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71.09 71.09 Payment of estimated taxes.
71.09(1)(1)Definitions. In this section:
71.09(1)(a) (a) “Farmers or fishers" are individuals, estates or trusts whose estimated gross income from farming or fishing for the taxable year is at least two-thirds of the total estimated gross income from all sources for the taxable year or individuals, estates or trusts whose gross income from farming or fishing for the preceding taxable year was at least two-thirds of the total gross income from all sources shown on that return. If a person files a joint return, the income of both that person and that person's spouse shall be considered in determining whether the person is a farmer or fisher.
71.09(1)(am) (am) “Return" means a return that would show the tax properly due.
71.09(1)(b) (b) “Tax shown on the return" and “tax for the taxable year" mean the net tax imposed under s. 71.02 after reduction for exemptions to, and credits against, that tax but before reduction by amounts withheld under subch. X and before reduction for amounts paid as estimated tax under this section for that tax plus the surcharge imposed under s. 77.93 before reduction for amounts paid as estimated tax under this section for that surcharge.
71.09(2) (2)Who shall pay. Every individual, estate and trust deriving income subject to taxation under this chapter, other than wages as defined in s. 71.63 (6) upon which taxes are withheld by the individual's employer under subch. X, shall pay estimated income tax and the surcharge under s. 77.93. This section does not apply to any person on active duty with the U.S. armed forces while stationed outside the continental United States. This section does not apply to any taxable year ending before the date 2 years after the date of a decedent's death with respect to the estate of such decedent or any trust all of which is treated under subpart E of part I of subchapter J of chapter 1 of the internal revenue code as owned by the decedent and to which the residue of the decedent's estate will pass under his or her will. This section does not apply to any trust that is subject to tax under this chapter on unrelated business taxable income as defined under section 512 of the internal revenue code. Those trusts are subject to estimated tax payments under s. 71.29.
71.09(3) (3)Farmers or fishers. Payments of estimated income tax required by sub. (2) from farmers or fishers may be made at any time on or before the 15th day of the first month of the succeeding taxable year.
71.09(4) (4)Farmers or fishers exception. Except as provided in sub. (1) (am), if on or before the first day of the 3rd month of the succeeding taxable year a farmer or a fisher files a return for the taxable year, for which estimated taxes were required on or before the 15th day of the first month of the succeeding taxable year under sub. (3), and pays in full the amount computed on the return as payable, then that payment satisfies any required estimated tax installments.
71.09(5) (5)Amount. The amount of the estimated income tax shall be the total estimated tax, including surtaxes, if any, reduced by the amount, if any, the individual, estate or trust determines will be withheld from wages pursuant to subch. X.
71.09(7) (7)Refund carry-forward. If the taxpayer claims a refund on any tax return and, concurrent with or subsequent to the filing of the return upon which such refund is claimed, is required to pay an estimated tax, and at the time of paying that tax the refund has not been paid, he or she may deduct the amount of such refund from the first installment of estimated taxes, and any excess from the succeeding installments. If a refund is paid after the due date of the last installment, its receipt shall be reflected on the income tax return covering the year. If the refund is disallowed in whole or in part after the due date of the last installment, that disallowance must be reflected on the income tax return covering the year.
71.09(8) (8)Prepayments. Any installment of the estimated tax under this section may be paid prior to the date prescribed for its payment.
71.09(9) (9)Short year. Application of this section to taxable years of less than 12 full months shall be made pursuant to rules of the department.
71.09 Cross-reference Cross-reference: See also s. Tax 2.89, Wis. adm. code.
71.09(10) (10)Overpayment. When the amount of an installment payment of estimated tax exceeds the amount determined to be the correct amount of such installment payment, the overpayment shall be credited against the unpaid installment, if any.
71.09(11) (11)Exceptions to interest. No interest is required under s. 71.84 (1) if any of the following conditions apply:
71.09(11)(a) (a) The tax shown on the return or, if no return is filed, the tax, minus amounts withheld under subch. X, is less than $500.
71.09(11)(b) (b) The preceding taxable year was 12 months, the taxpayer had no liability under s. 71.02 for that year and the taxpayer was a resident of this state for all of that year.
71.09(11)(c) (c) The secretary of revenue determines that because of casualty, disaster or other unusual circumstances it is not equitable to impose interest.
71.09(11)(d) (d) The secretary of revenue determines that the taxpayer retired during the taxable year or during the preceding taxable year after having attained age 62 or becoming disabled except that this paragraph does not apply upon a showing by the department under s. 73.16 (4).
71.09(11)(e) (e) For taxable years beginning after December 31, 2008, the taxpayer qualifies for a federal extension of time to file under 26 USC 7508A due to a presidentially declared disaster or terroristic or military action.
71.09(11)(f) (f) The taxpayer has underpaid the taxpayer's estimated taxes due to the change in brackets under s. 71.06 (1p) (e) and (2) (g) 5. and (h) 5. This paragraph applies only in the first taxable year to which these bracket changes apply.
71.09(11)(g) (g) The taxpayer has underpaid the taxpayer's estimated taxes due to the change in the percentage under s. 71.07 (5n) (b) 3. This paragraph applies only to taxable years beginning after December 31, 2014, and before January 1, 2016.
71.09(12) (12)Installment due dates. Taxpayers shall make estimated payments in 4 installments, on or before the 15th day of each of the following months:
71.09(12)(a) (a) The 4th month of the taxable year.
71.09(12)(b) (b) The 6th month of the taxable year.
71.09(12)(c) (c) The 9th month of the taxable year.
71.09(12)(d) (d) The first month of the next taxable year.
71.09(13) (13)Installment amounts.
71.09(13)(a) (a) Except as provided in pars. (b), (c) and (d), the amount of each installment required under sub. (12) is 25 percent of the lower of the following amounts:
71.09(13)(a)1. 1. Ninety percent of the tax shown on the return for the taxable year or, if no return is filed, 90 percent of the tax for the taxable year.
71.09(13)(a)2. 2. The tax shown on the return for the preceding year. If a husband and wife who filed separate returns for the preceding taxable year file a joint return, the tax shown on the return for the preceding year is the sum of the taxes shown on the separate returns of the husband and wife. If a husband and wife who filed a joint return for the preceding taxable year file separate returns, the tax shown on the return for the preceding year is the husband's or wife's proportion of that tax based on what their respective tax liabilities for that year would have been had they filed separately.
71.09(13)(b) (b) Paragraph (a) 2. does not apply if the preceding taxable year was less than 12 months or if the taxpayer did not file a return for the preceding taxable year.
71.09(13)(c) (c) Paragraph (a) 2. does not apply if the taxpayer is an estate or trust and has a taxable income of $20,000 or more.
71.09(13)(d) (d) If 22.5 percent for the first installment, 45 percent for the 2nd installment, 67.5 percent for the 3rd installment and 90 percent for the 4th installment of the tax for the taxable year computed by annualizing, under methods prescribed by the department of revenue, the taxpayer's income for the months in the taxable year ending before the installment's due date is less than the installment required under par. (a), the taxpayer may pay the amount under this paragraph rather than the amount under par. (a). Any taxpayer who pays an amount calculated under this paragraph shall increase the next installment computed under par. (a) by an amount equal to the difference between the amount paid under this paragraph and the amount that would have been paid under par. (a). The income of any estate or trust for the months in the taxable year ending before the date one month before the due date for the installment shall be annualized in calculating the installments under this paragraph.
71.09(14) (14)Exception to final installment. If a taxpayer files a return for a calendar year on or before January 31 of the succeeding calendar year (or if a taxpayer on a fiscal year basis files a return on or before the last day of the first month immediately succeeding the close of such fiscal year) and pays in full at the time of such filing the amount computed on the return as payable, then, if estimated taxes are not required to be paid on or before the 15th day of the 9th month of the taxable year but are required to be paid on or before January 15 of the succeeding taxable year (or the date corresponding thereto in the case of a fiscal year), such return shall be considered as such payment.
71.09(15) (15)Exemption from withholding.
71.09(15)(a) (a) Any individual deriving income from wages, as defined in s. 71.63 (6), which is subject to taxation under this chapter who pays 100 percent of the estimated tax for the following calendar or taxable year on or before the last day of the current calendar or taxable year is entitled to complete exemption from payroll withholding under subch. X for such following calendar or taxable year.
71.09(15)(b) (b) No employer shall recognize exemption from payroll withholding for any employee who does not furnish a certificate prepared by the department of revenue satisfactorily showing that the employee has paid the estimated tax within the time and manner prescribed in this subsection with respect to the calendar or taxable year for which such exemption is sought.
71.09(15)(c) (c) So far as applicable the additions to tax prescribed in this section shall apply to estimated taxes paid under this subsection.
71.09(15)(d) (d) No employer shall force or attempt to coerce an employee into estimating and prepaying his or her income taxes. The penalty under s. 71.83 (2) (a) 4. applies to any employer who violates this paragraph.
71.09(16) (16)Joint payments. Married persons may jointly pay estimated taxes unless either spouse is a nonresident alien or the spouses have different taxable years. If they do pay jointly, the provisions under this section applicable to individuals are applicable to the married persons jointly. If a married person files a separate return for a taxable year for which a joint payment was made, the payments may be allocated between themselves as they choose, but if they do not agree on an allocation the department of revenue shall allocate the payments to each spouse on the basis of the ratio of taxes shown on their separate returns or pursuant to default assessment under s. 71.74 (3). If either spouse pays separately, no part of the payment may be allocated to the other spouse.
71.10 71.10 General provisions.
71.10(1)(1)Allocation of gross income, deductions, credits between 2 or more businesses. In any case of 2 or more organizations, trades or businesses (whether or not incorporated, whether or not organized in the United States, whether or not affiliated, and whether or not unitary) owned or controlled directly or indirectly by the same interests, the secretary or the secretary's delegate may distribute, apportion or allocate gross income, deductions, credits or allowances between or among such organizations, trades or businesses, if the secretary determines that such distribution, apportionment or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of such organizations, trades or businesses. The authority granted under this subsection is in addition to, and not a limitation of or dependent on, the provisions of ss. 71.05 (6) (a) 24. and (b) 45., 71.26 (2) (a) 7. and 8., 71.34 (1k) (j) and (k), 71.45 (2) (a) 16. and 17., and 71.80 (23).
71.10(1m) (1m)Transactions without economic substance.
71.10(1m)(a)(a) If any person, directly or indirectly, engages in a transaction or series of transactions without economic substance to create a loss or to reduce taxable income or to increase credits allowed in determining Wisconsin tax, the department shall determine the amount of a taxpayer's taxable income or tax so as to reflect what would have been the taxpayer's taxable income or tax if not for the transaction or transactions without economic substance causing the reduction in taxable income or tax.
71.10(1m)(b) (b) A transaction has economic substance only if the transaction is treated as having economic substance as determined under section 7701 (o) of the Internal Revenue Code, except that the tax effect shall be determined using federal, state, local, or foreign taxes, rather than only the federal income tax effect.
71.10(1m)(c) (c) With respect to a transaction between members of a controlled group, as defined in section 267 (f) (1) of the Internal Revenue Code, the transaction shall be presumed to lack economic substance, and the taxpayer shall bear the burden of establishing by clear and satisfactory evidence that the transaction or the series of transactions between the taxpayer and one or more members of the controlled group has economic substance.
71.10(2) (2)Assessment of income distributable to a nonresident beneficiary. The income of a trust distributable or distributed to a nonresident beneficiary shall be assessed as the income of other nonresidents is assessed. No personal exemptions shall be allowed in assessing the income of such nonresident beneficiary unless that person makes a complete return under this chapter.
71.10(4) (4)Computation order. Notwithstanding any other provisions in this chapter, all persons other than corporations computing liability for the tax under s. 71.02 shall make computations in the following order:
71.10(4)(a) (a) Tax under s. 71.06.
71.10(4)(b) (b) Personal exemptions under s. 71.07 (8).
71.10(4)(c) (c) The credit under s. 71.07 (5).
71.10(4)(cd) (cd) Postsecondary education credit under s. 71.07 (5r).
71.10(4)(ce) (ce) Water consumption credit under s. 71.07 (5rm).
71.10(4)(cm) (cm) The armed forces member tax credit under s. 71.07 (6m).
71.10(4)(cn) (cn) Biodiesel fuel production credit under s. 71.07 (3h).
71.10(4)(cp) (cp) Health Insurance Risk-Sharing Plan assessments credit under s. 71.07 (5g).
71.10(4)(cq) (cq) Veteran employment credit under s. 71.07 (6n).
71.10(4)(cs) (cs) Additional child and dependent care tax credit under s. 71.07 (9g).
71.10(4)(d) (d) School property tax credit under s. 71.07 (9).
71.10(4)(du) (du) Working families tax credit under s. 71.07 (5m).
71.10(4)(e) (e) Employee college savings account contribution credit under s. 71.07 (10).
71.10(4)(es) (es) Community rehabilitation program credit under s. 71.07 (5k).
71.10(4)(eu) (eu) Research facilities credit under s. 71.07 (4n).
71.10(4)(f) (f) For taxable years beginning before January 1, 2017, alternative minimum tax under s. 71.08, including any surtax on alternative minimum tax.
71.10(4)(fb) (fb) Low-income housing credit under s. 71.07 (8b).
71.10(4)(fm) (fm) Supplement to federal historic rehabilitation credit under s. 71.07 (9m).
71.10(4)(fn) (fn) Manufacturing and agriculture credit under s. 71.07 (5n).
71.10(4)(fp) (fp) State historic rehabilitation credit under s. 71.07 (9r).
71.10(4)(fr) (fr) Research credit under s. 71.07 (4k), except as provided under par. (i).
71.10(4)(g) (g) Married persons credit under s. 71.07 (6).
71.10(4)(gb) (gb) The manufacturing sales tax credit under s. 71.07 (3s).
71.10(4)(gbb) (gbb) Manufacturing investment credit under s. 71.07 (3t).
71.10(4)(gbm) (gbm) Dairy investment credit under s. 71.07 (3n).
71.10(4)(gc) (gc) Ethanol and biodiesel fuel pump credit under s. 71.07 (5j).
71.10(4)(grb) (grb) Development zone capital investment credit under s. 71.07 (2dm).
71.10(4)(grd) (grd) Technology zones credit under s. 71.07 (3g).
71.10(4)(gu) (gu) Development zones credit under s. 71.07 (2dx).
71.10(4)(gv) (gv) Economic development tax credit under s. 71.07 (2dy).
71.10(4)(gwb) (gwb) Early stage seed investment credit under s. 71.07 (5b).
71.10(4)(gx) (gx) Angel investment credit under s. 71.07 (5d).
71.10(4)(gxx) (gxx) Electronic medical records credit under s. 71.07 (5i).
71.10(4)(gy) (gy) Internet equipment credit under s. 71.07 (5e).
71.10(4)(h) (h) Payments to other states under s. 71.07 (7).
71.10(4)(i) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), jobs tax credit under s. 71.07 (3q), business development credit under s. 71.07 (3y), research credit under s. 71.07 (4k) (e) 2. a., veterans and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), electronics and information technology manufacturing zone credit under s. 71.07 (3wm), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.
71.10(4)(j) (j) Any amount computed under s. 71.83 (1) (c).
71.10(5) (5)Endangered resources.
71.10(5)(a) (a) Definitions. In this subsection:
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2019-20 Wisconsin Statutes updated through 2021 Wis. Act 74 and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on August 5, 2021. Published and certified under s. 35.18. Changes effective after August 5, 2021, are designated by NOTES. (Published 8-5-21)