Sales and Use Tax on Out of State Purchases
If you purchased items to be used or consumed in Wisconsin but did not pay Wisconsin sales tax on those items, you must pay Sales or Use Tax to Wisconsin.
Economic Development Surcharge
The recycling surcharge applies to individuals who have trade or business activities in Wisconsin (including activities as a statutory employee) AND have $4,000,000 or more of gross receipts from trade or business activities for federal income tax purposes.
Penalties on IRAs, Other Retirement Plans, MSAs, Etc.
Wisconsin adds a penalty equal to 33% of the federal penalty for early withdrawal from IRA, HSA and MSA accounts. We are able to automatically calculate the penalty for the early withdrawal from and an IRA. However, since the penalty tax for the early withdrawal of an HSA or MSA tax are reported on an OTHER TAX line of the Federal return, you will need to calculate and enter the additional tax below. Enter 33% of the amount shown on your Federal Form 1040, Schedule 2 line 8 for HSA and MSA only (amount * 0.33).
If you are subject to a penalty for selling business or farming assets purchased from a related person or inconsistent estate basis reporting, fill in the amount of the penalty on line 22. See below for further information.
- Penalty for selling business assets (or assets used in farming) purchased from a related person - Capital gain on the sale or disposition of business or farming assets may be excluded from Wisconsin taxation if the assets were held more than one year and are disposed of to certain related persons. The related person who purchases or otherwise receives the assets on which the gain is excluded is subject to a penalty if he/she sells or disposes of the assets within two years. The penalty does not apply in the case of an involuntary conversion (for example, assets are destroyed by fire or livestock dies). Visit any Department of Revenue office or contact the Department’s Customer Service Bureau at (608) 266-2486 for information on how to compute the penalty.
- Penalty for underpayment of taxes due to inconsistent estate basis reporting - An inconsistent estate basis reporting occurs if the property basis claimed on a Wisconsin tax return exceeds the property basis determined for federal estate tax purposes. The penalty is equal to 20% of the portion of any underpayment of taxes due to the inconsistent estate basis reporting.
For additional information regarding other taxes, click here.