Fillable Printable 592-B Form - Franchise Tax Board
Fillable Printable 592-B Form - Franchise Tax Board
592-B Form - Franchise Tax Board
Form 592-B 2012
For Privacy Notice, get form FTB 1131.
Name of withholding agent (Payer/S Corporation/Partnership/LLC/Trust) SSN or ITIN
Address (suite, room, PO Box, or PMB no.)
FEIN CA Corp no. CA SOS file no.
City State ZIP Code Daytime telephone number
Resident and Nonresident Withholding
Tax Statement
CALIFORNIA FORM
592-B
7101133
T AXABLE YEAR
2013
Instructions for Form 592-B
Resident and Nonresident Withholding Tax Statement
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2009, and to the California Revenue and Taxation Code (R&TC).
What's New
Increase in Rates – For taxable years
beginning on or after January 1, 2012, the
maximum personal income tax rate increased
to 12.3%. In addition, non-California
partnerships are subject to withholding
requirements on a sale of California real
property at a rate of 3 1/3% (.0333) of
sales price or 12.3% of gain. The alternative
withholding rate for the gain on sale of
California real property by S corporations
increased to 13.8% and 15.8% for financial
S corporations.
Do Not Round Cents to Dollars – On this form,
do not round cents to the nearest whole dollar.
Enter the amounts with dollars and cents as
actually withheld.
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 (CA SOS) file
number. Failure to provide a valid TIN will result
in the denial of the backup withholding credit.
Registered Domestic Partners (RDPs) –
For purposes of California income tax,
references to a spouse, husband, or wife also
refer to a California RDP, unless otherwise
specified. When we use the initials RDP they
refer to both a California registered domestic
“partner” and a California registered domestic
“partnership,” as applicable. For more
information on RDPs, get FTB Pub. 737, Tax
Information for Registered Domestic Partners.
A Purpose
For purposes of Form 592-B, Resident and
Nonresident Withholding Tax Statement, the
term “nonresident” refers to both domestic and
foreign recipients. A domestic nonresident is
a person living outside of California, but living
in the United States. If you are a resident living
outside of the United States, you are a foreign
nonresident.
Use Form 592-B to report to the recipient the
amount of payment or distribution subject
to withholding and tax. Complete a separate
Form 592-B for each resident or nonresident.
Part I Withholding Agent
Part III Type of Income Subject to Withholding. Check the applicable box(es).
Part IV Tax Withheld
1 Total income subject to withholding.......................................................... 1
2 Total California tax withheld (excluding backup withholding)....................................... 2
3 Total Backup Withholding.................................................................... 3
Name of recipient SSN or ITIN
DBA (if applicable)
Address (suite, room, PO Box, or PMB no.)
FEIN CA Corp no. CA SOS file no.
City State ZIP Code
Part II Recipient
A Payments to Independent Contractors
B Trust Distributions
C Rents or Royalties
D Distributions to Domestic (U.S.)
Nonresident Partners/Members/
Beneficiaries/S Corporation Shareholders
E
Estate Distributions
F Allocations to Foreign (non-U.S.)
Nonresident Partners/Members
G
Payments to Independent Contractor
Entertainers/Athletes/Speakers
H
Other ___________________________
(describe)
( )
Page 2 Form 592-B 2012
THIS PAGE INTENTIONALLY LEFT BLANK
visit our website:
ftb.ca.gov
Form 592-B 2012 Page 3
Pass-through entities which were withheld
upon by another entity should use Form 592,
Resident and Nonresident Withholding
Statement, to flow-through the withholding
to their S corporation shareholders, partners,
members, or beneficiaries whether they are
residents or nonresidents of California.
Use Form 592-V, Payment Voucher for
Resident and Nonresident Withholding, to
remit withholding payments during the year.
To remit foreign partner withholding payments
use Form 592-A, Payment Voucher for Foreign
Partner or Member Withholding.
B Common Errors/Helpful Hints
• Get taxpayer identification numbers (TINs)
from all payees.
•
Complete all fields.
•
Complete all forms timely to avoid penalties.
C Who Must Complete
Form 592-B must be completed by any person
who:
•
Has withheld on payments to residents or
nonresidents.
•
Has withheld backup withholding on
payments to residents or nonresidents.
•
Is a pass-through entity that was withheld
upon and must flow-through the withholding
credit.
Record Keeping
The withholding agent retains the proof of
withholding for a minimum of four years
and must provide it to the FTB upon request.
Form 592-B is provided to the recipient to file
with their state tax return. This form can be
provided to the payee electronically. For more
information go to ftb.ca.gov and search for
electronic 592-B requirements. A broker can
provide Form 592-B as a composite statement.
For more information go to ftb.ca.gov and
search for composite 592-B.
D When To Complete
Form 592-B must be provided to:
•
Each resident or nonresident by January 31
following the close of the calendar year,
except for brokers as stated in Internal
Revenue Code (IRC) Section 6045.
• A recipient before February 15 following the
close of the calendar year for brokers.
•
Foreign partners in a partnership or foreign
members in a limited liability company (LLC)
on or before the 15th day of the 4th month
following the close of the taxable year.
If all the partners in the partnership or members
in the LLC are foreign, Form(s) 592-B must be
provided on or before the 15th day of the 6th
month after the close of the taxable year.
When making a payment of withholding
tax to the IRS under IRC Section 1446, a
partnership must notify all foreign partners of
their allocable shares of any IRC Section 1446
tax paid to the IRS by the partnership. The
partners use this information to adjust the
amount of estimated tax that they must
otherwise pay to the IRS. The notification to
the foreign partners must be provided within
10 days of the installment due date, or, if paid
later, the date the installment payment is made.
See Treas. Regs. Section 1.1446-3(d)(1)(i)
for information that must be included in
the notification and for exceptions to the
notification requirement. For California
withholding purposes, withholding agents
should make a similar notification. No
particular form is required for this notification,
and it is commonly done on the statement
accompanying the distribution or payment.
However, the withholding agent may choose
to report the tax withheld to the payee on a
Form 592-B.
E Penalties
The withholding agent must furnish complete
and correct copies of Form(s) 592-B to the
recipient (payee) by the due date.
If the withholding agent fails to provide
complete, correct, and timely Form(s) 592-B
to the recipient (payee), the penalty per
Form 592-B is:
• $50 for each payee statement not provided
by the due date.
•
$100 or 10 percent of the amount required
to be reported (whichever is greater), if the
failure is due to intentional disregard of the
requirement.
Specific Instructions
Year – Make sure the year in the upper left
corner of Form 592-B represents the calendar
year in which the withholding took place. If an
S corporation’s, partnership’s, LLC’s, or trust’s
current distribution represents a prior taxable
year of California source income, the taxable
year on Form 592-B must represent the year
the income was earned. (Except for foreign
partners in a partnership, withholding of tax
by withholding agents must be on a calendar-
year basis, regardless of the accounting period
adopted by the payee or withholding agent.)
For foreign partners in a partnership, or foreign
members in an LLC, make sure the year in the
upper left corner of Form 592-B is the year that
the partnership’s or LLC’s taxable year ended.
For example, if the partnership’s or LLC’s
taxable year ended December 31, 2011, use
the 2011 Form 592-B.
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.
Part I – Withholding Agent
Enter the withholding agent’s name,
identification number, address, and telephone
number.
Part II – Recipient
Enter the name of recipient, DBA (if applicable),
identification number, and address for the
recipient (payee).
If the recipient is a grantor trust, enter
the grantor’s individual name and social
security number (SSN) or individual taxpayer
identification number (ITIN). Do not enter the
name of the trust or trustee information. (For
tax purposes, grantor trusts are transparent.
The individual grantor must report the income
and claim the withholding on the individual’s
California tax return.)
If the recipient is a non-grantor trust, enter
the name of the trust and the trust’s federal
employer identification number (FEIN). Do not
enter trustee information.
If the trust has applied for a FEIN, but it has
not been received, zero fill the space for the
trust’s FEIN and attach a copy of the federal
application behind Form 592-B. After the FEIN
is received, amend Form 592-B to submit the
assigned FEIN.
Only withholding agents can complete an
amended Form 592-B. Upon completion, the
withholding agent should provide a copy of
the amended Form 592-B to the recipient. If a
recipient notices an error, the recipient should
contact the withholding agent.
If the recipients are married/RDP, enter only
the name and SSN or ITIN of the primary
spouse/RDP. However, if the recipients intend
to file separate California tax returns, the
withholding agent should split the withholding
and complete a separate Form 592-B for each
spouse/RDP.
Part III – Type of Income
Subject to Withholding
Check the box(es) for the type of income
subject to withholding.
Part IV – Tax Withheld
Line 1
Enter the total income subject to withholding.
Line 2
Enter the total California tax withheld
(excluding backup withholding). The amount
of tax to be withheld is computed by applying
a rate of 7% on items of income subject to
withholding, i.e. interest, dividends, rents and
royalties, prizes and winnings, premiums,
annuities, emoluments, compensation
for personal services, and other fixed or
determinable annual or periodical gains, profits
and income. For foreign partners, the rate is
8.84% for corporations, 10.84% for banks
Page 4 Form 592-B 2012
and financial institutions, and 12.3% for all
others. For pass-through entities, the amount
withheld is allocated to partners, members,
S corporation shareholders, or beneficiaries,
whether they are residents or nonresidents of
California, in proportion to their ownership or
beneficial interest.
Line 3
Enter the total backup withholding. Compute
backup withholding by applying a 7% rate
to all reportable payments subject to IRS
backup withholding with a few exceptions. 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.
Instructions for Recipient
This withholding of tax does not relieve you of
the requirement to file a California tax return
within three months and fifteen days (two
months and fifteen days for a corporation)
after the close of your taxable year.
You may be assessed a penalty if:
•
You do not file a California tax return.
• You file your tax return late.
• The amount of withholding does not satisfy
your tax liability.
How to Claim the Withholding
Report the income as required and enter the
amount from Form 592-B, Part IV, line 2 on
your California tax return as real estate and
other withholding from Form(s) 592-B or 593.
Attach a copy of Form 592-B to your California
tax return. If you received a composite
statement from a broker, attach only the
Form 592-B information. Make a copy for your
records.
If you have backup withholding, you 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 (CA SOS) file
number. Failure to provide a valid TIN will
result in the denial of the backup withholding
credit. Using the information provided on this
page, contact us as soon as you receive this
form.
If you are an S corporation, partnership, or
LLC, you may either flow-through the entire
amount to your shareholders, partners, or
members or claim the withholding, to the
extent of your outstanding tax liability, on your
tax return.
If the withholding exceeds the amount of tax
you still owe on your tax return, you must
flow-through the excess to your shareholders,
partners, or members.
If you do not have an outstanding balance on
your tax return, you must flow-through the
entire amount to your shareholders, partners,
or members. Use Form 592 to flow the
withholding to your shareholders, partners, or
members.
If you are an estate or trust, you must flow-
through the withholding to your beneficiaries
if the related income was distributed. Use
Form 592 to flow-through the withholding to
your beneficiaries. If you did not distribute the
income, you must claim the withholding on the
fiduciary return, Form 541, California Fiduciary
Income Tax Return.
The amount shown as “Total income subject
to withholding” may be an estimate or may
only reflect how withholding was calculated.
Be sure to report your actual taxable California
source income. If you are an independent
contractor or receive rents or royalties, see
your contract and/or Form 1099 to determine
your California source income. If you are a
shareholder, partner, member, or beneficiary of
an S corporation, partnership, LLC, estate, or
trust, see your California Schedule K-1 (100S,
565, 568, 541), Share of Income, Deductions,
Credits, etc., issued by that entity to determine
your California source income.
Additional Information
For more information or to speak to a
representative regarding this form, call the
Withholding Services and Compliance’s
automated telephone service at: 888.792.4900
or 916.845.4900.
OR write to:
WITHHOLDING SERVICES AND COMPLIANCE
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
FRANCHISE TAX BOARD
PO BOX 307
RANCHO CORDOVA CA 95741-037
For all other questions unrelated to withholding
or to access the TTY/TDD number, 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
