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Pass-through entities which were withheld

exceptions to the notification requirement. For

If the payee is a non-grantor trust, enter the

upon by another entity should use Form 592 to

California withholding purposes, withholding

name of the trust and the trust’s FEIN. Do not

pass-through the withholding to their domestic

agents should make a similar notification. No

enter trustee information.

nonresident partners in a partnership, limited

particular form is required for this notification,

If the trust has applied for a FEIN, but it has not

liability company (LLC) members, estate

and it is commonly done on the statement

been received, enter "applied for" in the space

or trust beneficiaries, and S corporation

accompanying the distribution or payment.

for the trust’s FEIN and attach a copy of the

shareholders, or Form 592-F to pass-through

However, the withholding agent may choose

federal application behind Form 592-B. After

the withholding to their foreign (non U.S.)

to report the tax withheld to the payee on a

the FEIN is received, amend Form 592-B to

partners or members.

Form 592-B.

submit the assigned FEIN.

If the payees are married/RDP, enter only

B Helpful Hints

E Penalties

the name and SSN or ITIN of the primary

• Get taxpayer identification numbers (TINs)

The withholding agent must furnish complete

spouse/RDP. However, if the payees intend

from all payees.

and correct copies of Form(s) 592-B to the

to file separate California tax returns, the

withholding agent should split the withholding

• Complete all applicable fields.

payee by the due date.

• Complete all forms timely to avoid penalties.

and complete a separate Form 592-B for each

If the withholding agent fails to provide

spouse/RDP.

complete, correct, and timely Form(s) 592-B to

C Who Must Complete

the payee, the penalty per Form 592-B is:

Part III – Type of Income

Form 592-B must be completed by any person

• $100 for each payee statement not provided

Subject to Withholding

or entity who:

by the due date.

• $250 or 10% of the amount required to

• Has withheld on payments to residents or

Check the box(es) for the type of income

be reported (whichever is greater), if the

nonresidents.

subject to withholding.

failure is due to intentional disregard of the

• Has withheld backup withholding on

requirement.

Part IV – Tax Withheld

payments to residents or nonresidents.

• Was withheld upon and must pass-through

Line 1

Specific Instructions

the withholding credit to their pass-through

Enter the total income subject to withholding.

entity owners.

Line 2

Record Keeping

Instructions for Withholding

Enter the total California tax withheld

The withholding agent retains the proof of

Agent

(excluding backup withholding). The amount

withholding for a minimum of four years and

of tax to be withheld is computed by applying

must provide it to the FTB upon request.

Year – The year in the upper left corner of

a rate of 7% on items of income subject to

Form 592-B should represent the calendar year

withholding. For foreign partners, the rate is

D When To Complete

in which the withholding took place.

8.84% for corporations, 10.84% for banks and

Form 592-B must be provided to each

For foreign partners in a partnership, or foreign

financial institutions, and 12.3% for all others.

payee by:

members in an LLC, make sure the year in the

For pass-through entities, the amount

upper left corner of Form 592-B is the year that

• January 31st following the close of the

withheld is allocated to partners, members,

the partnership’s or LLC’s taxable year ended.

calendar year for residents or nonresidents.

S corporation shareholders, or beneficiaries,

For example, if the partnership’s or LLC’s

• February 15th following the close of the

whether they are residents or nonresidents of

taxable year ended December 31, 2015, use

calendar year for brokers as stated in

California, in proportion to their ownership or

the 2015 Form 592-B.

Internal Revenue Code (IRC) Section 6045.

beneficial interest.

Private Mail Box (PMB) – Include the PMB

Form 592-B must be provided to each foreign

Line 3

in the address field. Write “PMB” first, then

(non-U.S.) partner or member by:

Enter the total backup withholding.

the box number. Example: 111 Main Street

• The 15th day of the 4th month following the

PMB 123.

Instructions for Payee

close of the partnership's or LLC's taxable

Foreign Address – Follow the country's

year.

This withholding of tax does not relieve you of

practice for entering the city, county, province,

• The 15th day of the 6th month following the

the requirement to file a California tax return

state, country, and postal code, as applicable,

close of the partnership's or LLC's taxable

within three months and fifteen days (two

in the appropriate boxes. Do not abbreviate the

year, if all the partners in the partnership or

months and fifteen days for a corporation)

country name.

members in the LLC are foreign.

after the close of your taxable year.

10-Day Notification – When making a

Part I – Withholding Agent

You may be assessed a penalty if:

payment of withholding tax to the IRS under

• You do not file a California tax return.

IRC Section 1446, a partnership must notify

Enter the withholding agent’s name,

• You file your tax return late.

all foreign partners of their allocable shares

identification number, address, and telephone

• The amount of withholding does not satisfy

of any IRC Section 1446 tax paid to the IRS

number.

your tax liability.

by the partnership. The partners use this

Part II – Payee

information to adjust the amount of estimated

How To Correct An Error

tax that they must otherwise pay to the IRS.

If a payee notices an error, the payee

Enter the payee's name, identification number,

The notification to the foreign partners must

should contact the withholding agent. Only

and address.

be provided within 10 days of the installment

withholding agents can complete an amended

If the payee is a grantor trust, enter the

due date, or, if paid later, the date the

Form 592-B. Upon completion, the withholding

grantor’s individual name and SSN or ITIN.

installment payment is made. See Treas. Regs.

agent should provide a copy of the amended

Do not enter the name of the trust or trustee

Section 1.1446-3(d)(1)(i) for information that

Form 592-B to the payee.

information. (For tax purposes, grantor trusts

must be included in the notification and for

are transparent. The individual grantor must

report the income and claim the withholding on

the individual’s California tax return.)

Form 592-B Instructions 2015 Page 3

California Form 592-B (Draft) - Resident And Nonresident Withholding Tax Statement - 2016 Page 4

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