Wisconsin Notices on Qualified Charitable Distributions
The Wisconsin Department of Revenue (WDOR) has started a limited audit project focused on retirement income reporting. Some taxpayers may receive a notice of tax due if WDOR’s records don’t clearly show that certain IRA distributions were "Qualified Charitable Distributions" (QCDs).
The headline on the letter is: "Notice of Office Audit Amount Due - Individual Income Tax"
Because third-party and IRS data don’t indicate whether funds went directly to a qualified charity, you may receive a notice even if your IRA gift was properly made. PPG has already seen several clients receive these notices despite having properly made their QCDs.
If you receive a notice, review it carefully and do not pay it immediately, as the amount listed may not actually be owed. Most cases can be resolved by filing an appeal within 60 days, including documentation showing that your IRA trustee made the distribution directly to the charitable organization.
Acceptable proof of documentation includes:
- An electronic funds transfer record or copy of a check from your IRA to the charity
- A written acknowledgment from the charity confirming the date, amount, and that no goods or services were received
Include your tax account number (TAN), letter ID, and tax period on all documents you submit. Appeals can be filed online, by fax, or by mail.
Need help? Contact your PPG Partners team member for assistance verifying your QCD and responding to WDOR.
