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Can the partnership get credit for estimated tax payments made by its partners, or vice versa depending on whether an election is made?
No, payments must be made separately by the partners and their partnership. The department will not transfer payments between an account of a partner and an account of a partnership. Partners and partnerships must file their respective Wisconsin income tax returns to receive a refund of their overpayments.
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Can an electing partnership transfer payments from the entity's pass-through withholding account (Form PW-ES payments) to the entity-level tax account (Form 3-ES payments)?
Yes, the partnership may submit a written request to move pass-through withholding payments to the entity-level income tax account if the payments were made by the same entity. Written requests may be submitted to
dorincomepte@wisconsin.gov.
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Can an electing partnership transfer payments from the entity-level income tax account (Form 3-ES payments) to the entity's pass-through withholding account (Form PW-ES payments)?
Yes, the partnership may submit a written request to move entity-level income tax payments to the entity's pass-through withholding account if the payments were made by the same entity. Written requests may be submitted to
dorincomepte@wisconsin.gov.
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Is an electing partnership required to make quarterly estimated tax payments?
Yes, estimated payments and underpayment interest under secs.
71.09 and
71.84, Wis. Stats., apply. A payment can be made by submitting
Form 3-ES,
Wisconsin Partnership Estimated Tax Voucher, with a check or an electronic payment using
ACH or
My Tax Account. See
instructions for Form 3-ES for additional information.
Important:
- Make sure to identify the correct tax year when submitting a payment so that the payment is applied to the correct tax year's liability (e.g., use 2022 Form 3-ES to make an estimated tax payment for the 2022 tax year liability).
- If paying through My Tax Account, use "estimated payment" as the payment type.
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How does a partnership make a payment if there is an amount due with the return?
There are three methods an electing partnership may use to make a return payment:
- Electronically: Make the payment through My Tax Account, by selecting "return payment" and
confirm the payment is for the same year as the year of the tax return (e.g., tax year 2022 must be selected to make a return payment for a 2022 calendar year Form 3).
- Electronically: Make the return payment through the partnership's accounting software supported by the Wisconsin Department of Revenue (e.g., ACH payment through QuickBooks).
- Paper: Mail a check with the correct year Form 3-EPV,
Wisconsin Partnership Electronic Payment Voucher. Make checks payable and mail to:
Wisconsin Department of Revenue
Box 3028
Milwaukee WI 53201-3028
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How does a partnership make a payment for an amount due on an amended return?
There are three methods an electing partnership may use to make an amended return payment:
- Electronically: Make the amended return payment through My Tax Account, by selecting "amended return payment" and confirm the payment is for the same year as the year of the tax return (e.g., tax year 2022 must be selected to make an amended return payment for a 2022 calendar year Form 3).
- Electronically: Make the amended return payment through the partnership's accounting software supported by the Wisconsin Department of Revenue (e.g., ACH payment through QuickBooks).
- Paper: Mail a check with the correct year Form 3-EPV,
Wisconsin Partnership Electronic Payment Voucher. Make checks payable and mail to:
Wisconsin Department of Revenue
PO Box 3028
Milwaukee WI 53201-3028
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In the first year a partnership makes an election to pay tax at the entity level, is the partnership subject to underpayment interest on late estimated tax payments even if the prior year Wisconsin tax liability for the partnership was zero?
If the preceding taxable year was 12 months, the partnership had no Wisconsin tax liability in that year, and the partnership was a resident of Wisconsin for all of that year, then the electing partnership will not owe underpayment interest according to sec.
71.09(11)(b), Wis. Stats.
According to sec.
71.21(6)(d)5., Wis. Stats., the provisions of secs.
71.09 and
71.84, Wis. Stats., relating to estimated payments and underpayment interest shall apply to an electing partnership.
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If an electing partnership does not pay the full amount of taxes due by the 15th day of the 3rd month following the close of the partnership's taxable year, what interest rate will apply?
The interest rate may be 12 percent or 18 percent as provided in secs.
71.82 and
71.84, Wis. Stats.
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Is an electing partnership required to make pass-through withholding tax payments for nonresident partners?
No, according to sec.
71.775(3)(a)4., Wis. Stats., an electing partnership is not required to make pass-through withholding tax payments for nonresident partners.
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If an electing partnership made withholding tax payments for a nonresident partner, how does the withholding get refunded?
There are two primary methods for claiming a refund of pass-through withholding paid by a partnership:
- The electing partnership may file a Form PW-1,
Wisconsin Nonresident Income or Franchise Tax Withholding on Pass-Through Entity Income, reflecting $0 withholding tax computed in Part 2 of Form PW-1,
OR
- The partners may file their respective Wisconsin income tax return and claim the withholding on their return.
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Does the entity-level tax election change how a partnership reports its nonresident entertainer withholding paid by another person on its behalf?
No, the electing partnership may report the nonresident entertainer withholding paid by another person on its behalf using one of the two methods below, regardless of whether the partnership makes an election under sec.
71.21(6)(a), Wis. Stats.
- As withholding on Line 5 of Form 3, or
- As a Form WT-11 withholding payment made on the entity's behalf on Line 4 of Form PW-1