Dale Kleven

Department of Revenue

Mail Stop 6-40

2135 Rimrock Road

P.O. Box 8933

Madison, WI 53708-8933

SECTION 1. Tax 1.12 (3) (fm) is created to read:

Tax 1.12 (3) (fm) “Pass-through entity" has the meaning given in s. 71.775 (1) (b), Stats.

SECTION 2. Tax 1.12 (4) (a) (intro.) is amended to read:

Tax 1.12 (4) (a) (intro.). Except as provided in sub. (11), the department requires a person who owes taxes and fees as described in subds. 1. to 12. 13. to pay or deposit the taxes and fees using the EFT payment method. The following taxes and fees are included in the EFT payment requirement:

SECTION 3. Tax 1.12 (4) (a) 13. is created to read:

Tax 1.12(4)(a)13. Income and franchise tax withholding payments of pass-through entities under s. 71.775, Stats.

SECTION 4. Tax 1.12 (7) (a) 2. is amended to read:

Tax 1.12 (7) (a) 2. The payer shall initiate ACH debit transfers before 4:00 p.m. central standard time or central daylight savings time, as applicable, at least one business day before on the prescribed due date of the payment in order for the payment to have a settlement date on or before the prescribed due date.

Note to Revisor: Replace the example at the end of Tax 1.12 (10) (c) with the following:

Example: If the prescribed due date falls on a Monday which is also memorial day, an ACH debit transfer must be initiated on or before the following Tuesday, when the payment is due. A payer using an ACH credit transfer must work with the financial institution to initiate the transfer in time to settle on or before the revised payment due date.

SECTION 5. Tax 2.04 (1) is amended to read:

Tax 2.04 (1). DEFINITION DEFINITIONS. In this section, “person" means an individual, trust, estate, partnership, limited liability company, association or corporation :

SECTION 6. Tax 2.04 (1) (a) and (b) are created to read:

Tax 2.04 (1) (a). “Pass-through entity" has the meaning given in s. 71.775 (1) (b), Stats.

Tax 2.04 (1) (b). “Person" means an individual, trust, estate, partnership, limited liability company, association or corporation.

SECTION 7. Tax 2.04 (2) (d) is amended to read:

Tax 2.04 (2) (d). All statements required shall be filed by January 31, by delivering or mailing them to the department. Form WT-7, “Employer's Annual Reconciliation of Wisconsin Income Tax Withheld From Wages," shall accompany the statements submitted, either on paper or , on magnetic media or in other machine-readable form, or by electronic means prescribed by the department, if the employer is required to be registered to withhold Wisconsin income taxes from employees' wages.

Note to Revisor: Replace the note at the end of Tax 2.04 (2) (d) with the following:

Note: Forms may be delivered in person to the department of revenue at 2135 Rimrock Road, Madison, Wisconsin. Forms filed on magnetic media may be mailed to Wisconsin Department of Revenue, Magnetic Media Coordinator, Room 232B, 2135 Rimrock Road, Madison, WI 53708-8906. Forms W-2 or 1099-R filed on paper may be mailed to Wisconsin Department of Revenue, PO Box 8920, Madison, WI 53708-8920. Forms 9b or substitute forms filed on paper may be mailed to Wisconsin Department of Revenue, PO Box 8932, Madison, WI 53708-8932.

SECTION 8. Tax 2.04 (2) (de), (dm), and (ds) are created to read:

Tax 2.04 (2) (de). The department may require an employer registered or required to be registered to withhold Wisconsin income taxes from employees' wages to file its Form WT-7 by electronic means. The department shall notify the employer at least 90 days prior to the due date of the first Form WT-7 required to be filed by electronic means of the requirement to file by electronic means.

Tax 2.04 (2) (dm). The secretary of revenue may waive the requirement for an employer to file by electronic means when the secretary determines that the requirement causes an undue hardship, if the employer does all of the following:

1. Requests the waiver in writing.

Note: Written requests should be addressed to Wisconsin Department of Revenue, Secretary's Office, Mail Stop 3-258, PO Box 8903, Madison WI 53708-8903

2. Clearly indicates why the requirement causes an undue hardship.

Tax 2.04 (2) (ds). In determining whether the electronic means requirement causes an undue hardship, the secretary of revenue may consider the following factors:

1. Unusual circumstances that may prevent the employer from filing by electronic means.

Example: The employer does not have access to a computer that is connected to the internet.

2. Any other factor that the secretary determines is pertinent.

Note to Revisor: 1) Replace the note at the end of Tax 2.04 (2) (e) with the following:

Note: Written requests for extensions may be mailed to Wisconsin Department of Revenue, Mail Stop 5-77, PO Box 8902, Madison, WI 53708-8902.

2) Replace the note at the end of Tax 2.04 (3) (b) with the following:

Note: Forms may be delivered in person to the department of revenue at 2135 Rimrock Road, Madison, Wisconsin. Forms filed on magnetic media may be mailed to Wisconsin Department of Revenue, Magnetic Media Coordinator, Room 232B, 2135 Rimrock Road, Madison, WI 53708-8906. Forms filed on paper may be mailed to Wisconsin Department of Revenue, PO Box 8932, Madison, WI 53708-8932.

3) Replace the note at the end of Tax 2.04(4)(d) with the following:

Note: Forms W-2G or substitute forms may be delivered in person to the department of revenue at 2135 Rimrock Road, Madison, Wisconsin. Forms filed on magnetic media may be mailed to Wisconsin Department of Revenue, Magnetic Media Coordinator, Room 232B, 2135 Rimrock Road, Madison, WI 53708-8906. Forms filed on paper may be mailed to Wisconsin Department of Revenue, PO Box 8920, Madison, WI 53708-8920.

SECTION 9. Tax 2.04 (8) is created to read:

Tax 2.04 (8). ELECTRONIC FILING REQUIREMENT FOR TAXES WITHHELD BY PASS-THROUGH ENTITIES. (a) Except as provided in par. (b), the department may require a pass-through entity to file its return for nonresident withholding taxes under s. 71.775, Stats., by electronic means.

(b) The secretary of revenue may waive the requirement to file by electronic means when the secretary determines that the requirement causes an undue hardship, if the pass-through entity does all of the following:

1. Requests the waiver in writing.

Note: Written waiver requests should be addressed to Wisconsin Department of Revenue, Secretary's Office, Mail Stop 3-258, PO Box 8903, Madison WI 53708-8903.

2. Clearly indicates why the requirement causes an undue hardship.

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

1. Unusual circumstances that may prevent the pass-through entity from filing by electronic means.

Example: The pass-through entity does not have access to a computer that is connected to the internet.

2. Any other factor that the secretary determines is pertinent.

Note to Revisor: 1) Move the last three notes at the end of Tax 2.04 (7) to the end of Tax 2.04 (8).

2) Replace the last note at the end of Tax 2.04(8) with the following:

Note: Section Tax 2.04 interprets ss. 71.26 (3) (e), 71.63 (3m), 71.65 (2), 71.67 (4) and (5), 71.70, 71.71 (2), 71.72, 71.738 (2), 71.74 (4) and 71.80 (20), Stats.

This proposed rule order does not have a significant economic impact on a substantial number of small businesses.

These proposed changes will not have a significant fiscal effect.