I-113i (N. 11-22)
2022 Schedule AR Instructions
Purpose of Schedule AR
Schedule AR is used to explain the reason for changes on an amended income or franchise tax return. Include Schedule AR with your
amended income or franchise tax return when it is led.
Who Must File Schedule AR
Schedule AR must be led by individuals, estates, trusts, partnerships, and corporations who are ling an amended income or franchise
tax return. This includes amended returns led on Form 1, 1CNS, 1CNP, 1NPR, 2, 3, 4, 4T, 5S, 6, PW-1, or X-NOL; or Schedule H or
H-EZ.
General Instructions
An amended income or franchise tax return is led only after you le your original tax return. Generally, a claim for refund made on an
amended return must be led within 4 years after the unextended due date of your original return (for example, April 15, 2027, for 2022
calendar-year individual income tax returns). However, a claim for refund to recover all or part of any tax paid as a result of an oce or
eld audit may be led within 4 years after the date assessed. This applies only if you paid the tax, did not le a petition for redetermination
(written appeal), and the claim for refund is for an item which was adjusted in the audit.
If you led an amended return with the Internal Revenue Service (IRS) or another state, you generally must also le an amended
Wisconsin return within 180 days if the changes aect your Wisconsin income, any credit, or tax payable. You should also le an amended
Wisconsin return to claim a refund or pay any additional tax due even if you are not amending your federal or other state return.
Check the space on the upper portion of the rst page of the form or schedule to indicate it is an amended return. See the instructions for
the form or schedule you are amending for additional information.
Specific Instructions
Check the space(s) for the reason(s) for the change(s) under the Explanation of Changes on the Amended Return section. Explain in
detail the reason for the change in the box below and indicate the line reference(s) from the form or schedule for which you are reporting a
change. The following instructions explain the various reasons which may apply to the reason for your amended return. If multiple reasons
exist, you may check more than one space to explain the change.
01 – Dependent change
Check this space if there is a change to the number of dependents you are claiming or a change to the information for a dependent
claimed. Include a copy of your federal Form 1040 or 1040-SR which includes the changes to the dependent(s). Include a reason for the
change in the box below.
02 – Pass-through entity (partnership, tax-option (S) corporation, estate, or trust) change
If there is a change to the tax return led by a pass-through entity which aects your income or franchise tax return, check this space.
Include a copy of the amended Schedule 2K-1, 3K-1, or 5K-1 with your amended return and a reason for the change in the box below.
For example, if a pass-through entity changes the amount of income reported on its income or franchise tax return and sends you an
amended Schedule 3K-1, le an amended income or franchise tax return to report the change in income and check space 02.
02a, 02b, and 02c – General information
If the change from the pass-through entity is due to one of the reasons provided in space 02a, 02b, or 02c, check space 02 and the
corresponding space that applies to your situation. If none of the reasons in space 02a, 02b, or 02c apply to you, do not check any of the
spaces.
02a – Claim for overpayment or credit under sec. 71.745(2)(b) or (3)(b), Wis. Stats.
Check this space if either of the two situations apply:
• You are claiming a refund because you are a pass-through member of a pass-through entity that was audited by the department under
sec. 71.745, Wis. Stats., and the audit resulted in a tax overpayment. Note: According to sec. 71.745(2)(b), Wis. Stats., a pass-through
member may claim the overpayment within one year after the date the pass-through entity’s audit determination becomes nal or within
four years of the unextended due date of the pass-through member’
s return, as provided in sec. 71.75, Wis. Stats., whichever is later
.
• You are increasing a Wisconsin tax credit because you are a pass-through member of a pass-through entity that was audited by the
department under sec. 71.745, Wis. Stats., and the audit resulted in an increase to a Wisconsin tax credit. Note: According to sec.
71.745(3)(b), Wis. Stats., a pass-through member may claim the excess credit not used to oset the pass-through entity’s additional tax
Wisconsin Department of Revenue
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within one year after the date the pass-through entity’s audit determination becomes nal or within four years of the unextended due
date of the pass-through member’s return, as provided in sec. 71.75, Wis. Stats., whichever is later.
02b – Amend for election under sec. 71.745(8), Wis. Stats.
Check this space if all of the following apply:
• You are a pass-through member of a pass-through entity that was audited by the department under sec. 71.745, Wis. Stats.,
• The pass-through entity’s audit determination has become nal,
• Within 60 days after the pass-through entity’s audit determination became nal, the pass-through entity made an election under sec.
71.745(8), Wis. Stats., to reduce the assessment, and
• Within 60 days after the pass-through entity made an election under sec. 71.745(8), Wis. Stats., you are amending your income or
franchise tax return to report your proportionate share of the pass-through entity’s audit adjustments and pay the related Wisconsin tax,
interest, penalties, and fees.
02c – Nonresident Schedule K-1 income allocation
If you received an amended Schedule 2K-1, 3K-1, or 5K-1 because you are a nonresident pass-through member and your income
allocation has changed, check this space. Include a copy of the amended Schedule 2K-1, 3K-1, or 5K-1 with your amended income or
franchise tax return.
03 – Form W-2/1099 change
If you received a corrected wage statement or information return (such as Forms W-2c, 1099-NEC, and 1099-MISC) and are amending
your income or franchise tax return to report the change, check this space and provide an explanation of the change in the box below.
Include a copy of the corrected Form W-2c or 1099 with your amended return. If you are amending your return to report a dierent amount
of interest or dividend income, check the space by 05 instead.
04 – Tuition expense subtraction
If you claimed a subtraction for tuition and fee expenses on line 8 of Schedule SB (Form 1) or line 42 of Schedule M (Form 1NPR) and
are amending your income tax return to adjust the amount of the subtraction claimed or are claiming a new subtraction, check this space.
Include an explanation in the box below indicating the reason for the adjustment.
05 – Interest/dividends change
If you are amending your income or franchise tax return to claim a dierent amount of interest or dividend income, check this space. If the
change is a result of a corrected Form 1099-INT, 1099-OID, or 1099-DIV, include a copy of the corrected form with your amended return.
If the change is for a dierent reason, include an explanation in the box below.
06 – Filing status change
If you are amending your income or franchise tax return to change the ling status reported on your original return, check this space.
Caution: If you led your original individual income tax return as married ling joint, you may not, after the due date for ling that return,
amend it to le as married ling separately. Include a reason for the change in the box below.
07–Wisconsinmodicationstofederalincome
If you are amending your income or franchise tax return to claim a modication listed on Schedule AD and/or SB (Form 1) or Schedule M
(Form 1NPR), or to change a modication claimed on your original return, check this space. Include the amended Schedule AD and/or
Schedule SB or Schedule M with your amended return and a reason for the change in the box below.
08 – Exempt pensions
If you are amending your individual income tax return to exclude pension income previously reported as taxable or include pension
income previously reported as exempt from Wisconsin income tax, check this space. This is for exempt pensions which may be reported
as a subtraction from income on line 12, 13, or 14 of Schedule SB (Form 1) or line 46, 47, or 48 of Schedule M (Form 1NPR). Include a
reason for the change in the box below.
09 – Repayment of income previously taxed
If you are amending your individual income tax return to claim or remove the subtraction for repayment of income previously taxed on
line 28 of Schedule SB (Form 1) or line 62 of Schedule M (Form 1NPR), check this space. If you are claiming the subtraction, include an
explanation of the income you repaid during 2022 and the year it was originally reported as income on your return. If you are removing
the subtraction, include a reason in the box below.
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Caution: A subtraction may be claimed only for repayments that are allowed as a miscellaneous itemized deduction on your federal
Schedule A (Form 1040). Miscellaneous itemized deductions subject to the 2% of adjusted gross income limit are no longer allowed as
itemized deductions on federal Schedule A (Form 1040) according to Public Law 115-97 for taxable years 2018 through 2025. These
amounts are also no longer allowable as a deduction on federal Schedule A (Form 1040) for Wisconsin purposes. Therefore, a subtraction
may not be claimed on line 28 of your 2022 Schedule SB or line 62 of your 2022 Schedule M.
10 – Apportionment percentage
Check this space if the apportionment percentage computed on Schedule A-01, A-02, A-03, A-04, A-05, A-06, A-07, A-08, A-09, A-10, or
A-11 changed. Include the amended Schedule A-01, A-02, A-03, A-04, A-05, A-06, A-07, A-08, A-09, A-10, or A-11 with your amended
return and an explanation for the change in the box below.
11 – Non-unitary income/separate accounting
Check this space if you are amending your income or franchise tax return to designate part or all of your income as non-unitary and are
using separate accounting to determine the income attributable to Wisconsin. Note: A unitary business may use separate accounting
only with the approval of the department. Mail the request for approval before the end of the taxable year for which the use of separate
accounting is desired to:
Mail Stop 3-107
Wisconsin Department of Revenue
Audit Bureau
PO Box 8906
Madison, WI 53708-8906
Include Form N, Wisconsin Nonapportionable, Separately Accounted, and Separately Apportioned Income, and/or Form C, Wisconsin
Allocation and Separate Accounting Data, with your amended income or franchise tax return. Provide an explanation for the change in
the box below.
12 – Protective claim
A protective claim is a request to preserve a taxpayer’s right to claim a refund based on the conclusion of a future event(s) that cannot be
determined within the time period for which a claim for refund must be properly led with the department. In general, a taxpayer must le
a claim for refund with the department within four years of the unextended due date of the original income or franchise tax return.
A protective claim is often related to current litigation or expected changes in the tax law or other legislation and regulations. The claim
does not have to state a particular dollar amount or demand an immediate refund. Provide an explanation for the protective claim in the
box below.
13 – Net business loss
Check this space if you are amending your net business loss. Include Form 4BL, Wisconsin Net Business Loss Carryforward for Separate
Entity Corporations, or Form 6BL, Wisconsin Net Business Loss Carryforward for Combined Group Members, with your amended income
or franchise tax return. Provide an explanation for the change in the box below.
14 – Tax credits
Check this space if you are amending your return to claim a Wisconsin tax credit or are changing the amount of a credit previously
claimed. Include the credit schedule with your income or franchise tax return and provide an explanation for the change in the box below.
15 – Federal audit
Check this space if you are amending your return to report adjustments to your Wisconsin return based on adjustments made by the IRS
from a federal audit. Include a copy of the nal federal audit report with your amended return and explain changes made as a result of the
audit in the box below. Note: The department must be notied within 180 days after the federal audit adjustments are nal.
16 – Federal amended return
Check this space if you amended your federal income or franchise tax return and are reporting adjustments to your Wisconsin income or
franchise tax return as a result of the adjustments made on your federal return. Include a copy of your amended federal return and explain
additional changes made in the box below. Note: If you led an amended return with the IRS, you generally must also le an amended
Wisconsin return within 180 days.
17 – Adding or removing members of a combined group
Check this space if you are amending your income or franchise tax return because the combined group is adding or removing
members. Include a statement indicating the members added or removed in the box below.
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Applicable Laws and Rules
This document provides statements or interpretations of the following laws and regulations enacted as of November 16, 2022: ch.
71, Wis. Stats, sec. Tax 2.82, Wis. Adm. Code, and sec. 67, IRC.
18 – Individual Retirement Arrangement (IRA) change
Check this space if you are amending your income or franchise tax return to report a dierent amount of taxable distribution from an IRA. If
you are changing the taxable amount of the distribution due to receiving a corrected federal Form 1099-R, include a copy of the corrected
Form 1099-R and an explanation for the change in the box below.
19 – P.L. 86-272
Check this space if you are amending your income or franchise tax return because you do not have nexus in Wisconsin. Under Public Law
86-272, a state can’t impose an income tax or franchise tax based on net income from a corporation selling tangible personal property if
the corporation’s only activity in the state is the solicitation of orders which are approved outside the state and are lled by delivery from
a point outside the state. Provide an explanation for the change in the box below.
20 – Other
Check this space if you are amending your income or franchise tax return for a reason other than those listed in 01 through 19. Include a
detailed explanation for the change in the box below and provide any revised forms or schedules with your amended return.
Additional Information
For more information, you may:
Individuals
Call: (608) 266-2772
Email: [email protected]
Write: Mail Stop 5-77
Wisconsin Department of Revenue
PO Box 8949
Madison WI 53708-8949
Corporations
Call: (608) 266-2772
Email: [email protected]
Write: Wisconsin Department of Revenue
Corporation Franchise/Income Tax Assistance
PO Box 8906
Madison WI 53708-89406
Pass-Through Entities
Call: (608) 266-2772
Email: [email protected]
Write: Mail Stop 5-77
Wisconsin Department of Revenue
PO Box 8949
Madison WI 53708-8949
