Section 71.67. General provisions.

 

(1)   Agreement with U.S. secretary of treasury. The secretary of revenue is authorized to enter into an agreement with the secretary of the treasury of the United States pursuant to P.L. 82-587 enacted July 17, 1952.

(2)   Provisions of this chapter apply. All provisions of this chapter on the following subjects relating to income taxes that are not in conflict with this subchapter apply to the administration of this subchapter: assessment, hearing and appeal procedures, preparation of assessments, certification of taxes due and correction of them, interest, penalties, collection, including s. 71.80 (3) and subch. XV , and refund procedures.

(3)   Withheld amounts are funds held in trust for the state. Whenever any person is required to withhold any Wisconsin income tax from an employee, until such amount is deposited with the public depository prescribed by s. 71.65 (3) (a) or paid over to the department as prescribed by s. 71.65 (3) (b) , the amount so withheld shall be held to be a special fund in trust for the state. The amount of such fund may be assessed and collected from such person by the department as income taxes are assessed and collected, and such collection shall not abate any penalty imposed.

(4)   Withholding from lottery winnings.

(a) The administrator of the lottery division in the department under ch. 565 shall withhold from any lottery prize of $2,000 or more an amount determined by multiplying the amount of the prize by the highest rate applicable to the person who claims the prize. The administrator shall deposit the amounts withheld, on a monthly basis, as would an employer depositing under s. 71.65 (3) (a) .

(b) The administrator shall furnish to each payee whose winnings are subject to withholding under par. (a) during the year, on or before January 31 of the succeeding year, 2 legible copies of a written statement showing the following:

1. The name of the payer and that payer's Wisconsin income tax identification number, if any.

2. The name of the payee and that payee's social security number, if any.

3. The gross amount of lottery prize winnings that are subject to withholding under par. (a) .

4. The total amount deducted and withheld as required under par. (a) .

(c)

1. The payee shall furnish the department of revenue with one copy of the written statement he or she receives under par. (b) along with his or her income or franchise tax return for the year.

2. The administrator shall furnish the department of revenue with a copy of the statement that he or she furnishes to the payee under par. (b) .

(5)   Withholding from pari-mutuel wager winnings.

(a) Wager winnings. A person holding a license to sponsor and manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c) , (1m) , (1n) , (1p) , or (1q) if the amount of the payment is more than $1,000.

(b) Deposits. The licensee under s. 562.05 (1) (b) or (c) shall deposit the amounts withheld under this subsection as would an employer depositing under s. 71.65 (3) .

(c) Statement of winnings to payee. The licensee shall furnish to each payee whose winnings are subject to withholding under par. (a) during the year, on or before January 31 of the succeeding year, 2 legible copies of a written statement showing the following:

1. The name of the payer and that payer's Wisconsin income tax identification number, if any.

2. The name of the payee and that payee's social security number, if any.

3. The gross amount of pari-mutuel wager winnings that are subject to withholding under par. (a) .

4. The total amount deducted and withheld as required under par. (a) .

(d) Statement furnished to the department.

1. The payee shall furnish the department of revenue with one copy of the written statement he or she receives under par. (c) along with his or her income or franchise return for the year.

2. The licensee shall furnish the department of revenue with a copy of the statement that he or she furnishes to the payee under par. (c) .

(5m)   Withholding from payments to purchase assignment of lottery prize. A person that purchases an assignment of a lottery prize shall withhold from the amount of any payment made to purchase the assignment the amount that is determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c) , (1m) , (1n) , (1p) , or (1q) . Subsection (5) (b) , (c) and (d) , as it applies to the amounts withheld under sub. (5) (a) , applies to the amount withheld under this subsection.

(6)   Withholding registration; fee.

(a) Except as provided under par. (b) , each employer who is required to withhold under this chapter shall obtain a valid certificate under s. 73.03 (50) .

(b) An out-of-state business, as defined in s. 323.12 (5) (a) 6. , whose only payments to employees are to out-of-state employees, as defined in s. 323.12 (5) (a) 7. , for disaster relief work, as defined in s. 323.12 (5) (a) 3. , is not required to obtain a certificate under s. 73.03 (50) .

(7)   Withholding from unemployment compensation insurance.

(a) The department of workforce development may, in accordance with s. 108.135 , deduct and withhold from any unemployment insurance payment, on a form prepared by the department of workforce development, a portion of the payment as Wisconsin income tax. The department of workforce development shall deposit the amounts withheld, on a monthly basis, as provided in s. 108.135 (6) .

(b) The department of workforce development shall furnish to each claimant who receives benefits during any year, on or before January 31 of the succeeding year, at least one legible copy of a written statement showing all of the following:

1. The name of the claimant and that claimant's social security number.

2. The gross amount of unemployment insurance that is subject to withholding under par. (a) .

3. The total amount deducted and withheld under par. (a) .

(c)

1. If the department of revenue so requires, the claimant shall furnish the department of revenue with one copy of the written statement that he or she receives under par. (b) , along with his or her income tax return for the year.

2. The department of workforce development shall furnish the department of revenue with a copy of any statement that is furnished to the claimant under par. (b) .

1987 a. 312 ; 1987 a. 411 s. 104 ; 1991 a. 39 , 269 , 315 ; 1993 a. 16 ; 1995 a. 27 ss. 3417m , 3419 , 9130 (4) ; 1995 a. 118 ; 1997 a. 3 , 27 , 39 ; 1999 a. 9 , 194 ; 2001 a. 103 ; 2013 a. 20 ; 2015 a. 84 . Cross-reference: See also s. Tax 2.04 , Wis. adm. code.