What is voluntary disclosure?
Voluntary disclosure is a program in which the Wisconsin Department of Revenue (DOR) encourages businesses and individuals who are not in compliance with Wisconsin tax laws to voluntarily come forward. Taxpayers may remain anonymous throughout the voluntary disclosure process.
Who can benefit from voluntary disclosure?
Voluntary disclosure may help individuals, partnerships, and corporations that have not filed their required Wisconsin tax returns.
Online Marketplace Sellers: Effective January 1, 2020,
2019 Wis. Act 10 clarifies that a marketplace provider is required to collect and remit sales or use tax for all sales of taxable products and services in Wisconsin that the marketplace provider facilitates on behalf of a marketplace seller, as provided in secs. 77.52(3m)(a) and 77.523(1), Wis. Stats.
The Act also requires marketplace providers that facilitate sales of all services under sec. 77.52(2), Wis. Stats., including lodging services, to collect and remit sales or use tax on the entire amount charged to a purchaser, as provided in sec. 77.52(3m)(a), Wis. Stats.
Note: For sales made prior to January 1, 2020, both the marketplace and third-party seller may be liable on taxable sales. See the article
Online Marketplace Sellers Are Liable for Wisconsin Tax on Third-Party Sales for additional information. Such sellers may participate in Wisconsin's Voluntary Disclosure Program.
What are the taxpayer qualifications?
To qualify for voluntary disclosure treatment, a taxpayer must meet the following conditions: no tax returns filed for the period in question, no registration for the type of tax involved during the period in question, no contact by the department in the last 6 years regarding a registration/filing requirement or an assessment/audit assignment. Any partners of partnerships, shareholders in S corporations, trusts, or trust beneficiaries are considered to have been contacted if the pass-through entity has been contacted. Any owners of disregarded entities are considered to have been contacted if the disregarded entity has been contacted.
Will the department enter into an agreement to resolve a successor's liability under sec. Tax 11.91, Wis. Adm. Code?
The department may enter into an agreement to resolve a successor's liability if collection of the amount due from the predecessor is unlikely.
How does a taxpayer apply for voluntary disclosure?
A taxpayer or the taxpayer's representative may request voluntary disclosure treatment by submitting
Form A-020 to the department for consideration.
If unable to complete the electronic request for voluntary disclosure, submit a written request including the information found on the
Wisconsin Voluntary Disclosure Program page. If applying for voluntary disclosure for more than one tax type,
each tax type must be specified. For example, a request for voluntary disclosure for income tax does not cover sales tax.
Wisconsin is a member of the Multistate Tax Commission's National Nexus Program. If you wish to enter into agreements with more than one state, or want to learn more, visit the
Multistate Tax Commission's website.
Why should a taxpayer come forward?
The department may enter into an agreement with the taxpayer to limit the statute of limitations, waive penalties, reduce interest, and possibly reduce the number of returns that must be filed.
How many years will the department go back if the taxpayer has not filed the required Wisconsin tax returns?
The department will require the prior four years returns, plus the current year, unless the taxpayer did not have a filing requirement in Wisconsin during this time period.
What are the responsibilities of a taxpayer who requests voluntary disclosure treatment?
A taxpayer must file all returns agreed upon, pay all tax, late filing fees, and interest according to the agreement, file the current and any subsequent returns in a timely manner according to the agreement, and make books and records available to the department.
What are the department's rights?
The department reserves the right to audit the facts given as part of the agreement, audit any returns filed, void the agreement if factual misrepresentations have been made by or on behalf of the taxpayer, and/or if the taxpayer fails to comply with any term(s) of the agreement.
Where can I get additional information on Wisconsin's Voluntary Disclosure Program?
For additional information, including how to submit a request, see
Wisconsin's Voluntary Disclosure Program.