Wisconsin Voluntary Disclosure Program
The Wisconsin Department of Revenue encourages businesses and individuals who are not in compliance with Wisconsin tax laws to voluntarily come forward. Taxpayers may remain anonymous throughout the voluntary disclosure process.
Benefits of Voluntary Disclosure
- Written agreement to restrict the statute of limitations.
- Waiver of negligence penalties.
- Reduction of Interest from 18% to 12%.
- Possible reduction in number of periods for which returns must be filed.
- Elimination of the risk of being discovered under audit.
To be considered for voluntary disclosure treatment, a taxpayer must meet certain conditions and enter into a written agreement with the department. The following conditions must be met for a taxpayer to qualify for voluntary disclosure treatment.
- No tax returns filed for the period in question.
- No registration for the type of tax involved during the period in question.
- No contact by the department within the last 6 years regarding a registration/filing requirement or an assessment/audit assignment.
Note: The request for completion of nexus questionnaires by the department constitutes the commencement of an office audit.
How To Apply
A taxpayer or the taxpayer's representative may request voluntary disclosure treatment by submitting a written request to the department for consideration. The request must include the following information:
- Description of Wisconsin activities for the years involved.
- List of property owned or leased in Wisconsin.
- Taxpayer's taxable year-end.
- Date taxable activities began in Wisconsin.
- Whether the tax involved has been collected or withheld and for what periods. For sales and use tax purposes, whether tax has been paid to a vendor in error for which a credit is being claimed.
- Approximate liability (by tax type) for each of the years involved.
- Prior contacts by the Department of Revenue.
- Other types of tax returns currently being filed with the department.
- Whether the taxpayer is registered with the Wisconsin Department of Financial Institutions (formerly the Secretary of State) to transact business in Wisconsin.
Note: If applying for voluntary disclosure for more than one tax type, each tax type must be specified in the written request. For example, a request for voluntary disclosure for income tax does not cover sales tax.
Wisconsin is a member of the Multistate Tax Commission's National Nexus Program. If you wish to enter into agreements with more than one state, or want to learn more, visit the Multistate Tax Commission's website.
- File all returns for the periods agreed upon (usually 4 prior years) within 90 days.
- Pay all tax, late filing fees, and interest according to the agreement.
- File the current and any subsequent returns in a timely manner according to the agreement.
- Make books and records available to the department.
All voluntary disclosure agreements include provisions reserving the department's right to:
- Audit factual representations made as part of the agreement.
- Audit the taxpayer and any returns filed.
- Void the agreement if factual misrepresentations have been made by the taxpayer and assess additional tax, penalties, and interest as appropriate.
- Void the agreement if the taxpayer fails to comply with any terms of the agreement.
To submit a request, please contact:
WISCONSIN DEPARTMENT OF REVENUE
Mail Stop 3-107
PO Box 8906
Madison WI 53708-8906
Phone: (608) 266-3969
Fax: (608) 261-7049
Page last updated January 6, 2015