Tax Attorney in Madison, WI

In several material ways. Wisconsin is one of only nine community-property states — California, Nevada, Arizona, New Mexico, Texas, Washington, Idaho, Wisconsin, and Louisiana, plus Alaska on an opt-in basis — under the Wisconsin Marital Property Act at Wis. Stat. Ch. 766. Federal income reporting follows Rev. Rul. 56-462: each spouse generally reports half of community income on a separate return, and Form 8958 reconciles the split when spouses elect married-filing-separately. Innocent Spouse Relief under IRC §6015 operates differently — the §6015(c) "separation of liability" election applies special community-property rules. Basis step-up at the first spouse’s death runs under IRC §1014(b)(6) on the full property rather than just the decedent’s half — a major planning advantage. Federal collection against community property under IRC §6321 reaches the taxpayer’s community-property interest even when only one spouse is named.

The 403(b) elective-deferral limit under IRC §402(g) is $23,500 for 2025 ($31,000 with age-50 catch-up; higher for the SECURE 2.0 age-60-63 super-catch-up). Importantly, the §402(g) limit aggregates across all 403(b) and 401(k) accounts the participant holds — so a UW–Madison faculty member contributing to the UW 403(b) at TIAA and a side 403(b) at Fidelity (legacy from a prior employer) is at risk of exceeding the limit. The Wisconsin Deferred Compensation 457(b) plan sits in a separate §457(b) bucket that does not aggregate with §402(g), so the 457(b) deferral is additive. The §415(c) overall annual additions limit ($70,000 for 2025) caps total contributions to any one 403(b) or 401(k) account. We pull all account statements before filing because IRS Letter 4538 inquiries on excess deferrals are routine.

The combination of W-2 hospital employment plus 1099 locum or moonlight work catches a lot of UW Health, SSM Health, and UnityPoint Meriter physicians in the first year. The 1099 income carries 15.3% self-employment tax under IRC §1401 (the OASDI portion phases out above the Social Security wage base, $176,100 for 2025), federal income tax at the marginal rate, and Wisconsin’s 7.65% top bracket. Quarterly estimates under IRC §6654 are required — missing them generates underpayment penalties on top of the balance. The fix is a Form 1040-ES quarterly schedule going forward, a SEP-IRA or solo 401(k) contribution (up to $70,000 for 2025 across both) on the 1099 side to reduce the tax base, and a short-term IRS payment plan or streamlined IA under IRC §6159 to clear the current-year balance. Where the balance is past 12 months and grew with penalties and interest, evaluate OIC under IRC §7122.

Most things. As an Epic W-2 employee, FICA and federal income withholding came out automatically and your only year-end concern was Schedule D reconciliation on any ESPP-style accounts. As a Schedule C independent consultant or single-member LLC, you owe quarterly estimated taxes under IRC §6654, the 15.3% self-employment tax under IRC §1401 on net earnings, federal income tax at your marginal rate, and Wisconsin income tax at the graduated rates topping out at 7.65%. The home-office deduction under IRC §280A(c)(1) requires exclusive and regular business use of a defined space. Once revenue scales, an S-corporation election can reduce SE-tax exposure, but the reasonable-compensation standard under Watson v. Commissioner (8th Cir. 2012) and Davis v. Commissioner requires a W-2 salary that reflects the value of services performed. Many former Epic developers and consultants get this part wrong in year one.

The Wisconsin Tax Appeals Commission is an independent state administrative tribunal that hears appeals from Wisconsin Department of Revenue Notices of Action. It is structurally separate from the WI DOR, which matters because the deciders are not employed by the agency whose assessment is being challenged. The Commission’s office is in Madison at 5005 University Avenue Suite 110. The petition window under Wis. Stat. §73.01(4) is 60 days from the WI DOR Notice of Action. The 60-day clock is jurisdictional — miss it and the assessment becomes final, with no merit review available. After the Commission rules, judicial review is available in Wisconsin Circuit Court for Dane County and on appeal to the Wisconsin Court of Appeals. Only a handful of states have a dedicated tax-appeals tribunal at this level (Indiana, New Jersey, Oregon, Hawaii are close analogs); Wisconsin’s is well-established.

Tax-treaty articles for teaching, research, and student stipends vary by country. The U.S.–Germany treaty Article 20, U.S.–China Article 19/20, U.S.–India Article 22, and U.S.–South Korea Article 21 each provide treaty-based exclusion or reduction for certain teaching, research, or training compensation up to specified amounts and durations. The treaty benefit appears on Form 1042-S issued by UW–Madison and is claimed on Form 1040-NR (or Form 1040 if you have passed the substantial-presence test) with Form 8833 disclosure where required. The frequent error is reading the treaty as a full income exclusion when it covers only the qualifying portion — service-related stipends under IRC §117(c) often fall outside the exclusion. Pull the W-2 (if any), the 1042-S, and the UW appointment letter together before filing. The IRS catches under-reporting through the SSA / OASDI reconciliation on the 1042-S system.

NIL compensation is ordinary income under IRC §61 reported on Schedule C if the activity is a trade or business (most are), or on Schedule 1 line 8 as other income if it is truly occasional. Schedule C income is subject to 15.3% self-employment tax under IRC §1401 (subject to the SS wage base) and quarterly estimates under §6654. Allowable deductions include agent commissions, training expenses with documentation, travel directly related to NIL activity, and a proportionate home-office deduction under §280A if a specific space is used exclusively for NIL business activity. The IRS released Rev. Proc. 2024-26 guidance on NIL collectives — collectives that are not bona fide §501(c)(3) charities pay taxable compensation that the athlete must include in income. Wisconsin’s top bracket of 7.65% applies on top of federal. Quarterly estimates start the first year you receive material NIL income.

If the aggregate balance across all your foreign financial accounts exceeded $10,000 at any point during the calendar year, yes. FinCEN Form 114 (FBAR) is required under 31 USC §5314 and is filed separately from the federal income-tax return on the FinCEN BSA e-file system. IRS Form 8938 is a separate statement filed with Form 1040 at higher thresholds. For Madison filers with Lao, Thai, or Vietnamese family accounts, Indian accounts at HDFC Bank, ICICI Bank, or State Bank of India, Mexican accounts at BBVA, Nepali or Bhutanese accounts, or accounts inherited from relatives abroad, both forms may apply. Streamlined Filing Compliance Procedures resolve good-faith past nondisclosure without the willful penalty — the willful FBAR penalty reaches the greater of $100,000 (inflation-adjusted) or 50% of the account balance per violation. Streamlined is currently open and is the right path when there is no badge of fraud. For non-resident spouses without SSN, ITIN issuance under Form W-7 runs in parallel.

The U.S. Tax Court does not hold trial sessions in Madison. Wisconsin cases are tried in Milwaukee at the Reuss Federal Plaza, 211 W Wisconsin Avenue, Milwaukee WI 53203 — about 80 miles east of downtown Madison via I-94. A petitioner designates Milwaukee as the preferred place of trial on the petition under Tax Court Rule 140. Sessions are scheduled on rotation rather than monthly. If the Milwaukee calendar is full, cases may also route to Chicago. Small-tax-case procedure under IRC §7463 is available for deficiencies of $50,000 or less per year; the decision is final and not appealable, but the procedure is more informal and accessible without representation. Note that federal refund suits and criminal-tax matters affecting Madison taxpayers do proceed locally in the U.S. District Court for the Western District of Wisconsin at the Robert W. Kastenmeier Courthouse on North Henry Street.

Three layers. First, federal income tax: IRC §263A uniform capitalization applies to inventory, with §263A(f) interest capitalization for production periods over two years (relevant for aged sour and barrel programs at Vintage, Working Draft, or Giant Jones). The small-producer rules under §263A(d) and the small-business taxpayer rules under TCJA (gross receipts under the indexed threshold, $30M for 2026) provide carve-outs. Second, federal excise tax under the Alcohol and Tobacco Tax and Trade Bureau (TTB) — the reduced rate of $3.50 per barrel applies to the first 60,000 barrels for brewers producing under 2 million barrels. Third, Wisconsin DOR fermented-malt-beverage tax under Wis. Stat. Ch. 139 at $2 per barrel. Each runs on a separate compliance cycle, and the Capital Brewery, Karben4, Working Draft, Vintage, and One Barrel scale of operation each fits the small-brewer rate structure.

Yes. IRC §7345 authorizes the IRS to certify "seriously delinquent" tax debt — currently $62,000 for 2026, indexed for inflation — to the State Department, which may then deny passport renewal or revoke an active passport. The certification reverses when the debt is paid, an IA is in place, an accepted OIC is in force, an active CDP hearing is pending, or Innocent Spouse Relief is in process. UW–Madison faculty on sabbatical or conference travel, UW Health physicians attending international clinical-trial meetings, Epic Systems consultants traveling to overseas health-system deployments, and Hmong-American, Vietnamese, Hindu-Indian, and Bhutanese-Nepali families returning to family abroad all face real revocation exposure. Decertification typically processes within 30 days once a qualifying resolution is in place.

Probably yes for the federal trust-fund portion. IRC §6672 assesses a Trust Fund Recovery Penalty against any "responsible person" who "willfully" failed to pay over withheld taxes — the FICA and federal income-tax withholding portion of Form 941. The IRS conducts a Form 4180 interview to identify responsible persons. Anyone with check-signing authority, payroll-decision authority, or knowledge of the unpaid taxes can be assessed personally. For Madison East Washington tech startups, State Street retail, Williamson Street food-and-beverage operations, and University Research Park biotech LLCs, this often catches multiple people because check-signing authority overlaps with operations roles. On the state side, Wis. Stat. §71.83 reaches personally for unpaid withholding, and Wis. Stat. Ch. 108 reaches officers for unpaid unemployment-insurance contributions. WI sales-and-use tax exposure under Wis. Stat. Ch. 77 runs in parallel.

Under Wis. Stat. §71.77, the Wisconsin Department of Revenue generally has four years from the date the return was filed to assess additional state income tax. The period extends to six years where 25% or more of gross income is omitted, and is unlimited for unfiled returns or fraud. The federal IRS Collection Statute Expiration Date (10 years from assessment under IRC §6502) runs independently. WI tax warrants and judgments under Wis. Stat. §71.91 collect on a separate clock that can extend well past the federal 10-year window through judgment renewal recorded in Dane County. Sales-and-use tax assessments under Wis. Stat. Ch. 77 follow their own four-year baseline. Pull every transcript before negotiating.

Federal tax-resolution fees vary by matter complexity. A straightforward Installment Agreement typically falls between $1,500 and $3,500. A full Offer in Compromise with Form 433 financial analysis runs $4,000 to $7,500. Audit defense depends on the audit type and the number of issues. A U.S. Tax Court petition with case workup and trial preparation generally starts at $6,000 and rises with case complexity. A combined federal-plus-WI DOR matter that also involves community-property allocation analysis runs higher because three reconciliations — federal, state, and marital — have to land together. VTL provides a written fee quote after the free consultation. California Bar Rule 7.1 prohibits comparisons claiming we are cheaper or faster than competitors without verifiable substantiation, so we do not market on price.

Yes. Communications between you and a licensed attorney for the purpose of seeking legal advice are protected by federal common-law attorney-client privilege, subject to the usual exceptions (crime-fraud, waiver, third-party presence). The narrower federally-authorized tax practitioner privilege under IRC §7525 applies to non-attorney CPAs and EAs but does not extend to criminal-tax matters or to written tax-shelter communications. An attorney handling your tax case retains the broader privilege that survives criminal investigation, which matters significantly if a civil audit shifts to a Criminal Investigation Division referral.

For administrative work at the Wisconsin Department of Revenue — responding to a Notice of Amount Due, filing a Petition for Redetermination, working through the WI DOR Resolution Unit on income, sales-and-use, or withholding reassessment — representation runs through a Wisconsin Form A-222 power of attorney. The WI DOR accepts representation by attorneys, CPAs, enrolled agents, and other authorized representatives. For formal appeal to the Wisconsin Tax Appeals Commission under Wis. Stat. §73.01, the Commission permits representation by attorneys, CPAs, and authorized individuals. For judicial review in Wisconsin Circuit Court for Dane County and the Wisconsin Court of Appeals, an attorney admitted in Wisconsin is required — VTL refers to local Wisconsin counsel for that stage and stays engaged on the federal side. Many WI tax disputes resolve at the WI DOR administrative or Commission stage without ever reaching circuit court.

Yes, generally. IRC §6331(k)(1) suspends levy action while an offer is pending and for 30 days after a rejection, plus during any timely-filed Appeals review of a rejection. The IRS will not levy on you while a processable OIC is being evaluated. However, the IRS may still file a Notice of Federal Tax Lien during the OIC pendency to protect its position — the lien is not a levy. CSED is also tolled during pendency, which can matter when the original ten-year clock is close to expiring. A poorly-prepared OIC that gets returned (not rejected) does not provide the same protection — processability matters, and Forms 433-A(OIC) and 433-B(OIC) must be technically complete, with community-property allocation analysis built in for married Madison filers.