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Wisconsin Free Printable 2020 IP-130 Instructions for 2020 Form 3 for 2021 Wisconsin Form 3 Partnership Return

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Form 3 Partnership Return
2020 IP-130 Instructions for 2020 Form 3

Update to Instructions as a Result of 2021 Wisconsin Act 1 On February 18, 2021, Governor Tony Evers signed 2021 Wisconsin Act 1. The law provides the following changes to the 2020 tax year: Federal Paycheck Protection Programs Wisconsin adopted sections 276(a) and (b) and 278(a) of Division N of Public Law 116-260, regarding the tax treatment of income and expenses relating to the original and subsequent Paycheck Protection Programs (PPP). Taxpayers may exclude from income the forgiveness of debt on PPP loan proceeds and deduct expenses paid with PPP loan proceeds that are otherwise deductible. Other Federal Grants, Loans, and Subsidies Wisconsin adopted section 278(b), (c), and (d) of Division N of Public Law 116-260, regarding the tax treatment of income and expenses relating to certain federal grants, loans, and subsidies. Taxpayers may exclude from income the following federal grants, forgivable loans, and subsidies, and deduct expenses paid with the funds if the expenses are otherwise deductible: • Section 278(b) - Emergency grants of economic injury disaster loans (EIDL) and targeted EIDL advances • Section 278(c) - Subsidy for certain loan payments • Section 278(d) - Grants for shuttered venue operators Other Federal Provisions Adopted For an inclusive list of federal provisions adopted under 2021 Wisconsin Act 1, see the Internal Revenue Code update articles under the new tax laws section of Wisconsin Tax Bulletin 212, available on the department's website on Monday, February 22, 2021. State Grant Programs During the COVID-19 Pandemic The following income is exempt from Wisconsin income and franchise tax: • Income received from the state of Wisconsin with moneys received from the coronavirus relief fund authorized under 42 USC 801 to be used for any of the following purposes: o o o o o o o o • Grants to small businesses A farm support program Broadband expansion Privately owned movie theater grants A nonprofit grant program A tourism grants program A cultural organization grant program Music and performance venue grants o o o o o o o Lodging industry grants Low-income home energy assistance A rental assistance program Supplemental child care grants A food insecurity initiative Ethanol industry assistance Wisconsin Eye Income received in the form of a grant issued by the Wisconsin Economic Development Corporation during and related to the COVID-19 pandemic under the ethnic minority emergency grant program. Income from these programs is included in federal income pursuant to sec. 61 of the Internal Revenue Code, unless an exception applies. For Wisconsin, this income should be excluded from federal adjusted gross income by making a subtraction modification on the appropriate line in Column (c) of Form 3, Schedule 3K, Part II. This modification should also be entered on Form 3, Schedule 3K, Part III, Line 15, Other Subtractions, using a description similar to "Wisconsin COVID-19 Program Funds." Note: Expenses paid for with these programs and deducted in the computation of federal adjusted gross income are not required to be added back on the Wisconsin return. 2020 Wisconsin Form 3 Instructions Page 1 Table of Contents General Instructions for Form 3 ............................................................................................................................................ 2 Who Must File Form 3 ............................................................................................................................................................ 2 Definitions ................................................................................................................................................................................ 3 When and Where to File ........................................................................................................................................................ 3 Period Covered by Return and Accounting Methods ........................................................................................................ 4 Payment of Estimated Tax .................................................................................................................................................... 5 Disclosure of Related Entity Expenses and Reportable Transactions ........................................................................... 5 Internal Revenue Service Adjustments, Amended Returns, and Claims for Refund ................................................... 6 Partnerships Having Nonresident Partners ........................................................................................................................ 7 Schedules 3K-1 and Information Returns ........................................................................................................................... 8 Wisconsin Use Tax ................................................................................................................................................................. 8 Conformity with Internal Revenue Code and Exceptions ............................................................................................... 8 Amendments Made to the Internal Revenue Code after December 31, 2017 Adopted by Wisconsin Include: ....... 8 Provisions of the Internal Revenue Code Not Adopted by Wisconsin: ......................................................................... 13 Other Exceptions to Internal Revenue Code .................................................................................................................... 16 Depreciation and Bonus Depreciation ............................................................................................................................... 16 Section 179 Expense ........................................................................................................................................................... 17 How to Report Differences .................................................................................................................................................. 17 Items A Through K ................................................................................................................................................................ 17 Part I – Calculation of Tax Due or Refund......................................................................................................................... 19 Part II - Schedule 3K – Partners’ Distributive Share Items ........................................................................................... 21 Schedule 3K, Columns (b) Through (d)............................................................................................................................. 21 Adjustments Reportable on Schedule 3K, Column c ...................................................................................................... 22 Modifications Prescribed in Wisconsin Law ...................................................................................................................... 23 Guaranteed Payments Reported on Line 4 ...................................................................................................................... 24 Credits Reportable on Schedule 3K, Line 15 ................................................................................................................... 24 “Other Items and Amounts” Reportable on Schedule 3K, Item 20c .............................................................................. 26 Schedule 3K, Lines 21 Through 23 .................................................................................................................................... 27 Submitting Your Form 3 ....................................................................................................................................................... 28 Part III - Specific Instructions for Schedule 3K – Partners' Share of Additions and Subtractions .................... 28 Additions: ............................................................................................................................................................................... 28 Amendments Made to the Internal Revenue Code after December 31, 2017 Adopted by Wisconsin Include: ..... 31 Subtractions:.......................................................................................................................................................................... 39 IP-130 (R. 2-21) 2020 Wisconsin Form 3 Instructions Page 2 Amendments Made to the Internal Revenue Code after December 31, 2017 Adopted by Wisconsin Include: ..... 41 Additional Information, Assistance, and Forms.............................................................................................................. 50 Web Resources: ................................................................................................................................................................... 50 Contact Information: ............................................................................................................................................................. 50 Obtaining Forms: .................................................................................................................................................................. 50 Applicable Laws and Rules: ................................................................................................................................................ 50 General Instructions for Form 3 Important Notices For taxable years beginning January 1, 2019, provisions in 2017 Wis. Act 368, provide partnerships an election to pay tax at the entity level pursuant to sec. 71.21(6)(a), Wis. Stats. If a partnership makes the election to pay tax at the entity level, the partnership must check box "I" on page 1 of Form 3 and submit a completed Schedule 3-ET, Entity-Level Tax Computation, with Form 3. For additional information detailing the entity-level tax election, see Common Questions on the department's website at revenue.wi.gov/Pages/FAQS/ise-passthroughpartnr.aspx. Partnerships, including limited liability companies (LLCs) treated as partnerships, use Form 3 to report their income, gains, losses, deductions, and credits. Who Must File Form 3 Every partnership and limited liability company treated as a partnership with income from Wisconsin sources, regardless of the amount, must file Form 3. For example, a partnership must file a return if it has income from: • Business transacted in Wisconsin, • Personal or professional services performed in Wisconsin, • Real or tangible personal property located in Wisconsin, • A covenant not to compete, if that covenant was based on a Wisconsin-based activity, or • Wisconsin lottery prizes, including income from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in Wisconsin. The department may also require a partnership with Wisconsin resident partners to file a Wisconsin partnership return even though it has no Wisconsin business or income. For example, an out-of-state partnership that does no business in Wisconsin, has no property in Wisconsin, and has no income from Wisconsin sources may be requested to file a partnership return to enable the department to compute a Wisconsin resident partner’s Wisconsin tax liability. Exceptions: The following partnerships and limited liability companies are not required to file Form 3: • A syndicate, pool, joint venture, or similar organization that isn’t required to file a federal partnership return because it has elected under Internal Revenue Code (IRC) section 761(a) not to be treated as a partnership for federal income tax purposes may make a similar election for Wisconsin purposes. To make the election, attach a copy of the federal election statement to the Form 3 filed with the department for the year of election. • If the Wisconsin election is made, the organization generally won’t have to file Form 3 except for the year of election. However, the department may require the organization to file a return so that a partner’s Wisconsin tax liability may be computed. • Publicly traded partnerships treated as corporations under IRC section 7704 must file Wisconsin Form 4 or 6 instead of Form 3. IP-130 (R. 2-21) 2020 Wisconsin Form 3 Instructions Page 3 • Limited liability companies treated as corporations for federal income tax purposes must file Wisconsin Form 4 or 6 instead of Form 3. • Single member limited liability companies that are disregarded as separate entities under IRC section 7701 are disregarded as separate entities for Wisconsin purposes. The member is required to include the income and expenses of the limited liability company on the member’s return. • Common trust funds are treated as fiduciaries under Wisconsin law and must file Wisconsin Form 2 instead of Form 3. Definitions Partnership. A partnership is an association of two or more persons to carry on as co-owners a trade or business for profit. The term “partnership” includes a limited partnership, registered limited liability partnership, syndicate, group, pool, joint venture, or other unincorporated organization, through or by means of which any business, financial operation, or venture is carried on, and is not, within the meaning of the Wisconsin income tax law, a corporation, trust, estate, or sole proprietorship. Limited Partnership. A limited partnership is formed under a state limited partnership law and composed of at least one general partner and one or more limited partners. Registered Limited Liability Partnership. A registered limited liability partnership (LLP) is formed under Wisconsin limited liability partnership law and registered under sec. 178.40, Wis. Stats. Generally, a partner in an LLP isn’t personally liable for the debts of the LLP or any other partner. Foreign Registered Limited Liability Partnership. A foreign limited liability partnership is formed pursuant to an agreement governed by the laws of a state other than Wisconsin or another country and registered under the laws of that jurisdiction. General Partner. A general partner is a partner who is personally liable for partnership debts. Limited Partner. A limited partner is a partner whose personal liability for partnership debts is limited to the amount of money or other property that the partner contributed or is required to contribute to the partnership. Note: A partner who has the authority to act for or bind the partnership in any way or to participate in any way in the management or business affairs of the partnership, or both, is deemed to be a general partner, even if the person is defined as a limited partner in the partnership agreement. Limited Liability Company. A limited liability company (LLC) is an entity formed under state law by filing articles of organization as an LLC. Unlike a partnership, none of the members of an LLC are personally liable for its debts. However, members or other persons may be personally liable for the payment of taxes based on their responsibilities or actions. An LLC may be classified for federal income tax purposes as a partnership, a corporation, or as an entity disregarded as a separate entity from its owner. If an LLC is classified as a partnership for federal income tax purposes, it is treated as a partnership for Wisconsin purposes. An LLC classified as a corporation for federal income tax purposes is treated as a corporation by Wisconsin. An LLC disregarded as a separate entity for federal income tax purposes is also disregarded as a separate entity for Wisconsin income tax purposes. For more information, obtain Wisconsin Publication 119, Limited Liability Companies (LLCs). When and Where to File A partnership must file its return with the department by the 15th day of the 3rd month following the close of its taxable year. Short Period Returns. Returns for short taxable years (periods of less than 12 months) are due on or before the federal due date. Be sure to use the correct year's tax return when filing for a short period. If the tax returns are not yet available, wait until the returns become available and file under extension. For example, if a taxpayer has a short period from January 1, 2020 through March 31, 2020, the 2020 Form 3 will not be ready by June 15, 2020 (unextended due date for a IP-130 (R. 2-21) 2020 Wisconsin Form 3 Instructions Page 4 March 31 year-end). Wisconsin law provides for the same 6-month extension period as the Internal Revenue Service (IRS) to file the partnership return (see Extensions below). So, filing under extension will allow the correct years return to be filed when the 2020 Form 3 is available (typically November 1). Note that an extension does not extend the time to pay a balance due. In order to avoid interest charges, pay the amount due by the 15th day of the 4th month following the close of the taxable year. Extensions. The IRS allows an extension period of six months. This same extension period applies to Wisconsin partnership returns. Any extension allowed by the Internal Revenue Service (IRS) for filing the federal return automatically extends the Wisconsin due date, if you include a copy of the federal extension with your Wisconsin return. If you are not requesting a federal extension, but you need additional time to file your Wisconsin return, you may obtain an extension available to partnerships under federal law. To receive the Wisconsin extension, include with your Wisconsin return a completed copy of the appropriate federal extension form or a statement explaining which federal extension provision you are using. Disaster Relief Extension. If you are filing under extension because of a federal or state disaster, include a statement indicating which disaster extension you are using and attach it to your return. CAUTION: An extension for filing the return doesn’t extend the time to pay the franchise or income tax. Interest will be charged on the tax not paid by the 15th day of the 4th 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. Submit your payment with Wisconsin Form 3-ES, Wisconsin Partnership Estimated Tax Voucher. New Filing Methods. Partnerships are required to file Form 3 returns electronically. See article, Wisconsin Tax Forms Accepted Via Electronic Submission Only, on page 2 of Wisconsin Tax Bulletin 207 (November 2019). Form 3 can be filed electronically through the Federal/State E-Filing Program. Period Covered by Return and Accounting Methods The return must cover the same period as the partnership’s federal income tax return. File a 2020 Wisconsin return for calendar year 2020 or a fiscal year that begins in 2020. Generally, a fiscal year may end only on the last day of a month. Finally, the period covered by the return can’t exceed 12 months. Fiscal example: Partnership AB has a fiscal year beginning March 1, 2020 and ending February 29, 2021. Partnership AB files a 2020 Form 3 for the period of March 1, 2020 through February 29, 2021. If a partnership elects, under IRC section 444, to have a taxable year other than a required taxable year, that election also applies for Wisconsin. Unlike for federal purposes, the partnership doesn’t have to make a required payment of tax as provided in IRC section 7519. Partnerships reporting on a 52-53 week period for federal tax purposes must file on the same reporting period for Wisconsin. A 52-53 week taxable year is deemed to begin on the first day of the calendar month beginning nearest the first day of the 52-53 week taxable year. The taxable year is deemed to end on the last day of the calendar month closest to the last day of the 52-53 week taxable year for purposes of due dates, extensions, and assessments of interest and penalties. Any change in accounting period made for federal purposes must also be made for Wisconsin purposes. For the first taxable year for which the change applies, file with the Wisconsin return a copy of the IRS’s notice of approval of accounting period change if such approval is required or an explanation of the change if the IRS’s approval isn’t required. Figure ordinary income by the accounting method regularly used in maintaining the partnership’s books and records. The method may include the cash receipts and disbursements method, an accrual method, or any other method permitted by the IRC in effect for Wisconsin. The method must clearly reflect income. IP-130 (R. 2-21) 2020 Wisconsin Form 3 Instructions Page 5 Payment of Estimated Tax If the total of a partnership's franchise or income tax due is $500 or more, it generally must make quarterly estimated tax payments using Wisconsin Form 3- ES or by electronic funds transfer (EFT). If you make an EFT payment using My Tax Account, use "estimated payment" as the payment type. If the partnership return is filed on a calendar-year basis, 2021 estimated tax payments are due on or before April 15, 2021, June 15, 2021, September 15, 2021, and January 15, 2022. If your return is filed on a fiscal-year basis, your due dates are the 15th day of the 4th, 6th, and 9th months of your current fiscal year, and the 1st month of the following fiscal year. If any due date falls on a Saturday, Sunday, or legal holiday, use the next business day. Failure to make required estimated tax payments may result in an interest charge. A payment can be made with a check or an electronic payment using ACH or My Tax Account. For submitting a paper check, you may download vouchers from the department’s website at revenue.wi.gov/html/formpub.html, or you may request vouchers by calling the department's Madison office at (608) 266-2772. See instructions for Form 3-ES for additional information. Note: Make sure to identify the correct tax year when submitting a payment so that the payment is applied to the correct tax year's liability (e.g., use 2021 Form 3-ES to make an estimated tax payment for the 2021 tax year liability). If paying through My Tax Account, use "estimated payment" as the payment type. Disclosure of Related Entity Expenses and Reportable Transactions A partnership may be required to separately disclose certain expenses paid, accrued, or incurred to a related entity. A partnership or a partnership’s material advisor may also be required to separately disclose reportable transactions. CAUTION: Wisconsin law provides that certain related entity expenses shall not be allowed as deductions if they are not timely disclosed as required by the department. Also, penalties may apply for failure to disclose reportable transactions to the department. Disclosure of Related Entity Expenses. If the partnership will be deducting more than $100,000 (after considering the effect of apportionment) of interest, rent, management fees, or intangible expenses paid, accrued, or incurred to a related person or entity, the partnership must generally include Schedule RT, Wisconsin Related Entity Expenses Disclosure Statement, with its franchise or income tax return. The Schedule RT instructions explain the reporting requirements. However, even if you are not required to include Schedule RT, if you are taking deductions for interest, rent, management fees, or intangible expenses, paid, accrued, or incurred to related entities, you must add those expenses back to federal income as Wisconsin modifications. If the expenses meet the tests for deductibility, you may subtract them out as subtraction modifications on Schedule 3K. Partnership’s Disclosure of Reportable Transactions. If a partnership was required to include any form with its federal tax return to disclose a “reportable transaction,” as defined under sec. 71.81(1)(c), Wis. Stats., it must file a copy of that form with the department within 60 days of the date it is required to file it for federal income tax purposes, provided that it is otherwise required to file a Wisconsin return. This includes federal Form 8886, Reportable Transaction Disclosure Statement. Include the form(s) with your return or send a paper copy of the form(s), separate from your Form 3, to the following address: Wisconsin Department of Revenue, Tax Shelters Program, PO Box 8958, Madison, WI 53708-8958. Material Advisor’s Disclosure of Reportable Transactions. A “material advisor” means any person who provides any material aid, assistance, or advice with respect to organizing, managing, promoting, selling, implementing, insuring, or carrying out any reportable transaction (as defined in the U.S. Treasury Regulations) and who, directly or indirectly, derives gross income from providing such aid, assistance, or advice in an amount that exceeds the threshold amount. IP-130 (R. 2-21) 2020 Wisconsin Form 3 Instructions Page 6 For a material advisor providing advice to an entity and not an individual, the “threshold amount” is any of the following: • $25,000 if the reportable transaction is a listed transaction (as defined in the U.S. Treasury Regulations). • $250,000 if the reportable transaction is not a listed transaction. For a material advisor providing advice to an individual, the “threshold amount” is any of the following: • $10,000 if the reportable transaction is a listed transaction (as defined in the U.S. Treasury Regulations). • $50,000 if the reportable transaction is not a listed transaction. A material advisor that is required to disclose a reportable transaction to the IRS must file a copy of the disclosure with the department within 60 days of the date it is required for federal income tax purposes, if the reportable transaction affects the taxpayer’s Wisconsin income or franchise tax liability. For federal purposes, the form required for this disclosure is Form 8918. If you are required to file Form 8918 for federal income tax purposes and the reportable transaction to which the form relates affects the taxpayer’s Wisconsin income or franchise tax liability, send a paper copy, separate from Form 3, to the following address: Wisconsin Department of Revenue, Tax Shelters Program, PO Box 8958, Madison, WI 53708-8958. Include a listing of the names and identification numbers of each Wisconsin taxpayer to whom the advisor provided services. Internal Revenue Service Adjustments, Amended Returns, and Claims for Refund Internal Revenue Service Adjustments. If a partnership’s federal tax return is adjusted by the IRS and such adjustments affect the Wisconsin net tax payable, the amount of a Wisconsin credit, a Wisconsin net operating loss carryforward, or a Wisconsin capital loss carryforward of a partner, you must report such adjustments to the department within 180 days after they become final (as provided in sec. Tax 2.105(4), Wis. Adm. Code) by filing an amended Wisconsin partnership tax return and enclosing a copy of the final federal audit report. In addition, each partner must file an amended Wisconsin income/franchise tax return reporting his, her, or its share of each adjustment made by the IRS to the partnership return. Each partner must include an amended Schedule 3K-1 with the amended return filed. CAUTION: If the partnership is audited by the IRS using the new centralized partnership audit rules under the Bipartisan Budget Act of 2015, both the partnership and its partners must file amended Wisconsin income/franchise tax returns, as described above, for the "reviewed year(s)" as defined in IRC section 6225. Amended Returns. If the partnership and the partners file amended federal returns and the changes affect the Wisconsin net tax payable, the amount of a Wisconsin credit, a Wisconsin net operating loss carryforward, or a Wisconsin capital loss carryforward of a partner, both the partnership and the partners must file amended Wisconsin returns with the department within 180 days after filing the amended federal returns. To file an amended Wisconsin return, use Form 3 and check item C on the front of the return. Include Schedule AR with the return in order to provide an explanation of any changes made. If the change involves an item of income, deduction, or credit that you were required to support with a form or schedule on your original return, include the corrected form or schedule with your amended return. In addition, include amended Schedules 3K-1 and provide copies to the partners to include with their amended Wisconsin returns. Do not submit a copy of the original return. File your amended return electronically by using one of the third-party software providers: revenue.wi.gov/Pages/OnlineServices/corp-partnership-third-party-vendors.aspx If you have an approved electronic filing waiver, send your amended Form 3 to the Wisconsin Department of Revenue, PO Box 8908, Madison, WI 53708-8908. Don’t attach amended returns to other tax returns that you are filing. Claims for Refund. A claim for refund must be filed within four years of the unextended due date of the return. However, a claim for refund to recover all or part of any tax or credit paid as a result of an office or field audit must be filed within four years after such an assessment. That assessment must have been paid and must not have been protested by filing a petition for redetermination. See sec. Tax 2.12, Wis. Adm. Code, for more information. IP-130 (R. 2-21) 2020 Wisconsin Form 3 Instructions Page 7 Partnerships Having Nonresident Partners A partnership that has one or more nonresident partners is generally required to pay pass-through entity withholding. Additionally, the partnership may file a composite individual income tax return on behalf of qualifying nonresident individual partners. Pass-Through Entity Withholding. A partnership is generally required to pay withholding tax on its distributable income which is allocable to a nonresident partner. A nonresident partner includes: • An individual who is not domiciled in Wisconsin; • A partnership, limited liability company, or corporation whose commercial domicile is outside Wisconsin; and • An estate or trust that is a nonresident under sec. 71.14(1) to (3m), Wis. Stats. However, withholding is not required on behalf of the following nonresident partners: • A partner who is not otherwise subject to Wisconsin income or franchise tax (such as a 501(c)(3) organization with no unrelated business taxable income). • A partner whose share of income from the partnership is less than $1,000. • A partner who completes Form PW-2, Wisconsin Nonresident Partner, Member, Shareholder, or Beneficiary PassThrough Withholding Exemption Affidavit, or receives a continuous exemption letter from the department and provides the exemption letter to the partnership. See the Form PW-2 instructions for details. Note: Pass-through withholding is not required if a partnership makes an election under sec. 71.21(6)(a), Wis. Stats., to pay tax at the entity level and does not pass-through any withholding to its partners on Schedule 3K-1. Withholding Required. A pass-through entity is required to pay quarterly estimated withholding tax on a nonresident member’s share of income attributable to Wisconsin. The pass-through entity must make quarterly payments of withholding tax on or before the 15th day of the 3rd, 6th, 9th, and 12th month of the taxable year. You make the estimated withholding tax payments electronically. If you obtained a waiver from electronic payment, use Form PW-ES, Wisconsin Pass-Through Entity Withholding Estimated Payment Voucher, to make the estimated withholding tax payments. The partnership must also file Form PW-1, Wisconsin Nonresident Income or Franchise Tax Withholding on PassThrough Entity Income, annually to report estimated withholding tax paid and to pay any additional withholding tax due on behalf of its nonresident partners. Form PW-1 is due with payment by the 15th day of the 3rd month following the close of the partnership’s taxable year. See the Form PW-1 instructions for details of the filing procedures. Composite Return for Nonresident Individual Partners. A partnership that has two or more nonresident individual partners who derive no taxable income or deductible loss from Wisconsin other than their distributive shares from the partnership may file a composite individual income tax return on behalf of those partners. The partnership files this return on Form 1CNP, Composite Individual Income Tax Return for Nonresident Partners. Individuals that are fiscal year filers or part-year Wisconsin residents may not participate in the composite return. No tax credits are allowed on the composite return other than a credit for pass-through entity withholding tax paid on behalf of each participating partner. Additionally, participating partners cannot claim any amounts deductible as itemized deductions on the composite return. Partners that do not qualify to participate in the composite return must file a separate Wisconsin return to report the income from the partnership. For more information on eligibility for composite filing and composite filing procedures, see the Form 1CNP instructions. IP-130 (R. 2-21) 2020 Wisconsin Form 3 Instructions Page 8 Schedules 3K-1 and Information Returns Schedules 3K-1. The partnership must submit a Schedule 3K-1 for each of its partners along with its Form 3. The department is no longer accepting Schedules 3K-1 on magnetic media. File them electronically. You may obtain specifications on the department’s website at revenue.wi.gov/Pages/OnlineServices/corp-partnership-third-partyvendors.aspx. Information Returns for Miscellaneous Income. If the partnership paid $600 or more in rents, royalties, or certain nonwage compensation to one or more individuals, the partnership must file an information return to report those payments. You may use Wisconsin Form 9b, Miscellaneous Income, or you may use federal Form 1099 instead of Form 9b. For more information, see the Form 9b instructions. Wisconsin Use Tax The partnership may be liable for use tax. Use tax is the counterpart of sales tax. All tangible personal property, certain coins and stamps, certain leased properties affixed to real estate, certain digital goods, and selected services, taxable under Wisconsin’s sales tax law, which are stored, used, or consumed in Wisconsin, are subject to use tax if the proper sales tax is not paid. Examples of purchases that frequently result in a use tax liability include the following: • Mail order and Internet purchases. You owe Wisconsin use tax if you buy such items as computers, furniture, or office supplies from a vendor who is not registered to collect Wisconsin tax. • Inventory. If you purchase inventory items without tax for resale, and then use these items instead of selling them, you owe use tax. • Give-aways. Generally, if you purchase items without tax and then give them away in Wisconsin, you owe use tax. If you hold a seller’s permit, use tax certificate, or consumer’s use tax certificate, report your use tax on your sales and use tax return, Form ST-12. Otherwise, complete and file Form UT-5 to report use tax. For more information on use tax, visit the department’s web site at revenue.wi.gov/html/sales.html, call (608) 266-2776, email [email protected], or write to the Wisconsin Department of Revenue, Mail Stop 3-107, PO Box 8946, Madison, WI 53708-8946. Conformity with Internal Revenue Code and Exceptions Wisconsin has adopted the Internal Revenue Code (IRC) as amended to December 31, 2017, with exceptions. The IRC generally applies for Wisconsin purposes at the same time as for federal purposes. For taxable years beginning on or after January 1, 2020, Wisconsin's definition of the IRC is the IRC as of December 31, 2017 with exceptions. Below is a listing of the exceptions. Note: The exceptions and provisions adopted by Wisconsin listed below are those in effect as of the publication date of these instructions. It is possible that subsequent changes in Wisconsin law may add or eliminate some exceptions applicable to taxable years beginning in 2020. Amendments Made to the Internal Revenue Code after December 31, 2017 Adopted by Wisconsin Include: • Sections 40307, 40413, and 41113 of P.L. 115-123: o Section 40307 relating to extending the election under IRC sec. 179E(g) to expense mine safety equipment to December 31, 2017. o Section 40413 relating to extending the energy efficient commercial building deduction to December 31, 2017. o Section 41113 relating to the modification to Treasury Regulation sec. 1.401(k)-1(d)(3)(iv)(E) to remove the 6-month prohibition on making elective and employee contributions to a plan after receipt of a hardship distribution. IP-130 (R. 2-21) 2020 Wisconsin Form 3 Instructions Page 9 • Sections 101(m), (n), (o), (p), and (q), 104(a), 109, 401(a) (54) and (b) (15)(A), (B), and (C), 19, 20, 23, 26, 27, and 28 of division U of P.L. 115-141: o Section 101(m), which clarifies that control of a partnership means ownership of at least 80 percent of the profits interests and at least 80 percent of the capital interest (ownership interest is not limited to exactly 80 percent ownership). o Section 101(n), which treats gain from the sale or disposition of ancillary personal property as gain from the sale or disposition of a real estate asset for purposes of the Real Estate Investment Trust (REIT) income tests. Treats gain from the sale or disposition of certain obligations secured by mortgages on both real property and personal property as gain from the sale or disposition of real property for purposes of the REIT income tests. o Section 101(o), which conforms the treatment of multiple distributions during a taxable year from an Achieving a Better Life Experience (ABLE) account in section 529A to the treatment of multiple distributions during a taxable year from a section 529 account. o Section 101(p) relating to the disposition of investment in United States real property. Provides for special rules relating to real estate investment trusts. o Section 101(q), which clarifies that a qualified foreign pension fund is not treated as a nonresident alien individual or as a foreign corporation. Also provides that an entity whose entire interests are held by a qualified foreign pension fund, is treated as a pension fund. Revises the second prong of the definition of the term "qualified foreign pension fund" to clarify that a government established fund to provide public retirement or pension benefits may qualify, as may a fund established by more than one employer to provide retirement or pension benefits to their employees, such as a multiple-employer or multiemployer plan. o Section 104(a), which modifies the definition of inconsistent estate basis so the penalty does not apply when an heir claims a basis that is higher than the final estate tax value by reason of making basis adjustments relating to post-acquisition events. o Section 109 relating to non-substantive technical corrections to the language in IRC secs. 1361(c)(2)(B)(vi) and 501(c)(12)(E). o Section 401(a)(54) relating to non-substantive technical corrections to the language in IRC sec. 179D(d)(1)(B). o Section 401(b)(15)(A) relating to non-substantive technical corrections to IRC sec. 179(e). o Section 401(b)(15)(B) relating to non-substantive technical corrections to IRC sec. 179(d)(1)(B)(ii). o Section 401(b)(15)(C), which provides that the amendments made in secs. 401(b)(15)(A) and (B) do not apply to property placed in service before March 23, 2018. o Section 401(b)(19) relating to non-substantive technical corrections to IRC sec. 411(a)(3)(F)(i). o Section 401(b)(23) which eliminated the term "as defined in section 170(e)(6)(F)(i))" in IRC sec. 530(b)(3) subparagraph (A)(iii) and added a new paragraph: "(C) COMPUTER TECHNOLOGY OR EQUIPMENT.— The term 'computer technology or equipment' means computer software (as defined by section 197(e)(3)(B)), computer or peripheral equipment (as defined by section 168(i)(2)(B)), and fiber optic cable related to section 596)" o Section 401(b)(26), which eliminated subparagraph (H) from IRC sec. 613A(c)(6). o • Section 401(b)(20) relating to non-substantive technical corrections to IRC sec. 415(g). o Section 401(b)(27), which replaced "limitations under sections 415(c) and (e)" with "limitation under section 415(c)" in IRC sec. 664(g)(3)(E). o Section 401(b)(28), which eliminated paragraph (6) from IRC sec. 856(m). o Section 102 of division M, which provides for the 1974 United Mine Workers of America Pension Plan to be treated as if it were in critical status and provides additional funding. It also imposes enhanced annual reporting requirements and provides a penalty for failing to file the report. Sections 102 and 104 of division M, sections 102, 103, 106, 107, 108, 109, 110, 111, 113, 114, 115, 116, 201, 204, 205, 206, 302, 401, and 601 of division O, section 1302 of division P, and sections 131, 202 (d), and 205 of division Q of P.L. 116-94: IP-130 (R. 2-21) 2020 Wisconsin Form 3 Instructions Page 10 o Section 104 of division M, which provides that a trust forming part of a pension plan is not treated as failing to be treated as a qualified trust if a distribution from the plan is allowed at the age of 59 ½. In addition, a deferred compensation plan through a state, political subdivision of a state, and any agency or instrumentality of a state or political subdivision of a state, meets the distribution requirements if amounts are paid to participants or beneficiaries who attain the age of 59 ½. o Section 102 of division O, which increases the 10% cap for automatic enrollment safe harbor after first plan year to 15%. o Section 103 of division O, which eliminates the safe harbor notice requirements, but maintains the requirement to allow employees to make or change an election at least once per year. Permits amendments to nonelective status at any time before the 30th day before the close of the plan year. After that, amendments are allowed only if it provides a nonelective contribution of at least 4% of compensation for all eligible employees for that plan year, and the plan is amended no later than the last day for distributing excess contributions for the plan year. o Section 106 of division O, which treats stipends and non-tuition fellowship payments received by graduate and postdoctoral students as compensation and as basis for IRA contributions. o Section 107 of division O, which repeals the prohibition on contributions to a traditional IRA by an individual who has attained age 70 ½. The amount of qualified charitable distributions from the plan is reduced by an amount equal to the excess of the aggregate amount of deductions allowed to the taxpayer under section 219 (retirement savings) for all taxable years ending on or after the date the taxpayer attains age 70 ½, over the aggregate amount of reductions for all taxable years preceding the current taxable year. o Section 108 of division O, which prohibits the distribution of plan loans through credit cards or other similar arrangements. o Section 109 of division O, which permits qualified defined contribution plans, section 403(b) plans, or governmental section 457(b) plans to make a direct trustee-to-trustee transfer or another employer-sponsored retirement plan or IRA of lifetime income investments or distributions of a lifetime income investment in the form of a qualified plan distribution annuity, if a lifetime income investment is no longer authorized to be held as an investment option under the plan. o Section 110 of division O, which provides that the Treasury will issue guidance under which if an employer terminates a section 403(b) custodial account, the distribution needed to effectuate the plan termination may be the distribution of an individual custodial account in kind to a participant or beneficiary. The individual custodial account will be maintained on a tax-deferred basis as a section 403(b) custodial account until paid out, subject to the section 403(b) rules in effect at the time the individual custodial account is distributed. o Section 111 of division O, which clarifies that individuals may be covered by plans maintained by churchcontrolled organizations. o Section 113 of division O, which provides that no penalty applies for withdrawals from retirement plans for individuals for any qualified birth or adoption. o Section 114 of division O, which increases the required minimum distribution age from retirement plans from 70 ½ to 72. o Section 115 of division O, which provides pension funding relief for community newspaper plan sponsors by increasing the interest rate to calculate those funding obligations to 8% and increases the amortization period from 7 years to 30 years. o Section 116 of division O, which allows home healthcare workers to contribute to a plan or IRA by providing that tax-exempt difficulty of care payments are treated as compensation for purposes of calculating the contribution limits to defined contribution plans and IRAs. o Section 201 of division O, which permits businesses to treat qualified retirement plans adopted before the due date of the tax return for the taxable year as having been adopted as of the last day of the taxable year. o Section 204 of division O, which provides certainty for plan sponsors in the selection of lifetime income providers, a fiduciary act under the Employee Retirement Income Security Act. Fiduciaries are afforded an optional safe harbor to satisfy the prudence requirement with respect to the selection of insurers for a guaranteed retirement income contract and are protected from liability for any losses that may result to the participant or beneficiary due to an insurer's inability in the future to satisfy its financial obligations under the terms of the contract. IP-130 (R. 2-21) 2020 Wisconsin Form 3 Instructions Page 11 o Section 205 of division O, which modifies the nondiscrimination rules with respect to closed plans to permit existing participants to continue to accrue benefits. o Section 206 of division O, which establishes individualized rules for calculating Pension Benefit Guarantee Corporation premiums. For Cooperative and Small Employer Charity plans, specifies flat-rate premiums of $19 per participant, and variable rate premiums of $9 for each $1,000 of unfunded vested benefits. o Section 302 of division O, which expands 529 education savings accounts to cover costs associated with registered apprenticeships and up to $10,000 of qualified student loan repayments (including those for siblings). The student loan interest deduction is limited to not include any distributions treated as a qualified higher education expense with respect to student loans. o Section 401 of division O, which modifies the required minimum distribution rules with respect to defined contribution plan and IRA balances upon the death of the account owner. Distributions to individuals other than the surviving spouse of the employee (or IRA owner), disabled or chronically ill individuals, individuals who are not more than 10 years younger than the employee (or IRA owner), or child of the employee (or IRA owner) who has not reached the age of majority are generally required to be distributed by the end of the 10th calendar year following the year of the employee or IRA owner's death. o Section 601 of division O, which provides for a remedial plan amendment period until the 2022 plan year (2024 plan year for sec. 414(d) governmental plans) or a later date if the Treasury provides for any plan amendment required under the Act. o Section 1302 of division P, which provides that the 15% additional tax does not apply to any party to an arrangement which satisfies the requirements of IRC section 408(h) of the Employee Retirement Income Security Act (ERISA) of 1974. This relates to temporary regulatory flexibility from certain ERISA requirements in order to allow for the use of a virtual pharmacy benefit management program that will lower drug costs for workers and their families. o Sections 131 of division Q, which extends the energy efficient commercial buildings deduction under IRC sec. 179D to December 31, 2020. o Section 202(d) of division Q, which provides that as a result of the qualified disaster provisions, any amendment to a qualified retirement plan or annuity contract is treated as being operated in accordance with the terms of the plan during the period that is on or before the last day of the first plan year beginning on or after January 1, 2020, or such later date as the Secretary may prescribe. In the case of a governmental plan, the applicable date is 2 years after January 1, 2020. o Section 205 of division Q, which provides that any individual with a principal place of abode or any taxpayer with a principal place of business in a disaster area receives an automatic 60-day extension with regard to any tax filing. • Sections 1106, 2202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L. 116-136: o Section 1106 relating to the exclusion from income for the cancellation of small business loans. o o o Section 2202 relating to waiver of penalties for early withdrawals from qualified retirement plans. Section 2203 relating to the temporary waiver of required minimum distribution rules for certain retirement plans and accounts. Section 2204 relating to an above-the-line deduction for up to $300 of charitable cash contributions. o Section 2205 relating to increased limitations on charitable contribution deductions. o Section 2206 relating to an exclusion from income for payments an employer makes for an employee's student loans. o Section 2307 relating to the classification of qualified improvement property for depreciation purposes. The classification of qualified improvement property applies retroactively to taxable years beginning on or after January 1, 2018. As a result, if persons amend their federal income tax return, they must amend their Wisconsin tax returns to recompute depreciation on the qualified improvement property. However, persons cannot claim bonus depreciation for Wisconsin. o Section 3608 relating to the extension of time to make minimum required contributions to single-employer defined benefit pension plans. o Section 3609 relating to the eligibility of a cooperative and small employer charity pension plan. o Section 3701 relating to the eligibility of high deductible health plans for purposes of health savings accounts. IP-130 (R. 2-21) 2020 Wisconsin Form 3 Instructions • Page 12 Section 3702 relating to qualified distributions from health savings accounts and Archer medical savings accounts. Sections 202, 208, 209, 211, and 214 of division EE and sections 276(a) and (b), 277, 278(a), (b), (c), and (d), 280, and 285 of division N of P.L. 116-260: o Section 202 of division EE, relating to the effective date for the ADS recovery period which shortened the recovery period for residential rental property from 40 years to 30 years under sec. 13204(b) of P.L. 115-97. The recovery period is revised as follows: For any residential rental property which was placed in service before January 1, 2018, held by an electing real property trade or business that elects out of the interest deduction limitation under section 163(j)(7)(B) of the IRC, and to which subparagraph (A), (B), (C), (D), or (E) of section 168(g)(1) of the IRC did not apply prior to such date, the amendments to the ADS recovery period applies to taxable years beginning after December 31, 2017. o Section 208 of division EE, which provides that a qualified trust includes a plan that provides that a distribution may be made from the trust to an employee who has attained age 59 1/2 and is still working at the time of distribution. In the case of a multiemployer plan for certain employees in the building and construction industry who were participants in such plan on or before April 30, 2013, if the trust was in existence before January 1, 1970, and, prior to December 31, 2011, the plan received at least one written determination from the IRS that the trust was a qualified trust, the requirement of attaining age 59 1/2 is reduced to age 55. o Section 209 of division EE, which provides a plan shall not be treated as having a partial termination during any plan year beginning on March 13, 2020, and ending on March 31, 2021, if the number of active participants covered by the plan on March 31, 2021, is at least 80% of the number of active participants covered by the plan on March 13, 2020. o Section 211 of division EE, which provides that if a taxpayer's earned income for 2020 is less than the earned income for the preceding tax year, the taxpayer may elect to use the earned income for the preceding tax year for the taxable year 2020 for purposes of the earned income credit and child tax credit. o Section 214 of division EE, which provides for plan years ending in 2020 and 2021, a plan that includes a health FSA or dependent care flexible spending arrangement shall not fail to be treated as a cafeteria plan under the IRC because such plan or arrangement permits participants to carry over any unused benefits or contributions remaining in the FSA from such plan year to the plan year ending in 2021 and 2022, respectively. A plan that includes a health FSA or dependent care FSA shall not fail to be treated as a cafeteria plan under the IRC because: 1. Such plan or arrangement extends the grace period for a plan year ending in 2020 or 2021 to 12 months after the end of such plan year, or 2. Allows an employee who ceases participation in the plan during calendar year 2020 or 2021 to continue to receive reimbursements from unused benefits or contributions through the end of the plan year in which the participation ceased.(d) The age of a qualifying individual for purposes of the dependent care FSA is increased from 13 to 14 for the plan year on or before January 31, 2020, or the subsequent plan year, and the employee has an unused balance in the employee's account for such plan year.(e) For plans years ending in 2021, a plan that includes a health FSA or dependent care FSA shall not fail to be treated as a cafeteria plan under the IRC because such plan or arrangement allows an employee to make an election to modify prospectively the amount of such employee's contribution to any FSA. (f) Any term used in this section which is also used in section 106, 125, or 129 of the IRC, or the regulations or guidance, shall have the same meaning as when used in such section, regulation, or guidance.(g) A plan that includes a health FSA or dependent care FSA shall not fail to be treated as a cafeteria plan under the IRC because such plan or arrangement is amended pursuant to a provision under this section and such amendment is retroactive if 1. Such amendment is adopted not later than the last day of the first calendar year beginning after the end of the plan year in which the amendment is effective, and 2. The plan or arrangement is operated consistent with the terms of such amendment during the period beginning on the effective date of the amendment and ending on the date the amendment is adopted. o Section 276(a) of division N, which provides that for purposes of any debt forgiven under the paycheck protection program, deductions are allowed, tax attributes are not reduced, and basis may be increased. For partnerships and S corporations, any amounts forgiven are treated as tax-exempt income for purposes of sec. 705 and 1366 of the IRC. Any increase in the adjusted basis of a partner's interest equal's the partner's distributive share of deductions resulting from costs giving rise to the forgiveness. IP-130 (R. 2-21) 2020 Wisconsin Form 3 Instructions Page 13 o Section 276(b) of division N, which provides that for any subsequent paycheck program protection loans, for purposes of any debt forgiven under the paycheck protection program, no forgiveness amount shall be included in the gross income, deductions are allowed, tax attributes are not reduced, and basis may be increased. For partnerships and S corporations, any amounts forgiven are treated as tax-exempt income for purposes of sec. 705 and 1366 of the IRC. Any increase in the adjusted basis of a partner's interest equal's the partner's distributive share of deductions resulting from costs giving rise to the forgiveness. o Section 277 of division N, which provides that students receiving emergency financial aid grants issued under secs. 3504 and 18004 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and other grants issued in response to a qualifying emergency, as defined in sec. 3502 of the CARES Act, do not include the grant in the individual's gross income. The amount of qualified tuition and related expenses is not reduced by these grants for purposes of the American Opportunity and Lifetime Learning credits. The portion of the grant which represents payment for teaching, research, or other services required as a condition for receiving the grant is included in income. o Section 278(a) of division N, which provides that for purposes of any debt forgiven under the paycheck protection program, deductions are allowed, tax attributes are not reduced, and basis may be increased. For partnerships and S corporations, any amounts forgiven are treated as tax-exempt income for purposes of sec. 705 and 1366 of the IRC. Any increase in the adjusted basis of a partner's interest equal's the partner's distributive share of deductions resulting from costs giving rise to the forgiveness. o Section 278(b) of division N, which provides that Any amount received from the federal government as a grant under sec. 1110 of the CARES Act or funding under sec. 331 of this Act (Emergency Economic Injury Disaster Loan (EIDL) grants and targeted EIDL advances) is not included in gross income. Deductions are allowed, tax attributes are not reduced, and basis may be increased. For partnerships and S corporations, any amounts forgiven are treated as tax-exempt income for purposes of sec. 705 and 1366 of the IRC. o Section 278(c) of division N, which provides that any federal subsidy received in sec. 1112 of the CARES Act is not included in gross income. Deductions are allowed, tax attributes are not reduced, and basis may be increased. For partnerships and S corporations, any amounts forgiven are treated as tax-exempt income for purposes of sec. 705 and 1366 of the IRC. Any increase in the adjusted basis of a partner's interest equal's the partner's distributive share of deductions resulting from costs giving rise to the forgiveness. o Section 278(d) of division N, which provides that any federal grant made under sec. 324 of this Act for Shuttered Venue Operators is not included in gross income. Deductions are allowed, tax attributes are not reduced, and basis may be increased. For partnerships and S corporations, any amounts forgiven are treated as tax-exempt income for purposes of sec. 705 and 1366 of the IRC. o Section 280 of division N, which provides that in the case of a money purchase pension plan, a coronavirusrelated distribution which is an in-service withdrawal shall be treated as meeting the distribution rules of section 401(a) of the IRC. o Section 285 of division N, which provides that in the case of an employer maintaining a plan which has made a qualified future transfer from a pension plan to a health benefit or life insurance account, such employer may, not later than December 31, 2021, elect to terminate the transfer period with respect to such transfer effective as of any taxable year specified by the taxpayer that begins after the date of such election. Provisions of the Internal Revenue Code Not Adopted by Wisconsin: • Section 13113 of P.L. 103-66, which created sec. 1202 of the IRC effective for small business stock issued after August 10, 1993. • Sections 1, 3, 4, and 5 of P.L. 106-519, which repealed foreign sales corporation provisions and replaced with extraterritorial income provisions. • Sections 101, 102, and 422 of P.L. 108-357, which repealed the exclusion for extraterritorial income, domestic production activities deduction, and the creation of sec. 965 – incentives to reinvest foreign earnings in the U.S. • Sections 1310 and 1351 of P.L. 109-58, which provides for the modification to special rules for nuclear decommissioning costs, repeal of the limitation on contract research expenses paid so small businesses, universities, and federal laboratories. • Section 11146 of P.L. 109-59, the tax treatment of state ownership of railroad real estate investment trust. IP-130 (R. 2-21) 2020 Wisconsin Form 3 Instructions Page 14 • Section 403(q) of P.L. 109-135, which provides incentives to reinvest foreign earnings from controlled foreign corporations in the U.S. • Section 513 of P.L.109-222, which repeals foreign sales corporation/extraterritorial income exclusion binding contract relief. • Sections 104 and 307 of P.L. 109-432, which increases the rates of the alternative incremental credit and provides a new alternative simplified credit and that gross income does not include an IRA distribution used to fund an HSA. • Sections 8233 and 8235 of P.L. 110-28, which created a special rule for banks required to change from the reserve method of accounting in becoming tax-option (S) corporations and the elimination of all earnings and profits attributable to pre-1983 years. • Section 11(e) and (g) of P.L. 110-172, which provides clerical amendments to research credits for controlled corporations and common control, and clerical amendments to the FSC Repeal and Extraterritorial Income Exclusion Act of 2000. • Section 301 of P.L. 110-245, which provides for tax responsibilities of expatriation. • Section 15351 of P.L. 110-246, limits the amount of farm losses that may offset non-farming business income to $300,000. • Section 302 of division A, section 401 of division B, and sections 312, 322, 502(c), 707, and 801 of division C of P.L. 110-343, which limits executive compensation for employers participating in troubled assets relief program for the taxable year in which the troubled assets exceed $300,000,000. Caps the domestic production activities deduction at 6% for oil-related activities. The deduction for income attributable to domestic production activities in Puerto Rico applies to the first 8 taxable years beginning before January 1, 2010. Tax incentives for investment in the District of Columbia includes exclusion for gain on sale of an asset held from more than 5 years. Defines wages for purposes of the domestic production activities deduction. Creates sec. 198A to provide for expensing of disaster expenses for control of hazardous substances. Specifies treatment of nonqualified deferred compensation plans maintained by foreign corporations. • Sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L. 111-5, which suspends the special rules for original issue discount on high yield obligations issued during the period 9/1/2008 and 12/31/2009. Allows a 75% exclusion for small business stock issued between 1/17/2009 and 12/31/2009. Provides that no built-in-gain tax is imposed on a tax-option (S) Corporation for a taxable year beginning in 2009 and 2010 if the seventh taxable year in the corporation's recognition period preceded such taxable year. Tax-exempt obligations held by financial institutions, in an amount not to exceed 2 percent of the adjusted basis of the financial institution's assets, are not taken into account for determining the portion of the financial institutions interest expense subject to the pro rata interest disallowance rule of sec. 265(b). Modification of the small insurer exception to tax-exempt interest expense allocation rules for financial institutions. • Sections 211, 212, 213, 214, and 216 of P.L. 111-226, which adopts a matching rule to prevent the separation of foreign taxes from the associated foreign income, denies a foreign tax credit for the disqualified portion of any foreign income tax paid in connection with a covered asset acquisition, provides a separate application of foreign tax credit limitation to items resourced under treaties, limits the amount of foreign taxes deemed paid with respect to sec. 956 inclusions, treats a foreign corporation as a member of an affiliated group for interest allocation and apportionment purposes in more than 50% of gross income is effectively connected income and at least 80% of either the vote or value of all outstanding stock is owned directly or indirectly by members of the affiliated group. • Sections 2011 and 2122 of P.L. 111-240, which provides a 100% exclusion for the gain on the sale of small business stock acquired after 9/27/2010 and before 1/1/2011, and clarifies the income sourcing rules for guarantee fees. • Sections 753, 754, and 760 of P.L. 111-312, which excludes 60% of the gain on the sale of small business stock in an empowerment zone business t
Extracted from PDF file 2020-wisconsin-form-3.pdf, last modified February 2021

More about the Wisconsin Form 3 Corporate Income Tax Tax Return TY 2020

We last updated the Form 3 Partnership Return in March 2021, so this is the latest version of Form 3, fully updated for tax year 2020. You can download or print current or past-year PDFs of Form 3 directly from TaxFormFinder. You can print other Wisconsin tax forms here.

Related Wisconsin Corporate Income Tax Forms:

TaxFormFinder has an additional 88 Wisconsin income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Wisconsin Form 3.

Form Code Form Name
Schedule 3K-1 Partner's Share of Income, Deductions, Credits, etc

Download all WI tax forms View all 89 Wisconsin Income Tax Forms


Form Sources:

Wisconsin usually releases forms for the current tax year between January and April. We last updated Wisconsin Form 3 from the Department of Revenue in March 2021.

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Form 3 is a Wisconsin Corporate Income Tax form. Like the Federal Form 1040, states each provide a core tax return form on which most high-level income and tax calculations are performed. While some taxpayers with simple returns can complete their entire tax return on this single form, in most cases various other additional schedules and forms must be completed, depending on the taxpayer's individual situation, to create a complete income tax return package.

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Wisconsin Form 3

We have a total of nine past-year versions of Form 3 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2020 Form 3

2020 IP-130 Instructions for 2020 Form 3

2019 Form 3

2019 IP-130 Instructions for 2019 Wisconsin Form 3

2018 Form 3

2018 Form 3 Wisconsin Partnership Return

2017 Form 3

2017 Form 3 Wisconsin Partnership Return

2016 Form 3

2016 Form 3 Wisconsin Partnership Return

Form 3 Partnership Return 2015 Form 3

2015 IP-030 Form 3 Wisconsin Partnershp Return (fillable)

Wisconsin Partnership Return | Instructions | Fill-In Form 2013 Form 3

2013 IP-030 Form 3 Wisconsin Partnershp Return (fillable)

2012 Form 3

2012 IP-030 Form 3 Wisconsin Partnershp and Economic Development Surcharge Return

Form 3 2011 2011 Form 3

2011 Form 3 - Wisconsin Partnership & Recycling Surcharge Return (pdf fillable format)


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