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Bills · 2021-2022 Regular Session

SB 794

Became law Official bill text Atom feed

Relating to: pass-through entity audits. (FE)

Corporation Corporation — Taxation Revenue department of Taxation

  1. Introduced, completed
  2. Passes Senate, completed
  3. Passes Assembly, completed
  4. Governor signs, completed
  5. Law, completed

Unfamiliar terms? Glossary

What this bill does

Plain-language analysis by the nonpartisan Legislative Reference Bureau

This bill makes various changes related to conducting tax audits of

pass-through entities such as partnerships, limited liability companies, and

tax-option corporations. Under the bill, the Department of Revenue may do all of

the following with regard to an audit of a pass-through entity:

1. Assess and collect additional tax from a pass-through entity on income

otherwise reportable by its pass-through members. Under the bill, a “pass-through

member” is, generally, a partner in a partnership, member of a limited liability

company, shareholder in a tax-option corporation, a beneficiary of an estate or a

trust, or any other person who derives a tax benefit from a pass-through entity.

2. Direct the secretary of the Department of Administration to refund to a

pass-through entity that part of an overpayment paid by the pass-through entity

and not by the entity's pass-through members.

3. Assess an adjustment to reduce a tax credit to a pass-through entity if the

pass-through entity previously computed the credit and reported the credit to its

pass-through members.

4. Assess an adjustment to increase a tax credit to offset additional tax assessed

to a pass-through entity.

5. Assess any pass-through member of a pass-through entity for additional tax

otherwise owed by one or more of the pass-through members.

What it would cost

Fiscal estimates filed by state agencies, as official PDFs

Sponsors

Introduced by: Kooyenga (R) , Marklein (R)

4 cosponsors

Armstrong (R) , Brooks (R) , Knodl (R) , Wittke (R)

Votes

Senate: Report adoption of Senate Amendment 2 recommended by Committee on Financial Institutions and Revenue, Ayes 5, Noes 0

Passed 5–0 Jan 14, 2022 official source full page

No individual roll call was recorded for this vote. Committee votes and some older sessions record totals only.

Senate: Report passage as amended recommended by Committee on Financial Institutions and Revenue, Ayes 5, Noes 0

Passed 5–0 Jan 14, 2022 official source full page

No individual roll call was recorded for this vote. Committee votes and some older sessions record totals only.

Senate: Referred to joint committee on Finance by Committee on Senate Organization pursuant to Senate Rule 41 (1)(e), Ayes 3, Noes 2

Passed 3–2 Jan 21, 2022 official source full page

No individual roll call was recorded for this vote. Committee votes and some older sessions record totals only.

Senate: Withdrawn from joint committee on Finance and made Available for Scheduling by committee on Senate Organization, pursuant to Senate Rule 41 (1)(e), Ayes 3, Noes 2

Passed 3–2 Jan 21, 2022 official source full page

No individual roll call was recorded for this vote. Committee votes and some older sessions record totals only.

Senate: PASSAGE

Passed 32–0 Jan 25, 2022 official source full page

Not voting · 1

Assembly: CONCURRENCE

Passed 95–0 Feb 23, 2022 official source full page

Aye · 95

Not voting · 4

Full history

  1. Dec 17, 2021 · Senate

    Introduced by Senators Marklein and Kooyenga; cosponsored by Representatives Wittke, Armstrong and Brooks

  2. Dec 17, 2021 · Senate

    Read first time and referred to Committee on Financial Institutions and Revenue

  3. Dec 21, 2021 · Senate

    Representative Knodl added as a cosponsor

  4. Jan 10, 2022 · Senate

    Fiscal estimate received

  5. Jan 11, 2022 · Senate

    Public hearing held

  6. Jan 11, 2022 · Senate

    Senate Amendment 1 offered by Senator Marklein

  7. Jan 12, 2022 · Senate

    Senate Amendment 2 offered by Senator Marklein

  8. Jan 13, 2022 · Senate

    Executive action taken

  9. Jan 14, 2022 · Senate

    Available for scheduling

  10. Jan 14, 2022 · Senate

    Report adoption of Senate Amendment 2 recommended by Committee on Financial Institutions and Revenue, Ayes 5, Noes 0

  11. Jan 14, 2022 · Senate

    Report passage as amended recommended by Committee on Financial Institutions and Revenue, Ayes 5, Noes 0

  12. Jan 21, 2022 · Senate

    Referred to joint committee on Finance by Committee on Senate Organization pursuant to Senate Rule 41 (1)(e), Ayes 3, Noes 2

  13. Jan 21, 2022 · Senate

    Withdrawn from joint committee on Finance and made Available for Scheduling by committee on Senate Organization, pursuant to Senate Rule 41 (1)(e), Ayes 3, Noes 2

  14. Jan 21, 2022 · Senate

    Placed on calendar 1-25-2022 pursuant to Senate Rule 18(1)

  15. Jan 25, 2022 · Senate

    Read a second time

  16. Jan 25, 2022 · Senate

    Senate Amendment 2 adopted

  17. Jan 25, 2022 · Senate

    Ordered to a third reading

  18. Jan 25, 2022 · Senate

    Rules suspended

  19. Jan 25, 2022 · Senate

    Read a third time and passed, Ayes 32, Noes 0

  20. Jan 25, 2022 · Senate

    Ordered immediately messaged

  21. Jan 25, 2022 · Assembly

    Received from Senate

  22. Feb 17, 2022 · Assembly

    Read first time and referred to committee on Rules

  23. Feb 22, 2022 · Assembly

    Made a special order of business at 8:53 AM on 2-23-2022 pursuant to Assembly Resolution 29

  24. Feb 23, 2022 · Assembly

    Read a second time

  25. Feb 23, 2022 · Assembly

    Ordered to a third reading

  26. Feb 23, 2022 · Assembly

    Rules suspended

  27. Feb 23, 2022 · Assembly

    Read a third time and concurred in, Ayes 95, Noes 0

  28. Feb 23, 2022 · Assembly

    Ordered immediately messaged

  29. Feb 23, 2022 · Senate

    Received from Assembly concurred in

  30. Mar 2, 2022 · Senate

    Report correctly enrolled

  31. Apr 14, 2022 · Senate

    Presented to the Governor on 4-14-2022

  32. Apr 15, 2022 · Senate

    Report approved by the Governor on 4-15-2022. 2021 Wisconsin Act 262

  33. Apr 15, 2022 · Senate

    Published 4-16-2022