department’s agent agrees not to disclose or retain information received from the financial institution concerning account holders who are not delinquent debtors.

Tax 1.16(3)(b)2. 2. ‘Financial institution matching option.’ This option is also known as the “matched accounts method.” If this option is elected, the agreement described in par. (a) shall include the following:

Tax 1.16(3)(b)2.a. a. The department or department’s agent agrees to provide the financial institution an electronic file on a quarterly basis. The file contains the names and social security numbers or federal employer identification numbers of delinquent debtors.

Tax 1.16(3)(b)2.b. b. The financial institution agrees to return a file of matched records to the department or department’s agent. The return file of matched records contains the delinquent debtor’s name, social security number or federal employer identification number, address of record, account number, account type, the nature of the delinquent debtor’s ownership interest in the account and the balance of the account at the time that the record match is made.

Tax 1.16(3)(b)2.c. c. The financial institution agrees not to disclose or retain information received from the department or the department’s agent concerning information contained in the delinquent debtor file in accordance with s. 71.91 (8) (e), Stats.

Tax 1.16(3)(c) (c) A financial institution may request reimbursement from the department for costs associated with participating in the financial record matching program in an amount not to exceed $125 for each calendar quarter that the financial institution participates in the program.

Tax 1.16 History History: EmR0935: emerg. cr. eff. 5-20-10; CR 09-118: cr. Register June 2010 No. 654, eff. 7-1-10.

Tax 1.18 Tax 1.18 Permit predetermination.