Wis. Admin. Code Department of Revenue Tax 2.04

Current through December 30, 2024

Section Tax 2.04 - Information returns and wage statements

(1) DEFINITIONS. In this section:

(a) "Pass-through entity" has the meaning given in s. 71.738 (3d), Stats.

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

(2) COMPENSATION FOR SERVICES. Under ss. 71.65 (2), 71.71 (2), 71.715 (2), 71.72 and 71.80 (20), Stats., all persons carrying on activities within this state, whether taxable or not under ch. 71, Stats., are required to file with the department, on federal form W-2 or 1099-R, or on Wisconsin form 9b or other forms approved by the department, a statement of certain payments made within the preceding calendar year. As provided in sub. (6), the department may require such statement be filed electronically. For individuals who are residents of Wisconsin, the statement shall set forth the salaries, wages, bonuses, commissions, annuities, pensions, retirement pay, fees, or other remuneration paid for services whether subject to withholding or not. For individuals who are nonresidents, the statement shall include all payments for the performance of personal services in Wisconsin, whether subject to withholding or not, except retirement plan distributions identified in s. Tax 3.085 as being exempt from Wisconsin income tax. A copy of federal form 1099 may be filed in lieu of Wisconsin form 9b. The following shall also apply with respect to compensation for services:

(a) All payments which are wages within the definition under s. 71.63 (6), Stats., regardless of amount, shall be reported on federal form W-2. As provided in sub. (6), the department may require such form be filed electronically.

(b) All payments which are not wages within the definition under s. 71.63 (6), Stats., but from which Wisconsin income tax has been withheld, shall be reported on federal form W-2 or 1099-R, as appropriate. As provided in sub. (6), the department may require such form be filed electronically.

(c) Payments of $600 or more which are not wages within the definition under s. 71.63 (6), Stats., and from which no Wisconsin income tax has been withheld, shall be reported on Wisconsin form 9b or federal form 1099. As provided in sub. (6), the department may require such form be filed electronically. However, if the payment was to an employee for whom a form W-2 is required under par. (a) or (b), the payment, regardless of amount, shall be included on form W-2.

(d) All statements required shall be filed with the department by January 31. Form WT-7, "Employer's Annual Reconciliation of Wisconsin Income Tax Withheld From Wages," shall accompany the statements submitted, if the employer is required to be registered to withhold Wisconsin income taxes from employees' wages.

Note: Forms W-2, 1099-R, 9b, and 1099 that are not required to be filed electronically may be delivered in person to the Department of Revenue at 2135 Rimrock Road, Madison, Wisconsin or mailed to the department. Forms filed on paper may be mailed to Wisconsin Department of Revenue, PO Box 8920, Madison, WI 53708-8920.

(de) The department may require Form WT-7 be filed electronically. The department shall provide notification at least 90 days prior to the due date of the first Form WT-7 required to be filed electronically of the requirement to file electronically.

(dm) The secretary of revenue may waive the requirement for a person to file Form WT-7 electronically when the secretary determines that the requirement causes an undue hardship, if the person does all of the following:

1. Requests the waiver in writing using Form EFT-102, Electronic Filing or Electronic Payment Waiver Request.

Note: Form EFT-102 should be e-mailed to DORWaiverRequest@wisconsin.gov, faxed to (608) 224-5761, or addressed to Mandate Waiver Request, Wisconsin Department of Revenue, PO Box 8902, Madison, WI 53708-8902. Form EFT-102 may be obtained at https://www.revenue.wi.gov/Pages/html/formpub.aspx, under "Tax Return Information."

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

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

1. Unusual circumstances that may prevent the person from filing electronically.

Example: The person does not have access to a computer that is connected to the Internet.

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

(e) Sections 71.65 (5) and 71.73 (2), Stats., permit a thirty-day extension of time to file the statements described in this subsection. A written request may be mailed or faxed to the department and to be effective shall be postmarked or faxed on or before the due date of the statements.

Note: Written requests for extensions may be mailed to Mail Stop 3-80, Wisconsin Department of Revenue, Tax Operations Business, PO Box 8902, Madison, WI 53708-8902.

(3) RENTS AND ROYALTIES. Under ss. 71.70 and 71.80 (20), Stats., except as provided in par. (d), all persons making payments of rents and royalties of $600 or more to individuals who are residents of Wisconsin, regardless of where the property is located, and to nonresident individuals if the property is located in Wisconsin, shall file with the department, on Form 9b or an approved substitute form, a statement of payments made in the preceding calendar year. As provided in sub. (6), the department may require such statement be filed electronically. The following shall also apply with respect to rents and royalties:

(a) A copy of federal Form 1099-MISC may be filed in lieu of Wisconsin Form 9b.

(b) Corporations shall file the statement with the department by January 31 and payers other than corporations shall file by January 31.

Note: Forms not required to be filed electronically may be delivered in person to the Department of Revenue at 2135 Rimrock Road, Madison, Wisconsin or mailed to Wisconsin Department of Revenue, PO Box 8920, Madison, WI 53708-8920.

(c) A 30-day extension of time for filing Forms 9b or substitute forms to report payments of rents or royalties may be allowed.

(d) The requirement to file Form 9b or a substitute form does not apply to persons other than corporations who do not deduct the payments in determining Wisconsin taxable income.

(4) GAMBLING WINNINGS.

(a) Under s. 71.67 (4) (c), Stats., the administrator of the gaming commission's lottery division shall file with the department a statement of winnings for each lottery prize of $2,000 or more paid in the preceding calendar year.

(b) Under s. 71.67 (5) (d), Stats., all persons licensed to sponsor and manage races under s. 562.05 (1) (b) or (c), Stats., shall file with the department a statement of winnings for each pari-mutuel wager payment of more than $1,000 paid in the preceding calendar year.

(c) The winnings required to be reported in pars. (a) and (b) shall be reported on federal Form W-2G or on an approved substitute form. As provided in sub. (6), the department may require such form be filed electronically.

(d) The statements required in pars. (a) and (b) shall be filed by January 31.

Note: Forms W-2G or substitute forms not required to be filed electronically may be delivered in person to the Department of Revenue at 2135 Rimrock Road, Madison, Wisconsin or mailed to Wisconsin Department of Revenue, PO Box 8920, Madison, WI 53708-8920.

(e) No extension of time for filing Forms W-2G or substitute forms to report payments of lottery prize winnings or pari-mutuel wager winnings may be allowed.

(5) DISALLOWANCE OF DEDUCTIONS. Items to be reported on Forms W-2, 1099-R, 9b or substitute forms may be disallowed as deductions from gross income if not properly reported.

(6) ELECTRONIC FILING REQUIREMENT.

(a) Under s. 71.80 (20), Stats., if a person is required to file 10 or more wage statements or 10 or more of any one type of information return with the department, the person shall file the statements or the returns electronically, by means prescribed by the department.

(b) If a payer participates in the combined federal/state filing program for Forms 1099, the department shall waive the requirement to file those Forms 1099 or comparable information returns electronically, unless the form reports Wisconsin withholding.

(c) The secretary of revenue may waive the requirement to file wage statements or information returns electronically when the secretary determines that the requirement causes an undue hardship, if the payer does all of the following:

1. Requests the waiver in writing at least 30 days before the due date for filing the wage statements or information returns using Form EFT-102, Electronic Filing or Electronic Payment Waiver Request.

Note: Form EFT-102 should be e-mailed to DORWaiverRequest@wisconsin.gov, faxed to (608) 224-5761, or addressed to Mandate Waiver Request, Wisconsin Department of Revenue, PO Box 8902, Madison, WI 53708-8902. Form EFT-102 may be obtained at https://www.revenue.wi.gov/Pages/html/formpub.aspx, under "Tax Return Information."

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

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

1. Unusual circumstances that may prevent the payer from filing electronically.

Example: The payer does not have access to a computer that is connected to the Internet.

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

(7) COMBINED FILING PROGRAM. Payers who participate in the combined federal/state filing program with the internal revenue service and report to the internal revenue service items which are required to be filed on Wisconsin Form 9b or a substitute form, are not required to file separate information returns for those items with the department of revenue, unless the form reports Wisconsin withholding.

Note: Under the combined federal/state filing program, the internal revenue service will forward information from the information returns to the department of revenue.

Note: Subchapter XI of ch. 71, Stats., requires information returns (e.g. Form 1099-R and Form 1099-MISC) to be filed by January 31, regardless of whether the returns are filed directly with the department of revenue or indirectly through the internal revenue service's combined federal/state filing program.

(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 electronically file its return for nonresident withholding taxes under s. 71.775, Stats.

(b) The secretary of revenue may waive the requirement to electronically file the return under par. (a) 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 using Form EFT-102, Electronic Filing or Electronic Payment Waiver Request.

Note: Form EFT-102 should be e-mailed to DORWaiverRequest@wisconsin.gov, faxed to (608) 224-5761, or addressed to Mandate Waiver Request, Wisconsin Department of Revenue, PO Box 8902, Madison, WI 53708-8902. Form EFT-102 may be obtained at https://www.revenue.wi.gov/Pages/html/formpub.aspx, under "Tax Return Information."

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

(c) In determining whether the electronic filing 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 electronically.

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.

Wis. Admin. Code Department of Revenue Tax 2.04

1-2-56; am. Register, September, 1964, No. 105, eff. 10-1-64, am. Register, February, 1975, No. 230, eff. 3-1-75; am. Register, September, 1977, No. 261, eff. 10-1-77; am. (1), (3), (4) and (6), cr. (7), Register, September, 1983, No. 333, eff. 10-1-83; r. and recr. Register, June, 1990, No. 414, eff. 7-1-90; r. and recr., Register, May, 1995, No. 473, eff. 6-1-95; emerg. am. (1) and (2) (d), cr. (1) (a) and (b), (2) (de), (dm) and (ds) and (8), eff. 12-28-05; CR 06-001: am. (1) and (2) (d), cr. (1) (a) and (b), (2) (de), (dm) and (ds) and (8), Register June 2006 No. 606, eff. 7-1-06; CR 10-095: am. (2) (intro.), (a) to (de), (dm) (intro.), 1., (ds) (intro.), 1., (e), (3) (intro.), (b), (4) (c), (d), (8) (a), (b) (intro.), 1., (c) (intro.), 1., r. and recr. (6) Register November 2010 No. 659, eff. 12-1-10.

Amended by, CR 19-141: am. (3), (4) (c), (e), (5), (6) (a), (b), (7) Register September 2020 No. 777, eff. 10/1/2020

Amended by, correction made under s. 13.92(4) (b), Stats., Register October 2021 No. 790, eff. 11/1/2021

Amended by, CR 21-085: am. (2) (intro.) Register August 2022 No. 800, eff. 9-1-22; correction in (1) (a) made under s. 13.92 (4) (b) 7, Stats., Register August 2022 No. 800, eff. 9/1/2022

Amended by, correction in (2) (dm) 1. (Note), (e) (Note), (6) (c) 1. (Note), (8) (b) 1. (Note) made under s. 13.92 (4) (b), Stats., Register December 2024 No. 828, eff. 12/1/2024

The requirement to file Wisconsin wage statements or information returns electronically for persons required to file 10 or more wage statements or 10 or more of any one type of information return with the department is effective January 1, 2018, as a result of the amendment of s. 71.80 (20), Stats., by 2017 Wis. Act 59.

The requirement of payers to report lottery prize winnings and pari-mutuel wager winnings to the department is effective with winnings received by a payee on or after August 12, 1993, as a result of the creation of s. 71.67 (4) (c) and (5) (d), Stats., by 1993 Wis. Act 16.

Section Tax 2.04 interprets ss. 71.26 (3) (e), 71.63 (3m), 71.65 (2), 71.67 (4) and (5), 71.68, 71.70, 71.71 (2), 71.72, 71.738 (2m), 71.74 (4) and 71.80 (20), Stats.