Wisconsin law now requires corporations to use combined reporting to compute their Wisconsin taxable income. The combined reporting law was signed on February 19, 2009, and applies to taxable years beginning January 1, 2009. This article addresses the payment of estimated tax under combined reporting.

Estimated Payments and Transitional Provisions

Newly created §71.255(10), Wis. Stats., provides that DOR "shall deem timely paid" the payment of estimated taxes during the transition period. The law provides that for taxpayers required to use combined reporting, estimated tax payments due less than 45 days after March 6, 2009, are not due until the next installment due date. In other words, both the first and second installments are due on the second installment due date.

To illustrate, if the combined group's taxable year begins on January 1, 2009, the first and second payments are due on June 15, 2009. Similarly, if the taxable year begins on February 1, 2009, the first and second payments are due on July 15, 2009. On the other hand, if the taxable year begins on March 1, 2009, the first payment, but not the second payment, is due on May 15, 2009.

The Designated Agent and Estimated Tax Payments

Newly created §71.255(7), Wis. Stats., provides that each combined group shall have one designated agent. The designated agent is normally the parent corporation of the combined group. One of the responsibilities of the designated agent is the payment of estimated taxes. In other words, each individual member of the combined group need not remit estimated tax payments; only the designated agent remits the estimated tax payment on behalf of the combined group based on the share of combined group income attributable to activities in Wisconsin.

Address and Forms Information

No special address, voucher or EFT code applies to estimated tax payments under combined reporting. Also, the designated agent does not need to submit any special forms with the estimated tax payments to identify the members of the combined group. That information will be provided on the combined group's tax return. You may mail the estimated tax voucher and payments to:

Wisconsin Department of Revenue
Box 930208
Milwaukee, WI 53293-0208

March 9, 2009