Fillable Printable 2017 Form 587 - Nonresident Withholding Allocation Worksheet
Fillable Printable 2017 Form 587 - Nonresident Withholding Allocation Worksheet
2017 Form 587 - Nonresident Withholding Allocation Worksheet
Form 587 C2 2016
Nonresident Withholding
Allocation Worksheet
CALIFORNIA FORM
587
TAXABLE YEAR
2017
Part I Withholding Agent Information
Part II
Nonresident Payee Information
Part III
Payment Type
Part IV
Income Allocation
Certification of Nonresident Payee
Withholding agent’s name
Payee’s name
SSN or ITIN FEIN CA Corp no. CA SOS file no.
Address (apt./ste., room, PO box, or PMB no.)
Address (apt./ste., room, PO box, or PMB no.)
City (If you have a foreign address, see instructions.)
City (If you have a foreign address, see instructions.)
Nonresident payee’s entity type: (Check one)
Individual/sole proprietor
Corporation Partnership
Limited liability company (LLC)
Estate or trust
State
State
ZIP code
ZIP code
The payee completes this form and returns it to the withholding agent.
Nonresident payee: (Check one)
Gross payments expected from the withholding agent during the calendar year for:
If the nonresident 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.
(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 ................... ___________________________ ___________________________ ___________________________
4 Prizes and other winnings ............... ___________________________ ___________________________ ___________________________
3 Royalty payments ........................ ___________________________ ___________________________ ___________________________
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
Performs services totally outside California (no withholding required, skip to
Certification of Nonresident Payee)
Provides only goods or materials (no withholding required, skip to
Certification of Nonresident Payee)
Provides goods and services in California (see Part IV, Income Allocation)
Provides services within and outside California (see Part IV, Income Allocation)
Other (Describe)___________________________________________
To learn about your privacy rights, how we may use your information, and the consequences for not providing the requested information, go to
ftb.ca.gov
and search for privacy notice. To request this notice by mail, call 800. 852.5711.
Under penalties of perjury, I declare that I have examined the information on this form, including accompanying schedules and statements, and to the best
of my knowledge and belief, it is true, correct, and complete. I further declare under penalties of perjury that if the facts upon which this form are based
change, I will promptly notify the withholding agent.
Print or type payee’s name
Payee’s signature
X
X
Print or type representative’s name and title
Authorized representative’s signature
Telephone
(
)
Date
Date
Telephone
(
)
Sign
Here
7041173
2017 Instructions for Form 587
Nonresident Withholding Allocation Worksheet
References in these instructions are to the California Revenue and Taxation Code (R&TC).
General Information
A Purpose
Use Form 587, Nonresident Withholding
Allocation Worksheet, to determine if
withholding is required and the amount
of California source income subject to
withholding.
Withholding is not required if payees are
residents or have a permanent place of
business in California. Get FTB Pub. 1017,
Resident and Nonresident Withholding
Guidelines, for more information.
Do not use Form 587 if any of the following
apply:
y You sold California real estate. Use
Form 593-C, Real Estate Withholding
Certificate.
y 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.
y 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.
y The payment is to an estate and the
decedent was a California resident. Use
Form 590.
y The payments are subject to backup
withholding. For more information,
go to
ftb.ca.gov and search for
backup withholding.
y The payments are for wages to employees.
Wage withholding is administered by the
California Employment Developement
Department (EDD). For more information,
go to
edd.ca.gov or call 888.745.3886.
B When to Complete
The withholding agent requests that the
nonresident payee completes, signs, and
returns Form 587 to the withholding agent
when a contract is entered into and before a
payment is made to the payee. The withholding
agent relies on the certification made by the
payee to determine the amount of withholding
required, if the completed and signed Form
587 is accepted in good faith.
Form 587 remains valid for the duration of the
contract (or term of payments), if 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.
The withholding agent retains a copy of
Form 587 for a minimum of five years and
must provide it to the Franchise Tax Board
(FTB) upon request.
C Requirements
California Revenue and Taxation Code (R&TC)
Section 18662 and the related regulations
requires withholding 7% of income or
franchise tax on certain payments made
to nonresidents (including individuals,
corporations, partnerships, LLCs, estates, and
trusts) for income received from California
sources unless an approved waiver or
reduction is granted. The withholding rate
is 7% unless a waiver is granted by the FTB.
D Income Subject to
Withholding
The items of income subject to withholding
include, but are not limited to:
y Compensation for services performed in
California by nonresidents.
y Rent paid to nonresidents on real or
personal property located in California if the
rent is paid in the course of the withholding
agent’s business.
y Royalties from natural resources paid to
nonresidents from business activities in
California.
y Prizes and winnings received by
nonresidents for contests in California.
y Endorsement payments received for
services performed in California.
y Other California source income paid to
nonresidents.
For more information on income subject to
withholding, get FTB Pub. 1017.
E Exceptions to Withholding
Withholding is not required when:
y The payment is for goods.
y The payee is a resident of California, or is
an S corporation, a partnership, or a LLC
that has a permanent place of business in
California. Get Form 590.
y The payee is a corporation that is qualified
to do business in California.
y The withholding agent’s California source
payment to the payee does not exceed
$1,500 for the calendar year.
y The payments are for income from
intangible personal property, such as
interest and dividends, unless derived in
a trade or business or the property has
acquired a business situs in California.
y The payments are for services performed
outside of California or for rents, royalties,
and leases on property located outside of
California.
y The payment is to a nonresident corporate
director for director services, including
attendance at board meetings.
y The payee is a tax-exempt organization
under either California or federal law.
y The payee has a completed and signed
Form 590-P, Nonresident Withholding
Exemption Certificate for Previously
Reported Income.
y The income is derived from qualified
investment securities of an investment
partnership.
F Waivers/Reductions
A nonresident payee may request a waiver
from withholding by submitting Form 588,
Nonresident Withholding Waiver Request. A
nonresident payee may request a reduction
in the amount to be withheld by submitting
Form 589, Nonresident Reduced Withholding
Request. The FTB does not grant reductions or
waivers for backup withholding.
G Requirement to File a
California Tax Return
A payee’s exemption certification on Form 587
does not eliminate the requirement to file a
California tax return and pay the tax due.
You may be assessed a penalty if:
y You do not file a California tax return.
y You file your tax return late.
y The amount of withholding does not satisfy
your tax liability.
For information on California filing
requirements, go to
ftb.ca.gov.
H How to Claim Nonwage
Withholding Credit
Claim your nonwage withholding credit on one
of the following:
y Form 540, California Resident Income
Tax Return
y Form 540NR Long, California Nonresident
or Part-Year Resident Income Tax Return
y Form 541, California Fiduciary Income
Tax Return
y Form 100, California Corporation Franchise
or Income Tax Return
y Form 100S, California S Corporation
Franchise or Income Tax Return
y Form 100W, California Corporation
Franchise or Income Tax Return — Water’s-
Edge Filers
y Form 109, California Exempt Organization
Business Income Tax Return
y Form 565, Partnership Return of Income
y Form 568, Limited Liability Company
Return of Income
Form 587 Instructions 2016 Page 1
Specific Instructions
Definitions – For withholding terms and
definitions, go to
ftb.ca.gov and search for
withholding terms.
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 – Follow the country’s
practice for entering the city, county, province,
state, country, and postal code, as applicable,
in the appropriate boxes. Do not abbreviate the
country name.
Part I – Withholding Agent
Information
Enter the withholding agent’s business or
individual information, not both.
Part II – Nonresident Payee
Information
Enter the payee’s business or individual
information, not both. Check the appropriate
box and enter the Taxpayer Identification
Number (TIN).
You must provide a valid TIN as requested
on this form. 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 (CA SOS) file
number.
Part III – Payment Type
The nonresident payee must check the box
that identifies the type of payment that will be
received.
Part IV – Income Allocation
Use Part IV to identify payments that are
subject to withholding. Enter payments
from both within and outside of California.
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
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).
Page 2 Form 587 Instructions 2016
If the payee’s trade, business, or profession
conducted in California is an integral part
of a unitary business conducted within and
outside California compute the payment
amounts on line 1 through 5 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
Keep Form 587 for five years for your records.
Do not send this form to the FTB unless it has
been specifically requested.
Withholding, excluding backup 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 backup withholding is
required, there is no set minimum threshold
and it supersedes all types of withholding.
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.
Certification of Nonresident 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, a third
party designee, or other individual taxpayers
authorized to view their confidential tax data by
a waiver or release.
Electronic signatures shall be considered as
valid as the originals.
Additional Information
Website: For more information go to
ftb.ca.gov and search for
nonwage.
MyFTB offers secure online tax
account information and services.
For more information and to
register, go to
ftb.ca.gov and
search for myftb.
Telephone: 888.792.4900 or 916.845.4900,
Withholding Services and
Compliance phone service
Fax: 916.845.9512
Mail: WITHHOLDING SERVICES AND
COMPLIANCE MS F182
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-0651
For questions unrelated to withholding, or to
download, view, and print California tax forms
and publications, 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 para personas con
discapacidades auditivas o del
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