Instructions For 1998 Form 4i - Wisconsin Insurance Company Franchise Tax Return
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4Instructions for 1998 Form 4I — Wisconsin Insurance Company Franchise Tax Return
Item to Note
taxable year. You can avoid interest charges during the extension period by
paying the tax and surcharge due by that date. Submit your payment with
For taxable years beginning on or after January 1, 1998, the temporary
Wisconsin Form 4-ES, Corporation Estimated Tax Voucher. If you received
recycling surcharge rate is reduced from 5.5% to 2.75% of gross tax. The sur-
a set of vouchers from the department, use the 5th voucher to make the
charge is scheduled to expire for taxable years ending on or after April 1,
estimated tax and surcharge extension payment.
1999.
During the extension period, 12% annual interest generally applies only to
10% of the tax and surcharge shown on the return. Interest of 18% per year
General Instructions
applies to the remainder of the unpaid tax and surcharge. See Form 4U, Part
II, for more information.
Purpose of Form — Insurance companies use Form 4I to report their
income, gains, losses, deductions, and credits; to compute their franchise tax
Payment of Estimated Tax — If your franchise tax due (including the
liability; and to figure their temporary recycling surcharge.
temporary recycling surcharge for taxable years ending before April 1, 1999)
is $500 or more, you generally must make quarterly estimated tax payments
Who Must File
using Wisconsin Form 4-ES. Failure to make required estimated tax payments
• Domestic insurance companies (those organized under Wisconsin law).
may result in an interest charge. If you filed Form 4-ES for the current year,
• Cooperative sickness care associations organized under sec. 185.981, Wis.
you will automatically receive estimated tax vouchers before the first
Stats., service insurance corporations organized under ch. 613, Wis. Stats.,
payment of the next year’s tax is due.
and nonprofit organizations that derive income from an HMO or LSHO.
If you overpaid your estimated tax, you may apply for a refund before filing
Who Is Not Required to File
your tax return if the overpayment is (1) at least 10% of the expected Wiscon-
• Foreign insurers (those not organized under Wisconsin law).
sin tax liability and (2) at least $500. To apply, file Wisconsin Form 4466W,
• Domestic insurers engaged exclusively in life insurance business.
Corporation Application for Quick Refund of Overpayment of Estimated Tax,
• Domestic insurers transacting mortgage guaranty insurance business as
after the end of the taxable year and before you file your tax return. Do not
defined in Wisconsin Administrative Code section Insurance 6.75(2)(i).
file Form 4466W at the same time as your tax return. If you have a tax due
• Town mutual insurers organized under or subject to ch. 612, Wis. Stats.
when filing your tax return as a result of receiving a “quick refund,” you will
• Insurers exempt from federal income taxation under section 501(c)(15) of
the Internal Revenue Code (IRC).
be charged interest on the amount of unpaid tax.
Information Returns That May Be Required
Additional Forms — If you need forms, you may:
• Form 8 — Report of stock transfers.
• call (608) 266-1961
• Form 9b — Report of rents, royalties, and miscellaneous compensation
• write to the Forms Request Office, Wisconsin Department of Revenue,
paid to individuals.
P.O. Box 8903, Madison, WI 53708-8903
• use your fax telephone to call the department’s Fax-A-Form Retrieval
Final Return — If the insurer liquidated during the taxable year, check the
System at (608) 261-6229
box on the front of the return marked “Final return - corporation dissolved.”
• download forms from the department’s Internet website at
Attach a copy of your plan of liquidation along with a copy of federal Form
state.wi.us
966 (even if not required to be filed federally) to the final Wisconsin return.
• use the Tax Forms and Publications Request Form on the department’s
Generally, the final return is due on or before the federal due date. In most
Internet website
cases, this is the 15th day of the 3rd month after the date the corporation
dissolved. The tax is payable by the 15th day of the 3rd month after the date
Additional Information — For more information, you may:
of dissolution, regardless of the due date of the final return.
• call (608) 266-2772 [TTY (608) 267-1049]
• write to the Audit Bureau, Wisconsin Department of Revenue, P.O. Box
Internal Revenue Service Adjustments — If any of your federal tax returns
8906, Madison, WI 53708-8906
are adjusted by the Internal Revenue Service and the adjustments affect the
• send a FAX to (608) 267-0834
Wisconsin net tax payable, the amount of a Wisconsin credit, a Wisconsin net
• e-mail your question to corp@mail.state.wi.us
business loss carryforward, or a Wisconsin capital loss carryforward, you
Accounting Methods — Compute Wisconsin net income using the method
must report the adjustments to the Department of Revenue within 90 days
of accounting regularly used in computing federal taxable income under the
after they become final.
Internal Revenue Code. In situations where you have an option under the
Send a copy of the final federal audit reports and any associated amended
Internal Revenue Code, you must make the same election for Wisconsin as
Wisconsin returns to the Wisconsin Department of Revenue, P.O. Box 8908,
for federal purposes, except (1) the election to file consolidated returns can’t
Madison, WI 53708-8908. If submitting a federal audit report without an
be made, (2) a deduction may be claimed for expenses allowed as a federal
tax credit, and (3) a different method of depreciation may be used.
amended return, mail it to the Audit Bureau, Wisconsin Department of
Revenue, P.O. Box 8906, Madison, WI 53708-8906. Don’t attach these items
to the tax return for the current year.
When to File — Generally, you must file Form 4I by the 15th day of the 3rd
month following the close of your taxable year. Returns for short taxable
Amended Returns — File an amended return to correct a tax return as you
years (periods of less than 12 months) are due on or before the federal due
originally filed it or as it was later adjusted by an amended return, a claim for
date. If a return is filed late, without an extension, you may be subject to pen-
refund, or an office or field audit.
alties and interest.
If you file an amended federal return and the changes affect the Wisconsin net
Extensions — Any extension allowed by the Internal Revenue Service for
tax payable, the amount of a Wisconsin credit, a Wisconsin net business loss
filing the federal return automatically extends the Wisconsin due date to 30
carryforward, or a Wisconsin capital loss carryforward, you must file an
days after the federal extended due date. You don’t need to submit either a
amended Wisconsin return with the Department of Revenue within 90 days
copy of the federal extension or an application for a Wisconsin extension to
after filing the amended federal return.
the department by the original due date of your return. However, you must
attach a copy of the federal extension to the Wisconsin return that you file. If
you aren’t requesting a federal extension, but you need additional time for
To file an amended Wisconsin return, use Form 4I, and either check the
“amended return” box on the front of the return or clearly mark it
Wisconsin, you may request a 30-day extension by submitting Wisconsin
“AMENDED RETURN” at the top of the form. Attach an explanation of any
Form IC-830 to the department on or before the original due date of the
changes made. If the change involves an item of income, deduction, or credit
return.
that you were required to support with a form or schedule on your original
return, attach the corrected form or schedule. Also attach a worksheet
When to Pay Franchise Tax and Temporary Recycling Surcharge — The
franchise tax and temporary recycling surcharge must be paid by the 15th day
showing how you figured your refund or additional tax owed.
of the 3rd month following the close of the taxable period, regardless of the
Send amended returns to the Wisconsin Department of Revenue, P.O. Box
due date of the return.
8908, Madison, WI 53708-8908. Don’t attach amended returns to your tax
return for the current year.
An extension for filing the return doesn’t extend the time to pay the franchise
tax and temporary recycling surcharge. Interest will be charged on the tax and
Consolidated Returns — Wisconsin law doesn’t permit insurers that are
surcharge not paid by the 15th day of the 3rd month following the close of the
members of an affiliated group, as defined in IRC section 1504, to file
IC-120
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