Taxpayer Reliance on Past State Tax Audit Guidance

(2017 Wisconsin Act 231)

If the Wisconsin Department of Revenue (DOR) reviews a taxpayer’s transactions during a tax audit and finds no tax liability, we believe the taxpayer should be able to rely upon this determination in the event of future tax audit. Existing state law on this issue is ambiguous.

Under 2017 Wisconsin Act 231, the DOR in subsequent tax audits would not be able to revisit a topic that has been previously settled, unless the taxpayers provided “false or incomplete” information during the initial tax audit.