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Instructions for 1999 Form 4I – Wisconsin Insurance Company Franchise Tax Return

Item to Note

When to Pay Franchise Tax – The franchise tax must be paid by the 15th

day of the 3rd month following the close of the taxable period, regardless

The temporary recycling surcharge applies only to taxable years that end

of the due date of the return.

before April 1, 1999. On a 1999 Wisconsin franchise tax return, the sur-

charge can only apply if you are filing a short-period return based on a

An extension for filing the return doesn’t extend the time to pay the fran-

taxable year which began on or after January 1, 1999, and ended before

chise tax. Interest will be charged on the tax not paid by the 15th day of the

April 1, 1999.

3rd month following the close of the taxable year. You can avoid interest

charges during the extension period by paying the tax due by that date.

If you are filing a short-period 1999 return and are subject to the temporary

Submit your payment with Wisconsin Form 4-ES, Corporation Estimated

recycling surcharge, see the instructions for the 1998 Form 4I or contact

Tax Voucher. If you received a set of vouchers from the department, use the

any Department of Revenue office for information on computing the sur-

5th voucher to make the estimated tax extension payment.

charge. Add the amount of your surcharge to the amount that would otherwise

be reported on line 24 of Form 4I. Fill in the total on line 24. Write the

During the extension period, 12% annual interest generally applies only to

amount of the surcharge and “TRS” next to line 24.

10% of the tax shown on the return. Interest of 18% per year applies to the

remainder of the unpaid tax. See Form 4U, Part II, for more information.

General Instructions

Payment of Estimated Tax – If your franchise tax due is $500 or more,

Purpose of Form – Insurance companies use Form 4I to report their in-

you generally must make quarterly estimated tax payments using Wiscon-

come, gains, losses, deductions, and credits and to compute their franchise

sin Form 4-ES. Failure to make required estimated tax payments may result

tax liability.

in an interest charge. If you filed Form 4-ES for the current year, you will

automatically receive estimated tax vouchers before the first payment of

Who Must File

the next year’s tax is due.

• Domestic insurance companies (those organized under Wisconsin law).

• Cooperative sickness care associations organized under sec. 185.981,

If you overpaid your estimated tax, you may apply for a refund before fil-

Wis. Stats., service insurance corporations organized under ch. 613, Wis.

ing your tax return if the overpayment is (1) at least 10% of the expected

Stats., and nonprofit organizations that derive income from an HMO or

Wisconsin tax liability and (2) at least $500. To apply, file Wisconsin Form

LSHO.

4466W, Corporation Application for Quick Refund of Overpayment of Es-

timated Tax, after the end of the taxable year and before you file your tax

Who Is Not Required to File

return. Do not file Form 4466W at the same time as your tax return. If you

• Foreign insurers (those not organized under Wisconsin law).

have a tax due when filing your tax return as a result of receiving a “quick

• Domestic insurers engaged exclusively in life insurance business.

refund,” you will be charged interest on the amount of unpaid tax.

• Domestic insurers transacting mortgage guaranty insurance business as

defined in Wisconsin Administrative Code section Insurance 6.75(2)(i).

Recycling Surcharge Starting in 2000 – For taxable years beginning on

• Town mutual insurers organized under or subject to ch. 612, Wis. Stats.

or after January 1, 2000, corporations and insurance companies that owe

• Insurers exempt from federal income taxation under section 501(c)(15)

the recycling surcharge (those whose gross receipts exceed $4 million in a

of the Internal Revenue Code (IRC).

taxable year), must pay the recycling surcharge by the 15th day of the 3rd

month following the close of the taxable period, regardless of the due date

Additional Forms – If you need forms, you may:

of the return. For corporations and insurance companies which expect the

• call (608) 266-1961

sum of their franchise or income tax due (tax minus credits) and recycling

• write to the Forms Request Office, Wisconsin Department of Revenue,

surcharge to be $500 or more generally must make quarterly estimated tax

P.O. Box 8903, Madison, WI 53708-8903

payments using Wisconsin Form 4-ES. The recycling surcharge rate is as

• use your fax telephone to call the department’s Fax-A-Form Retrieval

follows: For corporations and insurance companies with more than $4 mil-

System at (608) 261-6229

lion in gross receipts: 3% of the gross tax liability with a maximum of

• download forms from the department’s Internet website at http://

$9,800 or $25, whichever is greater.

• use the Tax Forms and Publications Request Form on the department’s

Information Returns That May Be Required

Internet website

• Form 8 – Report of stock transfers.

• Form 9b – Report of rents, royalties, and miscellaneous compensation

Additional Information – For more information, you may:

paid to individuals.

• call (608) 266-2772 [TTY (608) 267-1049]

• write to the Audit Bureau, Wisconsin Department of Revenue, P.O. Box

Final Return – If the insurer liquidated during the taxable year, check the

8906, Madison, WI 53708-8906

box on the front of the return marked “Final return - corporation dissolved.”

• send a FAX to (608) 267-0834

Attach a copy of your plan of liquidation along with a copy of federal Form

• e-mail your question to corp@mail.state.wi.us

966 (even if not required to be filed federally) to the final Wisconsin return.

Generally, the final return is due on or before the federal due date. In most

Accounting Methods – Compute Wisconsin net income using the method

cases, this is the 15th day of the 3rd month after the date the corporation

of accounting regularly used in computing federal taxable income under

dissolved. The tax is payable by the 15th day of the 3rd month after the date

the Internal Revenue Code. In situations where you have an option under

of dissolution, regardless of the due date of the final return.

the Internal Revenue Code, you must make the same election for Wisconsin

as for federal purposes, except (1) the election to file consolidated returns

Internal Revenue Service Adjustments – If any of your federal tax re-

can’t be made, (2) a deduction may be claimed for expenses allowed as a

turns are adjusted by the Internal Revenue Service and the adjustments affect

federal tax credit, and (3) a different method of depreciation may be used.

the Wisconsin net tax payable, the amount of a Wisconsin credit, a Wiscon-

sin net business loss carryforward, or a Wisconsin capital loss carryforward,

When to File – Generally, you must file Form 4I by the 15th day of the 3rd

you must report the adjustments to the Department of Revenue within 90

month following the close of your taxable year. Returns for short taxable

days after they become final.

years (periods of less than 12 months) are due on or before the federal due

date. If a return is filed late, without an extension, you may be subject to

Send a copy of the final federal audit reports and any associated amended

penalties and interest.

Wisconsin returns to the Wisconsin Department of Revenue, P.O. Box 8908,

Madison, WI 53708-8908. If submitting a federal audit report without an

Extensions – Any extension allowed by the Internal Revenue Service for

amended return, mail it to the Audit Bureau, Wisconsin Department of Rev-

filing the federal return automatically extends the Wisconsin due date to 30

enue, P.O. Box 8906, Madison, WI 53708-8906. Don’t attach these items

days after the federal extended due date. You don’t need to submit either a

to the tax return for the current year.

copy of the federal extension or an application for a Wisconsin extension

to the department by the original due date of your return. However, you

Amended Returns – File an amended return to correct a tax return as you

must attach a copy of the federal extension to the Wisconsin return that you

originally filed it or as it was later adjusted by an amended return, a claim

file. If you aren’t requesting a federal extension, but you need additional

for refund, or an office or field audit.

time for Wisconsin, you may request a 30-day extension by submitting

Wisconsin Form IC-830 to the department on or before the original due

If you file an amended federal return and the changes affect the Wisconsin

date of the return.

net tax payable, the amount of a Wisconsin credit, a Wisconsin net business

IC-120

Ic-120-99 - Instructions For 1999 Form 4i - Wisconsin Insurance Company Franchise Tax Return

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