Wis. Admin. Code § Tax 2.04 — Information returns and wage statements

Tax 2.04(1) (1) Definitions. In this section:

Tax 2.04(1)(a) (a) “Pass-through entity” has the meaning given in s. 71.738 (3d) , Stats.

Tax 2.04(1)(b) (b) “Person” means an individual, trust, estate, partnership, limited liability company, association or corporation.

Tax 2.04(2) (2) Compensation for services. Under ss. 71.65 (2) , 71.71 (2) , 71.715 (2) , 71.72 and 71.80 (20) , Stats., all persons carrying on activities within this state, whether taxable or not under ch. 71 , Stats., are required to file with the department, on federal form W-2 or 1099-R, or on Wisconsin form 9b or other forms approved by the department, a statement of certain payments made within the preceding calendar year. As provided in sub. (6) , the department may require such statement be filed electronically. For individuals who are residents of Wisconsin, the statement shall set forth the salaries, wages, bonuses, commissions, annuities, pensions, retirement pay, fees, or other remuneration paid for services whether subject to withholding or not. For individuals who are nonresidents, the statement shall include all payments for the performance of personal services in Wisconsin, whether subject to withholding or not, except retirement plan distributions identified in s. Tax 3.085 as being exempt from Wisconsin income tax. A copy of federal form 1099 may be filed in lieu of Wisconsin form 9b. The following shall also apply with respect to compensation for services:

Tax 2.04(2)(a) (a) All payments which are wages within the definition under s. 71.63 (6) , Stats., regardless of amount, shall be reported on federal form W-2. As provided in sub. (6) , the department may require such form be filed electronically.

Tax 2.04(2)(b) (b) All payments which are not wages within the definition under s. 71.63 (6) , Stats., but from which Wisconsin income tax has been withheld, shall be reported on federal form W-2 or 1099-R, as appropriate. As provided in sub. (6) , the department may require such form be filed electronically.

Tax 2.04(2)(c) (c) Payments of $600 or more which are not wages within the definition under s. 71.63 (6) , Stats., and from which no Wisconsin income tax has been withheld, shall be reported on Wisconsin form 9b or federal form 1099. As provided in sub. (6) , the department may require such form be filed electronically. However, if the payment was to an employee for whom a form W-2 is required under par. (a) or (b) , the payment, regardless of amount, shall be included on form W-2.

Tax 2.04(2)(d) (d) All statements required shall be filed with the department by January 31. Form WT-7, “Employer’s Annual Reconciliation of Wisconsin Income Tax Withheld From Wages,” shall accompany the statements submitted, if the employer is required to be registered to withhold Wisconsin income taxes from employees’ wages.

Tax 2.04(2)(de) (de) The department may require Form WT-7 be filed electronically. The department shall provide notification at least 90 days prior to the due date of the first Form WT-7 required to be filed electronically of the requirement to file electronically.

Tax 2.04(2)(dm) (dm) The secretary of revenue may waive the requirement for a person to file Form WT-7 electronically when the secretary determines that the requirement causes an undue hardship, if the person does all of the following:

Tax 2.04(2)(dm)1. 1. Requests the waiver in writing using Form EFT-102, Electronic Filing or Electronic Payment Waiver Request.

Tax 2.04(2)(dm)2. 2. Clearly indicates why the requirement causes an undue hardship.

Tax 2.04(2)(ds) (ds) In determining whether the electronic filing requirement causes an undue hardship, the secretary of revenue may consider the following factors:

Tax 2.04(2)(ds)1. 1. Unusual circumstances that may prevent the person from filing electronically.

Tax 2.04(2)(ds)2. 2. Any other factor that the secretary determines is pertinent.

Tax 2.04(2)(e) (e) Sections 71.65 (5) and 71.73 (2) , Stats., permit a thirty-day extension of time to file the statements described in this subsection. A written request may be mailed or faxed to the department and to be effective shall be postmarked or faxed on or before the due date of the statements.

Tax 2.04(3) (3) Rents and royalties. Under ss. 71.70 and 71.80 (20) , Stats., except as provided in par. (d) , all persons making payments of rents and royalties of $600 or more to individuals who are residents of Wisconsin, regardless of where the property is located, and to nonresident individuals if the property is located in Wisconsin, shall file with the department, on Form 9b or an approved substitute form, a statement of payments made in the preceding calendar year. As provided in sub. (6) , the department may require such statement be filed electronically. The following shall also apply with respect to rents and royalties:

Tax 2.04(3)(a) (a) A copy of federal Form 1099-MISC may be filed in lieu of Wisconsin Form 9b.

Tax 2.04(3)(b) (b) Corporations shall file the statement with the department by January 31 and payers other than corporations shall file by January 31.

Tax 2.04(3)(c) (c) A 30-day extension of time for filing Forms 9b or substitute forms to report payments of rents or royalties may be allowed.

Tax 2.04(3)(d) (d) The requirement to file Form 9b or a substitute form does not apply to persons other than corporations who do not deduct the payments in determining Wisconsin taxable income.

Tax 2.04(4) (4) Gambling winnings.

Tax 2.04(4)(a) (a) Under s. 71.67 (4) (c) , Stats., the administrator of the gaming commission’s lottery division shall file with the department a statement of winnings for each lottery prize of $2,000 or more paid in the preceding calendar year.

Tax 2.04(4)(b) (b) Under s. 71.67 (5) (d) , Stats., all persons licensed to sponsor and manage races under s. 562.05 (1) (b) or (c) , Stats., shall file with the department a statement of winnings for each pari-mutuel wager payment of more than $1,000 paid in the preceding calendar year.

Tax 2.04(4)(c) (c) The winnings required to be reported in pars. (a) and (b) shall be reported on federal Form W-2G or on an approved substitute form. As provided in sub. (6) , the department may require such form be filed electronically.

Tax 2.04(4)(d) (d) The statements required in pars. (a) and (b) shall be filed by January 31.

Tax 2.04(4)(e) (e) No extension of time for filing Forms W-2G or substitute forms to report payments of lottery prize winnings or pari-mutuel wager winnings may be allowed.

Tax 2.04(5) (5) Disallowance of deductions. Items to be reported on Forms W-2, 1099-R, 9b or substitute forms may be disallowed as deductions from gross income if not properly reported.

Tax 2.04(6) (6) Electronic filing requirement.

Tax 2.04(6)(a) (a) Under s. 71.80 (20) , Stats., if a person is required to file 10 or more wage statements or 10 or more of any one type of information return with the department, the person shall file the statements or the returns electronically, by means prescribed by the department.

Tax 2.04(6)(b) (b) If a payer participates in the combined federal/state filing program for Forms 1099, the department shall waive the requirement to file those Forms 1099 or comparable information returns electronically, unless the form reports Wisconsin withholding.

Tax 2.04(6)(c) (c) The secretary of revenue may waive the requirement to file wage statements or information returns electronically when the secretary determines that the requirement causes an undue hardship, if the payer does all of the following:

Tax 2.04(6)(c)1. 1. Requests the waiver in writing at least 30 days before the due date for filing the wage statements or information returns using Form EFT-102, Electronic Filing or Electronic Payment Waiver Request.

Tax 2.04(6)(c)2. 2. Clearly indicates why the requirement causes an undue hardship.

Tax 2.04(6)(d) (d) In determining whether the electronic filing requirement causes an undue hardship, the secretary of revenue may consider the following factors:

Tax 2.04(6)(d)1. 1. Unusual circumstances that may prevent the payer from filing electronically.

Tax 2.04(6)(d)2. 2. Any other factor that the secretary determines is pertinent.

Tax 2.04(7) (7) Combined filing program. Payers who participate in the combined federal/state filing program with the internal revenue service and report to the internal revenue service items which are required to be filed on Wisconsin Form 9b or a substitute form, are not required to file separate information returns for those items with the department of revenue, unless the form reports Wisconsin withholding.

Tax 2.04(8) (8) Electronic filing requirement for taxes withheld by pass-through entities.

Tax 2.04(8)(a) (a) Except as provided in par. (b) , the department may require a pass-through entity to electronically file its return for nonresident withholding taxes under s. 71.775 , Stats.

Tax 2.04(8)(b) (b) The secretary of revenue may waive the requirement to electronically file the return under par. (a) when the secretary determines that the requirement causes an undue hardship, if the pass-through entity does all of the following:

Tax 2.04(8)(b)1. 1. Requests the waiver in writing using Form EFT-102, Electronic Filing or Electronic Payment Waiver Request.

Tax 2.04(8)(b)2. 2. Clearly indicates why the requirement causes an undue hardship.

Tax 2.04(8)(c) (c) In determining whether the electronic filing requirement causes an undue hardship, the secretary of revenue may consider the following factors:

Tax 2.04(8)(c)1. 1. Unusual circumstances that may prevent the pass-through entity from filing electronically.

Tax 2.04(8)(c)2. 2. Any other factor that the secretary determines is pertinent.