Remove statement relating to open inspection by the public as this information may contain personally identifiable information, such as SSN, etc.
Remove mailing camera-ready copies of the earned income tax credit informational flyers to large Wisconsin employers as the department no longer performs this activity
Remove obsolete toll-free telephone information
Section Tax 2.10: Remove reference to obsolete forms
Update $10,000 deficiency amount to $50,000 relating to decisions in unappealable cases heard by the U.S. tax court pursuant to 26 USC 7463 and Public Law 105-206
Repeal section Tax 2.105 (6) (b) relating to 1986 and prior taxable years as this is no longer needed
Remove reference to obsolete forms
Section Tax 2.88: Remove reference to old tax years as they no longer apply
Section Tax 2.89: Remove reference to obsolete form
Section Tax 2.956: Repeal section as it only applied for the initial applicability of projects begun after December 31, 1988
Section Tax 2.98: Repeal old tax years as they no longer apply
Section Tax 3.096: Repeal old tax years as they no longer apply
Section Tax 4.001: Update to reflect that all returns are electronically filed
Section Tax 4.75: Replace reference to fax with excise email address and customer service phone number
Section Tax 7.001: Update to reflect that all returns are electronically filed
Section Tax 7.01: Update to reflect permits are posted online
Section Tax 7.21: Update reference to federal regulations
Section Tax 8.001: Update to reflect that all returns are electronically filed
Section Tax 8.22: Update to reflect permits are posted online
Section Tax 9.001: Update to reflect that all returns are electronically filed
Section Tax 14.05: Repeal example which is incorrectly listed under exempt housing (applies to non-arm's length rental transactions)Summary of, and comparison with, existing or proposed federal regulation: There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
Comparison with rules in adjacent states: The department is not aware of a similar rule in an adjacent state.
Summary of factual data and analytical methodologies: Upon review of the administrative code, as it relates to income, franchise, and excise taxes for purposes of the JCRAR report submitted on March 26, 2019, certain sections were identified as needing updating or repeal. No other data was used in the preparation of this proposed rule order or this analysis.
Analysis and supporting documents used to determine effect on small business: This rule order makes changes to reflect current law and current department policy. It makes no policy or other changes having an effect on small business.
Anticipated costs incurred by private sector: This proposed rule does not have a fiscal effect on the private sector.
Effect on small business: This proposed rule does not affect small business.
Agency contact person: Please contact Jen Olson at (608) 266-8253 or jennifer.olson@wisconsin.gov, if you have any questions regarding this proposed rule. Place where comments are to be submitted and deadline for submission: Comments may be submitted to the contact person shown below no later than the date on which the public hearing on this proposed rule is conducted. Information as to the place, date, and time of the public hearing will be published in the Wisconsin Administrative Register.
Jen Olson
Department of Revenue
Mail Stop 6-40
2135 Rimrock Road
P.O. Box 8933
Madison, WI 53708-8933
SECTION 1. Tax 1.10 (title) is amended to read:
Tax 1.10 Depository bank requirements for estimated tax vouchers, sales and use tax returns, and withholding, motor fuel, general aviation fuel and special fuel alternate fuels tax deposit reports.
SECTION 2. Tax 1.11 (2) is amended to read:
Tax 1.11 (2) General. The provisions of ss. 70.375 (2) (b), 71.78, 72.06, 77.61 (5), 77.76 (3), 77.79, 78.80 (3) and (4), 139.11 (4), 139.38 (6), and 139.82 (6), Stats., apply to the examination of mining net proceeds, income, franchise, fiduciary, partnership, estate, sales and use, county sales and use, withholding, motor fuel, general aviation fuel, special fuel alternate fuels, fermented malt beverage, distilled spirits and wine, cigarette and tobacco product tax returns and tax credit claims. No person may examine or receive information from a tax return or tax credit claim unless specifically authorized to do so by the appropriate statute. SECTION 3. Tax 1.11 (3) (d) 2. is renumbered Tax 1.11 (3) (d) 2. b. and amended to read:
Tax 1.11 (3) (d) 2. b. The department may allow the examination of information requested and the information may be examined and used solely for the proceeding or investigation for which it is requested if a district attorney requests examination of a tax or tax credit information relating to a person, the district attorney specifies in writing the purpose for each requested examination, identifies the requestor, and the person to whom the information relates, the statutory or other authority showing the duties of the office, and the relation of the purpose to the duties of the office.
SECTION 4. Tax 1.11 (3) (d) 2. and a. are created to read:
Tax 1.11 (3) (d) 2. If the department allows examination of information under subd. 1. then all of the following apply:
a. The department may make disclosure on its own motion if the department has referred the case to a district attorney.
SECTION 5. Tax 1.11 (3) (d) 3., 4., and 5. are created to read:
Tax 1.11 (3) (d) 3. Such information may be examined for use in preparation for any administrative or judicial proceeding or an investigation which may result in such proceeding pertaining to the enforcement of a specifically designated state criminal statute not involving tax administration to which this state or a governmental subdivision thereof is a party. Such information may be used solely for the proceeding or investigation for which it is requested.
4. If a district attorney petitions a court of record in this state for an order allowing the examination and the court issues an order after finding all of the following, the department may allow an examination of information under subd. 3:
a. There is reasonable cause to believe, based on information believed to be reliable, that a specific criminal act has been committed;
b. There is reason to believe that such information is probative evidence of a matter in issue related to the commission of the criminal act; and
c. The information sought to be examined cannot reasonably be obtained from any other source, unless it is determined that, notwithstanding the reasonable availability of the information from another source, the information constitutes the most probative evidence of a matter in issue relating to the commission of such criminal act.
5. The department may deny access and shall certify the reason therefor to the court if the department determines the examination of information under subd. 4. would identify a confidential informant or seriously impair a civil or criminal tax investigation.
SECTION 6. Tax 1.11 (3) (f) 2. c. is repealed.
SECTION 7. Tax 1.11 (3) (g) 1. is amended to read:
1. The person serves a copy of the court order signed by a judge of a court of record on the custodian of files to produce a return or claim in open court in a court action pending before the judge.
SECTION 8. Tax 1.11 (4) (b) is repealed.
SECTION 9. Tax 1.11 (4) (c) and (5) (b) are amended to read:
Tax 1.11 (4) (c) Legislative fiscal bureau. Employees of the legislative fiscal bureau, to the extent the department deems the examination necessary to perform their duties under contracts or agreements between the department of revenue and the legislative fiscal bureau relating to the review and analysis of tax policy and state revenue collections, may examine tax returns under the provisions specified in sub. (2), except state and county sales and use tax returns.
(5) (b) The information required to be submitted to the department under sub. (5) (a) shall be submitted on forms provided by the department and shall be open to inspection by the public for a period of 2 years from the date the information is filed with the department. If a public officer, the attorney general or a district attorney responsible for enforcement of the criminal laws, in the statement required under sub. (3), declares that a return is being examined for the purpose of a criminal investigation, the department shall accept that declaration as prima facie evidence of the fact that making the knowledge public would result in harm to the public interest which outweighs any benefit that would result from making it public, and the department shall not make the knowledge public for a period of 30 days from the date of filing the statement.
SECTION 10. Tax 1.13 (1) (b) is amended to read:
Tax 1.13 (b) The power of attorney requirement applies to income, franchise, alternative minimum, withholding, sales and use, county sales and use, estate, motor fuel, general aviation fuel, special fuel alternate fuels, 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.
SECTION 11. Tax 2.04 (2) (intro) is amended to read:
Tax 2.04 (2) (intro) Compensation for services. Under ss. 71.65 (2), 71.71 (2), 71.715 (2), 71.72 and 71.80 (20), Stats., all persons carrying on activities within this state, whether taxable or not under ch. 71, Stats., are required to file with the department, on federal form W−2 or 1099−R, or on Wisconsin form 9b or other forms approved by the department, a statement of certain payments made within the preceding calendar year. As provided in sub. (6), the department may require such statement be filed electronically. For individuals who are residents of Wisconsin, the statement shall set forth the salaries, wages, bonuses, commissions, annuities, pensions, retirement pay, fees, or other remuneration paid for services whether subject to withholding or not. For individuals who are nonresidents, the statement shall include all payments for the performance of personal services in Wisconsin, whether subject to withholding or not, except retirement plan distributions identified in s. Tax 3.085 as being exempt from Wisconsin income tax. A copy of federal form 1099 may be filed in lieu of Wisconsin form 9b. The following shall also apply with respect to compensation for services: SECTION 12. Tax 2.07 (2) (d) and (e) (Note) are repealed.
SECTION 13. Tax 2.10 (1) is amended to read:
Tax 2.10 (1) Individuals and fiduciaries. At the time of filing Wisconsin income tax returns by individuals and fiduciaries, a complete copy of the federal income tax return for the same taxable year, including all schedules, statements, documents and computations which affect the computation of Wisconsin income, credits or penalties, shall be included and filed with the Wisconsin return. Copies of the short form federal returns 1040A and 1040EZ are not required to be filed if a Wisconsin form 1A or WI− Z is being filed for the same taxable year. If the federal form is filed electronically, a copy of the electronic material as contained in replicas of the official forms or on forms designated by the electronic filer shall be included and filed with the Wisconsin return.
SECTION 14. Tax 2.105 (4) (a) 1. f. (Note), (5) (c) 4. (Example 1) and (Example 2), and (6) (a) (Example) are amended to read:
Tax 2.105 (4) (a) 1. f. Note: Decisions of the U.S. tax court and other courts ordinarily become final as follows:
