The Department of Revenue will follow the same limited exception applicable to estates and grantor trusts with respect to quarterly payments of withholding tax by estates and trusts that are treated as pass-through entities for federal tax purposes.

Estates and trusts are generally required to make estimated income tax payments. One limited exception provides that estates and grantor trusts which are funded on account of a decedent's death are only required to make estimated tax payments for any taxable year ending two or more years after the decedent's death. For example, an individual dies on March 10, 2008. A grantor trust that is funded on account of the individual's death is not required to make estimated tax payments for any taxable year ending before March 10, 2010.

Wisconsin's definition of pass-through entity, sec. 71.775(1)(b), Wis. Stats., includes estates and trusts that are treated as pass-through entities for federal tax purposes. Estates and grantor trusts that are treated as pass-through entities for federal tax purposes will now be required to make estimated withholding tax payments for any taxable year ending two or more years after the decedent's death. For example, an individual dies on June 10, 2007. A grantor trust that is funded on account of the individual's death is not required to make estimated tax payments for any taxable year ending before June 10, 2009.

February 18, 2010