Wis. Admin. Code § Tax 1.15 — Enforcement of rules against a small business that has commited a minor violation

Tax 1.15(1) (1) Purpose. This section discloses the discretion the department will follow in the enforcement of rules against a small business that has committed a minor violation.

Tax 1.15(2) (2) Definitions. In this section:

Tax 1.15(2)(a) (a) “Minor violation” has the meaning given in s. 227.04 (1) (a) , Stats.

Tax 1.15(2)(b) (b) “Small business” has the meaning given in s. 227.114 (1) , Stats.

Tax 1.15(3) (3) Discretion the department will follow. The enforcement of rules against a small business that has committed a minor violation, including the assessment of a penalty, forfeiture, fine, or interest, shall be done on a case-by-case basis. Each case shall be determined on its merits as evaluated by the department, taking into consideration all relevant factors. Factors shall include:

Tax 1.15(3)(a) (a) The difficulty and cost of compliance with the rule by the small business.

Tax 1.15(3)(b) (b) The financial capacity of the small business, including the ability of the small business to pay the amount of any penalty that may be imposed.

Tax 1.15(3)(c) (c) The compliance options available, including options for achieving voluntary compliance with the rule.

Tax 1.15(3)(d) (d) The level of public interest and concern.

Tax 1.15(3)(e) (e) The opportunities available to the small business to understand and comply with the rule.

Tax 1.15(3)(f) (f) Fairness to the small business and to other persons, including competitors and the public.

Tax 1.15(4) (4) Scope of discretion allowed. The department shall allow the discretion described in sub. (3) to be considered in all situations in which a small business has committed a minor violation, except in a situation where any of the following apply:

Tax 1.15(4)(a) (a) The violation results in a substantial economic advantage for the small business.

Tax 1.15(4)(b) (b) The small business has violated the same rule or guideline more than 3 times in the past 5 years.

Tax 1.15(4)(c) (c) The violation may result in an imminent endangerment to the environment, or to public health or safety.

Tax 1.15(5) (5) Voluntary disclosure. The department encourages a small business that has committed a minor violation to voluntarily disclose the minor violation. On a case-by-case basis, considering all relevant factors, the department may exercise discretion to:

Tax 1.15(5)(a) (a) Enter into a written agreement with the small business that restricts the statute of limitations.

Tax 1.15(5)(b) (b) Waive penalties.

Tax 1.15(5)(c) (c) Reduce the number of periods for which returns shall be filed.