FOR IMMEDIATE RELEASE

For Further Information Contact:
State Representative Jesse Kremer (R-Kewaskum)
(608) 266-9175

May 6, 2015

Rep. Jesse Kremer Pushes Back on DOR, Provides Predictability for Small Business Audits

Madison, WI - At the recommendation of several 59th Assembly District constituents, Rep. Jesse Kremer (R-Kewaskum) has authored a bill that will push back on Wisconsin Department of Revenue (DOR) audits of small businesses and provide more predictability during the process.

"As an entrepreneur just getting your feet wet, it is typically not cost effective to hire a full time accountant," stated Rep. Kremer. "Many small business owners with only a few employees keep their own books and muddle through the regulations by themselves. Understanding that mistakes do happen, this bill would ensure that any errors caught by an audit would be paid at a market interest rate, not the current, arbitrary flat rate of 12 percent."

A business’ first audit would be considered a learning experience with no interest assessed. For subsequent audits, market rates will be set at the Federal Reserve prime rate, plus one percentage point. Beginning with an 11.5 percent interest rate on January 1, 2016, the rate will continue to decrease by 0.5 percent annually until the true, "market rate" is achieved.

The bill also instates a 240 day (8 month) audit timeline for businesses grossing less than $5,000,000 per year. The current average audit time for small and medium-sized businesses is 171 days. Under this bill, interest would not compound from the time the audit is begun.

Rep. Kremer represents the 59th Assembly District which includes Southern Calumet, Western Sheboygan, Northern Washington and Eastern Fond du Lac counties.

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