If I have related entity expenses that aren’t eligible for a deduction and I had similar transactions in years before the addback was required, will the deductions be allowed for those prior years?
The department may disallow those same expenses for prior years under its express statutory authority in secs. 71.10(1), 71.30(2), and 71.80(1)(b), Wis. Stats. For example, if you have related entity interest or rental expenses in 2008 which are ineligible for a deduction under the addback provisions, and you had substantially identical transactions in prior years, you should amend your returns for those prior years under voluntary disclosure. For more details, see Wisconsin Voluntary Disclosure Program.
