WICPA President & CEO Tammy Hofstede met with representatives from the Wisconsin Department of Revenue (DOR) on Thursday, Oct. 16, to express concerns with DOR's 1099-R billing project and the qualified charitable distribution (QCD) issue. During the meeting, DOR agreed:
- If your client received a letter for both 2021 and 2022, one appeal can be filed for both notices. The DOR will treat it as an appeal for both years (do not need to enter each separately). Submit information for one year, and if it is complete and supports that the audit notice should be cancelled, the DOR will cancel both notices.*
- They have a team and backup to address appeals, and as soon as they receive the documents, the focus will be on appeals.
- If your client paid the bill and should not have, a claim for refund should be submitted.
- The DOR will not send out additional notices related to QCDs, however, they will continue to send “single issue billings” under the billing project for other 1099 codes through the end of the year.
*This means if the DOR sent a 2021 notice and a 2022 notice to taxpayer “Tom Smith,” he can file one appeal (either for the 2021 year or the 2022 year) and submit detailed documentation to support the QCD (for either 2021 or 2022). If the documentation is complete, and supports that the audit notice should be cancelled, DOR will cancel both the 2021 notice and the 2022 notice.
The WICPA continues to monitor the progress and will continue discussions with DOR.
Please contact Tammy Hofstede, WICPA president & CEO, with questions, or call the DOR at 608-264-4229, ext. 2222.