Wisconsin Tax Fraud and Tax Evasion Laws
Created by FindLaw's team of legal writers and editors | Last reviewed June 20, 2016
Tax fraud or tax evasion is intentionally failing to pay or underpaying your taxes, and it’s illegal in Wisconsin. Wisconsin law provides for civil, criminal, and administrative penalties for this crime. Tax evaders often owe the correctly calculated unpaid taxes, any fines, and the cost to Wisconsin to prosecute them. Any individual, franchise manager, corporation, or tax preparer can commit tax fraud and be penalized for it.
You can report suspected tax fraud to the Wisconsin Department of Revenue by mail using this form. Call 608-266-2772 with any questions.
Wisconsin Tax Fraud and Tax Evasion Laws: Statutes
Details on Wisconsin's tax fraud and tax evasion laws are outlined below.
Wisconsin Statutes Chapter 71: Income and Franchise Taxes for State and Local Revenues
Civil penalties for tax fraud or evasion are generally fines paid to the tax collector, in addition to any other taxes owed. Examples of these penalties are:
Tax evasion laws that are punished criminally are divided into misdemeanor and felony violations.
In addition to the fines, tax evaders convicted of felonies need to pay for the cost of prosecution.
Some administrative penalties tax evaders face include that if a person or partnership that's required to file an income tax return fails to do so within the allowed or extend time, then a late fee of $50 is added to the tax bill. The fee is $150 for late returns by corporations and companies.
If a person files a fraudulent claim for a tax credit, then the person can't file a tax credit claim for 10 tax years after the fraud. If the person filed a tax claim recklessly, meaning an improper claim for credit done with intentional disregard of the tax laws, then for the next two tax years the person can't file a claim for a tax credit. The Department of Revenue can impose requirements that must be met for the person subject to this disallowance period can still make a credit claim, just less easily.
Note: State laws change frequently -- it's important to verify any laws you are researching.
If you’re accused of tax fraud, you should contact an experienced local tax attorney for assistance.
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