Notice of Amount Due - Federal to State Adjustment

  1. Why did I get this bill?
  2. I already paid this bill.
  3. How was I supposed to know to make changes to my Wisconsin return?
  4. May I appeal interest?
  5. Why didn't I receive a bill for my state tax liability sooner?
  6. Where did this income come from?
  7. Why was I assessed a negligence penalty?
  8. May I appeal the negligence penalty?
  9. I appealed the IRS adjustment. May I appeal the state adjustment?
  10. What if the adjustment(s) is incorrect but I did not appeal the IRS notice?
  11. I have Wisconsin withholding on the income item adjusted. What should I do?
  12. What should I do if I can't pay the full amount due?
  13. What should I do to avoid problems like this in the future?

  1. Why did I get this bill?

    You are receiving this bill because the Internal Revenue Service (IRS – the federal tax agency) previously adjusted your federal return and you did not make the needed changes to your Wisconsin income tax return. The Wisconsin Department of Revenue (DOR – state tax agency) bill is for your state tax liability not your federal tax liability. This bill is related to the changes the IRS made to your federal return.

  2. I already paid this bill.

    You may have already paid the IRS bill, but not your state tax liability. This bill is for your state tax liability based on the federal changes. If you did file a Wisconsin amended return and paid the state tax liability, send us:

    • A copy of the amended return you previously filed
    • Write the date you filed it at the top of the return copy
    • Attach a copy of your canceled check (both sides) or proof of your electronic payment.
    • Mail these documents to:

      Wisconsin Department of Revenue
      Federal-State Adjustment Unit
      Mail Stop 5-144
      PO Box 8906
      Madison, WI 53708-8906
  3. How was I supposed to know to make changes to my Wisconsin return?

    The IRS notice informed you that a state amended return is required if the IRS changes affect your state tax liability. In general, an amended state return is required any time a federal return is adjusted, whether by you or the IRS.

  4. May I appeal interest?

    The interest is imposed on the additional tax due from the original due date of the return. The interest is assessed per state statutes and is not appealable.

  5. Why didn't I receive a bill for my state tax liability sooner?

    The department makes every effort to issue assessments soon after it receives information from the IRS. However, the law provides for four years after receiving the IRS notification to issue assessments if an amended Wisconsin income tax return is not filed within 90 days of the IRS adjusting the federal return.

  6. Where did this income come from?

    Contact us at (608) 266-2486 and we can provide the payer information to you.

  7. Why was I assessed a negligence penalty?

    The negligence penalty is assessed because an amended return was not filed to report to the department the changes made to your federal return.

  8. May I appeal the negligence penalty?

    Yes, you may appeal the negligence penalty. The negligence penalty will be waived only if there is good cause for why you did not amend your state return. However, simply being unaware the federal changes affected your state return is generally not considered good cause.

  9. I appealed the IRS adjustment. May I appeal the state adjustment?

    Yes. If the IRS adjustment was appealed and the IRS changed the original notice or cancelled the notice, send a copy of the revised or cancelled notice with your appeal letter.

  10. What if the adjustment(s) is incorrect but I did not appeal the IRS notice?

    If the adjustment(s) is incorrect but you did not appeal the IRS notice, send an appeal to the address on the notice. You will need to include documentation indicating why you believe the adjustment is incorrect.

  11. I have Wisconsin withholding on the income item adjusted. What should I do?

    Submit a copy of the Form W-2 (wages), Form 1099-R (pension, annuity, IRA), or Form W-2G (gambling income) with an appeal to the address located on the notice.

  12. What should I do if I can't pay the full amount due?

    If you are unable to pay the bill in full, it is to your advantage to pay as much as you can by the due date. The bill will be considered delinquent on the due date, and additional interest and fees will be assessed at that time. You may request a payment plan.

  13. What should I do to avoid problems like this in the future?

    It is always in your best interest to keep good records of the income you receive throughout the year.

    • You should review your tax returns and information statements (ex. Form W-2, Form 1099-R, Form 1099-INT, etc.) to be sure you reported all income.
    • If you find an error on the return(s), file an amended return to correct the error(s) as soon as possible.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
Mail Stop 5-77
P.O. Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2772
Fax: (608) 267-1030
Email: DORIncome@revenue.wi.gov

Last updated November 19, 2013