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Tax 4.12 Note 2) Assume the same facts as in Example 1, except the account is that of a wholesaler distributor. Irrespective of when the wholesaler distributor files the income or franchise tax return on which the bad debt deduction is claimed, the wholesaler distributor may file a claim for refund to recover the uncollected motor vehicle fuel tax any time between January 10, 2011 and April 15, 2016.
Tax 4.12(3)(b)2. 2. `Recovery of bad debts charged off.' If a bad debt deduction has been claimed by a supplier or wholesaler distributor for an account found worthless and charged off and the account is thereafter in whole or in part collected by the supplier or wholesaler distributor, the bad debt deduction shall be repaid to the department. A supplier shall report the amount so collected in the first tax report, form MF-002, filed after the collection, and the tax on the amount collected shall be paid with the report. A wholesaler distributor shall file a corrected refund claim and pay the tax collected within 30 days of collection.
Tax 4.12(3)(b)3. 3. `Amount deductible.'
Tax 4.12(3)(b)3.a.a. A deduction may only be claimed for the unpaid amount of tax on an account found worthless and charged off. The total amount charged off may include the cost of the fuel, interest, financing or insurance costs in addition to the tax amount. To determine the unpaid amount of tax to be deducted, all payments and credits to the account shall be prorated to the various components of the total amount that the purchaser contracted to pay.
Tax 4.12 Note Example: At the time when the tax rate is 30.9¢ per gallon, Supplier A sells 8,000 gallons of gasoline to Company B. Company B has an agreement with Supplier A to delay payment of the tax. The amount of the contract is $12,942, consisting of tax, $2,472, and the cost of fuel, $10,470. Company B defaults and discontinues operations, leaving a balance due Supplier A of $2,100, which includes interest of $200 not included in the contract amount. The deductible tax loss is $363, computed as follows: - See PDF for table PDF
Tax 4.12(3)(b)3.b. b. No deduction may be allowed for expenses incurred by a supplier or wholesaler distributor in attempting to collect any account receivable, or for that portion of a debt recovered that is reclaimed by or paid to a third party as compensation for services rendered in collecting the account.
Tax 4.12(3)(b)4. 4. `Special situations.' A purchaser of receivables may not claim a bad debt deduction for the motor vehicle fuel tax on receivables that subsequently become worthless.
Tax 4.12(3)(b)5. 5. `Repossessions.' When motor vehicle fuel is repossessed a tax deduction may be allowed only to the extent that the supplier or wholesaler distributor sustains a net loss upon which tax was paid.
Tax 4.12(3)(c) (c) Tax rate change. If a deduction for uncollectible tax is claimed in a period when the tax rate is different from the tax rate in effect when the tax was reported on the tax report, an adjustment to the gallons claimed shall be made to compensate for the tax rate differential. The number of gallons to claim is computed by dividing the old tax rate by the new tax rate and multiplying that percentage by the gallons sold.
Tax 4.12 Note Example: If tax was reported on an 8,000 gallon sale when the tax rate was 23.2¢ per gallon and a deduction was taken at a 24¢ rate, only 7,733 gallons may be claimed on the monthly supplier's tax report; [23.2 24] x 8,000 = 7,733.
Tax 4.12 Note Note: This section interprets ss. 78.01 (1) and (2s) and 78.68 (10), Stats.
Tax 4.12 History History: Emerg. cr. 4-1-94; cr. Register, November, 1994, No. 467, eff. 12-1-94.
Tax 4.50 Tax 4.50 Assignment, use and reporting of document number. Each shipment, transfer, purchase or sale of a petroleum product which is reportable to the department in accordance with ch. 78, Stats., shall bear a “document number." In this section “document number" means the number provided for in subs. (1) through (4), as follows:
Tax 4.50(1) (1) Assignment. Except as provided in sub. (4), the assignment of a document number shall originate with and be assigned by the refiner, terminal operator or place of manufacture where the fuel is loaded. All subsequent transactions, invoices and reports regarding each respective shipment shall use and make reference to this number.
Tax 4.50(2) (2) Railway tank car shipments. On all railway tank car shipments the tank car initials and number shall become the document number.
Tax 4.50(3) (3) Truck transport shipments. On all truck transport shipments the manifest number shall become the document number.
Tax 4.50(4) (4) Other shipments. On all other types of shipments, which do not originate at a refinery, terminal or place of manufacture, the shipper shall assign the invoice number as the document number. An invoice number may not be assigned by a shipper as the document number in any case where tank car initials and number or a truck transport manifest number is involved.
Tax 4.50 Note Note: This section interprets ss. 78.77, Stats.
Tax 4.50 History History: 1-2-56; am. Register, June, 1975, No. 234, eff. 7-1-75; renum. to be (intro.) and am., cr. (1), (2), (3) and (4), Register, June, 1983, No. 330, eff. 7-1-83; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94.
Tax 4.51 Tax 4.51 Measuring withdrawals. All withdrawals of motor vehicle fuel from Wisconsin refineries, marine terminals or pipeline terminals shall be measured in liquid gallons by accurate meters; however, it is not necessary to meter withdrawals into railway tank cars.
Tax 4.51 Note Note: This section interprets ss. 78.12, Stats.
Tax 4.51 History History: 1-2-56; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94.
Tax 4.52 Tax 4.52 Separate schedules. Separate schedules shall be filed for each Wisconsin refinery, marine terminal or pipeline terminal.
Tax 4.52 Note Note: This section interprets ss. 78.12, Stats.
Tax 4.52 History History: 1-2-56; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94.
Tax 4.53 Tax 4.53 Certificate of authorization.
Tax 4.53(1)(1)Statutes. An alternate fuel dealer may be authorized by an alternate fuel user, if the alternate fuel dealer agrees, to report and pay the tax on alternate fuel delivered into a bulk storage facility of the user. The user then is not required to obtain an alternate fuel license from the department.
Tax 4.53(2) (2) General.
Tax 4.53(2)(a)(a) A certificate of authorization, form MF-207, may be executed by a purchaser of alternate fuel to request a supplier of alternate fuel to bill the purchaser for both the alternate fuel and the alternate fuel tax.
Tax 4.53(2)(b) (b) A certificate of authorization executed by a supplier of alternate fuel indicates the supplier's acceptance of the purchaser's request to bill the alternate fuel tax on bulk deliveries and remit it to the department.
Tax 4.53(3) (3) Effect of certificates.
Tax 4.53(3)(a)(a) If a purchaser and seller of alternate fuel agree that the seller will collect the alternate fuel tax from the purchaser and remit it to the department, the purchaser is not required to obtain an alternate fuel license from the department nor to submit monthly reports of tax liability.
Tax 4.53(3)(b) (b) The supplier shall compute the monthly tax liability by adding the number of gallons of alternate fuel placed in storage facilities where purchasers have executed certificates of authorization to the number of gallons of alternate fuel placed in fuel supply tanks of motor vehicles.
Tax 4.53 Note Note: Blank certificates of authorization, form MF-207, may be obtained by writing or calling Wisconsin Department of Revenue, Audit Bureau, P. O. Box 8906, Madison, WI 53708-8906, (608) 266-3223.
Tax 4.53 Note Note: This section interprets ss. 78.40 (1), 78.47 and 78.49 (3), Stats.
Tax 4.53 History History: Cr. Register, December, 1980, No. 300, eff. 1-1-81; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94.
Tax 4.54 Tax 4.54 Security requirements.
Tax 4.54(1)(1)General. Under ss. 78.11, 78.48 (9) and 78.57 (9), Stats., the department may require motor vehicle fuel, alternate fuel and general aviation fuel taxpayers to deposit security with the department. This security may be required before or after the fuel tax license is issued. The amount of security determination shall be made by the department. If any person fails or refuses to place the security, the department may refuse to issue the license or may revoke the license.
Tax 4.54(2) (2) Factors for department's consideration.
Tax 4.54(2)(a) (a) In determining whether security shall be required and the amount of security to be required, the department shall consider all relevant factors, including:
Tax 4.54(2)(a)1. 1. Evidence of adequate financial responsibility. The evidence may include a person's assets and liabilities, liquidity of assets, estimated expenditures and potential fuel tax liability.
Tax 4.54(2)(a)2. 2. The person's prior record of filing tax returns and paying taxes of any kind with the department.
Tax 4.54(2)(a)3. 3. Type of entity making the sales of motor vehicle fuel, alternate fuel and general aviation fuel.
Tax 4.54 Note Example: A sole proprietor or partner having nonbusiness financial resources may be a better risk than a corporation having limited assets.
Tax 4.54(2)(b) (b) Although the individual factors listed in par. (a) shall be considered in determining security requirements, each case shall be determined on its merits as evaluated by the department. Protection of the fuel tax revenues shall be the major consideration in determining security requirements. However, due consideration shall be given to reasonable evidence that security is not necessary.
Tax 4.54(2)(c) (c) In instances in which the department determines security in excess of $100 is required, notification of this requirement shall include a written statement clearly describing the reasons for the requirement and a description or calculation showing how the amount of the security requirement was determined.
Tax 4.54(3) (3) Types of security. Acceptable types of security include, but are not limited to:
Tax 4.54(3)(a) (a) Noninterest-bearing:
Tax 4.54(3)(a)1. 1. Cash, certified check or money order.
Tax 4.54(3)(a)2. 2. Surety bonds issued by authorized underwriters.
Tax 4.54(3)(b) (b) Interest-bearing time certificates of deposit issued by financial institutions and made payable to the department. Interest earned on the certificates shall be paid to the depositor.
Tax 4.54(4) (4) Determination of amount.
Tax 4.54(4)(a)(a) If security is required, the amount shall be equal to the depositor's average quarterly Wisconsin fuel tax liability increased to the next highest even $100 amount, unless the department determines under sub. (2) that for good cause a higher amount is appropriate. The estimate of the depositor's average quarterly fuel tax liability shall be based on whichever of the following the department considers most appropriate in the circumstances:
Tax 4.54(4)(a)1. 1. The depositor's previous fuel tax liability.
Tax 4.54(4)(a)2. 2. The depositor's predecessor's fuel tax liability.
Tax 4.54(4)(a)3. 3. The estimated tax liability shown on the application for a license.
Tax 4.54(4)(a)4. 4. Other factors, such as the department's estimate of tax liability based on its experience with other similar activities.
Tax 4.54(4)(b) (b) If at the time of the security review the person has an outstanding fuel tax delinquency, the delinquent amount shall be added to the estimated average quarterly fuel tax liability and the sum of the two shall be the amount of security required.
Tax 4.54(5) (5) Return of deposit.
Tax 4.54(5)(a)(a) Any security deposited shall be returned to the taxpayer if the taxpayer has, for 24 consecutive months, complied with all the requirements of ch. 78, Stats.
Tax 4.54(5)(b) (b) The 24-month compliance requirement described in par. (a) shall begin on the day the deposit is received by the department.
Tax 4.54(5)(c) (c) Within 30 days after the conclusion of the 24-month period described in par. (a), the department shall review the taxpayer's compliance record. If the taxpayer has complied with ch. 78, Stats., the department shall within 60 days after the expiration of the 24-month period certify the deposit for refund.
Tax 4.54(5)(d) (d) Compliance with ch. 78, Stats., means that:
Tax 4.54(5)(d)1. 1. Fuel tax reports are timely filed.
Tax 4.54(5)(d)2. 2. All payments are made when due.
Tax 4.54(5)(d)3. 3. No penalties due to negligence or fraud are assessed for filing periods within the 24-month compliance period.
Tax 4.54(5)(d)4. 4. No assessment of additional tax, interest or other charges for filing periods within the 24-month compliance period is unpaid at the end of the period.
Tax 4.54(5)(d)5. 5. No delinquencies of fuel tax, interest or other charges imposed under ch. 78, Stats., exist with the department.
Tax 4.54(5)(e) (e) If a taxpayer does not meet the compliance requirements set forth in par. (d), the deposit shall be retained by the department until the taxpayer is in compliance for 24 consecutive months from the date of the latest incident of noncompliance.
Tax 4.54 Note Note: This section interprets ss. 78.11, 78.48 (9) and 78.57 (9), Stats.
Tax 4.54 History History: Cr. Register, September, 1991, No. 429, eff. 10-1-91; emerg. am. (1), (2) (a) (intro.) and 3., (b), (3) (b), (4) (a) (intro.), (5) (b), (c), (d) 3. to 5., eff. 4-1-94; am. (1), (2) (a) (intro.) and 3., (b), (3) (b), (4) (a) (intro.), (5) (b), (c), (d) 3. to 5., Register, November, 1994, No. 467, eff. 12-1-94.
Tax 4.55 Tax 4.55 Ownership and name changes.
Tax 4.55(1)(1)General. Under ss. 78.10 (6), 78.48 (6) and 78.57 (6), Stats., a fuel tax license is not transferable to another person or to another place of business. This section clarifies when a change in ownership or name of a business requires a new fuel tax license.
Tax 4.55(2) (2) Ownership change.
Tax 4.55(2)(a)(a) When there is a change in ownership of a business, the new owner shall apply for a new license using form MF-100, except as provided in par. (c). The new owner shall notify the department no later than 10 days prior to the change. Security may be required as provided in s. Tax 4.54.
Tax 4.55 Note Note: Form MF-100 is available on the department's web site at
Tax 4.55(2)(b) (b) A new license shall be obtained when there is a change in the type of ownership of a sole proprietorship, partnership, corporation or other form of ownership, except as provided in par. (c).
Tax 4.55 Note Examples: A new license is required if: 1) A sole proprietorship or partnership incorporates.
Tax 4.55 Note 2) A sole proprietorship is sold to a different sole proprietor.
Tax 4.55 Note 3) A sole proprietorship becomes a partnership.
Tax 4.55 Note 4) A partner in a partnership leaves the partnership or a partner is added to the partnership.
Tax 4.55 Note 5) The federal employer identification number of a business changes.
Tax 4.55(2)(c) (c) A change in the ownership of a corporation does not require a new license unless either of the following occurs:
Tax 4.55(2)(c)1. 1. A corporation is merged with another corporation, the merged corporation ceases to exist, and the surviving corporation does not have a valid license.
Tax 4.55(2)(c)2. 2. The federal employer identification number of a corporation changes.
Tax 4.55(3) (3) Name change.
Tax 4.55(3)(a)(a) A licensee shall notify the department of a name change at least 10 days prior to the change and the licensee shall retain the same license number.
Tax 4.55(3)(b) (b) A rider, verifying the name change, such as one filed by a licensee's insurance company at the request of the licensee, shall be submitted to the department. If no security is on file or a rider is not filed with the department, new security shall be deposited under the new name, as required under s. Tax 4.54, and any old security shall be returned to the licensee.
Tax 4.55 Note Note: This section interprets ss. 78.10 (6), 78.48 (6) and 78.57 (6), Stats.
Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.