Wis. Stat. § 71.10
General provisions
Redline — January 1, 2003 → current.View current text →
Current — January 1, 2021
As of January 1, 2003
(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 and whether or not affiliated) 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.
(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) .
(1m) Transactions without economic substance.
(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.
(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.
(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.
(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.
(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.
(3) Campaign fund.
(a) Every individual filing an income tax return who has a tax liability or is entitled to a tax refund may designate $1 for the Wisconsin election campaign fund for the use of eligible candidates under s. 11.50 . If the individuals filing a joint return have a tax liability or are entitled to a tax refund, each individual may make a designation of $1 under this subsection.
(ac) In this subsection, "tax liability" means any amount of tax determined by an individual or by an individual and his or her spouse after he or she calculates the order of computation through s. 71.10 (4) (gu) .
(am) Every individual, who is a full-year resident of this state, filing an income tax return who would have a tax liability before making a designation under this paragraph may designate the lesser of $20 or the individual's tax liability for transfer to the Wisconsin election campaign fund under s. 11.50 . If the individuals filing a joint return would have a tax liability before making a designation under this paragraph, each individual may make a designation of the lesser of $20 or one-half of the married couple's tax liability under this subsection. Each individual making a designation shall indicate whether the amount designated by that individual shall be placed in the general account for the use of all eligible candidates for state office, or in the account of an eligible political party whose name is certified to the secretary of revenue under s. 11.50 (14) . If an individual does not indicate that the amount of his or her designation shall be placed in the account of a particular eligible political party, that amount shall be placed in the general account.
(b) The secretary of revenue shall provide a place for those designations on the face of the individual income tax return and shall provide next to that place a statement that a designation will not increase tax liability. Annually on August 15, the secretary of revenue shall certify to the elections board, the department of administration and the state treasurer under s. 11.50 the total amount of designations made during the preceding fiscal year. If any individual attempts to place any condition or restriction upon a designation, that individual is deemed not to have made a designation on his or her tax return.
(c) The names of persons making designations under this subsection shall be strictly confidential.
(d) If an individual's income tax return is prepared by a paid tax preparer and if the individual does not make a designation under par. (am) , the tax preparer shall obtain from the individual his or her signature, on a form prepared by the department of revenue, acknowledging that he or she chooses not to make a designation under par. (am) . The form shall contain information regarding the purposes of the designation. No penalty may be imposed on a paid tax preparer who fails to obtain from any individual the form that is required under this paragraph.
(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: (a) Tax under s. 71.06 . (b) Personal exemptions under s. 71.07 (8) . (c) The credit under s. 71.07 (5) . (cm) The armed forces member tax credit under s. 71.07 (6m) . (d) School property tax credit under s. 71.07 (9) . (dm) Supplement to federal historic rehabilitation credit under s. 71.07 (9m) . (dr) State historic rehabilitation credit under s. 71.07 (9r) . (du) Working families tax credit under s. 71.07 (5m) . (f) Alternative minimum tax under s. 71.08 , including any surtax on alternative minimum tax. (g) Married persons credit under s. 71.07 (6) . (gb) The manufacturing sales tax credit under s. 71.07 (3s) . (gbb) Manufacturing investment credit under s. 71.07 (3t) . (gbm) Dairy investment credit under s. 71.07 (3n) . (gd) Development zones jobs credit under s. 71.07 (2dj) . (ge) Development zones sales tax credit under s. 71.07 (2ds) . (gg) Development zones investment credit under s. 71.07 (2di) . (gm) Development zones research credit under s. 71.07 (2dr) . (gr) Development zones location credit under s. 71.07 (2dL) . (grb) Development zone capital investment credit under s. 71.07 (2dm) . (grd) Technology zones credit under s. 71.07 (3g) . (gs) Development zones day care credit under s. 71.07 (2dd) . (gt) Development zones environmental remediation credit under s. 71.07 (2de) . (gu) Development zones credit under s. 71.07 (2dx) . (gw) 1. The addition of the campaign fund designation under sub. (3) (am) . 2. The subtraction of the campaign fund tax credit under s. 71.07 (6s) . (gwb) Early stage seed investment credit under s. 71.07 (5b) . (gx) Angel investment credit under s. 71.07 (5d) . (h) Payments to other states under s. 71.07 (7) . (i) The total of claim of right credit under s. 71.07 (1) , farmland preservation credit under subch. IX , homestead credit under subch. VIII , farmland tax relief credit under s. 71.07 (3m) , farmers' drought property tax credit under s. 71.07 (2fd) , earned income tax credit under s. 71.07 (9e) , estimated tax payments under s. 71.09 , and taxes withheld under subch. X . (j) Any amount computed under s. 71.83 (1) (c) .
(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: (a) Tax under s. 71.06 . (c) The credit under s. 71.07 (5) . (cd) Postsecondary education credit under s. 71.07 (5r) . (ce) Water consumption credit under s. 71.07 (5rm) . (cm) The armed forces member tax credit under s. 71.07 (6m) . (cn) Biodiesel fuel production credit under s. 71.07 (3h) . (cp) Health Insurance Risk-Sharing Plan assessments credit under s. 71.07 (5g) . (cq) Veteran employment credit under s. 71.07 (6n) . (cs) Additional child and dependent care tax credit under s. 71.07 (9g) . (d) School property tax credit under s. 71.07 (9) . (du) Working families tax credit under s. 71.07 (5m) . (e) Employee college savings account contribution credit under s. 71.07 (10) . (es) Community rehabilitation program credit under s. 71.07 (5k) . (eu) Research facilities credit under s. 71.07 (4n) . (f) For taxable years beginning before January 1, 2017, alternative minimum tax under s. 71.08 , including any surtax on alternative minimum tax. (fb) Low-income housing credit under s. 71.07 (8b) . (fm) Supplement to federal historic rehabilitation credit under s. 71.07 (9m) . (fn) Manufacturing and agriculture credit under s. 71.07 (5n) . (fp) State historic rehabilitation credit under s. 71.07 (9r) . (fr) Research credit under s. 71.07 (4k) , except as provided under par. (i) . (g) Married persons credit under s. 71.07 (6) . (gb) The manufacturing sales tax credit under s. 71.07 (3s) . (gbb) Manufacturing investment credit under s. 71.07 (3t) . (gbm) Dairy investment credit under s. 71.07 (3n) . (gc) Ethanol and biodiesel fuel pump credit under s. 71.07 (5j) . (grb) Development zone capital investment credit under s. 71.07 (2dm) . (grd) Technology zones credit under s. 71.07 (3g) . (gu) Development zones credit under s. 71.07 (2dx) . (gv) Economic development tax credit under s. 71.07 (2dy) . (gwb) Early stage seed investment credit under s. 71.07 (5b) . (gx) Angel investment credit under s. 71.07 (5d) . (gxx) Electronic medical records credit under s. 71.07 (5i) . (gy) Internet equipment credit under s. 71.07 (5e) . (h) Payments to other states under s. 71.07 (7) . (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 , 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 . (j) Any amount computed under s. 71.83 (1) (c) . (5) Endangered resources. (a) Definitions. In this subsection: 1. “Conservation fund" means the fund under s. 25.29 . 2. “Endangered resources program" means purchasing or improving land or habitats for any native Wisconsin endangered or threatened species as defined in s. 29.604 (2) (a) or (b) or for any nongame species as defined in s. 29.001 (60) , conducting the natural heritage inventory program under s. 23.27 (3) , conducting wildlife and resource research and surveys and providing wildlife management services, providing for wildlife damage control or the payment of claims for damage associated with endangered or threatened species, repaying the general fund for amounts expended under s. 20.370 (1) (fb) in fiscal year 1983-84 and the payment of administrative expenses related to the administration of this subsection. (b) Voluntary payments. 1. `Designation on return.' Subject to sub. (5s) , any individual filing an income tax return may designate on the return any amount of additional payment or any amount of a refund due that individual for the endangered resources program. 2. `Designation added to tax owed.' If the individual owes any tax, the individual shall remit in full the tax due and the amount designated on the return for the endangered resources program when the individual files a tax return. 3. `Designation deducted from refund.' Except as provided under par. (d) , if the individual is owed a refund for that year after crediting under ss. 71.75 (9) and 71.80 (3) , the department shall deduct the amount designated on the return for the endangered resources program from the amount of the refund. (c) Errors; failure to remit correct amount. If an individual who owes taxes fails to remit an amount equal to or in excess of the total of the actual tax due, after error corrections, and the amount designated on the return for the endangered resources program: 1. The department shall reduce the designation for the endangered resources program to reflect the amount remitted in excess of the actual tax due, after error corrections, if the individual remitted an amount in excess of the actual tax due, after error corrections, but less than the total of the actual tax due, after error corrections, and the amount originally designated on the return for the endangered resources program. 2. The designation for the endangered resources program is void if the individual remitted an amount equal to or less than the actual tax due, after error corrections. (d) Errors; insufficient refund. If an individual who is owed a refund which does not equal or exceed the amount designated on the return for the endangered resources program, after crediting under ss. 71.75 (9) and 71.80 (3) and after error corrections, the department shall reduce the designation for the endangered resources program to reflect the actual amount of the refund the individual is otherwise owed, after crediting under ss. 71.75 (9) and 71.80 (3) and after error corrections. (e) Conditions. If an individual places any conditions on a designation for the endangered resources program, the designation is void. (f) Void designation. If a designation for the endangered resources program is void, the department of revenue shall disregard the designation and determine amounts due, owed, refunded and received without regard to the void designation. (g) Tax return. The secretary of revenue shall provide a place for the designations under this subsection on the individual income tax return. (h) Certification of amounts. Annually, on or before September 15, the secretary of revenue shall certify to the department of natural resources and the department of administration:
(5) Endangered resources.
(a) Definitions. In this subsection:
1. "Conservation fund" means the fund under s. 25.29 .
2. "Endangered resources program" means purchasing or improving land or habitats for any native Wisconsin endangered or threatened species as defined in s. 29.604 (2) (a) or (b) or for any nongame species as defined in s. 29.001 (60) , conducting the natural heritage inventory program under s. 23.27 (3) , conducting wildlife and resource research and surveys and providing wildlife management services, providing for wildlife damage control or the payment of claims for damage associated with endangered or threatened species, repaying the general fund for amounts expended under s. 20.370 (1) (fb) in fiscal year 1983-84 and the payment of administrative expenses related to the administration of this subsection.
(am) Gray wolf as endangered or threatened species. For purposes of the part of the endangered resources program that provides for wildlife damage control and the payments of claims for damage associated with endangered or threatened species, the gray wolf shall be considered an endangered or threatened species regardless of whether it is listed as endangered or threatened under s. 29.604 (3) .
(b) Voluntary payments.
1. `Designation on return.' Any individual filing an income tax return may designate on the return any amount of additional payment or any amount of a refund due that individual for the endangered resources program.
2. `Designation added to tax owed.' If the individual owes any tax, the individual shall remit in full the tax due and the amount designated on the return for the endangered resources program when the individual files a tax return.
3. `Designation deducted from refund.' Except as provided under par. (d) if the individual is owed a refund for that year after crediting under ss. 71.75 (9) and 71.80 (3) , the department of revenue shall deduct the amount designated on the return for the endangered resources program from the amount of the refund.
(c) Errors; failure to remit correct amount. If an individual who owes taxes fails to remit an amount equal to or in excess of the total of the actual tax due, after error corrections, and the amount designated on the return for the endangered resources program:
1. The department shall reduce the designation for the endangered resources program to reflect the amount remitted in excess of the actual tax due, after error corrections, if the individual remitted an amount in excess of the actual tax due, after error corrections, but less than the total of the actual tax due, after error corrections, and the amount originally designated on the return for the endangered resources program.
Official source: Wisconsin State Legislature. Reproduced from public-domain Wisconsin statutes; confirm against the official source for the current text. Not legal advice.