Wisconsin Tax-Option (S) Corporation Taxes Form 5s Instructions - 2006
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252006
Wisconsin
Tax-Option (S) Corporation Taxes
Form 5S Instructions
New . . .
Federal treatment of qualified Subchapter S subsidiaries
(QSubs) applies for Wisconsin
Phase-in of single sales factor apportionment begins
A corporation that is treated as a QSub for federal purposes is treated
as a QSub for Wisconsin purposes. See page 2.
For taxable years beginning in 2006, the sales factor represents 60%
of the apportionment fraction. See page 22.
Payment of corporation franchise and income tax
Sales tax exemption replaces manufacturer’s sales tax credit
Corporations registered to pay by electronic funds transfer (EFT) may
pay tax due with the return and bills, except audit assessments, by
Beginning January 1, 2006, a sales and use tax exemption applies
EFT. See page 5.
for fuel and electricity consumed in manufacturing tangible personal
property in Wisconsin. The manufacturer’s sales tax credit may not
Wisconsin use tax
be claimed for taxable years that begin after December 31, 2005. As
a result, Schedules Z and Z-1 have been discontinued.
Corporations that purchase taxable tangible personal property or tax-
able services for storage, use, or consumption in Wisconsin without
The treatment of manufacturer’s sales tax credits claimed but un-
payment of a state sales or use tax are subject to a Wisconsin use
used for taxable years that begin before January 1, 2006, depends
tax. See page 5.
on the amount of unused credits. For more information, see Wiscon-
sin Schedule MS, Manufacturer’s Sales Tax Credit.
Withholding required for nonresident shareholders
A tax-option (S) corporation that has nonresident shareholders is
Trusts and estates ineligible for composite returns
subject to a withholding tax, unless certain exceptions are met. See
For taxable years beginning in 2006, a tax-option (S) corporation fil-
page 8.
ing a composite return, Form 1CNS, on behalf of its nonresident
shareholders may not include nonresident trusts and estates in the
For More Information . . .
composite return. Trusts and estates must each file their own Wis-
consin return. See page 8.
Visit the Department of Revenue’s Internet web site at
Important . . .
At this site you may download tax forms and instructions, Depart-
ment of Revenue publications, and the Wisconsin Tax Bulletin, which
Allocation of income from lottery prizes
is a quarterly newsletter that provides information about new Wis-
All income realized from the sale of or purchase and subsequent
consin tax laws, administrative rules, court decisions, tax releases,
sale or redemption of lottery prizes if the winning tickets were origi-
and private letter rulings. The site also provides links to Wisconsin
nally bought in Wisconsin is allocated to Wisconsin. A multistate
laws and tax rules.
corporation includes this income on Form 4B, Part I, line 4. See page
22.
Don’t Forget . . .
Corporation e-filing
•
Fill in your federal employer ID number
Wisconsin is participating in the Fed/State 1120 Project for the elec-
tronic filing of certain corporate franchise and income tax returns.
•
Fill out the form completely
For additional information, see the Department’s web site at
•
Attach a copy of your federal Form 1120S and any other required
/eserv/corp.html.
forms, schedules, or statements
•
Attach a copy of any extension
•
Sign the return
IC-154
Printed on
Recycled Paper
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