Instructions For Combined Wisconsin Individual And Fiduciary Income Tax Return For Nonresident Tax-Option (S) Corporation Shareholders Form 1cns 1998 (Page 4 of 7) in pdf

Page 3

of the shareholder’s income or tax reported on the

Additional Information

corporation’s original Form 1CNS.

For additional information about the taxation of tax-

option (S) corporations and their shareholders, refer to

To amend Form 1CNS, file another Form 1CNS

the department’s Publication 102, Wisconsin Tax Treat-

clearly marked “AMENDED RETURN” at the top of

ment of Tax-Option (S) Corporations and Their Share-

the form. Attach to the amended return a copy of

holders .

the final federal audit reports if the amended return

is being filed as a result of a federal audit. Other-

If you need help with the combined return, you may:

wise, attach an explanation of the changes made

•

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

and the reasons for the changes. Send the

•

write to the Audit Bureau, Wisconsin Department of

amended return to the Wisconsin Department of

Revenue, P.O. Box 8906, Madison, WI 53708-8906

Revenue, P.O. Box 8991, Madison, WI 53708-8991.

•

send a FAX to (608) 267-0834

Don’t attach it to the return for the current year.

•

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

•

The shareholder must file an amended Form 1NPR

Additional Forms

to report federal adjustments or amendments to the

If you need forms or publications, you may:

shareholder’s federal return that affect Wisconsin

•

call (608) 266-1961

items of income, loss, or credit other than the tax-

•

write to the Forms Request Office, Wisconsin

option (S) corporation income or loss reported on

Department of Revenue, P.O. Box 8903, Madison,

Form 1CNS.

WI 53708-8903

•

use your fax telephone to call the department’s Fax-

To amend Form 1NPR, file a Form 1NPR clearly

A-Form Retrieval System at (608) 261-6229

marked “AMENDED RETURN” at the top of the

•

download forms and publications from the depart-

form. Include any tax-option (S) corporation income

ment’s Internet website at

or loss previously reported on Form 1CNS. Attach

•

use the Tax Forms and Publications Request Form

to the amended return a copy of the final federal

on the department’s Internet website

audit report if the amended return is being filed as

a result of a federal audit. Otherwise, attach an

explanation of the changes made and the reasons

for the changes. If claiming credit for taxes previ-

Wisconsin Taxation of Tax-Option

ously paid on your behalf on Form 1CNS, include a

(S) Corporation Income

statement indicating the corporation’s name and

of Nonresidents of Wisconsin

federal employer identification number and amount

of tax paid. Send the amended return to the Wis-

All tax-option (S) corporation income earned in Wis-

consin Department of Revenue using the address

consin is taxable to nonresidents of Wisconsin. If a

specified in the Form 1NPR instructions.

corporation does business only in Wisconsin, a nonresi-

dent’s share of its entire net income is taxable by

Refunds, Assessments, and Correspondence

Wisconsin. If a corporation does business in more than

By filing Form 1CNS, the signing corporate officer

one state, the amount attributable to Wisconsin (based

declares that the tax-option (S) corporation has a power

on apportionment or separate accounting, as appropri-

of attorney or other written authorization from each

ate) is taxable. A unitary, multistate corporation gener-

qualifying and participating shareholder to file a com-

ally must determine the amount attributable to Wiscon-

bined return. The Department of Revenue will mail

sin using the apportionment method. A nonunitary,

refund checks, assessments, and all correspondence to

multistate corporation must use separate accounting.

the corporation at the address indicated on Form 1CNS.

If an issue cannot be resolved between the corporation

Because all tax-option corporation items retain their

and the department, the corporation must agree to be

character as business income or loss, a nonresident

responsible for the payment of any additional tax due,

shareholder’s share, as well as a resident’s share, of a

interest, and penalties, as finally determined. In unusual

tax-option (S) corporation’s intangible income, with

circumstances, the department may contact the

certain exceptions, is taxable by Wisconsin. Interest on

individual shareholders.

United States government obligations, bonds issued by

the government of Puerto Rico, and certain state and

local government bonds isn’t taxable by Wisconsin.

Instructions For Combined Wisconsin Individual And Fiduciary Income Tax Return For Nonresident Tax-Option (S) Corporation Shareholders Form 1cns 1998 Page 4

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