Wisconsin's Economic Development Surcharge: Corporations Subject to the Surcharge, Summaries of Business

Download Wisconsin's Economic Development Surcharge: Corporations Subject to the Surcharge and more Summaries Business in PDF only on Docsity! Wisconsin's Economic Development Surcharge For use by taxpayers engaged in a trade or business that have a taxable year beginning on or after January 1, 2021 Publication 400 (1/22) TABLE OF CONTENTS Page 1. INTRODUCTION .................................................................................................................................................. 3 2. BACKGROUND .................................................................................................................................................... 3 3. INDIVIDUALS, ESTATES, AND TRUSTS ................................................................................................................... 3 4. PARTNERSHIPS ................................................................................................................................................... 3 5. REGULAR (C) CORPORATIONS.............................................................................................................................. 3 6. TAX-OPTION (S) CORPORATIONS ......................................................................................................................... 9 7. INSURANCE COMPANIES ................................................................................................................................... 13 8. EXEMPT ORGANIZATIONS ................................................................................................................................. 15 9. ALL TAXPAYERS ................................................................................................................................................. 17 10. ADDITIONAL INFORMATION AND FORMS .......................................................................................................... 20 Wisconsin's Economic Development Surcharge Publication 400 Back to Table of Contents 5 Example 4: Corporation D, which is incorporated in Wisconsin, derives its income only from interest, dividends, and sales of intangible assets. It has $5,000,000 of gross receipts from all activities. Corporation D is subject to the economic development surcharge because it must file a Wisconsin franchise or income tax return, it is considered to be doing business in Wisconsin, and it has at least $4,000,000 of gross receipts from all activities. Example 5: Combined Group YZ consists of Member Y and Member Z. Both members are incorporated outside of Wisconsin. Member Y transacts business in and outside Wisconsin during the current taxable year, and has gross receipts of $5,000,000 from all activities. Member Z has no business activity in Wisconsin during the current year, and has gross receipts of $6,000,000 from all activities. If at least one member of a combined group is conducting unitary business in Wisconsin, all corporations in the group are considered to be doing business in Wisconsin. Since Member Y is doing business in Wisconsin, Member Z is also considered to be doing business in Wisconsin. The $4,000,000 gross receipts threshold must be determined separately for each corporation in the combined group. Member Y and Member Z each have gross receipts of $4,000,000 or more. Therefore, both members are subject to the economic development surcharge. Who Is Not Subject to the Economic Development Surcharge? • Corporations that are not required to file a Wisconsin franchise or income tax return. • Corporations organized under Wisconsin law that have no business activities in Wisconsin. • Corporations not organized under Wisconsin law that do not have nexus with Wisconsin; however, if a corporation is a member of a combined group and at least one member of the combined group has nexus with Wisconsin, all members of the combined group have nexus and are subject to the economic development surcharge. • Corporations that have less than $4,000,000 of gross receipts from all activities. • Nuclear decommissioning trust funds. Example 1: Corporation A, incorporated in Wisconsin, has no business activity in or outside Wisconsin during the current taxable year. It files a declaration of inactivity, Wisconsin Form 4H, with the Department of Revenue. Corporation A is not subject to the economic development surcharge because it is not required to file a Wisconsin franchise or income tax return. Wisconsin Form 4H is not considered a franchise or income tax return. Example 2: Corporation B, incorporated in Wisconsin, has no business activity in or outside Wisconsin during the current taxable year. Corporation B files a Wisconsin franchise or income tax return reporting no activity in or outside Wisconsin. Corporation B is not subject to the economic development surcharge. Although Corporation B files a franchise or income tax return to indicate that it has no activity, the return is treated as a declaration of inactivity. Example 3: Corporation C, a credit union incorporated in Wisconsin, does not act as a depository for state or local government funds. It files a declaration of exempt status, Wisconsin Form CU, with the Department of Revenue. Corporation C is not subject to the economic development surcharge because it is not required to file a Wisconsin franchise or income tax return. Wisconsin's Economic Development Surcharge Publication 400 Back to Table of Contents 6 Example 4: Corporation D is owned and controlled by Native Americans who are enrolled members of the same tribe. Corporation D is located on the tribal reservation of its shareholders. It is not engaged in business off the reservation. Therefore, Corporation D is not required to file a Wisconsin franchise or income tax return. Corporation D is not subject to the economic development surcharge because it is not required to file a Wisconsin franchise or income tax return. Example 5: Corporation E, incorporated in Wisconsin, has no business activity in Wisconsin during the current taxable year. However, Corporation E does transact business outside Wisconsin. Corporation E is required to file a Wisconsin franchise or income tax return because it is organized under Wisconsin law, but it has no Wisconsin franchise or income tax liability. Corporation E is not subject to the economic development surcharge because it is not engaged in business in Wisconsin. Example 6: Corporation F, which is incorporated outside Wisconsin but licensed to do business in Wisconsin, has no business activity in Wisconsin during the current taxable year. However, it transacts business outside Wisconsin. Corporation F is required to file a Wisconsin franchise or income tax return since it is licensed to do business in Wisconsin, but it has no Wisconsin franchise or income tax liability because it does not have nexus with Wisconsin. Corporation F is not subject to the economic development surcharge since it is not engaged in business in Wisconsin. Example 7: Corporation G is incorporated outside Wisconsin but licensed to do business in Wisconsin. It sells tangible personal property. During the current taxable year its activity in Wisconsin does not exceed the solicitation of orders, which are approved outside the state and are filled by delivery from a point outside the state. Corporation G is required to file a Wisconsin franchise or income tax return since it is licensed to do business in Wisconsin. However, it has no Wisconsin franchise or income tax liability. Corporation G’s Wisconsin activity is protected by Public Law 86-272, which provides that a state may not impose its income tax or franchise tax measured by net income on a business that is incorporated in another state and sells tangible personal property if the only activity of that business in the state is the solicitation of orders by its salespersons or representatives, which are sent outside the state for approval or rejection and are filled by delivery from a point outside the state. Corporation G is not subject to the economic development surcharge because its activity in Wisconsin is insufficient to create Wisconsin nexus. Example 8: Corporation H, which is incorporated in Wisconsin, has $3,000,000 of gross receipts, consisting of $2,000,000 of gross sales and $1,000,000 of gross interest and dividend income for the current taxable year. Corporation H is required to file a Wisconsin franchise or income tax return because it is doing business in Wisconsin. Corporation H is not subject to the economic development surcharge because it has less than $4,000,000 of gross receipts from all activities. Example 9: Combined Group XYZ consists of Member X, Member Y, and Member Z. All members are incorporated outside Wisconsin. Members X and Y transact business in and outside Wisconsin during the current taxable year. Members X and Y have gross receipts from all activities of $5,000,000 and $3,000,000, respectively. Member Z has no business activity in Wisconsin during the current year, and has gross receipts from all activities of $2,000,000. Wisconsin's Economic Development Surcharge Publication 400 Back to Table of Contents 7 If at least one member of a combined group is conducting unitary business in Wisconsin, all corporations in the group are considered to be doing business in Wisconsin. Since Members X and Y are doing business in Wisconsin, Member Z is also considered to be doing business in Wisconsin. The $4,000,000 gross receipts threshold must be determined separately for each corporation in the combined group. Member X has gross receipts of $4,000,000 or more; Members Y and Z have gross receipts of less than $4,000,000. Therefore, only Member X is subject to the economic development surcharge. On What Form Is the Economic Development Surcharge Reported? Separate corporations report the economic development surcharge on Form 4, line 21. Each member of a combined group reports its economic development surcharge on Form 6, Part III, line 11; the combined group reports the total of its members’ economic development surcharges on Form 6, page 1, line 15. How Is the Economic Development Surcharge Computed? The economic development surcharge is the greater of: • $25, or • The amount computed by multiplying the corporation’s "gross tax liability" from its Form 4 or Form 6 by 3% (0.03), but not more than $9,800. The following examples illustrate the computation of the economic development surcharge. Example 1: Corporation A, a corporation doing business only in Wisconsin, reports gross receipts from all activities of $6,000,000 and a gross tax liability of zero. Corporation A is subject to an economic development surcharge of $25. Although it computes an economic development surcharge of zero ($0 x .03), the minimum surcharge of $25 applies. Example 2: Corporation B, a corporation operating a farm in Wisconsin, reports gross receipts from all activities of $4,400,000 and a gross tax liability of $20,000. Corporation B is subject to an economic development surcharge of $600 ($20,000 x .03). Example 3: Corporation C, a corporation doing business only in Wisconsin, reports gross receipts from all activities of $5,000,000 and a gross tax liability of $500,000. Corporation C is subject to an economic development surcharge of $9,800. Although Corporation C computes an economic development surcharge of $15,000 ($500,000 x .03), the maximum surcharge of $9,800 applies. Example 4: Corporation D, a corporation doing business in and outside Wisconsin, files Wisconsin Form 4 and determines its income attributable to Wisconsin under the separate accounting method. Corporation D has $4,500,000 of gross receipts from all activities but reports a $10,000 net loss from its Wisconsin activities. Its gross tax liability is zero. Corporation D is subject to an economic development surcharge of $25. Although Corporation D computes an economic development surcharge of zero ($0 x .03), the minimum surcharge of $25 applies. Example 5: Corporation E, a corporation doing business in and outside Wisconsin, computes its Wisconsin income using the apportionment method. It reports $5,600,000 of gross receipts from all activities and a gross tax liability of $30,000. Wisconsin's Economic Development Surcharge Publication 400 Back to Table of Contents 10 taxable year of their distribution, transfer, or acquisition by another person or for the final taxable year for which it filed or is required to file a Wisconsin return, whichever year occurs first. B. Who Is Subject to the Economic Development Surcharge? The economic development surcharge applies to all corporations treated as S corporations under subchapter S of the Internal Revenue Code that have not elected out of tax-option corporation status for Wisconsin purposes under sec. 71.365(4)(a), Wis. Stats., and are required to file a Wisconsin franchise or income tax return, Form 5S, except: • Corporations organized under Wisconsin law that do not have any business activities in Wisconsin, • Corporations that have less than $4,000,000 of gross receipts from all activities, or • Corporations not organized under Wisconsin law that do not have nexus with Wisconsin. "Nexus" refers to the degree of activity necessary before a state has jurisdiction to impose an income tax or franchise tax measured by net income on the taxpayer. Example: Corporation A, a tax-option (S) corporation incorporated outside Wisconsin but licensed to do business in Wisconsin, has business activity in Wisconsin during the current taxable year. It has $7,500,000 of gross receipts from all activities. Corporation A is subject to the economic development surcharge because it is required to file a Wisconsin franchise or income tax return, it is doing business in Wisconsin, and it has at least $4,000,000 of gross receipts from all activities. C. Who Is Not Subject to the Economic Development Surcharge? • Corporations treated as S corporations under subchapter S of the Internal Revenue Code that have not elected out of tax-option corporation status for Wisconsin purposes under sec. 71.365(4)(a), Wis. Stats., and are not required to file a Wisconsin franchise or income tax return. • Tax-option (S) corporations organized under Wisconsin law that have no business activities in Wisconsin. • Tax-option (S) corporations not organized under Wisconsin law that do not have nexus with Wisconsin. • Tax-option (S) corporations that have less than $4,000,000 of gross receipts from all activities. Example 1: Corporation A, a tax-option (S) corporation incorporated in Wisconsin, has no business activity in or outside Wisconsin during the current taxable year. It files a declaration of inactivity, Wisconsin Form 4H, with the Department of Revenue. Corporation A is not subject to the economic development surcharge because it is not required to file a Wisconsin franchise or income tax return. Wisconsin Form 4H is not considered a franchise or income tax return. Example 2: Assume the same facts as in Example 1, except that Corporation A files a Wisconsin franchise or income tax return, Form 5S, reporting no activity in or outside Wisconsin. Corporation A is not subject to the economic development surcharge. Although Corporation A files a franchise or income tax return to indicate that it has no activity, the return is considered a declaration of inactivity. Example 3: Corporation B, an S corporation incorporated outside Wisconsin, is not licensed to do business in Wisconsin and has no business activity in Wisconsin during the current taxable year. However, it has several shareholders who are Wisconsin residents. Wisconsin's Economic Development Surcharge Publication 400 Back to Table of Contents 11 Corporation B is not subject to the economic development surcharge because it is not required to file a Wisconsin franchise or income tax return. Example 4: Corporation C, a tax-option (S) corporation incorporated in Wisconsin, has no business activity in Wisconsin during the current taxable year. However, Corporation C does transact business outside Wisconsin. Corporation C is required to file a Wisconsin franchise or income tax return because it is organized under Wisconsin law, but it has no Wisconsin franchise or income tax liability. Corporation C is not subject to the economic development surcharge since it is not engaged in business in Wisconsin. Example 5: Corporation D, a tax-option (S) corporation which is incorporated outside Wisconsin but licensed to do business in Wisconsin, has no business activity in Wisconsin during the current taxable year. However, it transacts business outside Wisconsin. Corporation D is required to file a Wisconsin franchise or income tax return since it is licensed to do business in Wisconsin, but it has no Wisconsin franchise or income tax liability because it does not have nexus with Wisconsin. Corporation D is not subject to the economic development surcharge because it is not engaged in business in Wisconsin. Example 6: Corporation E, a tax-option (S) corporation which is incorporated outside Wisconsin, has $3,500,000 of total receipts, consisting of $3,000,000 of gross sales and $500,000 of gross rents. Corporation E is required to file a Wisconsin franchise or income tax return because it is doing business in Wisconsin. Corporation E is not subject to the economic development surcharge because it has less than $4,000,000 of gross receipts from all activities. D. On What Form Is the Economic Development Surcharge Reported? Tax-option (S) corporations report the economic development surcharge on Wisconsin Form 5S, line 8. E. How Is the Economic Development Surcharge Computed? The economic development surcharge is the greater of: • $25, or • the amount computed by multiplying the tax-option (S) corporation’s Wisconsin net income, as allocated or apportioned to Wisconsin, by 0.2% (0.002), but not more than $9,800. The following examples illustrate the computation of the economic development surcharge. Example 1: Tax-option (S) Corporation A, which has $4,500,000 of gross receipts from all activities and operates solely in Wisconsin, has the following income, loss, and deduction items, as computed under Wisconsin law, on Wisconsin Form 5S, Schedule 5K, column d: Ordinary business loss (line 1) $ (30,000) Net rental real estate income (line 2) 2,000 Interest income (line 4) 3,000 Investment interest expense (line 12b) (2,000) Loss (line 19) $ (27,000) Wisconsin's Economic Development Surcharge Publication 400 Back to Table of Contents 12 Corporation A is subject to an economic development surcharge of $25. Although it computes an economic development surcharge of zero ($0 x .002), the minimum surcharge of $25 applies. Example 2: Tax-option (S) Corporation B, a corporation operating a farm in Wisconsin, reports $4,200,000 of gross receipts from all activities and the following income, loss, and deduction items, as computed under Wisconsin law, on Wisconsin Form 5S, Schedule 5K, column d: Ordinary business income (line 1) $ 30,000 Other net rental income (line 3) 3,000 Interest income (line 4) 7,000 Net long-term capital loss (line 8) (5,000) Net section 1231 gain (line 9) 15,000 Section 179 deduction (line 11) (10,000) Contributions (line 12a) (4,000) Other deductions (line 12d) (1,000) Income (line 19) $ 35,000 Corporation B is subject to an economic development surcharge of $70 ($35,000 x .002). Example 3: Tax-option (S) Corporation C is incorporated outside Wisconsin and is doing business in and outside Wisconsin. Corporation C reports $5,200,000 of gross receipts from all activities and the following Wisconsin income, loss, and deduction items, as computed under Wisconsin law, on Wisconsin Form 5S, Schedule 5K, column d: Ordinary business income (line 1) $ 500,000 Net rental real estate income (line 2) 10,000 Interest income (line 4) 100,000 Contributions (line 12a) (40,000) Investment interest expense (line 12b) (100,000) Income (line 19) $ 470,000 Corporation C’s Wisconsin apportionment percentage computed on Wisconsin Form A-01 is 70%. Corporation C is subject to an economic development surcharge of $658 ([$470,000 x 70%] x .002). Example 4: Tax-option (S) Corporation D is incorporated in Wisconsin and has business activities in and outside Wisconsin. Corporation D reports the following Wisconsin income, loss, and deduction items, as computed under Wisconsin law, on Wisconsin Form 5S, Schedule 5K, column d: Ordinary business income (line 1) $ 5,400,000 Net rental real estate income (line 2) 300,000 Ordinary dividends (line 5) 200,000 Contributions (line 12a) (50,000) Investment interest expense (line 12b) (100,000) Income (line 19) $ 5,750,000 Corporation D’s Wisconsin apportionment percentage computed on Wisconsin Form A-01 is 90%. Corporation D is subject to an economic development surcharge of $9,800. Although Corporation D computes an economic development surcharge of $10,350 ([$5,750,000 x 90%] x .002), the maximum surcharge of $9,800 applies. Wisconsin's Economic Development Surcharge Publication 400 Back to Table of Contents 15 For combined group filers, the economic development surcharge is computed separately for each member. The total economic development surcharge for a combined group is the total of its members’ economic development surcharges. The following example illustrates the computation of the economic development surcharge. Example: Insurance Company A incorporated in Wisconsin and offering several types of insurance, has Wisconsin net income from nonlife insurance activities of $1,250,000. It has gross premiums of $4,900,000. It’s gross tax is $98,000 (the lesser of $1,250,000 x 7.9% = $98,750 or $4,900,000 x 2% = $98,000). Insurance Company A’s economic development surcharge is $2,940 ($98,000 x .03). 8. EXEMPT ORGANIZATIONS A. Definitions Exempt Organizations Taxable as Corporations The following definitions apply to exempt organizations taxable as corporations: Gross Tax Liability — "Gross tax liability" is the tax, before deducting any credits, from Wisconsin Form 4T, line 11. Gross Receipts From All Activities — "Gross receipts from all activities" of exempt organizations taxable as corporations means the sum of the following items reportable by those entities: • Gross receipts or sales reportable on federal Form 990-T, Schedule A, Unrelated Business Taxable Income From an Unrelated Trade or Business, line 1a. • The gross sales price from the disposition of capital assets and business assets includable in computing the gain or loss on federal Form 990-T, Schedule A, Unrelated Business Taxable Income From an Unrelated Trade or Business, lines 4a and 4b. • Gross receipts passed through from partnerships and S corporations includable in computing income on federal Form 990-T, Schedule A, Unrelated Business Taxable Income From an Unrelated Trade or Business, line 5. • Gross rents includable in computing rent income on federal Form 990-T, Schedule A, Unrelated Business Taxable Income From an Unrelated Trade or Business, line 6. • Gross income from unrelated debt-financed property includable in computing unrelated debt-financed income on federal Form 990-T, Schedule A, Unrelated Business Taxable Income From an Unrelated Trade or Business, line 7. • Gross interest, annuities, royalties and rents from controlled organizations includable in computing those items of income on federal Form 990-T, Schedule A, Unrelated Business Taxable Income From an Unrelated Trade or Business, line 8. • Gross investment income includable in computing investment income on federal Form 990-T, Schedule A, Unrelated Business Taxable Income From an Unrelated Trade or Business, line 9. • Gross exploited exempt activity income includable in computing that item of income on federal Form 990-T, Schedule A, Unrelated Business Taxable Income From an Unrelated Trade or Business, line 10. • Gross advertising income includable in computing advertising income on federal Form 990-T, Schedule A, Unrelated Business Taxable Income From an Unrelated Trade or Business, line 11. • All other gross receipts that are included in gross income for Wisconsin franchise or income tax purposes. Wisconsin's Economic Development Surcharge Publication 400 Back to Table of Contents 16 B. Who Is Subject to the Economic Development Surcharge? The economic development surcharge applies to every exempt organization taxable as a corporation that is required to file a Wisconsin franchise or income tax return, Form 4T, with certain exceptions that are described in Part 8. C. Example: Taxpayer A, an exempt organization taxable as a corporation, files a Wisconsin Form 4T because it has more than $1,000 of gross income (gross receipts minus the cost of goods sold) from an unrelated trade or business. It has $4,500,000 of gross receipts from all unrelated trade or business activities. It carries over a net operating loss from the previous year which reduces its net income to zero. Taxpayer A is subject to the economic development surcharge for the current taxable year because it is required to file Form 4T and has at least $4,000,000 of gross receipts from all activities. C. Who Is Not Subject to the Economic Development Surcharge? • Exempt organizations that are not required to file a Wisconsin franchise or income tax return, Form 4T. • Exempt organizations taxable as corporations that have less than $4,000,000 of gross receipts from all activities. • Exempt organizations taxable as estates or trusts. Example 1: Taxpayer A, an exempt organization taxable as a corporation, filed a prior year Wisconsin Form 4T because it had more than $1,000 of gross income (gross receipts minus the cost of goods sold) from an unrelated trade or business. On that prior year return it reported a net loss from its unrelated trade or business. For the current taxable year, Taxpayer A does not have any income from an unrelated trade or business. However, it files a current year Wisconsin Form 4T to report its net operating loss carryover. Taxpayer A is not subject to the economic development surcharge for the current taxable year because it is not required to file Wisconsin Form 4T. Example 2: Taxpayer B, an exempt organization taxable as a corporation, has $3,750,000 of gross receipts from all unrelated trade or business activities and $2,000 of gross income (gross receipts minus the cost of goods sold) from an unrelated trade or business. Since it has at least $1,000 of gross income from an unrelated trade or business, Taxpayer B must file Wisconsin Form 4T. Taxpayer B is not subject to the economic development surcharge because it has less than $4,000,000 of gross receipts from all activities. D. On What Form Is the Economic Development Surcharge Reported? Exempt organizations report the economic development surcharge on Wisconsin Form 4T, line 25. E. How Is the Economic Development Surcharge Computed? Exempt Organizations Taxable as Corporations The economic development surcharge is the greater of: • $25, or • the amount computed by multiplying the exempt corporation’s gross tax liability from Form 4T, line 11, by 3% (0.03), but not more than $9,800. Wisconsin's Economic Development Surcharge Publication 400 Back to Table of Contents 17 The following examples illustrate the computation of the economic development surcharge. Example 1: Corporation A, an exempt organization taxable as a corporation, has $5,000,000 of gross receipts from all unrelated trade or business activities and reports gross tax of zero on Wisconsin Form 4T, line 11. Corporation A is subject to an economic development surcharge of $25, the minimum surcharge. Example 2: Corporation B, an exempt organization taxable as a corporation, reports $4,050,000 of gross receipts from all activities and gross tax of $1,000 on Wisconsin Form 4T, line 11. Corporation B is subject to an economic development surcharge of $30 ($1,000 x .03). Example 3: Corporation C, an exempt organization taxable as a corporation, reports $24,100,000 of gross receipts from all activities and gross tax of $400,000 on Wisconsin Form 4T, line 11. Corporation C is subject to an economic development surcharge of $9,800. Although it computes an economic development surcharge of $12,000 ($400,000 x .03), the maximum surcharge of $9,800 applies. Example 4: Corporation D, an exempt organization taxable as a corporation, is engaged solely in farming. It reports $4,700,000 of gross receipts from all activities and gross tax of $2,000 on Wisconsin Form 4T, line 11. Corporation D is subject to an economic development surcharge of $60 ($2,000 x .03). 9. ALL TAXPAYERS A. Deductibility (1) Federal Income Tax Purposes For federal income tax purposes, the Internal Revenue Service has indicated that the economic development surcharge is a state tax within the meaning of sec. 164(a) of the Internal Revenue Code. Therefore, it may be deducted as provided under sec. 164. (2) State Franchise or Income Tax Purposes The Wisconsin treatment of the economic development surcharge is shown in the next column. Deductibility of Economic Development Surcharge Entity Wisconsin Treatment C corporations (except RICs, REMICs, REITs, and FASITs) Not deductible — add back to federal taxable income on Form 4, Schedule 4V, or Form 6, Part II, line 2. Exempt corporations Deductible in computing Wisconsin unrelated business taxable income on Form 4T. Insurance companies Not deductible — add back to federal taxable income on Form 4, Schedule 4V, or Form 6, Part II, line 2. RICs, REMICs, REITs, and FASITs Deductible in computing Wisconsin net income. Tax-option (S) corporations Not deductible — add back to federal income (generally on Form 5S, Schedule 5K, line 1, column c) if deductible in computing federal income. Wisconsin's Economic Development Surcharge Publication 400 Back to Table of Contents 20 The interest rate on a delinquent economic development surcharge is 18% per year. Civil penalties may be as much as 100% of the amount of economic development surcharge not reported. Criminal penalties for filing a false return include a fine of up to $10,000. F. Administrative Provisions The administrative provisions that apply for Wisconsin franchise and income tax purposes, including those relating to audits and assessments, claims for refund, statutes of limitations, Internal Revenue Service adjustments, confidentiality, appeals, collections, and setoffs for debts owed other state agencies, also apply to the economic development surcharge. G. Internal Revenue Service Adjustments and Amended Returns If a taxpayer’s federal tax return is adjusted and the adjustments affect Wisconsin income or the economic development surcharge payable, the taxpayer must report the adjustments to the Department of Revenue by filing an amended Wisconsin franchise or income tax return, as applicable, within 180 days after the adjustments become final. If a taxpayer files a federal amended return and the changes affect Wisconsin income or the economic development surcharge payable, the taxpayer must file an amended Wisconsin franchise or income tax return, as applicable, with the Department of Revenue within 180 days after filing the amended federal return. Send an amended Wisconsin franchise or income tax return to the address provided in the amended return instructions for that form. 10. ADDITIONAL INFORMATION AND FORMS If, after reading this publication, you have any questions about Wisconsin’s economic development surcharge, you may: Email . . . DORIncome@wisconsin.gov FAX . . . (608) 267-1030 Call . . . (608) 266-2772 Write . . . Mail Stop 5-77 Customer Service Bureau Wisconsin Department of Revenue Mail Stop 5-77 PO Box 8949, Madison, WI 53708-8949 If you need forms, you may: • Download them from the department’s Internet website at: https://www.revenue.wi.gov/Pages/HTML/formpub.aspx • Call (608) 266-1961 • Call or visit any Wisconsin Department of Revenue office Wisconsin's Economic Development Surcharge Publication 400 Back to Table of Contents 21 Applicable Laws and Rules This document provides statements or interpretations of the following laws and regulations in effect as of January 26, 2022: chs. 71 and 77, Wis. Stats., and Chapters Tax 1, 2, 3, and 11 Wis. Adm. Code. Laws enacted and in effect after this date, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to this date, that is contrary to the information in this document is superseded by this document, according to sec. 73.16(2)(a), Wis. Stats.