1. ​​​​​ I haven't filed income tax returns for several years. What should I do?

2. I received a letter stating I didn't file income tax returns for one or more years. What should I do?

3. Sometime ago I received letters from the Department of Revenue about not filing income tax returns. I didn't respond to these letters. Now the department has attached my wages, other income, or taken my tax refunds. What can I do?
   

4. If I sold real estate in Wisconsin, am I required to file a Wisconsin income tax return to report it?
   

5. I had winnings from a Wisconsin casino, but I lost more than I won throughout the year, so why do I need to file a Wisconsin income tax return?
   

6. I worked in another state during the year in question, am I subject to Wisconsin income tax?
   

1. I haven't filed income tax returns for several years. What should I do?

   Obtain forms and file all late returns at this time. See the information about obtaining forms. You may be eligible to apply for Voluntary Disclosure if you have not previously been contacted by the Department of Revenue about the missing tax returns. See the voluntary disclosure information. If you have questions, write to us at MS 5-77, Wisconsin Department of Revenue, PO Box 8949, Madison, WI 53708-8949, email us at DORIncome@wisconsin.gov, or call us at (608) 266-2486.

2. I received a letter stating I didn't file income tax returns for one or more years. What should I do?

   Review the letter. If the letter indicates a specific reason, for example, the sale of real estate located in Wisconsin or winnings from casinos located in Wisconsin, review your records for this specific income source. If the letter does not refer to a specific income source, review your records for information relating to your income sources for the year in question.

   Respond to the letter. If you did file the returns, send complete copies of them with your reply. If you didn't file, explain why. If you have questions, write to us at MS 3-164, Wisconsin Department of Revenue, Nonfiler Unit, PO Box 8966, Madison, WI 53708-8966, call us at (608) 266-1241, or email us at nonfiler@wisconsin.gov.

3. Sometime ago I received letters from the Department of Revenue about not filing income tax returns. I didn't respond to these letters. Now the department has attached my wages, other income, or taken my tax refunds. What can I do?

   The department issued an estimated assessment against you because you did not respond to our request to file your tax returns, and the assessment is now past due. You need to resolve the issue of your missing returns. You should contact the department by calling our collection staff at (608) 266-7879 and talking to a revenue agent.
   

4. If I sold real estate in Wisconsin, am I required to file a Wisconsin income tax return to report it?

   You may or may not be required to file a Wisconsin income tax return to report it based on the type of property sold. See below for information explaining the income tax treatment from the sale of certain types of property.

   Main home

   If the property you sold qualified as your main home for at least two years out of the five immediately preceding the date of sale, you may qualify for an exclusion. See the eligibility test on page 3 of federal Publication 523, Selling Your Home, to determine whether or not the property qualifies:

   • If it does qualify, submit a written statement indicating you are claiming the exclusion.
   • If it does not meet all the requirements to qualify for this exclusion, then you must file a Wisconsin income tax return to report the sale.
   
   

   Inherited property

   If the property was inherited, the value of the property at the time of inheritance is not taxable. However, if the property was subsequently sold for more than the inherited value, the difference (gain) is taxable income. The sale must be reported on a Wisconsin income tax return, and documentation showing the inherited value must be included with the return as proof of the "cost basis" (ex. appraisal form, federal Form 8971).

   Second home, vacation property, or rental

   If the property was a second home, vacation property, or rental, the sale must be reported on a Wisconsin income tax return, whether there was a gain or loss. Any gain is considered taxable Wisconsin income. If claiming a loss, you must provide documentation showing how the cost basis was calculated. This may include documentation from your original purchase of the property, as well as receipts for any improvements that you claim as part of the cost basis.

5. I had winnings from a Wisconsin casino, but I lost more than I won throughout the year, so why do I need to file a Wisconsin income tax return?

   Wisconsin adopted the federal gambling session method rules, meaning a net loss throughout the year does not necessarily mean a taxpayer did not have any individual winning sessions, which would be taxable. Please refer to Publication 600, Wisconsin Taxation of Gambling Income, for more information on the gambling session and the taxation of gambling winnings.

   If you are a resident of Wisconsin, gambling winnings are fully taxable and must be reported on your Wisconsin income tax return.

   If you are a nonresident or part-year resident of Wisconsin and had gross winnings from Wisconsin casinos (before deducting any losses) of $2,000 or more, you are required to file a Wisconsin income tax return reporting these winnings. If you claim any losses on the return, you must also include documentation showing how you calculated the net win or loss for each session. Annual win/loss statements provided by a casino will not be accepted.

6. I worked in another state during the year in question, am I subject to Wisconsin income tax?

   If you were a legal resident of Wisconsin at the time the wages were earned, those wages are taxable to Wisconsin. For more information, see Publication 121, Reciprocity, Publication 125, Credit for Tax Paid to Another State, or Legal Residence/Domicile common questions.

Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations enacted as of October 10, 2024: secs. 71.74, 71.91 and 71.92, Wis. Stats.

Laws enacted and in effect after this date, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to this date, that is contrary to the information in this document is superseded by this document, according to sec. 73.16(2)(a), Wis. Stats.

The department welcomes your input on our guidance. Submit comments on this guidance document.

Guidance Document Number: 100079

October 10​, 2024​​