Wisconsin Banks Reach Settlement On Back Taxes
The Wisconsin Department of Revenue said it has reached settlements with 87 banks that owe back taxes to the state, with at least 80 more agreements currently in the works. To date, the settlements stipulate payments totaling $24 million in back taxes. The settlements are part of Wisconsin's crackdown on banks using out-of-state subsidiaries set up as tax-shelters in Nevada and other states to avoid paying income tax in Wisconsin. Nevada has no corporate income tax; Wisconsin has a 7.9% tax. The Wisconsin Bankers Association estimates that 250 of the 320 banks doing business in Wisconsin have out-of-state subsidiaries.