Administrative Rules May Require Electronic Filing and Electronic Funds Transfer

Individual Income Tax

Administrative rule section Tax 2.08(3)(b) requires certain tax practitioners to file individual income tax returns electronically. Electronic filing ("e-filing") prevents the most common errors on tax returns, verifies certain information, acknowledges receipt of returns, and gets refunds to taxpayers faster - usually within days, rather than weeks.

Practitioners who filed 50 or more 2012 Wisconsin individual income tax returns in 2013 are required to e-file returns beginning January 1, 2014.

A practitioner can ask for a waiver from the electronic filing requirement if the requirement causes an undue hardship. In addition if a taxpayer wishes to file a paper tax return, the practitioner is not required to electronically file that return. The taxpayer should write "no e-file" by his or her signature on the tax return.

For more information about registering to submit individual income tax returns electronically, see the Electronic Filing Program Information for Tax Professionals.

Sales and Use Tax

Administrative rule section Tax 11.01(2)(b) requires sales and use tax returns to be filed electronically. The rule allows for a waiver of the requirement to file electronically if it's determined to cause an undue hardship. The Department of Revenue currently has three options available for electronic filing of the sales and use tax return. My Tax Account, file transmission, and TeleFile. Go to Electronic Filing Options for additional information about these options.

Withholding Tax

Administrative rule section Tax 2.04(2)(de) requires withholding forms to be filed electronically. The rule allows for a waiver of the requirement to file electronically if it's determined to cause an undue hardship. My Tax Account, file transmission and TeleFile are the options for electronic filing of withholding returns. Go to Withholding Tax for additional information.

Table of Mandates for All Tax Types

E-FILING MANDATES
Tax Type   Wis. Adm. Code
Cigarette and tobacco products The department may require cigarette and tobacco products reports, tax returns, and refund claims be filed electronically. Tax 9.001(2)(b)
Composite Individual Income Tax Return The department may require a composite individual income tax return filed by a pass-through entity on behalf of its nonresident partners, members, shareholders, or beneficiaries be filed electronically. Tax 2.08(3)(ce)
Corporation Combined Return All combined returns shall be filed electronically. Tax 2.67(2)(b)
Corporation Franchise and Income Tax Return The department may require the franchise or income tax return of a corporation be filed electronically. Tax 2.03(3)(b)1
Fermented Malt Beverage Tax The department may require fermented malt beverage tax returns and refund claims be filed electronically. Tax 7.001(2)(b)
Fiduciary Income Tax for Estates and Trusts and Request for Closing Certificate for Fiduciaries The department may require the income tax return or request for a closing certificate of a trust or estate be filed electronically. Tax 2.08(3)(cm)
Forms: W-2, W-2G, 1099R, 1099, WI 9b If a person is required to file 50 or more wage statements or 50 or more of any one type of information return with the department, the person shall file the statements or returns electronically. Tax 2.04(6)(a)
Individual Income Tax Return The department may require a tax return preparer or tax preparation firms that prepared 100 or more returns for taxable year 2009; 50 or more returns for taxable year 2010 and thereafter, of Wisconsin individual income tax returns for the prior taxable year, to file electronically. Tax 2.08(3)(b)
Intoxicating liquor The department may require intoxicating liquor reports, tax returns, and refund claims be filed electronically. Tax 8.001(2)(b)
Local Exposition Tax The department may require a person registered or required to be registered for Wisconsin local exposition tax purposes to file its local exposition tax return electronically. Tax 11.01(2)(br)
Motor Vehicle, Alternate Fuels, General Aviation Fuel Tax The department may require motor vehicle, alternate fuels, and general aviation fuel tax returns and refund claims be filed electronically. Tax 4.001(2)(b)
Partnership Tax Return The department may require the income tax return of a partnership be filed electronically. Tax 2.08(3)(cs)
Premier Resort Area Tax The department may require a person registered or required to be registered for Wisconsin sales and use tax purposes to file its premier resort area tax return electronically. Tax 11.01(2)(bg)
PW-1 The department may require a pass-through entity to electronically file its return for nonresident withholding taxes. Tax 2.04(8)(a)
Sales/Use Tax Return The department may require a person registered or required to be registered for Wisconsin sales and use tax purposes to file its sales and use tax return electronically. Tax 11.01(2)(b)
WT-7 The department may require any Form WT−7 be filed electronically. Tax 2.04(2)(de)

The secretary of revenue may waive the requirement to file electronically when the secretary determines that the requirement causes an undue hardship, if the person required to file electronically 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 emailed to DORWaiverRequest@revenue.wi.gov, faxed to (608) 267-1030, or addressed to Mandate Waiver Request, Wisconsin Department of Revenue, Mail Stop 5-77, PO Box 8949, Madison, WI 53708-8949.

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

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.

  2. Any other factor that the secretary determines is pertinent.
Electronic Funds Transfer
(EFT Mandates)
Tax Type   Wis. Adm. Code
Alternate Fuels Tax When the total tax due in the prior calendar year was $1,000 or more. Tax 1.12(4)(a)8
Cigarette Tax When the net tax due before printing and shipping costs was $1,000 or more in the prior calendar year. Tax 1.12(4)(a)6
Corporate Income & Franchise Tax Estimated Tax Payments and Tax Due with the Tax Return When the net tax less refundable credits on the prior year's tax return was $1,000 or more. For a combined group or combined group member, "prior year's tax return" means the prior year's tax return of the designated agent. Tax 1.12(4)(a)1
Dry Cleaning Facility Fee When the general, county and stadium sales and use tax is required to be paid using EFT. Tax 1.12(4)(a)18
Fermented Malt Beverages Tax When the tax due after the adjustment for any overpayment or additional amount due for a previous period was $1,000 or more in the prior calendar. Tax 1.12(4)(a)4
General Aviation Fuel Tax When the tax due in the prior calendar year was $1,000 or more. Tax 1.12(4)(a)9
Income and franchise tax withholding payments of pass−through entities under s. 71.775, Stats. Income and franchise tax withholding payments of pass−through entities under s. 71.775, Stats., and composite individual income tax payments made by pass-through entities on behalf of their nonresident partners or shareholders. Tax 1.12(4)(a)13
Income Tax-Withholding When the required deposits were $300 or more in the prior calendar year. Tax 1.12(4)(a)2
Individual and Fiduciary Income Tax Estimated Tax Payments When the estimated tax payments as required under s. 71.09, Stats., were $2,000 or more in the prior taxable year. Tax 1.12(4)(a)11
Liquor or "Distilled Spirits and Wine" Tax and Administrative Fee When the aggregate net amount of tax and fee due in the prior calendar year was $1,000 or more. Tax 1.12(4)(a)5
Local Exposition Tax When the general, county and stadium sales and use tax is required to be paid using EFT. Tax 1.12(4)(a)15
Motor Vehicle Fuel Tax and Petroleum Inspection Fee When the aggregate amount due in the prior calendar year was $1,000 or more. Tax 1.12(4)(a)10
Premier Resort Tax When the general, county and stadium sales and use tax is required to be paid using EFT. Tax 1.12(4)(a)16
Rental Vehicle Fee Rental vehicle fee when the general, county and stadium sales and use tax is required to be paid using EFT. Tax 1.12(4)(a)17
Sales/Use Tax – General, county and stadium When the aggregate amount due in the prior calendar year was $300 or more. Tax 1.12(4)(a)3 Note: See s. Tax 11.001(2)(d) for the definition of stadium tax.
Tobacco Products Tax When the tax due in the prior calendar year was $1,000 or more. Tax 1.12(4)(a)7

The secretary of revenue may waive the requirement to use the EFT method when the secretary determines that the requirement causes an undue hardship, if the person required to use EFT 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 emailed to DORWaiverRequest@revenue.wi.gov, faxed to (608) 267-1030, or addressed to Mandate Waiver Request, Wisconsin Department of Revenue, Mail Stop 5-77, PO Box 8949, Madison, WI 53708-8949.

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

  3. Is current in all return and report filings and tax payments.

In determining whether the EFT requirement causes an undue hardship, the secretary of revenue may consider the following factors:

  1. Unusual circumstances that may prevent the payer from using the EFT method. For example, the person does not have access to a computer or is physically unable to use a computer.

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

November 20, 2013