SB 238

Under current law, if an individual, fiduciary, or trust underpays its estimated

tax, the state imposes interest at the rate of 12 percent per year on the amount of the

underpayment, unless one of a number of exceptions apply. The exceptions include

a determination by the secretary of revenue that it is not equitable to impose the

interest, due to casualty, disaster, or other unusual circumstances. Another

exception applies to an individual who had no income or alternative minimum tax

liability for the preceding 12-month taxable year and who was a full-time Wisconsin

resident during that period.

This bill creates another exception. Under the bill, no interest on an

underpayment is due if the secretary of revenue determines that, in the interest of

fairness, no interest should be imposed.

Under current law, certain persons are required to pay civil penalties for

offenses such as failing to file an income or income and franchise tax return by the

statutorily required due date, for failure to file an information return, for filing an

incomplete or incorrect return, for filing an incomplete or incorrect deposit or

withholding report, and for the late filing of a withholding report.

Under this bill the secretary of revenue is authorized to exercise his or her

discretion, in the interest of fairness, to waive or reduce the penalty that would

otherwise be imposed under such circumstances.