Chapter Tax 2

Tax 2.07(1)(d) (d) Clarify the relationship between federal and Wisconsin earned income tax credits and coordinate outreach efforts with the internal revenue service, or “IRS.”

Tax 2.07(1)(e) (e) Provide sufficient information to allow potential claimants to self-evaluate their eligibility for the earned income tax credits.

Tax 2.07(1)(f) (f) Provide convenient ways for potential claimants to obtain additional information, assistance and forms.

Tax 2.07(2) (2) Methods of providing information. Methods the department uses to disseminate information to the public concerning the federal and Wisconsin earned income tax credits include the following:

Tax 2.07(2)(a) (a) Produce an informational flyer, distribute copies through appropriate organizations having regular contact with potential earned income tax credit claimants throughout the state, and have additional copies available for distribution upon request.

Tax 2.07 Note Example: Copies of the informational flyer may be distributed to members of the Wisconsin legislature or to various sites such as municipal buildings, community agencies, or job service centers.

Tax 2.07(2)(b) (b) In conjunction with the IRS, when training volunteers who provide free tax-filing assistance throughout Wisconsin, include training to identify potential earned income tax credit claimants and to assist them in claiming both the federal and Wisconsin credits.

Tax 2.07(2)(c) (c) Highlight the Wisconsin earned income tax credit in the Wisconsin individual income tax and homestead credit booklets.

Tax 2.07(2)(e) (e) Work with the IRS in providing joint efforts to publicize both the federal and Wisconsin earned income tax credits.

Tax 2.07(2)(f) (f) Annually produce a report summarizing the level of participation in and level of benefits provided by the earned income tax credit program.

Tax 2.07(2)(g) (g) Work with other state agencies, public utilities, and other organizations to distribute information about the federal and Wisconsin earned income tax credit programs.

Tax 2.07 Note Note: The federal earned income tax credit, provided under section 32 of the Internal Revenue Code, is available to eligible individuals and married couples filing a joint income tax return. The federal credit is computed based on the amount of adjusted gross income or earned income, and whether the individual or couple had no qualifying child, one qualifying child, or two or more qualifying children.

Tax 2.07 Note Note: The Wisconsin earned income tax credit is available under s. 71.07 (9e), Stats., to full-year Wisconsin residents who are eligible to claim the federal earned income tax credit. The Wisconsin credit is computed as a percentage of the federal basic credit, dependent upon whether the individual or couple have one qualifying child, two qualifying children, or three or more qualifying children.

Tax 2.07 Note Note: Section Tax 2.07 interprets ss. 71.07 (9e) and 73.03 (48), Stats.

Tax 2.07 History History: Cr. Register, November, 1993, No. 455, eff. 12-1-93; CR 21-085: r. (2) (d) Register August 2022 No. 800, eff. 9-1-22.

Tax 2.08 Tax 2.08 Returns of persons other than corporations.

Tax 2.08(1) (1) Forms. The department shall provide official forms for filing income tax returns and credit claims. Except as provided in s. Tax 2.09 or otherwise approved by the department, tax returns and credit claims may only be filed using these official forms.

Tax 2.08(2) (2) Information returns. Information returns required of persons other than corporations are specified in s. Tax 2.04.

Tax 2.08(3) (3) Filing returns.

Tax 2.08(3)(a) (a) All forms and information required to be filed or furnished by persons other than corporations shall be filed or furnished by providing the information requested on the appropriate forms, signing the returns or forms as appropriate and submitting them by one of the following means:

Tax 2.08(3)(a)1. 1. Mailing them to the address specified by the department on the form or in the instructions.

Tax 2.08(3)(a)2. 2. Delivering them to the department or to the destination that the department or the department of administration prescribes.

Tax 2.08(3)(a)3. 3. Filing them by the use of electronic means as prescribed by the department.

Tax 2.08 Note Note: The destination for delivering forms that the department or the department of administration prescribes and the type of electronic means the department prescribes for filing forms shall be stated on the forms or in the instructions, on the department’s Internet web site at www.revenue.wi.gov or in the department’s quarterly newsletter titled “Wisconsin Tax Bulletin” or other written material.

Tax 2.08(3)(b) (b) Except as provided in pars. (c) and (d), the department may require a tax return preparer or tax preparation firm that prepared 50 or more Wisconsin individual income tax returns for the prior taxable year, to file individual income tax returns prepared by that tax return preparer or tax preparation firm electronically. The department shall notify tax return preparers and tax preparation firms by October 1 of any year of the requirement to file electronically. The requirement to file returns electronically shall be effective beginning January 1 of the year following notification.

Tax 2.08(3)(c) (c) Paragraph (b) does not apply to a return on which the taxpayer has indicated that the taxpayer did not want the return filed by electronic means.

Tax 2.08(3)(ce) (ce) Except as provided in par. (d), the department may require a composite individual income tax return filed by a pass-through entity on behalf of its nonresident partners, members, shareholders, or beneficiaries be filed electronically. The department shall provide notification at least 90 days prior to the due date of the first composite income tax return required to be filed electronically of the requirement to file electronically.

Tax 2.08(3)(ci) (ci) Except as provided in par. (d), the department may require the nonresident income or franchise tax withholding return filed by a pass-through entity to be filed electronically. The department shall provide notification at least 90 days prior to the due date of the first income or franchise tax withholding return required to be filed electronically of the requirement to file electronically.

Tax 2.08(3)(cm) (cm) Except as provided in par. (d), the department may require the income tax return or request for a closing certificate of a trust or estate be filed electronically. The department shall provide notification at least 90 days prior to the due date of the first income tax return or closing certificate required to be filed electronically of the requirement to file electronically.

Tax 2.08(3)(cs) (cs) Except as provided in par. (d), the department may require the income tax return of a partnership be filed electronically. The department shall provide notification at least 90 days prior to the due date of the first income tax return required to be filed electronically of the requirement to file electronically.

Tax 2.08(3)(d) (d) The secretary of revenue may waive the requirement to file electronically when the secretary determines that the requirement causes an undue hardship, if the person otherwise required to file electronically does all of the following:

Tax 2.08(3)(d)1. 1. Requests the waiver in writing using Form EFT-102, Electronic Filing or Electronic Payment Waiver Request.

Tax 2.08 Note Note: Form EFT-102 should be e-mailed to [e-mail], faxed to [phone], or addressed to Mandate Waiver Request, Wisconsin Department of Revenue, Mail Stop 5-77, PO Box 8949, Madison WI 53708-8949. Form EFT-102 may be obtained at https://www.revenue.wi.gov/Pages/html/formpub.aspx, under “Tax Return Information.”

Tax 2.08(3)(d)2. 2. Clearly indicates why the requirement causes an undue hardship.

Tax 2.08(3)(e) (e) In determining whether the electronic means requirement causes an undue hardship, the secretary of revenue may consider the following factors:

Tax 2.08(3)(e)1. 1. Unusual circumstances that may prevent the person from filing electronically.

Tax 2.08 Note Example: The person does not have access to a computer that is connected to the Internet.

Tax 2.08(3)(e)2. 2. Any other factor that the secretary determines is pertinent.

Tax 2.08 Note Note: Forms not required to be filed electronically may be delivered in person to the Department of Revenue at 2135 Rimrock Road, Madison, Wisconsin or mailed to the address specified on the form or in the instructions.

Tax 2.08 Note Note: Section Tax 2.08 interprets ss. 71.01 (5g), 71.03 (2), 71.20 (1), 71.55 (3), 71.738 (2m), and 71.80 (18), Stats.

Tax 2.08 History History: 1-2-56; am. Register, February, 1958, No. 26, eff. 3-1-58; am. Register, February, 1960, No. 50, eff. 3-1-60; am. Register, September, 1964, No. 105, eff. 10-1-64; r. and recr., Register, March, 1966, No. 123, eff. 4-1-66; am. Register, February, 1975, No. 230, eff. 3-1-75; am. (1), Register, November, 1977, No. 263, eff. 12-1-77; am. (3), Register, February, 1978, No. 266, eff. 3-1-78; am. (1) (a) and (b), (2) and (3), renum. (1) (c) and (d) to be (1) (k) and (l) and am., cr. (1) (c) to (j), Register, July, 1987, No. 379, eff. 8-1-87; r. and recr. (1), am. (3) (intro.), r. (3) (a) to (c), Register, June, 1990, No. 414, eff. 7-1-90; r. and recr. Register, May, 1995, No. 473, eff. 6-1-95; CR 01-143: am. (1) (a) 2., 3. and (b) 3., renum. (1) (a) 4. to 15., 17. to 20., 21., and 22. to 28., (b) 5., 6. and (3) to be (1) (a) 5., 6., 9. to 18., 19. to 22., 24., and 26. to 32., (b) 7., 8. and (3) (a) (intro.) and am. (1) (a) 6., 15. and 18., (b) 7., and (3) (a) (intro.), cr. (1) (a) 4., 7., 8., 23., 25., (b) 5. and 6., (3) (a) 1. to 3. and (b) to (e), r. (1) (a) 16. Register July 2002 No. 559, eff. 8-1-02; CR 10-095: r. and recr. (1), am. (3) (b) (intro.), 2., (3) (d) (intro.), 1., (e) 1., cr. (3) (b) 3., (ce), (cm), (cs) Register November 2010 No. 659, eff. 12-1-10; CR 19-141: renum. (3) (b) (intro.) to (3) (b) and am., r. (3) (b) 1. to 3., cr. (3) (ci) Register September 2020 No. 777, eff. 10-1-20; correction in (3) (ci) made under s. 35.17, Stats., Register September 2020 No. 777.

Tax 2.085 Tax 2.085 Claim for refund on behalf of a deceased taxpayer.

Tax 2.085(1) (1) If a claimant is filing a deceased taxpayer’s income tax return and is due a refund, the claimant shall file Form 804, “Claim for Decedent’s Wisconsin Income Tax Refund,” with the income tax return. If the claimant did not file Form 804 with the income tax return, a refund check is issued in the deceased taxpayer’s name. If the claimant is unable to cash the refund check, the claimant shall file Form 804.

Tax 2.085(2) (2) If a refund is claimed on a joint Wisconsin income tax return of the surviving spouse and the decedent, the surviving spouse shall write “filing as surviving spouse” in the signature area of the return. If someone other than the surviving spouse is the personal representative, the personal representative shall also sign the joint return.

Tax 2.085(3) (3) Forms required to be filed under sub. (1) shall be mailed to Wisconsin Department of Revenue, P.O. Box 8903, Madison, WI 53708-8903.

Tax 2.085 Note Note: Section Tax 2.085 interprets s. 71.75 (10), Stats.

Tax 2.085 History History: Cr. Register, October, 1976, No. 250, eff. 11-1-76; am. (1), Register, November, 1978, No. 275, eff. 12-1-78; am. (2), Register, September, 1983, No. 333, eff. 10-1-83; renum. (2) to be (3), cr. (2), Register, February, 1990, No. 410, eff. 3-1-90; CR 13-012: am. (1) to (3) Register August 2013 No. 692, eff. 9-1-13; CR 22-044: r. and recr. (1), am. (3) Register June 2023 No. 810, eff. 7-1-23.

Tax 2.09 Tax 2.09 Reproduction of franchise or income tax forms.

Tax 2.09(1) (1) General. Subject to the provisions of this section, the official Wisconsin franchise or income tax forms required to be filed with the department may be reproduced and the reproductions may be filed in lieu of the corresponding official forms. Any reproduction which varies from the official version in any particular way, except as authorized in this section, shall be submitted to the department for approval before it is used. The department may reject any reproduction which is in whole or in part illegible or which is of a format that has not been approved by the department.

Tax 2.09(2) (2) Specifications. The following specifications shall apply:

Tax 2.09(2)(a) (a) Printing of reproductions shall be by conventional printing processes, photocopying, computer graphics or similar reproduction processes and shall duplicate the font sizes, graphics and format of the official form. Reproductions may be printed on one side or both sides of the paper.

Tax 2.09(2)(b) (b) Reproductions of optical character reader-scannable, or OCR-scannable, documents shall bear an OCR-scannable line as prescribed for the specific document type. Photocopies of OCR-scannable forms may not be filed.

Tax 2.09(2)(c) (c) The reproductions shall be on paper of substantially the same weight and texture, and of quality at least as good as that used in the official forms.

Tax 2.09(2)(d) (d) In the reproduction of tax forms, official forms printed on colored paper may be reproduced on white paper, and black ink may be substituted for colored ink.

Tax 2.09(2)(e) (e) The size of the reproduction, both as to dimensions of the paper and image reproduced on it, shall be the same as that of the official form, except that full-page official forms which are other than 8½ inches by 11 inches in size may be reproduced on 8½ inch by 11 inch paper.

Tax 2.09(2)(f) (f) Except for returns executed by fiduciaries as provided in sub. (3) or returns filed electronically, all signatures required on returns which are filed with the department shall be original, affixed subsequent to the reproduction process.

Tax 2.09(3) (3) Fiduciaries. A fiduciary or the fiduciary’s agent may use a facsimile signature in filing a tax return on form 2, subject to the following conditions:

Tax 2.09(3)(a) (a) Each group of returns forwarded to the department shall be accompanied by a letter signed by the person authorized to sign the returns declaring, under penalties of perjury, that the facsimile signature appearing on the returns is the signature adopted by the person to sign the returns filed and that the signature was affixed to the returns by the person or at the person’s direction. The letter shall also list each return by name and identifying number.

Tax 2.09(3)(b) (b) A signed copy of the letter shall be retained by the person filing the returns and shall be available for inspection by the department.

Tax 2.09(3)(c) (c) If returns are reproduced by photocopying or similar reproductive methods, the facsimile signature shall be affixed subsequent to the reproduction process.

Tax 2.09 Note Note: Written requests for approval of substitute forms should be mailed to Wisconsin Department of Revenue, Processing Forms Approval, P.O. Box 8903, Madison, WI 53708-8903.

Tax 2.09 Note Note: Section Tax 2.09 interprets ss. 71.03 (6) (a), 71.20 (1), 71.24 (1) and 71.44 (1) (a), Stats.

Tax 2.09 History History: 1-2-56; am. Register, February, 1958, No. 26, eff. 3-1-58; am. Register, February, 1960, No. 50, eff. 3-1-60; am. (2), Register, March, 1966, No. 123, eff. 4-1-66; am. (5) and cr. (6), Register, August, 1974, No. 224, eff. 9-1-74; am. (intro.), (2), (6) (intro.) and (a), Register, November, 1977, No. 263, eff. 12-1-77; am. (3), Register, September, 1983, No. 333, eff. 10-1-83; correction in (5) made under s. 13.93 (2m) (b) 4., Stats., Register, July, 1987, No. 379; r. and recr. Register, May, 1996, No. 485, eff. 6-1-96; CR 10-095: am. (1) Register November 2010 No. 659, eff. 12-1-10.

Tax 2.10 Tax 2.10 Copies of federal returns, statements, schedules, documents, etc. to be filed with Wisconsin returns.

Tax 2.10(1) (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. 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.

Tax 2.10(2) (2) Partnerships and limited liability companies treated as partnerships.

Tax 2.10(2)(a) (a) Except as provided in par. (b), at the time of filing Wisconsin income tax returns by partnerships and limited liability companies treated as partnerships under s. 71.20 (1), Stats., 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, deductions and credits, shall be included and filed with the Wisconsin return. 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.

Tax 2.10(2)(b) (b) Copies of the federal schedules K-1 are not required to be filed for those partners or members for whom a Wisconsin schedule 3K-1 is being filed for the same taxable year. A Wisconsin schedule 3K-1 shall be filed in lieu of federal schedule K-1 for a partner or member if any of the following applies:

Tax 2.10(2)(b)1. 1. The computation of the Wisconsin income or deductions differs from the federal amount.

Tax 2.10(2)(b)2. 2. The partner or member is a nonresident of Wisconsin or part-year resident of Wisconsin and the partnership or limited liability company has activities within and without Wisconsin.

Tax 2.10(2)(b)3. 3. The partnership or limited liability company calculates any Wisconsin income tax credits.

Tax 2.10 Note Note: Section Tax 2.10 interprets ss. 71.03 (5) and 71.20 (1), Stats.

Tax 2.10 History History: Register, December, 1965, No. 120, eff. 1-1-66; am. Register, June, 1990, No. 414, eff. 7-1-90; r. and recr. Register, May, 1995, No. 473, eff. 6-1-95: CR 21-085; am. (1) Register August 2022 No. 800, eff. 9-1-22.

Tax 2.105 Tax 2.105 Notice by taxpayer of federal audit adjustments and amended returns.

Tax 2.105(1) (1) Purpose. This section clarifies the time periods for a taxpayer to report federal audit adjustments and federal and other state amended returns for Wisconsin franchise or income tax and economic development surcharge purposes, and the result if a taxpayer fails to report the adjustments or amended returns.

Tax 2.105(2) (2) Definition. In this section, “taxpayer” includes individuals, estates, trusts, partnerships, limited liability companies and corporations. For combined groups, “taxpayer” includes the designated agent of a combined group under s. 71.255 (1) (a), Stats., if any member of the combined group was the subject of a federal audit adjustment or amended return.

Tax 2.105(3) (3) General.

Tax 2.105(3)(a) (a) Under ss. 71.76 and 77.96 (4), Stats., a taxpayer meeting the conditions described in sub. (4) shall report to the department changes or corrections made to a tax return by the internal revenue service, or file with the department amended Wisconsin franchise or income tax returns or amended economic development surcharge returns reporting any information contained in amended returns filed with the internal revenue service, or with another state if there has been allowed a credit against Wisconsin taxes for taxes paid to that state. If such changes, corrections, or amended returns relate to income, credits claimed or carried forward, net business losses or net business losses carried forward, capital losses or capital losses carried forward, or any other item that is required to be included in a combined report under s. 71.255 (1) (b), Stats., the designated agent of the combined group shall report such changes or corrections or file amended combined returns.

Tax 2.105 Note Note: See s. Tax 2.65 for additional rules relating to the designated agent of a combined group.

Tax 2.105(3)(b) (b) Except as provided in sub. (5), the department may give notice to the taxpayer of assessment or refund within 90 days of the date the department receives the taxpayer’s report of federal adjustments or amended return described in par. (a). The 90-day limitation does not apply to instances where the taxpayer files an incorrect franchise or income tax return or economic development surcharge return with intent to defeat or evade the franchise or income tax or economic development surcharge assessment.

Tax 2.105(4) (4) Taxpayer required to report.

Tax 2.105(4)(a) (a) Federal adjustments. If the federal net income tax payable, a credit claimed or carried forward, a net operating loss carried forward or a capital loss carried forward on a taxpayer’s federal tax return is adjusted by the internal revenue service in a way which affects the amount of Wisconsin net franchise or income tax or economic development surcharge payable, the amount of a Wisconsin credit or a Wisconsin net operating loss, net business loss or capital loss carried forward, the taxpayer shall report the adjustments to the department within 90 days after they become final. If such adjustments relate to income, credits claimed or carried forward, net business losses or net business losses carried forward, capital losses or capital losses carried forward, or any other item that is required to be included in a combined report under s. 71.255 (1) (b), Stats., the designated agent of the combined group shall report such adjustments. The following shall also apply with respect to federal adjustments:

Tax 2.105(4)(a)1. 1. ‘Finality of federal adjustments.’ For the purpose of determining when the federal adjustments become final, the following shall be deemed a final determination:

Tax 2.105(4)(a)1.a. a. Payment of any additional tax, not the subject of any other final determination described in subd. 1. b., c., d. or e.

Tax 2.105(4)(a)1.b. b. An agreement entered into with the internal revenue service waiving restrictions on the assessment and collection of a deficiency and accepting an overassessment. Federal form 870, “Waiver of Restrictions on Assessment and Collection of Deficiency in Tax and Acceptance of Overassessment,” or 870-AD, “Offer to Waive Restrictions on Assessment and Collection of Tax Deficiency and to Accept Overassessment,” are the forms prescribed for this purpose.

Tax 2.105(4)(a)1.c. c. Expiration of the 90-day time period, or the 150-day period in the case of a notice addressed to a person outside the United States, within which a petition for redetermination may be filed with the United States tax court with respect to a statutory notice of deficiency issued by the internal revenue service, if a petition is not filed with that court within that time.

Tax 2.105(4)(a)1.d. d. A closing agreement entered into with the internal revenue service under section 7121 of the Internal Revenue Code.

Tax 2.105(4)(a)1.e. e. A decision by the United States tax court or a judgment, decree or other order by a court of competent jurisdiction which has become final, or the date the court approves a voluntary agreement stipulating disposition of the case. A court of competent jurisdiction includes a United States district court, a court of appeals, a court of claims or the United States supreme court.

Tax 2.105(4)(a)1.f. f. For combined groups, the “finality of federal adjustments” is determined on the basis of that particular combined group member the adjustments of which ultimately affect the amount of Wisconsin net franchise or income tax or economic development surcharge payable, the amount of a Wisconsin credit, credit carryforward, net business loss, net business loss carryforward, capital loss or capital loss carried forward of the combined group to which that member belongs.