Fillable Printable 2013 Form 587 - Nonresident Withholding Allocation Worksheet
Fillable Printable 2013 Form 587 - Nonresident Withholding Allocation Worksheet
2013 Form 587 - Nonresident Withholding Allocation Worksheet
Form 587 C2 2012
For Privacy Notice, get form FTB 1131.
Withholding agent’s name
Address (number and street, PO Box, or PMB no.) Apt. no./Ste. no.
City State ZIP Code
Part II Nonresident Payee (Complete Part II through Part V and return this form to the above withholding agent)
Payee’s name Owner’s full name if sole proprietor
Address (number and street, PO Box, or PMB no.) Apt. no./Ste. no.
City State ZIP Code
Part IV Income Allocation
Gross payments expected from the above withholding agent during the calendar year for:
(a) Within California (b) Outside California (c) Total payments
1 Goods and services:
Goods/materials (no withholding required) .............................................................
___________________________
Services (withholding required) ............ ___________________________ ___________________________ ___________________________
2 Rents or lease payments ................... ___________________________ ___________________________ ___________________________
3 Royalty payments ........................ ___________________________ ___________________________ ___________________________
4 Prizes and other winnings ............... ___________________________ ___________________________ ___________________________
5 Other payments .......................... ___________________________ ___________________________ ___________________________
6 Total payments subject to withholding.
Add column (a), line 1 through line 5 ....... ___________________________ ___________________________ ___________________________
Nonresident withholding threshold amount: ... $1,500.00
Backup withholding threshold amount: ....... $0.00
Withholding is optional, at the discretion of the withholding agent, on the first $1,500 in payments made during the calendar year. Withholding must begin as
soon as the total payments of California source income for the calendar year exceed $1,500. If the FTB grants the withholding waiver, attach a copy of the FTB
determination letter. See General Information E, Waivers. For backup withholding, there is no threshold amount.
Part V Certification of Payee
Under penalties of perjury, I certify that the information provided on this document is true and correct. If the reported facts change, I will promptly inform the withholding agent.
( )
Authorized representative’s signature Title Daytime telephone number
( )
Payee’s signature Date Daytime telephone number
Nonresident Withholding
Allocation Worksheet
CALIFORNIA FORM
587
7041133
Part I Withholding Agent
SSN or ITIN CA Corp. no. FEIN
California Secretary of State (SOS) file no.
Daytime telephone number
( )
Nonresident payee’s entity type: (Check one)
Individual/sole proprietor Corporation Partnership Limited liability company (LLC) Estate or trust
Part III Payment Type
Nonresident payee: (Check one)
Performs services totally outside California (no withholding required, skip to Part V) Provides goods and services in California (see allocation in Part IV)
Provides only goods or materials (no withholding required, skip to Part V)
Provides services within and outside California (see allocation in Part IV)
Other (Describe)___________________________________________
If the payee performs all the services within California, withholding is required on the entire payment for services unless the payee is granted a withholding
waiver from the Franchise Tax Board (FTB). For more information, get FTB Pub. 1017, Resident and Nonresident Withholding Guidelines.
TAXABLE YEAR
2013
Instructions for Form 587
Nonresident Withholding Allocation Worksheet
References in these instructions are to the California Revenue and Taxation Code (R&TC).
General Information
Backup Withholding – Beginning on or
after January 1, 2010, with certain limited
exceptions, payers that are required to
withhold and remit backup withholding
to the Internal Revenue Service (IRS)
are also required to withhold and remit
to the Franchise Tax Board (FTB). The
California backup withholding rate is 7%
of the payment. For California purposes,
dividends, interests, and any financial
institutions, release of loan funds made in
the normal course of business are exempt
from backup withholding. For additional
information on California backup
withholding, go to ftb.ca.gov and search
for backup withholding.
If a payee has backup withholding, the
payee must contact the FTB to provide a
valid Taxpayer Identification Number (TIN)
before filing a tax return. The following are
acceptable TINs: social security number
(SSN); individual taxpayer identification
number (ITIN); federal employer
identification number (FEIN); California
corporation number (CA Corp No.); or
California Secretary of State (SOS) file
number. Failure to provide a valid TIN
will result in the denial of the backup
withholding credit.
Private Mail Box (PMB) – Include the
PMB in the address field. Write “PMB”
first, then the box number. Example: 111
Main Street PMB 123.
Foreign Address – Enter the information
in the following order: City, Country,
Province/Region, and Postal Code.
Follow the country’s practice for entering
the postal code. Do not abbreviate the
country’s name.
A Purpose
Use Form 587, Nonresident Withholding
A llocation Worksheet, to determine
the amount of withholding required on
payments to nonresidents.
The payee completes, signs, and
returns Form 587 to the withholding
agent. The withholding agent relies on
the certification made by the payee to
determine the amount of withholding
required, provided the completed and
signed Form 587 is accepted in good
faith. Withholding agents should retain the
completed Form 587 for their records for
a minimum of four years and provide it to
the FTB upon request.
Do not use Form 587 if any of the
following applies:
• You sold California real estate.
Use Form 593-C, Real Estate
Withholding Certificate.
• The payee is a resident of California or
is a non-grantor trust that has at least
one California resident trustee. Use
Form 590, Withholding Exemption -
Certificate.
• The payee is a corporation, partnership,
or limited liability company (LLC) that
has a permanent place of business in
California or is qualified to do business
in California. Foreign corporations
must be qualified to transact intrastate
business. Use Form 590.
• The payment is to an estate and the
decedent was a California resident. Use
Form 590.
B Requirement
California Revenue and Taxation Code
(R&TC) Section 18662 and the related
regulations require withholding of income
or franchise tax on certain payments made
to nonresidents of California for personal
services performed in California and for
rents on property located in California and
royalties with activities in California. The
withholding rate is seven percent (.07)
unless the FTB grants a waiver. See
General Information E, Waivers.
C When to File This Form
The withholding agent requests that the
payee completes, signs, and returns
Form 587 when a contract is entered into
or before payment is made to the payee.
The withholding agent retains Form 587
for a minimum of four years and must
provide it to the FTB upon request.
Form 587 remains valid for the duration
of the contract (or term of payments),
provided there is no material change in
the facts. By signing Form 587, the payee
agrees to promptly notify the withholding
agent of any changes in the facts.
D Withholding Requirements
Payments made to nonresident payees
(including individuals, corporations,
partnerships, LLCs, estates, and trusts)
are subject to withholding. Withholding
is required if total payments of California
source income to the nonresident payee
during the calendar year exceeds $1,500.
If the California resident, qualified
corporation, LLC, or partnership is acting
as an agent for the nonresident payee, the
payment is subject to withholding if the
nonresident payee does not meet any of
the exceptions on Form 590.
Payments subject to withholding include
the following:
• Payments for services performed in
California by nonresidents.
• Payments made in connection with a
California performance.
• Rent paid to nonresidents if the rent is
paid in the course of the withholding
agent’s business.
• Royalties paid to nonresidents from
business activities in California.
• Payments of prizes for contests
entered in California.
• Distributions of California source
income to nonresident beneficiaries
from an estate or trust.
• Other payments of California source
income made to nonresidents.
• Endorsement payments received for
services performed in California.
Payments not subject to withholding
include payments:
• To a resident of California or to a
corporation with a permanent place of
business in California.
• To a corporation qualified to do
business in California.
• To a partnership or LLC that has
a permanent place of business
in California.
• For sale of goods.
• For income from intangible personal
property, such as interest and
dividends, unless the property has
acquired a business situs in California.
• For services performed outside
of California.
• To a payee that is a tax-exempt
organization under either California or
federal law, use Form 590.
• Representing wages paid to employees.
Wage withholding is administered
by the California Employment
Development Department (EDD). For
more information, go to edd.ca.gov or
call 888.745.3886.
• To a payee that is a government entity.
• To reimburse a payee for expenses
relating to services performed in
California if the reimbursement is
Form 587 Instructions 2012 Page 1
separately accounted for and not
subject to federal Form 1099 reporting.
Corporate payees, for purposes
of this exception, are treated as
individual persons.
E Waivers
A nonresident payee may request that
withholding be waived. To apply for
a withholding waiver, use Form 588,
Nonresident Withholding Waiver Request.
If the FTB has granted a waiver, you must
attach a copy of FTB’s determination letter
to Form 587. FTB does not grant waivers
for backup withholding.
F Requirement to File a
California Tax Return
A payee’s exemption certification on
Form 587, Form 590, or a determination
letter from the FTB waiving withholding
does not eliminate the requirement to
file a California tax return and pay the
tax due. For return filing requirements,
see the instructions for Long or Short
Form 540NR, California Nonresident or
Part-Year Resident Income Tax Return;
Form 541, California Fiduciary Income Tax
Return; Form 100, California Corporation
Franchise or Income Tax Return; or
Form 100S, California S Corporation
Franchise or Income Tax Return.
Specific Instructions
Part I – Withholding Agent
The withholding agent must complete
Part I before giving Form 587 to
the payee.
Part II – Nonresident Payee
The payee must complete all information
in Part II including the SSN, ITIN, CA Corp
No., FEIN, or CA SOS file number, and
entity type.
Part III – Payment Type
The nonresident payee must check the
box that identifies the type of payment
being received.
No withholding is required when payees
are residents or have a permanent place of
business in California.
Part IV – Income Allocation
Use Part IV to identify payments that are
subject to withholding. Only payments
sourced within California are subject
to withholding. Services performed in
California are sourced in California. In the
case of payments for services performed
when part of the services are performed
Page 2 Form 587 Instructions 2012
outside California, enter the amount paid
for performing services within California
in column (a). Enter the amount paid
for performing services while outside
California in column (b). Enter the total
amount paid for services in column (c).
If the payee’s trade, business, or
profession carried on in California is
an integral part of a unitary business
carried on within and outside California,
the amounts included on line 1 through
line 5 should be computed by applying
the payee’s California apportionment
percentage (determined in accordance
with the provisions of the Uniform
Division of Income for Tax Purposes
Act) to the payment amounts. For more
information on apportionment, get
Schedule R, Apportionment and Allocation
of Income.
Withholding agent. Withholding
is optional, at the discretion of the
withholding agent, on the first $1,500 in
payments made during the calendar year.
Withholding must begin as soon as the
total payments of California source income
for the calendar year exceed $1,500. If
circumstances change during the year
(such as the total amount of payments),
which would change the amount on line
6, the payee must submit a new Form 587
to the withholding agent reflecting those
changes. The withholding agent should
evaluate the need for a new Form 587
when a change in facts occurs.
Part V – Certification of Payee
The payee and/or the authorized
representative must complete, sign,
date, and return this form to the
withholding agent.
Authorized representatives include
those persons the payee authorized to
act on their behalf through a power of
attorney, third party designee, or other
individual taxpayers authorized to view
their confidential tax data via a waiver
or release.
Additional Information
For additional information or to speak to
a representative regarding this form, call
the Withholding Services and Compliance
automated telephone service at:
888.792.4900, or
916.845.4900
FAX 916.845.9512
OR write to:
WITHHOLDING SERVICES AND
COMPLIANCE MS F182
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-0651
You can download, view, and print
California tax forms and publications at
ftb.ca.gov.
OR to get forms by mail write to:
TAX FORMS REQUEST UNIT MS F284
FRANCHISE TAX BOARD
PO BOX 307
RANCHO CORDOVA CA 95741-0307
For all other questions unrelated to
withholding or to access the TTY/TDD
numbers, see the information below.
Internet and Telephone Assistance
Website: ftb.ca.gov
Telephone: 800.852.5711 from within the
United States
916.845.6500 from outside
the United States
TTY/TDD: 800.822.6268 for persons
with hearing or speech
impairments
Asistencia Por Internet y Teléfono
Sitio web: ftb.ca.gov
Teléfono: 800.852.5711 dentro de los
Estados Unidos
916.845.6500 fuera de los
Estados Unidos
TTY/TDD: 800.822.6268 personas con
discapacidades auditivas y del
habla
Automated Phone Service: Use this
service to check the status of your refund,
order California forms, obtain payment
and balance due information, and hear
recorded answers to general questions.
This service is available 24 hours a day,
7 days a week, in English and Spanish.
Telephone: 800.338.0505 from within the
United States
916.845.6600 from outside
the United States
Follow the recorded instructions. Have
paper and pencil available to take notes.
