Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Wisconsin.

May 10, 2024

Wisconsin’s Congressman Introduced Legislation: Interstate Commerce Simplification Act

Authored by: Breea Boylan, CPA and Courtney Easterday, MSA

On April 16, 2024, Congressman Scott Fitzgerald (R-WI-5) introduced H.R.8021 as Interstate Commerce Simplification Act. This bill intends to limit states’ ability to tax business’ income when they merely sell goods or services into a state but otherwise have no physical presence in the state. If this bill is enacted, it would amend Public Law 86 – 272 to expand the prohibition against State income taxation by expanding the definition of “solicitation of orders.” Specifically, the bill would expand the definition of the term “solicitation of orders” to include “business activity that facilitates the solicitation of orders even if that activity may also serve some independently valuable business function apart from solicitation.”

If you have questions about how P.L. 86-272 applies to your business, please reach out to a member of the Withum SALT Team.

April 1, 2024

Wisconsin Increases Gross Income Threshold for Pass-Through Withholding Reporting Requirement

Authored by: Courtney Easterday, MSA and Kiana McGowan, CPA, MBA

On March 22, 2024, the Wisconsin Department of Revenue released its updated “Pass-Through Withholding and Composite Returns Fact Sheet,” which increases the gross income threshold for non-residents. Non-resident individuals with at least $2,000 of gross income from Wisconsin sources are subject to income tax filing requirements in the state. Previously, the non-resident filing threshold was $1,000. For Pass-through entities, a non-resident owner may file Form PW-2 to request an exemption from withholding at the PTE level, which would now be considered automatically exempt if the owner’s gross income is $2,000 or less.

For more information on Wisconsin pass-through withholding and composite requirements, please review Fact Sheet 1117 from the Department.

If you have questions about non-resident withholding requirements, please reach out to a member of the Withum SALT Team.

February 12, 2024

Wisconsin Updates R&D Credit Guidance Including Increase in Refundable Portion

Authored by: Kiana McGowan, CPA, MBA and Jonathan Weinberg, JD, LLM, Principal

The Wisconsin DOR issued an updated Publication 131 reflecting their recent legislation change regarding the state’s Research and Development (R&D) credit. The DOR increased the refundable portion of the state’s R&D credit from 15% to 25% for tax years beginning on or after January 1, 2024. Individuals and corporations are eligible to claim the R&D credit and refundable portion. Partnerships, LLCs, and S-corporations would compute the amount of the R&D credit based on their eligible research expenses and may provide any refundable portion available to their owners based on their respective ownership interests.

For additional information on eligibility and how to claim this Wisconsin R&D credit refund, please see Refundable Portion of Research Credit FAQs.

If you have questions about State R&D credits, please reach out to a member of the Withum SALT Team.

September 7, 2023

Wisconsin Sales & Use Tax Discount Amendment

Authored by: Jessie Racioppi and Jonathan Weinberg, JD, LLM, Principal

Wisconsin Bulletin No. 222 summarizes the state’s recently enacted changes to the retailer’s discount allowance. Wisconsin allows retailers to keep a portion of the sales tax collected on a timely filed Wisconsin sales and use tax return. Pursuant to Wis. Act 19, effective for sales tax returns due on or after October 1, 2023, the retailer’s discount increases from 0.5% to 0.75%. Additionally, the total allowable discount that may be retained on a sales and use tax return increases from $1,000 to $8,000.

For more details on Wisconsin’s changes to the Vendor Discount, please see Wisconsin Tax Bulletin 222, July 2023.

If you have questions about how sales taxes affect your business, please contact a member of the Withum SALT Team.

December 9, 2022

Wisconsin Deadline for Unclaimed Property Voluntary Disclosure Agreements is Rapidly Approaching

Authored by: Breea Boylan, MSA and Courtney Easterday, MSA

The Wisconsin Department of Revenue created a voluntary disclosure agreement program for holders of unclaimed property, including:

  • Individuals
  • Businesses
  • Organizations (Including Not-for-Profit Entities)
  • Governmental Units

Unclaimed property holders have until February 28, 2023 to initiate an agreement with the Department. The program will allow holders of unclaimed property, such as uncashed payroll checks and unclaimed refunds to escheat the unclaimed property to the state without penalties. Furthermore the program requires unclaimed property holders to:

  1. Make a bona fide effort to locate unclaimed property owners within 30 days of entering into the agreement for unclaimed property worth $50 or more;
  2. Continue to report and deliver unclaimed property for the next four annual reporting periods; and
  3. Electronically file unclaimed property reports and remit payment within 120 days of entering into the agreement.

More information can be found at the Wisconsin Tap Revenue Website.

If you have questions about whether your business has unclaimed property issues, please contact a member of the Withum SALT Team.

July 22, 2021

Tax Changes of Wisconsin Biennial Budget Bill

On July 8, 2021, Wisconsin Governor Tony Evers signed the 2021-2023 biennial budget bill. Below is a summary of tax changes included on the budget bill.
Corporate Income Tax

  • For tax years beginning on or after December 31, 2020, up to 15% (increased from 10%) of the Wisconsin research expense credit is refundable.

Personal income tax changes.

  • Effective for taxable years beginning after December 31, 2020, the personal income tax rate is reduced from 6.27% to 5.3% for taxpayers in the applicable tax brackets.
  • For taxable years beginning after December 31, 2021, a Wisconsin resident may claim as a credit against the personal income tax an amount equal to 50% of the federal child and dependent care tax credit claimed on his or her federal income tax return for the taxable year.
  • For tax years beginning on or after December 31, 2020, up to 15% (increased from 10%) of the Wisconsin research expense credit is refundable.

Partnership Tax

  • For taxable years beginning after December 31, 2020, partnerships, limited liability companies, and tax-option S corporations may elect to claim the jobs, enterprise zone, and business development tax credits at the entity level, if the credit results from a contract entered into with the Wisconsin Economic Development Corporation before December 22, 2017. If a partnership, limited liability company, or tax-option S corporation elects to claim the credit, the partners, members, and shareholders cannot claim the same credit.

March 23, 2021

Wisconsin Update on Extension of Filing Deadline

The Wisconsin Department of Revenue has announced that 2020 state individual income tax return filing and payment due dates are extended to May 17, 2021, in conformity with the federal income tax filing and payment due date automatic extension announced by the IRS on March 17. Wisconsin law provides for an extension of time and waiver of interest and penalties when the IRS extends filing deadlines during a presidentially-declared disaster. Individual taxpayers do not have to file any extension forms to be eligible for this new due date. No interest or penalties will accrue during the period of April 15, 2021 to May 17, 2021; interest and late filing fees will apply beginning May 18, 2021. No underpayment interest will apply for failure to make quarterly estimated individual income tax payments for the 2020 tax year. This relief does not extend to 2021 estimated tax payments for individuals, the first payment of which is due April 15, 2021. ( 2020 Wisconsin Individual Income Tax Return and Payment Deadline Extended to May 17, 2021, Wis. Dept. Rev., 03/19/2021 .)

April 1, 2020

Individual and Corporate Filing Deadline

The individual income and corporate tax return filing and payment deadline has been extended to July 15, 2020.

Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.

Contact Us

The State and Local Tax (SALT) laws vary from state to state and are constantly changing. Reach out to Withum’s SALT Team for guidance on how to navigate your state’s local tax laws.