Fillable Printable Form 592-B - Franchise Tax Board
Fillable Printable Form 592-B - Franchise Tax Board
Form 592-B - Franchise Tax Board
Form 592-B 2015
For Privacy Notice, get FTB 1131 ENG/SP.
Resident and Nonresident Withholding
Tax Statement
CALIFORNIA FORM
592-B
7101163
T AXABLE YEAR
2016
2016 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, 2015, and to the California Revenue and Taxation Code (R&TC).
What's New
Penalty Increase
–
Beginning on or after
January 1, 2016, the penalties related to failure
to file information returns have increased. See
General Information F, Interest and Penalties, or
get FTB Pub. 1150, Withhold at Source Penalty
Information, for more information.
General Information
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.
Backup Withholding – 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) on income sourced to California. 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
Use Form 592-B, Resident and Nonresident
Withholding Tax Statement, to report to the
payee the amount of payment or distribution
subject to withholding and tax as reported
on Form 592, Resident and Nonresident
Withholding Statement, or Form 592-F, Foreign
Partner or Member Annual Return. Complete a
separate Form 592-B for each payee.
Form 592-B is provided to the payee 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.
Do not use Form 592-B to allocate or distribute
withholding to each payee. Use Form 592 or
Form 592-F.
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
A m Payments to Independent Contractors
B m Trust Distributions
C m Rents or Royalties
D m Distributions to Domestic (U.S.)
Nonresident Partners/Members/
Beneficiaries/S Corporation Shareholders
E
m Estate Distributions
F m Elective Withholding
G m Elective Withholding/Indian Tribe
H m Allocations to Foreign (non-U.S.)
Nonresident Partners/Members
I
m Other ___________________________
)
m Amended
Part I Withholding Agent
Name of withholding agent (from Form 592 or 592-F) SSN or ITIN
Address (apt./ste., room, PO box, or PMB no.)
m FEIN m CA Corp no. m CA SOS file no.
City (If you have a foreign address, see instructions.) State ZIP code Daytime telephone number
(
Part II Payee
Name of payee SSN or ITIN
Address (apt./ste., room, PO box, or PMB no.)
m FEIN m CA Corp no. m CA SOS file no.
City (If you have a foreign address, see instructions.) State ZIP code
Page 2 Form 592-B 2015
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visit our website:
ftb.ca.gov
Form 592-B Instructions 2015 Page 3
Pass-through entities which were withheld
upon by another entity should use Form 592 to
pass-through the withholding to their domestic
nonresident partners in a partnership, limited
liability company (LLC) members, estate
or trust beneficiaries, and S corporation
shareholders, or Form 592-F to pass-through
the withholding to their foreign (non U.S.)
partners or members.
B Helpful Hints
• Get taxpayer identification numbers (TINs)
from all payees.
•
Complete all applicable fields.
• Complete all forms timely to avoid penalties.
C Who Must Complete
Form 592-B must be completed by any person
or entity who:
•
Has withheld on payments to residents or
nonresidents.
•
Has withheld backup withholding on
payments to residents or nonresidents.
•
Was withheld upon and must pass-through
the withholding credit to their pass-through
entity owners.
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.
D When To Complete
Form 592-B must be provided to each
payee by:
• January 31st following the close of the
calendar year for residents or nonresidents.
•
February 15th following the close of the
calendar year for brokers as stated in
Internal Revenue Code (IRC) Section 6045.
Form 592-B must be provided to each foreign
(non-U.S.) partner or member by:
•
The 15th day of the 4th month following the
close of the partnership's or LLC's taxable
year.
•
The 15th day of the 6th month following the
close of the partnership's or LLC's taxable
year, if all the partners in the partnership or
members in the LLC are foreign.
10-Day Notification – 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
payee by the due date.
If the withholding agent fails to provide
complete, correct, and timely Form(s) 592-B to
the payee, the penalty per Form 592-B is:
• $100 for each payee statement not provided
by the due date.
•
$250 or 10% of the amount required to
be reported (whichever is greater), if the
failure is due to intentional disregard of the
requirement.
Specific Instructions
Instructions for Withholding
Agent
Year – The year in the upper left corner of
Form 592-B should represent the calendar year
in which the withholding took place.
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, 2015, use
the 2015 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 – 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
Enter the withholding agent’s name,
identification number, address, and telephone
number.
Part II – Payee
Enter the payee's name, identification number,
and address.
If the payee is a grantor trust, enter the
grantor’s individual name and SSN or 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 payee is a non-grantor trust, enter the
name of the trust and the trust’s FEIN. Do not
enter trustee information.
If the trust has applied for a FEIN, but it has not
been received, enter "applied for" in 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.
If the payees are married/RDP, enter only
the name and SSN or ITIN of the primary
spouse/RDP. However, if the payees 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. For foreign partners, the rate is
8.84% for corporations, 10.84% for banks 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.
Instructions for Payee
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 Correct An Error
If a payee notices an error, the payee
should contact the withholding agent. 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 payee.
Page 4 Form 592-B Instructions 2015
How to Claim the Withholding
If you are an individual, you must claim
the withholding credit on either Form 540,
California Resident Income Tax Return or
Long Form 540NR, California Nonresident or
Part-Year Resident Income Tax Return.
If you have backup withholding, you must
contact the FTB to provide a valid TIN before
filing a tax return. The following are acceptable
TINs: SSN, ITIN, FEIN, CA Corp no., or 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.
Report the income as required and enter the
amount from Form 592-B, Part IV, line 2 on
your California tax return as 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 are an S corporation, partnership, or
LLC, you may either pass-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 owe on your tax return, you must
pass-through the excess to your shareholders,
partners, or members.
If you do not have an outstanding balance on
your tax return, you must pass-through the
entire amount to your shareholders, partners,
or members. Use Form 592 to pass the
withholding to your domestic shareholders,
partners, or members. Use Form 592-F to pass
the withholding to your foreign (non U.S.)
partners or members.
If you are an estate or trust, you must
pass-through the withholding to your
beneficiaries if the related income was
distributed. Use Form 592 to pass-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 rent, endorsement income, royalties,
see your contract and/or federal Form 1099
to determine your California source income.
If you are a shareholder of an S-corporation,
partner in a partnership, or a member in an
LLC, see your California Schedule K-1, Share
of Income, Deductions, Credits, etc., issued by
that entity to determine your California source
income.
Additional Information
For additional information or to speak to
a representative regarding this form, call
the Withholding Services and Compliance
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 95741-0307
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 para personas con
discapacidades auditivas o del
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