Instructions For Form 593 Draft - Real Estate Withholding Tax Statement

F Interest and Penalties

Specific Instructions

Part I – Withholding Agent

Interest will be assessed on late withholding

Enter the business or individual name,

Instructions for Seller or

payments and is computed from the due date

identification number, and address of the party

Transferor

to the date paid. If the REEP does not notify

responsible for closing the transaction or any

the buyer of the withholding requirements in

other party who receives and disburses payment

This withholding of tax does not relieve you from

writing, the penalty is the greater of $500 or

for the sale of real property.

the requirement to file a California income tax

10% of the required withholding.

return and report the sale within three months

Enter a business name or individual name, not

If after notification, the buyer or other

and fifteen days (two months and fifteen days for

both. If the party is an escrow company, title

withholding agent does not withhold, the penalty

a corporation) after the close of your taxable year.

company, exchange company, corporation,

is the greater of $500 or 10% of the required

partnership, limited liability company, non-

You may be assessed penalties if:

withholding.

grantor trust, or estate, enter the business

• You do not file a tax return.

name and business identification number (FEIN,

If the withholding agent does not furnish

• You file your tax return late.

CA Corp no., CA SOS file no.). If the business

complete and correct copies of Form 593 to the

• The amount of withholding does not satisfy

name is not applicable, include the individual's

seller or transferor by the due date, the penalty

your tax liability.

or grantor's first name, initial, last name, and

is $50 per Form 593. If the failure is due to an

identification number (SSN or ITIN).

intentional disregard of the requirement, the

How to Claim the Withholding

penalty is the greater of $100 or 10% of the

Part II – Seller or Transferor

To claim the withholding credit, report the sale

required withholding.

or transfer as required and enter the amount

Enter the individual or business name (if

We assess a penalty for failure to file complete,

from line 5 your California tax return as real

applicable), mailing address, and identification

correct, and timely information returns. The

estate and other withholding from Form(s)

number of the seller or transferor. If the seller

penalty is calculated per seller:

592-B or 593. Claim your withholding credit on

or transferor has applied for an identification

• $15 if filed 1 to 30 days after the due date.

one of the following:

number, but it has not been received, enter,

• $30 if filed 31 days to 6 months after the due

• Form 540, California Resident Income Tax

“Applied For” in the space for the seller’s or

date.

Return

transferor's ID and attach a copy of the federal

• $50 if filed more than 6 months after the due

• Form 540NR Long, California Nonresident or

application behind Form 593.

date.

Part-Year Resident Income Tax Return

If the seller or transferor is an individual, enter

(R&TC Section 19183)

• Form 541, California Fiduciary Income Tax

the SSN or ITIN. If the sellers or transferors

If the failure is due to an intentional disregard

Return

are husband/RDP and wife/RDP and plan to

of the requirement, the penalty is the greater of

• Form 100, California Corporation Franchise or

file a joint return, enter the name and SSN or

$100 or 10% of the required withholding.

Income Tax Return

ITIN for each spouse/RDP. Otherwise, do not

• Form 100S, California S Corporation

enter information for more than one seller

G Electronic Filing Requirements

Franchise or Income Tax Return

or transferor. Instead, complete a separate

• Form 100W, California Corporation Franchise

Form 593 information may be filed with the

Form 593 for each seller or transferor.

or Income Tax Return – Water’s-Edge Filers

FTB electronically, using FTB’s Secure Web

If the seller or transferor is a business, enter the

• Form 109, California Exempt Organization

Internet File Transfer (SWIFT), instead of paper.

business name in the business name field along

Business Income Tax Return

However, withholding agents must continue

with the federal employer identification number

• Form 565, Partnership Return of Income

to provide the seller or transferor with paper

(FEIN), California Corporation number (CA Corp

• Form 568, Limited Liability Company Return

Form 593.

no.), or California Secretary of State (CA SOS)

of Income

For installment sales, withholding agents must

file number.

Attach one copy of Form(s) 593, to the lower

also mail a completed Form 593-

and a copy

If the seller or transferor is a grantor trust, enter

front of your California tax return. Make a copy

of the promissory note to the FTB with the first

the grantor’s individual name and SSN or ITIN.

for your records.

installment payment only.

Do not enter the name of the grantor trust. The

If withholding was done for a failed exchange

For electronic filing, submit your file using the

grantor trust is disregarded for tax purposes

or on boot in the year following the year the

SWIFT process as outlined in FTB Pub. 923,

and the individual seller or transferor must

property was sold, the withholding is shown

Secure Web Internet File Transfer (SWIFT) Guide

report the sale and claim the withholding on the

as a credit for the taxable year the withholding

for Resident, Nonresident, and Real Estate

individual’s tax return.

occurred since you qualify for installment sale

Withholding.

If the seller or transferor is a non-grantor trust,

reporting. If you elect to report the gain in the

For the required file format and record layout

enter the name of the trust and the trust’s FEIN.

year the property was sold, instead of in the

for electronic filing, get FTB Pub. 1023R, Real

If the trust has not applied for a FEIN, leave the

year you received the payment, contact the FTB

Estate Withholding Electronic Submission

identification number blank. Do not enter the

at 888.792.4900 prior to filing your California

Requirements. If you are the preparer for more

trustee information. When you receive your

tax return for instructions to have the credit

than one withholding agent, provide a separate

FEIN, contact the FTB at 888.792.4900.

transferred to the prior year.

electronic file for each withholding agent. For

If the seller or transferor is a single member

electronic filing submit your payment using

Instructions for Withholding Agent

disregarded limited liability company, enter

Electronic Funds Transfer (EFT) or Form 593-V.

the name and identification number of the single

Private Mail Box (PMB) – Include the PMB in

When remitting payments by EFT, mail a

member.

the address field. Write "PMB" first, then the box

copy of Form 593 to the address in General

For all other non-individual sellers or

number. Example: 111 Main Street PMB 123.

Information D, When and Where to File.

transferors, enter the FEIN, CA Corp number, or

Foreign Address – Enter the information in the

CA SOS file number.

following order: City, Country, Province/Region,

Enter the address (or parcel number and

and Postal Code. Follow the country’s practice

county) of the California real property

for entering the postal code. Do not abbreviate

transferred.

the country’s name.

Page 2 Form 593 Instructions 2014

Instructions For Form 593 Draft - Real Estate Withholding Tax Statement - 2015 Page 2

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