UPDATED!! Tax Alert – Wisconsin Requiring EFT for Individual Estimated Tax Payments - 2011


January 28, 2011
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Wisconsin recently revised their thresholds for when individuals are required to make estimated tax payments through electronic funds transfer (EFT).

The new threshold is when the estimated tax payments were $20,000 or more in the prior taxable year. The threshold prior to 2011 was payments in the prior taxable years of $40,000.

The WDOR will start mailing letters to certain individuals who filed 2010 tax estimates by paper voucher and check informing them of these new requirements.

Payments can be made one of three ways:

  1. Direct debit using the DOR’s “Pay Online” system. With this method the taxpayer authorizes the DOR’s bank to debit the taxpayer’s bank account for the amount of tax payment indicated.  There is no cost to use this method and no registration is necessary.
  2. ACH credit through taxpayer’s bank. With this method the taxpayer arranges with their bank to have them credit the DOR’s bank account for the amount of tax payment. Banks may charge a fee for this service.
  3. Credit card payment through Official Payment Corporation (link available on DOR website). The DOR does not charge a fee for this service. OPC does charge a fee equal to the greater of $1 or 2.5% of the payment amount.

Taxpayers should not mail the 1-ES (for individual) estimated tax coupons. You may make payment electronically without a coupon.
 
If making payments by EFT causes an undue hardship to the individual, a waiver request can be made. Processing of the waiver request takes up to 60 days.

Please contact your Wipfli relationship executive with any questions.

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