Wis. Admin. Code § Tax 2.12 — Claims for refund and other amended returns

Tax 2.12(1) (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.

Tax 2.12(2) (2) Definitions. In this section:

Tax 2.12(2)(a) (a) “Claim for refund” means an amended Wisconsin return or credit claim as described in sub. (1) , on which a refund is requested.

Tax 2.12(2)(b) (b) “Timely filed,” in the case of an amended return or credit claim, means either of the following:

Tax 2.12(2)(b)1. 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.

Tax 2.12(2)(b)2. 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.

Tax 2.12(3) (3) General.

Tax 2.12(3)(a) (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.

Tax 2.12(3)(b) (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) .

Tax 2.12(3)(c) (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.

Tax 2.12(3)(d) (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.

Tax 2.12(3)(e) (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.

Tax 2.12(4) (4) Timely filing.

Tax 2.12(4)(a) (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.

Tax 2.12(4)(b) (b) The 4-year filing limitation in par. (a) does not apply in the following situations:

Tax 2.12(4)(b)1. 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.

Tax 2.12(4)(b)2. 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.

Tax 2.12(4)(b)3. 3.

Tax 2.12(4)(b)3.a. 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.

Tax 2.12(4)(b)3.b. 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.

Tax 2.12(4)(b)4. 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.

Tax 2.12(4)(b)5. 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.

Tax 2.12(4)(b)6. 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.

Tax 2.12(4)(b)7. 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.

Tax 2.12(4)(b)8. 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.

Tax 2.12(5) (5) Forms.

Tax 2.12(5)(a) (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) .

Tax 2.12(5)(c) (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) .

Tax 2.12(5)(d) (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.

Tax 2.12(6) (6) Manner.

Tax 2.12(6)(a) (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.

Tax 2.12(6)(b) (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.

Tax 2.12(6)(c) (c) A claim for refund may not be made a part of or attached to any original Wisconsin return or credit claim.

Tax 2.12(6)(d) (d) An amended return or credit claim shall be mailed to the department at the address specified on the form or in its instructions.