Tax 2.02(11)(b) (b) Wisconsin residents may have their employers cease withholding the other state’s income tax from their personal service income and may claim a refund from that state if income taxes are withheld from their personal service income after the effective date of a reciprocity agreement.

Tax 2.02(11)(c) (c) Wisconsin residents earning personal service income in states where it is taxable by the other state may claim a credit on their Wisconsin income tax returns for net income taxes paid to these states.

Tax 2.02 Note Note: Refer to s. Tax 2.955 for information on the credit for tax paid to other states.

Tax 2.02(12) (12) Delinquent taxes. Reciprocity agreements do not affect the withholding of delinquent Wisconsin income taxes, interest, penalties and costs under s. 71.91 (7), Stats.

Tax 2.02 Note Note: Forms may be obtained from the department of revenue’s web site at www.revenue.wi.gov.

Tax 2.02 Note Note: Out-of-state employers of Wisconsin residents wishing to withhold Wisconsin income tax from those employees’ incomes may contact Wisconsin Department of Revenue, Compliance Bureau, P.O. Box 8902, Madison, WI 53708.

Tax 2.02 Note Note: The State of Maryland enacted an income tax law, Ch. 1, Laws 1992, 1st Spec. Sess., on May 1, 1992, which resulted in the termination of reciprocity between Wisconsin and Maryland, effective for taxable years beginning after December 31, 1991. Prior to enactment of Maryland Ch. 1, Laws 1992, 1st Spec. Sess., Wisconsin practiced reciprocity with Maryland since prior to 1960, based on an informal agreement and acquiescence by Wisconsin and Maryland. Under the provisions of prior Maryland law and s. 71.05 (2), Stats., a Wisconsin resident could exclude from Maryland taxation, the income from salaries, wages, and compensation for personal services to the extent Wisconsin taxed the income of and accorded similar treatment to Maryland residents.

Tax 2.02 Note Note: Section Tax 2.02 interprets ss. 71.05 (2) and 71.64 (8), Stats.

Tax 2.02 Note Note: Beginning on January 1, 1968 and ending on January 1, 2010, Wisconsin had a formal reciprocity agreement with Minnesota. The reciprocity agreement was limited to income from personal services, including wages, salaries, tips, fees, commissions, bonuses, or similar earnings, provided the taxpayer personally rendered the service. The reciprocity exclusion for personal service income did not apply where the personal or professional service income was earned as a part of a business operated by the taxpayer which had employees that did more than incidental duties for the business, or where there was the sale or delivery of goods which was more than an incidental part of the business. A partner’s salary from a partnership where the selling of goods or services of the employees was more than incidental was subject to the reciprocity exclusion, but the partnership profits were not excluded. Distributions from a tax-sheltered annuity were also considered subject to the reciprocity exclusion. To qualify for the exclusion, the Minnesota agreement required the taxpayer to have a place of abode in Wisconsin, and the taxpayer was required to customarily return to it at least once a month.

Tax 2.02 History History: Cr. Register, April 1978, No. 268, eff. 5-1-78; r. and recr., Register, March, 1991, No. 423, eff. 4-1-91; am. (3) (a) (intro.), 1., (4) (a) 1. to 4., (b) (intro.), (5) (a), (6) (b), (7) and (8), r. (4) (b) 1. and 2. and (9), renum. (10) to (13) to be (9) to (12) and am. (10) (a), (b), (11) (a) and (12), Register, April, 1993, No. 448, eff. 5-1-93; CR 17-019: r. (4) (a) 4., (9), am. (10) (a), r. (10) (b), Register June 2018 No. 750 eff. 7-1-18; correction in (5) (a) made under s. 13.92 (4) (b) 7., Stats., Register June 2018 No. 750.

Tax 2.03 Tax 2.03 Corporation returns.

Tax 2.03(1) (1) Forms. The department shall provide forms for filing franchise or income tax returns and credit claims. Except as provided in s. Tax 2.09 or as otherwise approved by the department, tax returns and credit claims shall only be filed using the forms prescribed by the department.

Tax 2.03(2) (2) Information returns. Information returns required of corporations are specified in s. Tax 2.04.

Tax 2.03(3) (3) Filing returns.

Tax 2.03(3)(a) (a) Except as provided in par. (b) and s. Tax 2.67 (2) (b), all forms and information required to be filed or furnished by 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 2.03(3)(a)1. 1. Filing them by the use of electronic means as prescribed by the department.

Tax 2.03(3)(a)2. 2. Mailing them to the address specified by the department on the form or in the instructions.

Tax 2.03(3)(a)3. 3. Delivering them to the department or to the destination that the department or the department of administration prescribes.

Tax 2.03(3)(b) (b)

Tax 2.03(3)(b)1. 1. The department may require the franchise or income tax return of a corporation be filed electronically. The department shall provide notification at least 90 days prior to the due date of the first franchise or income tax return required to be filed electronically of the requirement to file electronically. This paragraph does not apply to combined returns subject to the electronic filing requirement in s. Tax 2.67 (2) (b).

Tax 2.03(3)(b)2. 2. The secretary of revenue may waive the requirement to file the franchise or income tax return of a corporation electronically when the secretary determines that the requirement causes an undue hardship, if the person does all of the following:

Tax 2.03(3)(b)2.a. a. Requests the waiver in writing using Form EFT-102, Electronic Filing or Electronic Payment Waiver Request.

Tax 2.03 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, PO Box 8902, Madison, WI 53708-8902. Form EFT-102 may be obtained at https://www.revenue.wi.gov/Pages/html/formpub.aspx, under “Tax Return Information.”

Tax 2.03(3)(b)2.b. b. Clearly indicates why the requirement causes an undue hardship.

Tax 2.03(3)(b)3. 3. In determining whether the electronic filing requirement causes an undue hardship, the secretary of revenue may consider the following factors:

Tax 2.03(3)(b)3.a. a. Unusual circumstances that may prevent the person from filing electronically.

Tax 2.03 Note Example: The person does not have access to a computer that is connected to the Internet.

Tax 2.03(3)(b)3.b. b. Any other factor that the secretary determines is pertinent.

Tax 2.03(3)(c) (c) If the return is a combined return, an officer of the designated agent corporation shall sign the combined return. Signing a return includes the process of electronically signing the return. See ss. Tax 2.03, 2.60, and 2.67 for additional rules relating to combined returns.