Section 20.39. Delinquent state tax obligations.

 

(1)   Payments subject to attachment. As provided by s. 40.08 (1r) , Stats., in order to satisfy delinquent tax obligation of a person, the Wisconsin department of revenue may attach any one of the following types of payment being made by the Wisconsin retirement system to that person:

(a) Monthly payments of a regular annuity under s. 40.23 or 40.24 , Stats.

(b) Monthly payments of a disability annuity under s. 40.63 , Stats.

(c) The continued monthly annuity payments of a joint-and-survivor annuity that are paid to a named survivor after the death of the annuitant, regardless of whether the annuity is a regular annuity under s. 40.23 or 40.24 , Stats., or a disability annuity under s. 40.63 , Stats.

(d) Monthly payments of an annuity from the annuitant's additional contributions.

(e) A lump sum paid in lieu of an annuity under s. 40.25 , Stats., regardless of whether the payment is required or is made at the request of the participant.

(f) A lump sum separation benefit paid under s. 40.25 (2) , Stats..

(2)   Limitations and WRS payments not subject to attachment.

(a) Attachment under s. 40.08 (1r) , Stats., and this section applies only to benefits in pay status. The department of revenue may not compel the payment of benefits for which a person has not applied or apply for benefits on behalf of any person.

(b) Section 40.08 (1r) , Stats., and sub. (1) do not apply to lump sum payments of additional contributions made under s. 40.25 (4) , Stats., or to death benefits paid under s. 40.73 , Stats., including but not limited to remaining guaranteed monthly annuity payments, regardless of whether the death benefits are paid in the form of an annuity.

(3)   Notice and continued withholding from annuities.

(a) The department shall transmit amounts withheld under s. 40.08 (1r) , Stats., to the department of revenue and notify the payee of the amount withheld.

(b) The withholding from annuity payments subject to sub. (1) shall continue until the earlier of the following:

1. The department has withheld the total amount the department of revenue identified as attached to satisfy a delinquent tax obligation.

2. The department is instructed otherwise by the department of revenue or a court of competent jurisdiction.

CR 09-057 : cr. Register May 2010 No. 653 , eff. 6-1-10; correction in numbering of (3) (b) made under s. 13.92 (1) (b) 1. , Stats., Register May 2010 No. 653 .

Note

2007 Wis. Act 131 moved the authorization for the department of revenue to attach benefits for delinquent state tax obligations from s. 40.08 (1) , Stats., into a new s. 40.08 (1r) , Stats. The authorization was also amended to limit the authority of the department of revenue to attaching only lump sum payments and annuities paid under ss. 40.23 , 40.24 , 40.25 (1) or (2) , or 40.63 , Stats. This rule ( CR 09-057 ) therefore states that a tax attachment does apply to joint-and-survivor annuities being paid to a named survivor but does not apply to certain lump sum benefits and death benefits payable under statutes not cited in the new s. 40.08 (1r) , Stats. The rule would also state that the attachment of an annuity will result in continued monthly withholding until the entire delinquent tax amount has been withheld, or the department is instructed to stop withholding. The rule also provides that the statutory authority to attach a payment does not confer any right for the department of revenue to ask the department of employee trust funds to pay out a benefit for which the person has not applied. Microsoft Windows NT 6.1.7601 Service Pack 1