Wisconsin State Income Tax Protest — Petition for Redetermination and TAC Appeal

WISCONSIN STATE INCOME TAX PROTEST — PETITION FOR REDETERMINATION AND TAX APPEALS COMMISSION REVIEW

TABLE OF CONTENTS

1. Cover Letter to Wisconsin Department of Revenue
2. Petition for Redetermination (Wis. Stat. § 71.88)
3. Statement of Facts
4. Grounds for Redetermination
5. Petition for Review — Wisconsin Tax Appeals Commission
6. TAC Statement of Issues and Relief Requested
7. Reservation of Rights and Further Appeal
8. Verification, Signature, and Certificate of Service
9. Wisconsin Practice Notes
10. Sources and References

1. COVER LETTER TO WISCONSIN DEPARTMENT OF REVENUE

[DATE]

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED

Wisconsin Department of Revenue
Resolution Unit — Income/Franchise Tax
Mail Stop 5-144
PO Box 8906
Madison, WI 53708-8906

Re: Petition for Redetermination Pursuant to Wis. Stat. § 71.88
Taxpayer: [TAXPAYER NAME]
SSN / FEIN: [XXX-XX-XXXX or XX-XXXXXXX]
Tax Year(s) at Issue: [YEAR(S)]
Notice Number / Letter ID: [NOTICE NUMBER]
Notice Date: [__/__/____]
Date of Receipt by Taxpayer: [__/__/____]
Amount in Dispute: $[AMOUNT] (tax) + $[AMOUNT] (interest) + $[AMOUNT] (penalty)

Dear Resolution Unit:

Pursuant to Wis. Stat. § 71.88(1)(a) and Wis. Admin. Code § Tax 1.14, Taxpayer hereby submits this timely Petition for Redetermination of the Notice of Amount Due / Notice of Refund Adjustment / Notice of Denial of Refund issued by the Department on [NOTICE DATE]. This Petition is filed within sixty (60) days after receipt of the Notice and is therefore timely.

Taxpayer requests that the Department issue a redetermination cancelling, abating, or reducing the proposed assessment for the reasons set forth herein. Taxpayer further requests an informal conference under Wis. Admin. Code § Tax 1.14(2) before any final determination is issued.

Respectfully,

[________________________________]

[ATTORNEY / TAXPAYER NAME]

2. PETITION FOR REDETERMINATION (WIS. STAT. § 71.88)

STATE OF WISCONSIN — DEPARTMENT OF REVENUE

PETITION

Petitioner, by and through undersigned counsel, respectfully petitions the Wisconsin Department of Revenue ("Department") for redetermination of the above-referenced Notice pursuant to Wis. Stat. § 71.88(1)(a) and Wis. Admin. Code § Tax 1.14, and in support states as follows:

3. STATEMENT OF FACTS

3.1. Petitioner is a [INDIVIDUAL / DOMESTIC CORPORATION / FOREIGN CORPORATION QUALIFIED IN WISCONSIN / PARTNERSHIP / LLC] with its principal place of [RESIDENCE / BUSINESS] at [ADDRESS].

3.2. For tax year(s) [YEAR(S)], Petitioner timely filed Wisconsin Form [1 / 1NPR / 4 / 5S / 3 / OTHER] reporting Wisconsin [TAXABLE INCOME / FRANCHISE TAX BASE] of $[AMOUNT] and Wisconsin tax of $[AMOUNT].

3.3. On [DATE], the Department commenced an [OFFICE AUDIT under Wis. Stat. § 71.74(1) / FIELD AUDIT under Wis. Stat. § 71.74(2)] of Petitioner's return(s).

3.4. On [DATE], the Department issued a [NOTICE OF AMOUNT DUE / NOTICE OF ADJUSTMENT / NOTICE OF REFUND DENIAL] (Notice No. [XXXX]), proposing additional tax of $[AMOUNT], interest of $[AMOUNT], and penalties of $[AMOUNT].

3.5. The Notice asserts the following adjustments (the "Disputed Adjustments"):

3.6. Petitioner received the Notice on [DATE]. This Petition is filed within sixty (60) days of receipt and is timely under Wis. Stat. § 71.88(1)(a).

4. GROUNDS FOR REDETERMINATION

4.1. Burden of Proof

Although Wisconsin places the initial burden on the taxpayer to overcome the presumption of correctness attaching to a Department assessment, that presumption is rebutted upon Petitioner's presentation of credible evidence supporting the position taken on the return. See Puissant v. Wis. Dep't of Revenue, 155 Wis. 2d 619 (Ct. App. 1990).

4.2. First Ground — [ISSUE 1, e.g., DEDUCTION PROPERLY CLAIMED UNDER WIS. STAT. § 71.05]

4.2.1. The Department disallowed Petitioner's deduction of $[AMOUNT] for [DESCRIBE DEDUCTION].

4.2.2. Wisconsin Statute [§ ____] and Wisconsin Administrative Code [§ Tax ____] authorize this deduction because [LEGAL ANALYSIS].

4.2.3. The supporting documentation — including [INVOICES, CONTRACTS, BANK RECORDS, BOARD MINUTES] attached as Exhibit A — establishes that the expense was ordinary, necessary, and incurred in the active conduct of Petitioner's trade or business under I.R.C. § 162 (incorporated by reference through Wis. Stat. § 71.01(6)).

4.3. Second Ground — [ISSUE 2, e.g., INCORRECT APPORTIONMENT]

4.3.1. The Department recalculated Petitioner's Wisconsin apportionment factor, increasing the numerator by $[AMOUNT] in receipts.

4.3.2. Under Wis. Stat. § 71.25(9), Wisconsin uses single-sales-factor market-based sourcing. Receipts from services are sourced to Wisconsin only to the extent the benefit is received in Wisconsin (Wis. Stat. § 71.25(9)(dh)).

4.3.3. The receipts at issue were earned from [DESCRIBE CUSTOMERS / SERVICES] with the benefit received in [OTHER STATE(S)], as documented in Exhibit B, and are therefore not properly sourced to Wisconsin.

4.4. Third Ground — [ISSUE 3, e.g., PENALTIES SHOULD BE ABATED]

4.4.1. The Department imposed a negligence penalty of [25% / OTHER] under Wis. Stat. § 71.83(1)(a)[___].

4.4.2. Petitioner had reasonable cause and acted in good faith. Petitioner relied on [CPA / TAX COUNSEL / PUBLISHED DOR GUIDANCE], maintained complete books and records under Wis. Stat. § 71.80(9), and disclosed the position consistent with industry practice.

4.4.3. Under Wis. Stat. § 71.83(1)(c), the Department may waive or abate penalties where the taxpayer establishes reasonable cause. Petitioner respectfully requests full abatement.

4.5. Reservation of Additional Grounds

4.5.1. Petitioner reserves the right to assert additional factual and legal grounds, to amend this Petition, and to supplement the record at the informal conference and at any subsequent proceeding before the Tax Appeals Commission or Wisconsin Circuit Court.

4.6. Relief Requested from the Department

WHEREFORE, Petitioner respectfully requests that the Department:

• A. Cancel and abate the Disputed Adjustments in their entirety;
• B. Issue a redetermination reducing the assessment to $[AMOUNT or "zero"];
• C. Abate all penalties imposed for reasonable cause;
• D. Recompute interest accordingly under Wis. Stat. § 71.82;
• E. Schedule an informal conference under Wis. Admin. Code § Tax 1.14(2) before issuing any final determination; and
• F. Grant such other relief as is just and equitable.

5. PETITION FOR REVIEW — WISCONSIN TAX APPEALS COMMISSION

STATE OF WISCONSIN — TAX APPEALS COMMISSION

Docket No.: [____________________] (assigned by TAC upon filing)

PETITION FOR REVIEW

Pursuant to Wis. Stat. § 73.01(5) and Wis. Admin. Code Ch. TA 1, Petitioner respectfully petitions the Wisconsin Tax Appeals Commission for review of the Notice of Action on Petition for Redetermination issued by the Wisconsin Department of Revenue on [DATE], and states as follows:

5.1. Petitioner. Petitioner is [NAME, ADDRESS, TYPE OF ENTITY].

5.2. Respondent. Respondent is the Wisconsin Department of Revenue, 2135 Rimrock Road, Madison, WI 53713.

5.3. Jurisdiction. This Commission has jurisdiction under Wis. Stat. § 73.01(4)(a). The Department issued its Notice of Action on [DATE]; Petitioner received it on [DATE]; and this Petition is filed within sixty (60) days of receipt as required by Wis. Stat. § 73.01(5)(a).

5.4. Filing Fee. The required $25 filing fee is enclosed pursuant to Wis. Stat. § 73.01(5)(a). ☐ Filing fee enclosed. ☐ Fee waived (EIC / Homestead / Farmland Preservation Credit / municipal fee).

5.5. Small Claims Election. Petitioner ☐ does ☐ does not elect small-claims procedure under Wis. Stat. § 73.01(4)(am) (available where total amount in controversy does not exceed the statutory threshold).

6. TAC STATEMENT OF ISSUES AND RELIEF REQUESTED

6.1. Issues Presented

1. Whether the Department erred in [Issue 1] under Wis. Stat. [§ ____].
2. Whether the Department erred in [Issue 2] under Wis. Admin. Code [§ Tax ____].
3. Whether penalties imposed under Wis. Stat. § 71.83(1) should be abated for reasonable cause.

6.2. Statement of Material Facts

Petitioner incorporates by reference Sections 3.1 through 3.6 above and adds the following facts pertaining to post-redetermination events:

6.2.1. On [DATE], the Department issued a Notice of Action on Petition for Redetermination (attached as Exhibit C) that [DENIED IN FULL / DENIED IN PART / GRANTED IN PART] Petitioner's Petition.

6.2.2. Petitioner timely received the Notice of Action on [DATE] and now seeks de novo review by this Commission.

6.3. Legal Argument Summary

6.3.1. The Department's Notice of Action is contrary to the plain language of Wis. Stat. [§ ____] as construed by the Wisconsin Supreme Court in [CASE CITATION].

6.3.2. The Department's interpretation of [STATUTE / RULE] would lead to absurd results inconsistent with the statutory purpose of [POLICY].

6.3.3. Even if the Department's interpretation is correct, penalties must be abated for reasonable cause under Wis. Stat. § 71.83(1)(c).

6.4. Relief Requested

WHEREFORE, Petitioner respectfully requests that the Tax Appeals Commission:

• A. Reverse the Department's Notice of Action;
• B. Cancel the assessment in its entirety, or in the alternative reduce it to $[AMOUNT];
• C. Abate all penalties;
• D. Order recomputation of interest;
• E. Award costs to the extent permitted by Wis. Stat. § 73.01(4)(am)4. or other applicable law; and
• F. Grant such other relief as is just and equitable.

7. RESERVATION OF RIGHTS AND FURTHER APPEAL

7.1. Petitioner reserves the right to amend this Petition, conduct discovery under Wis. Admin. Code Ch. TA 1, file motions, and present additional evidence at hearing.

7.2. Petitioner reserves the right to seek judicial review of any adverse TAC decision in Wisconsin Circuit Court within thirty (30) days of issuance pursuant to Wis. Stat. § 73.015 and Wis. Stat. § 227.53(1)(a)2.

7.3. Petitioner further reserves the right to appeal any adverse Circuit Court decision to the Wisconsin Court of Appeals and the Wisconsin Supreme Court in accordance with Wis. Stat. Chapters 808 and 809.

8. VERIFICATION, SIGNATURE, AND CERTIFICATE OF SERVICE

8.1. Verification

STATE OF WISCONSIN

COUNTY OF [COUNTY]

I, [NAME], being first duly sworn, depose and state that I am [the Petitioner / an officer of the Petitioner authorized to verify this Petition]; that I have read the foregoing Petition; and that the facts stated therein are true to the best of my knowledge, information, and belief.

[________________________________]

[NAME], [TITLE]

Subscribed and sworn to before me this [____] day of [_______________], 20[____].

[________________________________]

Notary Public, State of Wisconsin

(My Commission Expires: [_______________])

8.2. Signature of Counsel

Date: [__/__/____]

Respectfully submitted,

[LAW FIRM NAME]

By: [________________________________]

[ATTORNEY NAME], Wis. State Bar No. [#######]

Counsel for Petitioner

[STREET ADDRESS]

[CITY, STATE ZIP]

Telephone: [NUMBER]

Email: [EMAIL]

8.3. Certificate of Service

I hereby certify that on [DATE], I served a copy of the foregoing Petition by certified mail, return receipt requested, upon:

Wisconsin Department of Revenue
Office of General Counsel
2135 Rimrock Road
Madison, WI 53713

[________________________________]

[ATTORNEY NAME]

9. WISCONSIN PRACTICE NOTES

• Sixty-day jurisdictional deadlines. Both the petition for redetermination (Wis. Stat. § 71.88(1)(a)) and the petition for review at TAC (Wis. Stat. § 73.01(5)(a)) carry hard 60-day deadlines measured from the date of receipt of the relevant DOR notice. Wisconsin courts strictly enforce these deadlines as jurisdictional. See Peterson v. Wis. Dep't of Revenue, Tax Appeals Commission Docket precedents.
• Mailing safe harbor. Under Wis. Admin. Code § Tax 1.14(3), a petition is timely if (a) actually received within 60 days, OR (b) postmarked before midnight of the 60th day in a properly addressed, postage-prepaid envelope, AND received within 5 business days of the 60th day. Always send by USPS certified mail, return receipt — private couriers do not satisfy the postmark rule.
• Six-month redetermination period. DOR has 6 months to issue a redetermination on a properly filed petition (Wis. Stat. § 71.88(1)(a)). The Department often takes the full period; deadlines for any subsequent TAC appeal do not run until the Notice of Action is received.
• Pre-payment not required. Unlike the federal Tax Court / refund-suit dichotomy, Wisconsin does not require pre-payment of disputed tax to obtain TAC review. However, interest under Wis. Stat. § 71.82 continues to accrue. Consider a § 71.90(2) deposit to stop interest.
• Burden of proof. The taxpayer bears the burden to overcome the presumption of correctness attaching to a DOR assessment. Documentary evidence and clear statutory citations are essential.
• Records retention penalty. Under Wis. Stat. § 71.83(1)(a)7., a 25% penalty applies to taxes assessed on information not contained in records required by Wis. Stat. § 71.80(9). Maintaining contemporaneous books and records is critical to defending against assessments and penalties.
• TAC small-claims procedure. Wis. Stat. § 73.01(4)(am) authorizes streamlined small-claims procedures for low-dollar disputes; the threshold and procedure are set by Commission rule (Wis. Admin. Code Ch. TA 1). Small-claims decisions are generally not precedential and waive certain appeal rights.
• Discovery at TAC. Discovery is governed by Wis. Admin. Code Ch. TA 1, which generally permits depositions, written interrogatories, and document requests subject to Commission management.
• Judicial review. TAC decisions are reviewed in Wisconsin Circuit Court (typically Dane County for state-agency cases) under the deferential standard of Wis. Stat. Ch. 227, with a 30-day filing deadline (Wis. Stat. § 73.015 / § 227.53). Findings of fact are reviewed for substantial evidence; questions of law de novo.
• Wisconsin Taxpayer Bill of Rights. Wis. Stat. § 73.03(60) directs DOR to publish a taxpayer bill of rights (Publication 114), including the right to professional, courteous treatment; clear explanation of audit findings; review of adverse determinations; and the right to representation. Cite Publication 114 in correspondence asserting procedural irregularities.
• Conformity to federal law. Wisconsin generally conforms to the Internal Revenue Code as of a fixed date (currently codified in Wis. Stat. § 71.01(6) and parallel sections); confirm the conformity year applicable to each tax year at issue, as Wisconsin frequently decouples from specific federal provisions.
• Statute of limitations on assessment. Generally 4 years from the unextended due date of the return (Wis. Stat. § 71.77), with exceptions for unfiled returns, fraud, or federal adjustments.

10. SOURCES AND REFERENCES

• Wis. Stat. § 71.88 (Time for filing an appeal) — https://docs.legis.wisconsin.gov/statutes/statutes/71/xiv/88
• Wis. Stat. § 71.74 (Office and field audits) — https://docs.legis.wisconsin.gov/statutes/statutes/71/xiv/74
• Wis. Stat. § 71.83 (Penalties) — https://docs.legis.wisconsin.gov/statutes/statutes/71/xiii/83
• Wis. Stat. § 71.90 (Depositing contested amounts) — https://docs.legis.wisconsin.gov/statutes/statutes/71/XIV/90
• Wis. Stat. § 73.01 (Tax Appeals Commission) — https://docs.legis.wisconsin.gov/statutes/statutes/73/01
• Wis. Stat. § 73.015 (Judicial review) — https://docs.legis.wisconsin.gov/statutes/statutes/73/015
• Wis. Stat. § 73.03(60) (Taxpayer Bill of Rights) — https://docs.legis.wisconsin.gov/statutes/statutes/73/03/60
• Wis. Stat. § 227.53 (Chapter 227 review) — https://docs.legis.wisconsin.gov/statutes/statutes/227
• Wis. Admin. Code § Tax 1.14 (Petition for redetermination) — https://docs.legis.wisconsin.gov/code/admin_code/tax/1
• Wis. Admin. Code Ch. TA 1 (TAC practice and procedure) — https://docs.legis.wisconsin.gov/code/admin_code/ta/1
• Wisconsin Department of Revenue — https://www.revenue.wi.gov/
• DOR Publication 114 (Taxpayer Bill of Rights) — https://www.revenue.wi.gov/DOR%20Publications/pb114.pdf
• DOR Publication 506 (Taxpayers' Appeal Rights) — https://www.revenue.wi.gov/DOR%20Publications/pb506.pdf
• DOR Publication 507 (How to Appeal to the Tax Appeals Commission) — https://www.revenue.wi.gov/DOR%20Publications/pb507.pdf
• Wisconsin Tax Appeals Commission — https://taxappeals.wi.gov/
• State Bar of Wisconsin — Practice and Procedure before the TAC — https://www.wisbar.org/forPublic/INeedInformation/Pages/Practice-and-Procedure-before-the-Tax-Appeals-Commission.aspx

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. Wisconsin tax controversy is governed by strict jurisdictional deadlines and technical procedural rules. An attorney licensed in Wisconsin (or a CPA admitted to TAC practice) must review and customize this document before filing. Confirm every citation, deadline, and procedural requirement against the current version of the Wisconsin Statutes, Wisconsin Administrative Code, and DOR/TAC guidance before use.