A general collection of quick questions we've seen regarding the Wisconsin state tax printer.
On line 19, shouldn't the club be listed as 100% apportionment, instead of Separate Accounting?
Several Wisconsin tax printer users contacted us in 2020 due to the WI Department of Revenue (DOR) contacting them concerning checking 100% apportionment. A big part of the issue is the difference between business partnerships and investment partnerships. We contacted the WI DOR about this issue. After an exchange of emails with the partnership specialist at the DOR, they confirmed investment partnerships should be treated differently than business partnerships. They also confirmed the investment income of our customers should not be apportioned like business income. The solution going forward included the DOR changing the partnership tax form to include the separate accounting as a choice for apportionment. We have been specifically informed that we should check the separate accounting on line 19 and add Form N to the returns of our customers, going forward. If you do get contacted by the WI DOR about line 19 on your 2020 WI partnership return, please let us know ASAP, so we can contact them and found out why when we complied with their instructions on this issue.
How does the WI state printer get to the numbers on line 23 of the 3K-1?
Unlike the Federal return, Wisconsin wants gross income which for them includes the total proceeds from stock sales not just the capital gain or loss. None of the lines on the Federal form ask for this, and at least currently we don't have a dedicated report in the accounting system to reflect gross proceeds.