TAX DEBT RELIEF OPTIONS – Wisconsin Department of Revenue


M&M Financial has been fixing back tax problems for small businesses and individuals in Wisconsin since 2007 and nationwide since 2005.  We deal with the IRS and State taxing, so you do not have to!  

Common types of taxes owed to the Wisconsin Department of Revenue are -
  • Sales Tax, 
  • Withholding Tax and 
  • Income (Business and Personal)
Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist please do not hesitate to call us at 866-487-5624.


WI-DOR PAYMENT PLANS TO RESOLVE BACK TAXES


Wisconsin is a relatively reasonable state when it comes to setting up a monthly payment plan to pay back a tax debt.  Generally speaking, businesses are subject to more scrutiny than individuals.   It’s important to know that WI-DOR also uses third party collection agencies to help collect its back-tax debts.  If you owe the WI-DOR, we recommend proactively addressing the issue directly with the state right away.  Otherwise, you may be susceptible to enforced collection actions, such as bank levies.

If you don’t need more than 12 months to pay your tax liability, you can likely set up a payment plan by submitting Form A-771 to the Wisconsin Department of Revenue.  The WI-DOR also provides the option of setting up a 12-month payment plan online.

If you need longer than 12 months to pay your Wisconsin tax liability, you will need to complete detailed financial statement forms with supporting documents that confirm you require longer payment terms.  
You will incur some fees when you get into a payment plan with the WI-DOR.  Collection fees range from 6.5% - 15% and the interest rate charged is approximately 18% annually.  

Like most states, WI-DOR will typically file a tax lien or warrant to secure their position relative to other creditors and facilitate the collection of the tax.

REDUCE YOUR WI-DOR TAX DEBT


Offer in Compromise


Wisconsin does have an Offer in Compromise program, but they call it a Petition for Compromise.  The program works well for those that qualify, but there are a few items to be aware of, including:
  1. If your Petition is accepted you will be required to pay your settlement amount within 10 days of acceptance, unless you have been approved for a payment schedule. 
  2. There is a 3 year review period from the date of acceptance.  If your Petition is reviewed and your ability to pay has improved, you may have to go through a determination hearing to determine whether you can full pay the tax. 
  3. If your Petition is declined, you may request a second review by the Compliance Bureau Director.  

Penalty Relief


Wisconsin does not have a ton of options available when it comes to penalty abatement.  However, in certain cases the WI-DOR may be willing to remove Negligence Penalties and Late Filing Fees.  If you receive a notice from WI-DOR assessing these penalties, you have just 60 days to send in your Appeal.  Do not wait, if you want to have any chance of getting the penalties reduced or removed.  

TAX RESOLUTION CASE EXAMPLES


The Wisconsin Department of Revenue has some flexibility when it comes to back tax liabilities.  Each case varies based on factors such as your compliance history, type of tax owed and total amount past due.  Here are some case examples in your state negotiated by M&M.


page last reviewed 1/4/2018

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