Skaar v. Department of Revenue

The sole issue is whether the Wisconsin tax appeals commission erred in affirming the Department of Revenue’s denial of the taxpayers’ application for abatement of the additional income tax assessment by concluding that, as a matter of law, no bona fide partnership existed.

While the Wisconsin income tax is modeled upon the federal system, the personal income tax treatment of married individuals under the federal and Wisconsin tax provisions is dissimilar. Under the federal system, married individuals are permitted to file a joint return and effectively split their income even though all…