On April 3, 2018, Wisconsin passed Assembly Bill 773, 2017 Wis. Act 235, which sets the date on which the Secretary of Revenue may use contingency royalty agreements with third parties conducting unclaimed real estate audits. As in many other states, the Wisconsin Department of Finance has in recent years commissioned audit firms to conduct unclaimed real estate audits based on contingency fees. Owners of unsolicited real estate have often criticized these agreements and have argued that such agreements encourage third-party companies to conduct overly aggressive audits and increase compliance costs. The Wisconsin Department of Revenue does not currently have a formal voluntary opening procedure (VDA), but it is working on a trial. Despite the absence of a formal procedure, Wisconsin waives penalties and interest for taxpayers who come forward to voluntarily disclose that they have declared previously unclaimed property. Recent legislative changes are likely favourable to homeowners; However, these changes indicate an increase in audit activity in Wisconsin. As a result, homeowners are well advised to comply as quickly as possible. By expanding their multi-state footprint, companies may have created physical exposure due to compounding and unfulfilled tax reporting obligations. To support your compliance goals, we have a team dedicated to voluntary disclosure agreements. As part of this process, our voluntary VAT advertising team provides the following services: The information provided here is general in nature and is not intended to respond to the particular circumstances of a natural or legal person.
In certain circumstances, the services of a profession should be sought. Tax information, if included in this communication, was not intended or written to be used by a person to avoid sanctions, nor should this information be construed as an opinion on which a person can rely. Recipients of this notification and potential seizures are not subject to a restriction on disclosure of the processing or tax structure of the transactions or material subject to this notification and possible seizures. With all this confusion about who should or should not tax, there is a good chance that marketplace providers and sellers may not have always perceived Wisconsin VAT as they should. Enter voluntary disclosure. Information on how they can request voluntary disclosure, either through the Wisconsin Department of Revenue or through the Multistate Tax Commission (for companies seeking a multi-state VDA) can be found on the Department of Voluntary Disclosure website. Specific rules vary from state to state, but voluntary disclosure of VAT by a VDA is generally a great way to ensure that your business complies with the IRS. If, for fear that your non-registration may not be reported, you have objected to the voluntary VAT advertising program, you should be aware that the information you provide under a VDA program cannot be used by law against you, unless you violate the terms of the VDA. A voluntary disclosure program or voluntary agreement, often referred to as the VDA, is a binding agreement between a state and a taxpayer that, in theory, benefits both. For states, VDAs can mean more revenue with less effort. For taxpayers, they can limit waiting times (the length of detention that the state can make liable for unpaid taxes), reduce penalties or waive sanctions, and offer some protection for reviews.