Chapter 71

71.67(4)(b)2. 2. The name of the payee and that payee’s social security number, if any.

71.67(4)(b)3. 3. The gross amount of lottery prize winnings that are subject to withholding under par. (a).

71.67(4)(b)4. 4. The total amount deducted and withheld as required under par. (a).

71.67(4)(c) (c)

71.67(4)(c)1. 1. The payee shall furnish the department of revenue with one copy of the written statement he or she receives under par. (b) along with his or her income or franchise tax return for the year.

71.67(4)(c)2. 2. The administrator shall furnish the department of revenue with a copy of the statement that he or she furnishes to the payee under par. (b).

71.67(5) (5) Withholding from pari-mutuel wager winnings.

71.67(5)(a) (a) Wager winnings. A person holding a license to sponsor and manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q) if the amount of the payment is more than $1,000.

71.67(5)(b) (b) Deposits. The licensee under s. 562.05 (1) (b) or (c) shall deposit the amounts withheld under this subsection as would an employer depositing under s. 71.65 (3).

71.67(5)(c) (c) Statement of winnings to payee. The licensee shall furnish to each payee whose winnings are subject to withholding under par. (a) during the year, on or before January 31 of the succeeding year, 2 legible copies of a written statement showing the following:

71.67(5)(c)1. 1. The name of the payer and that payer’s Wisconsin income tax identification number, if any.

71.67(5)(c)2. 2. The name of the payee and that payee’s social security number, if any.

71.67(5)(c)3. 3. The gross amount of pari-mutuel wager winnings that are subject to withholding under par. (a).

71.67(5)(c)4. 4. The total amount deducted and withheld as required under par. (a).

71.67(5)(d) (d) Statement furnished to the department.

71.67(5)(d)1. 1. The payee shall furnish the department of revenue with one copy of the written statement he or she receives under par. (c) along with his or her income or franchise return for the year.

71.67(5)(d)2. 2. The licensee shall furnish the department of revenue with a copy of the statement that he or she furnishes to the payee under par. (c).

71.67(5m) (5m) Withholding from payments to purchase assignment of lottery prize. A person that purchases an assignment of a lottery prize shall withhold from the amount of any payment made to purchase the assignment the amount that is determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q). Subsection (5) (b), (c) and (d), as it applies to the amounts withheld under sub. (5) (a), applies to the amount withheld under this subsection.

71.67(6) (6) Withholding registration; fee.

71.67(6)(a) (a) Except as provided under par. (b), each employer who is required to withhold under this chapter shall obtain a valid certificate under s. 73.03 (50).

71.67(6)(b) (b) An out-of-state business, as defined in s. 323.12 (5) (a) 6., whose only payments to employees are to out-of-state employees, as defined in s. 323.12 (5) (a) 7., for disaster relief work, as defined in s. 323.12 (5) (a) 3., is not required to obtain a certificate under s. 73.03 (50).

71.67(7) (7) Withholding from unemployment compensation insurance.

71.67(7)(a) (a) The department of workforce development may, in accordance with s. 108.135, deduct and withhold from any unemployment insurance payment, on a form prepared by the department of workforce development, a portion of the payment as Wisconsin income tax. The department of workforce development shall deposit the amounts withheld, on a monthly basis, as provided in s. 108.135 (6).

71.67(7)(b) (b) The department of workforce development shall furnish to each claimant who receives benefits during any year, on or before January 31 of the succeeding year, at least one legible copy of a written statement showing all of the following:

71.67(7)(b)1. 1. The name of the claimant and that claimant’s social security number.

71.67(7)(b)2. 2. The gross amount of unemployment insurance that is subject to withholding under par. (a).

71.67(7)(b)3. 3. The total amount deducted and withheld under par. (a).

71.67(7)(c) (c)

71.67(7)(c)1. 1. If the department of revenue so requires, the claimant shall furnish the department of revenue with one copy of the written statement that he or she receives under par. (b), along with his or her income tax return for the year.

71.67(7)(c)2. 2. The department of workforce development shall furnish the department of revenue with a copy of any statement that is furnished to the claimant under par. (b).

71.67 History History: 1987 a. 312; 1987 a. 411 s. 104; 1991 a. 39, 269, 315; 1993 a. 16; 1995 a. 27 ss. 3417m, 3419, 9130 (4); 1995 a. 118; 1997 a. 3, 27, 39; 1999 a. 9, 194; 2001 a. 103; 2013 a. 20; 2015 a. 84.

71.67 Cross-reference Cross-reference: See also s. Tax 2.04, Wis. adm. code.

subch. XI of ch. 71 SUBCHAPTER XI

INFORMATION RETURNS

71.68 71.68 Definitions. In this subchapter:

71.68(1) (1) “Department” means the department of revenue.

71.68(2) (2) “File” means mail or deliver a document that the department prescribes to the department or, if the department prescribes another method of submitting or another destination, use that other method or submit to that other destination.

71.68 History History: 1997 a. 27.

71.70 71.70 Rents or royalties.

71.70(1) (1) Persons other than corporations. Persons other than corporations deducting rent or royalties in determining taxable income shall file a report that shows the amounts and the name and address of each individual who is a resident of this state and to whom royalties of $600 or more are paid during the taxable year; and the amounts and the name and address of each individual to whom rent of $600 or more is paid during the taxable year for property having a situs in this state. The person who deducts rent or royalties shall file the report on or before January 31 of the year following the year in which the payments are made. The person who deducts rent or royalties shall, on or before that deadline, furnish the recipient of the payment with a copy of the report.

71.70(2) (2) Corporations. All corporations doing business in this state shall file, on or before January 31, any information relative to payments made within the preceding calendar year of rents and royalties to all individuals taxable thereon under this chapter. The corporation that makes the payment shall, on or before that deadline, furnish the recipient of the payment with a copy of the statement.

71.70 History History: 1987 a. 312; 1989 a. 31; 1991 a. 39; 1997 a. 27, 291; 2017 a. 59.

71.70 Cross-reference Cross-reference: See also s. Tax 2.04, Wis. adm. code.

71.71 71.71 Wages subject to withholding.

71.71(1) (1) Statement employer must furnish to employee.

71.71(1)(a) (a) Every person, partnership or limited liability company required to deduct and withhold from an employee under the general withholding provisions of subch. X shall furnish to each such employee in respect of the remuneration paid by such person, partnership or company to such employee during the calendar year, on or before January 31 of the succeeding year, or if his or her employment is terminated before the close of any such calendar year on the day on which the last payment of remuneration is made, 2 legible copies of a written statement showing the following:

71.71(1)(a)1. 1. The name of such person, partnership or limited liability company, and that person’s, partnership’s or company’s Wisconsin income tax identification number, if any.

71.71(1)(a)2. 2. The name of the employee and the employee’s social security number, if any, or other number required by the department.

71.71(1)(a)3. 3. The total amount of wages as defined in s. 71.63 (6).

71.71(1)(a)4. 4. The total amount deducted and withheld as required by the general withholding provisions of subch. X.

71.71(1)(b) (b) The employee shall furnish the department of revenue one copy of such written statement along with his or her return for the year.

71.71(2) (2) Statement employer must file. Every person required to deduct and withhold from an employee under subch. X shall file, in respect to remuneration paid by the person to the employee during the calendar year, on or before January 31 of the succeeding year, one copy of the statement under sub. (1), except that, if the statement includes a number other than the employee’s social security number, the statement filed shall include the employee’s social security number.

71.71 History History: 1987 a. 312; 1991 a. 39; 1993 a. 112; 1997 a. 27; 2017 a. 59, 324.

71.71 Cross-reference Cross-reference: See also s. Tax 2.04, Wis. adm. code.

71.715 71.715 Wages not subject to withholding.

71.715(1) (1) Statement employer must furnish to employee.

71.715(1)(a) (a) Every employer, as defined in s. 71.63 (3), that pays in any calendar year wages, as defined in s. 71.63 (6), to an employee, as defined in s. 71.63 (2), from which the employer was not required to deduct and withhold from the employee under the general withholding provisions of subch. X., shall furnish to the employee, with respect to the wages paid by the employer to the employee during a calendar year, on or before January 31 of the year following the year in which the wages are paid, or, if the employee’s employment is terminated before the close of a calendar year, on the day on which the last payment of wages is made, 2 legible copies of a written statement showing all of the following:

71.715(1)(a)1. 1. The name of the employer and the employer’s Wisconsin income tax identification number, if any.

71.715(1)(a)2. 2. The name of the employee and the employee’s social security number, if any, or other number required by the department.

71.715(1)(a)3. 3. The total amount of wages the employer paid in the calendar year to the employee.

71.715(1)(b) (b) An employee that receives a statement under par. (a) shall furnish the department one copy of the statement along with the employee’s return for the year.

71.715(2) (2) Statement employer must file. Every employer required to furnish a statement under sub. (1) (a) shall file, with respect to the wages paid by the employer to an employee as described in sub. (1) during the calendar year, on or before January 31 of the succeeding year, one copy of the statement, except that, if the statement includes a number other than the employee’s social security number, the statement filed shall include the employee’s social security number.

71.715 History History: 2017 a. 59, 324.

71.72 71.72 Statement of nonwage payments. Every resident of this state and every nonresident carrying on activities within this state, whether taxable or not under this chapter, who pays in any calendar year for services performed within this state by an individual remuneration that is excluded from the definition of wages in s. 71.63 (6), in the amount of $600 or more, shall, on or before January 31 of the year following the year in which the payments are made, file a statement disclosing the name of the payor, the name and address of the recipient of the payment, and the total amount paid in the calendar year to the recipient. The person who pays for the services shall, on or before that deadline, furnish the recipient of the payment with a copy of the statement. In any case in which an individual receives wages, as defined in s. 71.63 (6), and also remuneration for services which remuneration is excluded from such definition, both from the same payor, the wages and the excluded remuneration shall both be reported in the statement required by s. 71.71 (2) in a manner satisfactory to the department, regardless of the amount of the excluded remuneration.

71.72 History History: 1987 a. 312; 1991 a. 39; 1997 a. 27, 291; 2017 a. 59.

71.72 Cross-reference Cross-reference: See also s. Tax 2.04, Wis. adm. code.

71.73 71.73 General provisions.

71.73(1) (1) Penalties. Unless specifically provided in this subchapter, the penalties under subch. XIII apply for failure to comply with this subchapter, unless the context requires otherwise.

71.73(2) (2) Extensions. If a person applies for an extension and shows good cause why an extension should be granted, the department may grant a 30-day extension for filing a rent and royalty statement under s. 71.70, a wage statement under s. 71.71, a wage statement under s. 71.715, or a statement of nonwage payments under s. 71.72.

71.73 History History: 1987 a. 312; 1991 a. 39; 1997 a. 291; 2017 a. 59.

subch. XII of ch. 71 SUBCHAPTER XII

ADMINISTRATIVE PROVISIONS APPLICABLE
TO ALL ENTITIES

71.738 71.738 Definitions. In this subchapter:

71.738(1m) (1m) “Department” means the department of revenue.

71.738(2m) (2m) “File” means mail or deliver a document that the department prescribes to the department or, if the department prescribes another method of submitting or another destination, use that other method or submit to that other destination.

71.738(3) (3) “Last day prescribed by law” means the unextended due date of the return or of the claim made under subch. VIII.

71.738(3d) (3d) “Pass-through entity” means a partnership, a limited liability company, a tax-option corporation, an estate, or a trust that is treated as a pass-through entity for federal income tax purposes.

71.738(3e) (3e) “Pass-through item” means a tax-option item under s. 71.34 (3) or an item of income, gain, loss, deduction, credit, or any other item that originates with a pass-through entity and is required to be reported by one or more pass-through members under this chapter.

71.738(3f) (3f) “Pass-through member” means a person who is a partner in a partnership, member of a limited liability company, shareholder in a tax-option corporation, beneficiary of an estate or a trust, or any other person whose tax liability under this chapter is determined in whole or in part by taking into account the person’s share of pass-through items, directly or indirectly, from a pass-through entity.

71.738(4) (4) “Sign” means write one’s signature or, if the department prescribes another method of authenticating, use that other method.

71.738 History History: 1995 a. 428; 1997 a. 27; 2005 a. 362; 2007 a. 20; 2021 a. 262.

71.74 71.74 Department audits, additional assessments and refunds.

71.74(1) (1) Office audit. The department shall, as soon as practicable, office audit such returns as it deems advisable and if it is found from such office audit that a person has been over or under assessed, or found that no assessment has been made when one should have been made, the department shall correct or assess the income of such person. Any assessment, correction or adjustment made as a result of such office audit shall be presumed to be the result of an audit of the return only, and such office audit shall not be deemed a verification of any item in said return unless the amount of such item and the propriety thereof shall have been determined after hearing and review as provided in s. 71.88 (1) (a) and (2) (a). Such office audit shall not preclude the department from making field audits of the books and records of the taxpayer and from making further adjustment, correction and assessment of income.

71.74(2) (2) Field audit.

71.74(2)(a) (a) Whenever the department deems it advisable to verify any return directly from the books and records of any person, or from any other sources of information, the department may direct any return to be so verified.

71.74(2)(b) (b) For the purpose of ascertaining the correctness of any return or for the purpose of making a determination of the taxable income of any person, the department may examine or cause to be examined by any agent or representative designated by it, any books, papers, records or memoranda bearing on the income of the person, and may require the production of the books, papers, records or memoranda, and require the attendance of any person having knowledge in the premises, and may take testimony and require proof material for its information. Upon such information as it may be able to discover, the department shall determine the true amount of income received during the year or years under investigation.

71.74(2)(c) (c) If it appears upon such investigation that a person has been over or under assessed, or that no assessment has been made when one should have been made, the department shall make a correct assessment in the manner provided in this chapter.

71.74(3) (3) Default assessment. Any person required to file an income or franchise tax return, who fails, neglects or refuses to do so within the time prescribed by this chapter or files a return that does not disclose the person’s entire net income, shall be assessed by the department according to its best judgment.

71.74(4) (4) Assessment for failure of natural persons and fiduciaries to file information returns. The department may assess as an addition to taxable income the amount of deductions taken in arriving at federal adjusted gross income or federal taxable income by natural persons and fiduciaries for wages, rent or royalties, upon failure to file information returns concerning such payments where required under s. 71.65 (1) and (2) (a) or (b) and 71.70 (1). Such assessments shall be made and reviewed in the same manner as other income tax assessments.