SB 2

This bill changes the due dates for certain entities to file Wisconsin income or

franchise tax returns, to pay the first installment of estimated income and franchise

tax, and to file withholding tax returns.

Under the federal Surface Transportation and Veterans Health Care Choice

Improvement Act of 2015, the due dates for certain entities to file federal income tax

returns were changed to the following:

1. For taxable years beginning after December 31, 2015, for a partnership,

limited liability company, or tax-option corporation, March 15 or the 15th day of the

third month following the close of the entity's fiscal year.

2. For taxable years beginning after December 31, 2015, for a corporation other

than a tax-option corporation, except for a corporation that has a taxable year ending

on June 30, April 15 or the 15th day of the fourth month following the close of the

corporation's fiscal year.

3. For taxable years beginning after December 31, 2015, and ending before

January 1, 2024, for a corporation, other than a tax-option corporation, that has a

taxable year ending on June 30, the 15th day of the third month following the close

of the corporation's fiscal year.

4. For taxable years beginning after December 31, 2025, for a corporation, other

than a tax-option corporation, that has a taxable year ending on June 30, the 15th

day of the fourth month following the close of the corporation's fiscal year.

The bill amends the due dates under Wisconsin law for those entities to file

state income and franchise tax returns to conform to the federal income tax return

filing due dates.

The bill also provides that a corporation that is required to pay periodic

installments of estimated Wisconsin income or franchise tax must pay the first

installment of the tax on or before the 15th day of the fourth month of the

corporation's taxable year, except that, if the corporation's taxable year ends in

March, the first installment must be paid in the third month of the corporation's

taxable year. Under current law, the first installment for all corporations is due on

the 15th day of the third month of the corporation's taxable year.

The bill also changes the due date for a partnership, limited liability company,

tax-option corporation, estate, or trust (pass-through entity) to file a withholding

tax return for amounts withheld from income of the pass-through entity that are

distributable to a nonresident partner, member, shareholder, or beneficiary. The bill

changes that due date to be the same as the due date for the pass-through entity to

file its federal income tax return.

Under current law, if a pass-through entity underpays estimated withholding

tax, the pass-through entity must pay interest on the amount of the underpayment

for the period of the underpayment. The bill provides that no interest must be paid

if the secretary of revenue determines that because of casualty, disaster, or other