Common Combined Reporting Errors
The Department of Revenue (DOR) has been tracking the processing of combined returns and has compiled a list of the most common errors that prevent the returns from processing automatically. In order to prevent delays, before submitting combined returns to DOR, please review the list below to see if any of the common errors apply to the returns being submitted. Many of these errors require DOR to contact the preparer of the return for additional information in order to finish processing the return.
Examples of common combined reporting return errors:
- Wisconsin apportionment percentage not matching to the apportionment percentage on Form 4, line 8. The total of the numerators from Form 4A, part II, column b should be entered on Form 4, line 34a. The total denominators from Form 4A, line 8a should be entered on Form 4, line 34b. Dividing Form 4, line 34a by Form 4, line 34b should result in the same apportionment percentage as in Form 4A, line 8c and Form 4, line 8.
- Form 4 and Form 4M not matching. The sum of all of the members' Form 4M, line L1 should equal the amount on Form 4, line 9.
- Form 4M, line L2 is to be completed only if the combined group is a 100% Wisconsin group and there are members with net income from the unitary business and others with net losses from the unitary business. Do not complete line L2 if all members have a positive amount on Form 4M, line L1 or all members have a negative amount on Form 4M, line L1. For examples of how to compute income and loss sharing on Form 4M, line L2, please refer to pages three and four of the 2009 Form 4M instructions.
- Do not include additional Forms 4M. One Form 4M is required for each combined group member. Do not include an extra Form 4M summarizing the total of all Forms 4M.
- Estimated tax payment errors. Some taxpayers are not including the correct amount of estimated tax payments on Form 4, line 21. To verify the estimated tax payments that DOR has on file for the members of the combined group, go to DOR's Estimated Payment Inquiry screen available at: https://ww2.revenue.wi.gov/PaymentInquiry/request.html.
- Scanning errors on paper-filed returns caused by illegible or blurry numbers. Filing electronically eliminates scanning errors. Do not submit photocopies to DOR. Photocopies can cause unreadable entries.
Page last updated August 2, 2010