Section Tax 2.12 - Claims for refund and other amended returns(1) SCOPE. This section applies to amended Wisconsin franchise or income tax returns, including amended combined returns, amended partnership returns, amended economic development surcharge returns and amended farmland preservation credit and homestead credit claims.(2) DEFINITIONS. In this section:(a) "Claim for refund" means an amended Wisconsin return or credit claim as described in sub. (1), on which a refund is requested.(b) "Timely filed," in the case of an amended return or credit claim, means either of the following: 1. If the amended return or credit claim is mailed, it is mailed in a properly addressed envelope with postage prepaid and is received by the department, or is received at the destination that the department or the department of administration prescribes, within 5 business days after the last day of the statutory limitation period or extended limitation period.2. If the amended return or credit claim is not mailed, it is in the possession of the department, or is received at the destination that the department or the department of administration prescribes, prior to the expiration of the statutory limitation period or extended limitation period.(3) GENERAL. (a) The department shall accept amended returns and credit claims to correct previously filed original, other amended or adjusted Wisconsin franchise or income tax returns, partnership returns, economic development surcharge returns or farmland preservation credit or homestead credit claims.(b) A refund of taxes or credits under ch. 71, Stats., or economic development surcharge under s. 77.96(4), Stats., may be claimed only by filing an amended return or credit claim, on a form and in the manner described in subs. (5) and (6).(c) An amended Wisconsin return shall be filed with the department if either an amended federal return is filed or an amended return is filed with another state for which a credit for taxes has been allowed against Wisconsin taxes, and the changes to the amended federal or other state return affect the amount of Wisconsin net franchise or income tax or economic development surcharge payable, a Wisconsin credit or a Wisconsin net operating loss, net business loss or capital loss carried forward. Changes to a net operating or business loss carryforward may not be made unless the change to the incurred loss was computed on a return that was filed within 4 years of the unextended due date for filing the original return for the taxable year in which the loss was incurred. Changes to a net operating or business loss carry-back may not be made unless the change to the loss is claimed within 4 years of the unextended due date for filing the original return for the taxable year to which the loss is carried back.(d) An amended Wisconsin return filed to report internal revenue service adjustments as provided in s. Tax 2.105 (4) (a) shall include a copy of the final federal audit report.(e) An amended return or credit claim does not begin or extend the statute of limitation periods for assessing additional tax or economic development surcharge or claiming a refund.(4) TIMELY FILING. (a) Except as provided in par. (b), if an amended return or credit claim shows a refund, it shall be filed within 4 years of the unextended due date of the original return.(b) The 4-year filing limitation in par. (a) does not apply in the following situations:1. Except as provided in subds. 3. and 4., a claim for refund may not be filed for any year covered by a field audit that resulted in a refund or no change in the tax owed, or in an assessment that has become final under s. 71.88(1) (a) or (2) (a), 71.89(2), 73.01 or 73.015, Stats., provided the department advises the taxpayer that the field audit is final unless the taxpayer appeals the result.2. Except as provided in subds. 3. and 4., a claim for refund may not be filed for any item of income or deduction assessed as a result of an office audit, provided the assessment has become final under s. 71.88(1) (a) or (2) (a), 71.89(2), 73.01 or 73.015, Stats. Section 71.88(1) (a), Stats., provides that a taxpayer may file a petition for redetermination within 60 days of receipt of a notice of additional assessment, refund or denial of refund. If a taxpayer does not file a petition for redetermination of a notice of assessment, refund or refund denial, the adjustments made in the notice are final and conclusive. The taxpayer is not entitled to a refund on any subsequent claim for refund based on the same adjustments as those in the notice of assessment, refund or denial of refund. Examples:
1) Taxpayer A files an amended 2016 return to claim additional business expenses. The department allows only a portion of the claimed additional expenses, based on a difference in interpretation of the law. A notice of refund is issued March 1, 2019. The taxpayer does not file a petition for redetermination. In December 2019, the taxpayer files another amended return claiming the same additional business deductions as those disallowed in the prior notice of refund. The taxpayer is not entitled to a refund on the claim for refund. The March 1, 2019, notice of refund is final. 2) Taxpayer B files an amended 2016 return to claim additional business expenses. The department disallows a portion of the claimed additional expenses, due to lack of substantiation of the expenses as requested in a letter to the taxpayer. A notice of refund is issued March 1, 2019. The taxpayer does not file a petition for redetermination. In December 2019, the taxpayer submits adequate substantiation to support the full deduction. The deduction is not allowed and no additional refund will be issued. Since no petition for redetermination was filed for the March 1, 2019, notice of refund, that notice is final.3) Taxpayer C files a timely 2017 return claiming a refund of earned income credit and excess income tax withheld. During the processing of the return the taxpayer is sent a letter requesting additional information to substantiate the earned income credit. The taxpayer does not respond to the request for additional information. A notice of refund is issued in July 2018, to refund the excess income tax withheld only. The taxpayer does not file a petition for redetermination. The taxpayer files a timely 2018 return claiming a refund of earned income credit and excess income tax withheld. During the processing of this return the taxpayer is sent a letter requesting additional information to substantiate the earned income credit. This letter requests the same information that was requested for the processing of the 2017 return. The taxpayer submits the additional information needed for both the 2017 and 2018 returns. Since the taxpayer did not submit a petition for redetermination for the 2017 notice of refund, that notice is final. A notice of refund for the earned income credit is issued for 2018 only.3.a. For taxable years beginning on or after January 1, 2000, a claim for refund for each year for which an amount due is calculated as a result of items adjusted in an office audit or field audit assessment or refund may be filed within 4 years of the date of the adjustment notice, provided no petition for redetermination was filed and, if the adjustment notice was an assessment, the amount due was paid. No refund claim may be filed under this subd. 3. a. for any year that resulted in a refund or no change in the amount owed. Examples:
1) Taxpayer D files a timely 2015 return. The department completes an office audit of this return by issuing a notice of refund dated March 30, 2020. The notice of refund allows an additional itemized deduction credit and disallows a portion of the claimed business expenses. The taxpayer does not file a petition for redetermination. The notice of refund is final, and the taxpayer is not entitled to any refund on a subsequent claim for refund for the disallowed business expenses.2) Taxpayer E files timely 2015 and 2016 returns. The department completes an audit of the returns and issues a notice of refund dated March 30, 2020. The notice of refund allows an additional itemized deduction credit for each year but also disallows a portion of the claimed business expenses for each year, with the net result being a refund for each year. The taxpayer does not file a petition for redetermination. The notice of refund is final, and the taxpayer is not entitled to any refund on a subsequent claim for refund for the disallowed business expenses. 3) Taxpayer F files a timely 2010 return on April 15, 2011. The department completes an office audit of this return by issuing a notice of additional tax due dated March 30, 2015. The notice of additional tax due allows an additional itemized deduction credit and disallows a portion of the claimed business expenses. The taxpayer does not file a petition for redetermination. The taxpayer has until March 30, 2019, to file a claim for refund for the disallowed business expenses.4) Taxpayer G files timely 2010 and 2011 returns. The department completes an office audit of these returns by issuing a notice of refund dated March 30, 2015. The notice of refund allows an additional itemized deduction credit resulting in a refund for 2010 and disallows a portion of the claimed business expenses for an assessment for 2011, with the net result being a refund for the two years combined. The taxpayer does not file a petition for redetermination. The taxpayer has until March 30, 2019, to file a claim for refund for the disallowed business expenses for the year 2011. 5) Taxpayer H files timely 2010 and 2011 returns. The department completes an office audit of these returns by issuing a notice of additional tax due dated March 30, 2015. The notice of additional tax due allows an additional itemized deduction credit resulting in a refund for 2010 and disallows a portion of the claimed business expenses resulting in an assessment for 2011, with the net result being an assessment for the two years combined. The taxpayer does not file a petition for redetermination. The taxpayer has until March 30, 2019, to file a claim for refund for the disallowed business expenses for the year 2011.b. For taxable years beginning prior to January 1, 2000, a claim for refund for each year for which an amount due is calculated as a result of items adjusted in an office audit or field audit net assessment may be filed within 2 years of the date of the assessment notice, provided no petition for redetermination was filed and the amount due was paid. No refund claim may be filed under this subd. 3. b. for any year that resulted in a refund or no change in the amount owed or, in the case of a multiple year audit resulting in a net refund, for any year for which an amount due is calculated. Examples:
1) Taxpayer I files a timely 1999 return on April 15, 2000. The department completes an office audit of this return by issuing a notice of refund dated March 30, 2004. The notice of refund allows an additional itemized deduction credit and disallows a portion of the claimed business expenses. The taxpayer does not file a petition for redetermination. The notice of refund is final, and the taxpayer is not entitled to any refund on a subsequent claim for refund for the disallowed business expenses. 2) Taxpayer J files timely 1998 and 1999 returns. The department completes an office audit of these returns by issuing a notice of refund dated March 30, 2003. The notice of refund allows an additional itemized deduction credit resulting in a refund for 1998 and disallows a portion of the claimed business expenses for an assessment for 1999, with the net result being a refund for the two years combined. The taxpayer does not file a petition for redetermination. The notice of refund is final, and the taxpayer is not entitled to any refund on a subsequent claim for refund for 1998 or 1999.4. A claim for refund of an overpayment attributable to a capital loss carryback may be filed by a corporation, or designated agent of a combined group, within 4 years after the due date, or extended due date, for filing the return for the taxable year of the capital loss that is carried back. Note: For combined groups, see s. Tax 2.61 (6) (c) for rules applicable to capital gains and losses.
5. If the limitation period for making an assessment or refund has been extended by written agreement between a taxpayer and the department, a claim for refund relating to the year or years covered by the extension agreement may be filed during the extension period. Note: For combined groups, refer to s. Tax 2.65 for rules applicable to the designated agent of a combined group.
6. An amended Wisconsin return filed under the provisions of sub. (3) (c) shall be filed with the department within 90 days after the date the amended federal or other state return is filed.7. An amended Wisconsin return filed under the provisions of sub. (3) (d) shall be filed with the department within 90 days of the date on which the federal audit adjustments become final.8. An amended Wisconsin return filed under the provisions of s. 71.30(4), Stats., to claim a reduction of income resulting from a renegotiation or price redetermination of a defense contract or subcontract shall be filed within one year of the final determination. Note: Refer to s. Tax 2.105 for additional information regarding amended Wisconsin returns required as a result of filing amended federal or other state returns, or reports required as a result of federal audit adjustments made by the internal revenue service.
(5) FORMS. (a) Beginning on or after January 1, 2015, except as provided in par. (c), a claim for refund shall be filed on the same form as the original form, in the manner prescribed in sub. (6).(c) The department may prescribe a special form for taxpayers to use in claiming a refund, to address a specific tax issue. In this situation, the special form may be used in lieu of the amended form prescribed in par. (a).(d) An amended Wisconsin return or credit claim filed for a purpose other than to request a refund is not required to be filed on a specific form.(6) MANNER. (a) An amended return or credit claim shall be in writing, indicate the reporting period for which the change was made and contain a statement setting forth the specific grounds upon which the amended form is based.(b) An amended return or credit claim other than form 1X shall be identified as an amended form by checking the "amended return" box if one is provided on the form or by marking "AMENDED" across the top of the first page of the amended form.(c) A claim for refund may not be made a part of or attached to any original Wisconsin return or credit claim.(d) An amended return or credit claim shall be mailed to the department at the address specified on the form or in its instructions.Wis. Admin. Code Department of Revenue Tax 2.12
Cr. Register, August, 1976, No. 248, eff. 9-1-76; am. (1) (a), Register, September, 1983, No. 333, eff. 10-1-83; am, (1) (a) and (b), r. and recr. (1) (c) and (2), Register, February, 1990, No. 410, eff. 3-1-90; r. and recr. Register, May, 1996, No. 485, eff. 6-1-96; CR 02-033:am. (1), (3) (a), (b), (c) and (e), (4) (b) 1., 2., 4., 5., and (6) (b) to (d), r. and recr. (2), (4) (b) 3., and (5) (a), renum. and am. (5) (b) to be (5) (c), cr. (5) (b) and (d), Register October 2002 No. 562, eff. 11-1-02; CR 10-095: am. (1), (4) (b) 4. Register November 2010 No. 659, eff. 12-1-10; CR 12-011: am. (1), (3) (a) to (c), (e) Register July 2012 No. 679, eff. 8-1-12.Amended by, CR 17-019: am. (5) (a), (b) Register June 2018 No. 750, eff. 7/1/2018Amended by, CR 19-141: am. (3) (c) Register September 2020 No. 777, eff. 10/1/2020Amended by, CR 21-085: am (4) (b) 2. (Examples), 3. a. (Examples), (5) (a), r. (5) (b), am. (5) (c) Register August 2022 No. 800, eff. 9/1/2022 Subchapter VII of ch. 77, Stats., was amended by 1999 Wis. Act 9 to create a recycling surcharge effective for taxable years beginning on or after January 1, 2000, and by 2011 Wis. Act 32 to change the recycling surcharge to the economic development surcharge effective July 1, 2011. For taxable years ending before April 1, 1999, subch. VII of ch. 77, Stats., provided for a temporary recycling surcharge; the term "economic development surcharge" as used in this section refers to the "temporary recycling surcharge" for those years and to the "recycling surcharge" prior to July 1, 2011.
Section Tax 2.12 interprets ss. 71.255(1), (4), and (7), 71.30(4), 71.738(2m), 71.74, 71.75, 71.76, 71.77, 71.80(18) and 77.96(4), Stats.
Tax 2.12 Annotation Cross Reference: See s. Tax 2.67 (2) (e) for rules relating to amended returns for combined groups.