Last week, the Wisconsin Department of Revenue (DOR), like the IRS, automatically extended income tax payment and return due dates to July 15, 2020. Today the department announces additional measures including immediate steps to help small businesses with sales tax payments due on March 31. Small businesses can immediately request an extension to file sales and use tax returns due March 31, 2020 until April 30, 2020 and due April 30, 2020 until June 1, 2020.
Other elements related to this important sales tax change are as follows:
o DOR will not assess late filing fees or penalties if sales/use tax returns are filed by April 30 or June 1
o By law, payments are due March 31 and April 30; 12% interest will accrue beginning on the due date, unless the legislature changes the law to allow the DOR to waive interest
Governor Tony Evers said, "We understand the anxiousness Wisconsinites have at this time. This event impacts not only our
health and safety but also our finances. Our state agencies are working to assist our citizens in any way that we can."
Other significant changes by DOR to assist both individual and business taxpayers as they face challenges related to the COVID- 19 pandemic:
• Expediting claims for both the Earned Income Tax credit and Homestead credit
• Lowering the interest rate from 18% to 12% on unpaid balances on sales and use tax returns due March 31 and April
o Contact : DORTOBReturnAdjustment@wisconsin.gov after you receive a bill to request a reduction of the interest rate
• Allowing installment payment plans for amounts reported on returns but unpaid.
o Find information on how to request an installment payment plan here
• Relaxing collection activities on delinquent amounts due between now and July 15, 2020, unless suspending the collection activity would compromise the state's ability to collect the amount due.
• Delaying the start of most new audits of small businesses
• More details on these and other measures can be found here
“The Department of Revenue is doing everything possible to help small businesses and individuals that are suffering economically during this health emergency. Our employees are coming up with new ideas every day as they deeply care about the people of our state, and they have a strong desire to help,” Barca said. "We want to be part of the solution to ease the pain and improve the lives of citizens of this state."
Audit Assistance: (608) 266-2486 or DORIncome@wisconsin.gov
Appeals Assistance: (608) 266-0185 or DORAppeals@wisconsin.gov
Overdue Tax or Debts Assistance: (608)266-7879 or DORCompliance@wisconsin.gov