Wisconsin Department of Revenue v. Heritage Mutual Insurance Co.

The Wisconsin Department of Revenue appeals from a circuit court order affirming a decision of the Wisconsin Tax Appeals Commission granting Heritage Mutual Insurance Company's claims for a partial refund of taxes previously paid for the years 1987 and 1988.

The question in this case is whether Heritage took the proper deduction pursuant to § 71.45(2), Stats., 1987-88, when computing its Wisconsin taxable income. This statute requires an insurance company to "add back" certain interest and dividend income allowed as deductions under federal tax law. We agree with the Commission's determination…