Free 2008 IC-127 Instructions for 2008 Form 4B-1 - Wisconsin

Instructions for 2008 Form 4B-1
Interstate air carriers, motor carriers, railroads, sleeping car companies, pipeline companies, financial institutions, brokersdealers, investment advisers, investment companies, underwriters, and telecommunications companies must complete the appropriate part of Form 4B-1. Part I ­ Apportionment Percentage for Interstate Air Carriers The apportionment percentage is the average of the following three ratios: 1. Aircraft arrivals and departures within Wisconsin scheduled by the carrier to total aircraft arrivals and departures scheduled. 2. Revenue tons handled by the carrier at airports within Wisconsin to total revenue tons handled. 3. Originating revenue within Wisconsin to total originating revenue. See section Tax 2.46, Wisconsin Administrative Code. Part II ­ Apportionment Percentage for Interstate Motor Carriers The apportionment percentage is the average of the following two ratios: 1. Gross receipts from carriage of persons or property first acquired for carriage in Wisconsin to total gross receipts from carriage of persons or property everywhere. 2. Ton miles of carriage in Wisconsin to ton miles of carriage everywhere. If the above information isn't available, the Department may authorize or direct the substitution of a similar factor (for example, gross tonnage instead of gross receipts or revenue miles instead of ton miles). See section Tax 2.47, Wisconsin Administrative Code. Part III ­ Apportionment Percentage for Interstate Railroads and Sleeping Car Companies The apportionment percentage is the average of the following two ratios: 1. Gross receipts from carriage of property or persons, or both, first acquired for carriage in Wisconsin to total gross receipts from carriage of property or persons, or both, everywhere. 2. Revenue ton miles of carriage in Wisconsin to revenue ton miles of carriage everywhere. See section Tax 2.475, Wisconsin Administrative Code. Part IV ­ Apportionment Percentage for Interstate Pipeline Companies The apportionment percentage is the average of the following three ratios: 1. Net cost (for Wisconsin tax purposes) of tangible property owned and used in Wisconsin to produce apportionable income to total net cost of such property everywhere. 2. Total compensation paid to employees located in Wisconsin to total compensation paid to employees everywhere. 3. Traffic units (for example, barrel miles, cubic foot miles, or other appropriate measure of product movement) in Wisconsin to total company traffic units. See section Tax 2.48, Wisconsin Administrative Code. Part V ­ Apportionment Percentage for Interstate Financial Institutions The apportionment percentage is the ratio of receipts in Wisconsin to total receipts. Interest, dividends, gross receipts or net gains from sales of securities held for investment purposes, and other income from investment assets may not be included in the receipts factor. See section Tax 2.49, Wisconsin Administration Code. Part VI ­ Apportionment Percentage for Interstate Brokers-Dealers, Investment Advisers, Investment Companies, and Underwriters The apportionment percentage is the ratio of receipts in Wisconsin to total receipts. Interest, dividends, gross receipts or net gains from sales of securities held for investment purposes, and other income from investment assets held by the taxpayer in the taxpayer's investment account may not be included in the receipts factor. See section Tax 2.495, Wisconsin Administrative Code. Part VII ­ Apportionment Percentage for Interstate Telecommunications Companies The apportionment percentage is the average of the property factor, payroll factor, and sales factor. However, receipts from sales, other than sales of tangible personal property, are in Wisconsin if the income producing activity is performed in Wisconsin. If the income producing activity is performed both in and outside Wisconsin, the sales shall be divided between those states having jurisdiction to tax the business in proportion to the direct costs of performance incurred in each state in rendering this service. Services performed in states which do not have jurisdiction to tax the business shall be deemed to have been performed in the state to which compensation is allocated. See section Tax 2.502, Wisconsin Administrative Code.

IC-127