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Part I – Withholding Agent

Form 592-B for each resident or nonresident.

partners use this information to adjust the

Pass-through entities which were withheld

amount of estimated tax that they must

Enter the withholding agent’s name,

upon by another entity should use Form 592,

otherwise pay to the IRS. The notification to

identification number, address, and telephone

Resident and Nonresident Withholding

the foreign partners must be provided within

number.

Statement, to flow-through the withholding

10 days of the installment due date, or, if paid

to their S corporation shareholders, partners,

later, the date the installment payment is made.

Part II – Recipient

members, or beneficiaries whether they are

See Treas. Regs. Section 1.1446-3(d)(1)(i)

residents or nonresidents of California.

for information that must be included in

Enter the name of recipient, DBA (if applicable),

the notification and for exceptions to the

identification number, and address for the

Use Form 592-V, Payment Voucher for

notification requirement. For California

recipient (payee).

Resident and Nonresident Withholding, to

withholding purposes, withholding agents

remit withholding payments during the year.

If the recipient is a grantor trust, enter

should make a similar notification. No

To remit foreign partner withholding payments

the grantor’s individual name and social

particular form is required for this notification,

use Form 592-A, Payment Voucher for Foreign

security number (SSN) or individual taxpayer

and it is commonly done on the statement

Partner or Member Withholding.

identification number (ITIN). Do not enter the

accompanying the distribution or payment.

name of the trust or trustee information. (For

However, the withholding agent may choose

B Common Errors/Helpful Hints

tax purposes, grantor trusts are transparent.

to report the tax withheld to the payee on a

The individual grantor must report the income

• Get taxpayer identification numbers (TINs)

Form 592-B.

and claim the withholding on the individual’s

from all payees.

California tax return.)

• Complete all fields.

E Penalties

If the recipient is a non-grantor trust, enter

• Complete all forms timely to avoid penalties.

The withholding agent must furnish complete

the name of the trust and the trust’s federal

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

C Who Must Complete

employer identification number (FEIN). Do not

recipient (payee) by the due date.

enter trustee information.

Form 592-B must be completed by any person

If the withholding agent fails to provide

If the trust has applied for a FEIN, but it has

who:

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

not been received, zero fill the space for the

• Has withheld on payments to residents or

to the recipient (payee), the penalty per

trust’s FEIN and attach a copy of the federal

nonresidents.

Form 592-B is:

application behind Form 592-B. After the FEIN

• Has withheld backup withholding on

is received, amend Form 592-B to submit the

• $50 for each payee statement not provided

payments to residents or nonresidents.

assigned FEIN.

by the due date.

• Is a pass-through entity that was withheld

• $100 or 10 percent of the amount required

Only withholding agents can complete an

upon and must flow-through the withholding

to be reported (whichever is greater), if the

amended Form 592-B. Upon completion, the

credit.

failure is due to intentional disregard of the

withholding agent should provide a copy of

Record Keeping

requirement.

the amended Form 592-B to the recipient. If a

The withholding agent retains the proof of

recipient notices an error, the recipient should

withholding for a minimum of four years

Specific Instructions

contact the withholding agent.

and must provide it to the FTB upon request.

If the recipients are married/RDP, enter only

Form 592-B is provided to the recipient to file

Year – Make sure the year in the upper left

the name and SSN or ITIN of the primary

with their state tax return. This form can be

corner of Form 592-B represents the calendar

spouse/RDP. However, if the recipients intend

provided to the payee electronically. For more

year in which the withholding took place. If an

to file separate California tax returns, the

information go to ftb.ca.gov and search for

S corporation’s, partnership’s, LLC’s, or trust’s

withholding agent should split the withholding

electronic 592-B requirements. A broker can

current distribution represents a prior taxable

and complete a separate Form 592-B for each

provide Form 592-B as a composite statement.

year of California source income, the taxable

spouse/RDP.

For more information go to ftb.ca.gov and

year on Form 592-B must represent the year

search for composite 592-B.

the income was earned. (Except for foreign

Part III – Type of Income

partners in a partnership, withholding of tax

D When To Complete

Subject to Withholding

by withholding agents must be on a calendar-

year basis, regardless of the accounting period

Form 592-B must be provided to:

Check the box(es) for the type of income

adopted by the payee or withholding agent.)

subject to withholding.

• Each resident or nonresident by January 31

For foreign partners in a partnership, or foreign

following the close of the calendar year,

Part IV – Tax Withheld

members in an LLC, make sure the year in the

except for brokers as stated in Internal

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

Revenue Code (IRC) Section 6045.

Line 1

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

• A recipient before February 15 following the

Enter the total income subject to withholding.

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

close of the calendar year for brokers.

Line 2

taxable year ended December 31, 2011, use

• Foreign partners in a partnership or foreign

Enter the total California tax withheld

the 2011 Form 592-B.

members in a limited liability company (LLC)

(excluding backup withholding). The amount

on or before the 15th day of the 4th month

Private Mail Box (PMB) – Include the PMB

of tax to be withheld is computed by applying

following the close of the taxable year.

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

a rate of 7% on items of income subject to

the box number. Example: 111 Main Street

If all the partners in the partnership or members

withholding, i.e. interest, dividends, rents and

PMB 123.

in the LLC are foreign, Form(s) 592-B must be

royalties, prizes and winnings, premiums,

provided on or before the 15th day of the 6th

Foreign Address – Enter the information in

annuities, emoluments, compensation

month after the close of the taxable year.

the following order: City, Country, Province/

for personal services, and other fixed or

Region, and Postal Code. Follow the country’s

When making a payment of withholding

determinable annual or periodical gains, profits

practice for entering the postal code. Do not

tax to the IRS under IRC Section 1446, a

and income. For foreign partners, the rate is

abbreviate the country’s name.

partnership must notify all foreign partners of

8.84% for corporations, 10.84% for banks

their allocable shares of any IRC Section 1446

and financial institutions, and 9.3% for all

tax paid to the IRS by the partnership. The

Form 592-B 2012 Page 3

California Form 592-B Draft - Resident And Nonresident Withholding Tax Statement - 2013 Page 2

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