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Court Requires Wisconsin Department of Revenue to Follow its Own Pronouncement | Blank Rome LLP


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While state taxing agencies generally take the high road, it is important to remember that when they do not, the courts can require them to do so.
In
Wisconsin Department of Revenue v. Deere and Company, No. 2020AP726, 2021 Wisc. App. LEXIS 74 (Wis. Ct. App. Feb. 25, 2021), the Wisconsin Court of Appeals held that Deere and Company (“Deere”) was permitted a dividends-received deduction for distributions received from a Luxembourg limited partnership that was treated as a corporation for federal tax purposes. What makes this case particularly significant is that, in doing so, the court ruled that the Department of Revenue (“Department”) was prohibited from arguing otherwise because such an argument was contrary to the Department’s then-existing published guidance. ....

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