Wis. Admin. Code § Tax 20.12 — Audit; penalties

Tax 20.12(1) (1) Audit of lottery and gaming credit. The department shall audit claims for the lottery and gaming credits. The department may audit the computer programs and records of county treasurers and treasurers of a taxation district that collects taxes under s. 74.87 , Stats., and records of individual property owners that have received the credit within the previous 4 years.

Tax 20.12(2) (2) Denial and collection of lottery and gaming credit. If the department determines that a credit was extended to a property or a manufactured or mobile home subject to a monthly municipal permit fee which does not qualify for the credit, the department shall proceed as follows:

Tax 20.12(2)(a) (a) Current year audits.

Tax 20.12(2)(a)1. 1. If the determination is prior to the time the tax roll is prepared, the department shall instruct the treasurer under s. Tax 20.08 (1) to deny the credit, and the credit shall not appear on the tax bill for that property. The treasurer shall indicate on the tax roll that a claim for credit was denied.

Tax 20.12(2)(a)2. 2. If the determination is after the tax roll is prepared, the department shall instruct the appropriate taxation district to collect the credit as a lottery special charge on the next property tax bill issued for the property, if the property owner fails to remit the denied credit amount to the department by October 1. The lottery special charge shall include the full amount of the lottery credit plus applicable interest and penalty.

Tax 20.12(2)(b) (b) Audit covering previous 4 years. If during the audit the department determines that the credit was extended to a property or a manufactured or mobile home subject to a monthly municipal permit fee that does not qualify for the credit for any of the previous 4 years, the department shall determine the total amount of credit extended in error. If a property owner fails to, by October 1, remit to the department the amount of credit extended in error, the department shall instruct the appropriate taxation district to collect the credit as a lottery special charge on the next property tax bill issued for the property.

Tax 20.12(2)(c) (c) Handling lottery and gaming credit special charge payments.

Tax 20.12(2)(c)1. 1. If before November 1, the department receives full or partial payment for a lottery and gaming credit previously referred to the treasurer as a special charge, the department will notify the treasurer to remove or reduce the amount of the special charge for that property.

Tax 20.12(2)(c)2. 2. If after October 31 the department receives full or partial payment for a lottery and gaming credit previously referred to the treasurer as a special charge, the department will process the payment and refund any duplicate payment received by the department to the applicable property owner or treasurer.

Tax 20.12(2)(c)3. 3. A person who under this subsection collects lottery and gaming credit special charges payments from a property owner, collects those payments as trust funds and state property. Any person who intentionally fails or refuses to pay over those funds to the state at the time required under ch. 74 , Stats., or who fraudulently withholds, appropriates, or uses any of those funds is guilty of theft under s. 943.20 , Stats., punishable as specified in s. 943.20 (3) , Stats., according to the amount of funds involved. This subdivision applies regardless of the person’s interest in those funds.

Tax 20.12(2)(d) (d) Petition for hearing. A person claiming to be adversely affected by a determination made by the department under this subsection may petition the department for a contested case hearing under s. 227.42 , Stats.