California Form 592-A - Payment Voucher For Foreign Partner Or Member Withholding - 2012 Page 3

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Instructions for Form 592-A
Payment Voucher for Foreign Partner or Member Withholding
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
How to Complete Form 592-A
Increase in Rates – For taxable years beginning on or after January 1, 2012, the
Form 592-A has five payment vouchers. The first four installment vouchers are
maximum personal income tax rate increased to 12.3%. In addition, non-California
submitted with each of the four withholding payments throughout the year. The
partnerships are subject to withholding requirements on a sale of California
fifth voucher is a supplemental payment voucher. The supplemental payment
real property at a rate of 3 1/3% (.0333) of sales price or 12.3% of gain. The
voucher is only submitted when Form 592-F has a balance due.
alternative withholding rate for the gain on sale of California real property by
To complete the payment vouchers, enter all the information requested, using
S corporations is increased to 13.8% and 15.8% for financial S corporations.
black or blue ink. If you are submitting the supplemental payment voucher, check
Beginning January 1, 2011, we began applying Federal Treasury Regulation
the appropriate box for Electronic or Paper to reflect how Form 592-F is being
1.1446-6 procedures to reduce or eliminate withholding of California tax on
effectively connected taxable income (ECTI) from California sources allocable to a
Enter the beginning and ending dates of the partnership’s or LLC’s taxable year.
foreign partner. The foreign partner must first sign and send IRS Form 8804-C to
The year at the top of the form should be the same as the ending taxable year.
the partnership. The foreign partner must sign and send Form 589, Nonresident
To ensure timely and proper application of the withholding payment to the
Reduced Withholding Request to the Franchise Tax Board (FTB) along with a
withholding agent’s account, enter the business or individual withholding agent’s
signed copy of IRS Form 8804-C. The FTB will review the request within 21
name, and social security number (SSN) or individual taxpayer identification number
business days. If the request is approved, the partnership should remit the
(ITIN), federal employer identification number (FEIN), CA Corp no., or Secretary of
reduced withholding amount to the FTB along with Form 592-A, Payment Voucher
State (SOS) file number of the partnership or LLC in the spaces provided.
for Foreign Partner or Member Withholding.
Private Mail Box (PMB) – Include the PMB in the address field. Write “PMB”
General Information
first, then the box number. Example: 111 Main Street PMB 123.
Foreign Address – Enter the information in the following order: City, Country,
Partnership or limited liability company (LLC) withholding on foreign partners or
Province/Region, and Postal Code. Follow the country’s practice for entering the
members is remitted to the Franchise Tax Board (FTB) with Form 592-A, Payment
postal code. Do not abbreviate the country’s name.
Voucher for Foreign Partner or Member Withholding. At the close of the taxable
Enter the payment amount that represents withholding on partnership or LLC
year, the partnership or LLC completes Form 592-F, Foreign Partner or Member
income or gain allocable under IRC Section 704 to foreign (non-U.S.) partners or
Annual Return, to report the total withholding for the year and allocate the income
members. If you have withholding for domestic and foreign partners or members,
or gain and related withholding to the foreign partners or members. A completed
you can use the Installment Payment Worksheet that follows these instructions
Form(s) 592-B, Resident and Nonresident Withholding Tax Statement, must be
to figure the required installment payment amounts of withholding for foreign
provided to the payees.
partners or members. For more information about withholding on foreign partners
Supplemental Payment Voucher – If there is a balance due on Form 592-F,
or members, get FTB Pub.1017, Resident and Nonresident Withholding Guidelines.
submit the Supplemental Payment Voucher from Form 592-A and Form 592-F
Do not use Form 592-A to report tax withheld on domestic nonresident partners
with the payment at the same time.
or members. For more information regarding reporting tax withheld on domestic
Backup Withholding – Beginning on or after January 1, 2010, with certain limited
nonresident partners or members, get Form 592, Resident and Nonresident
exceptions, payers that are required to withhold and remit backup withholding to
Withholding Statement.
the Internal Revenue Service (IRS) are also required to withhold and remit to the
FTB. The California backup withholding rate is 7% of the payment. For California
When and Where to File
purposes, dividends, interests, and any financial institutions release of loan funds
Payments with Form 592-A are due to the FTB on the 15th day of the 4th, 6th,
made in the normal course of business are exempt from backup withholding. For
9th, and 12th month of the partnership’s or LLC’s taxable year. If there is a
additional information on California backup withholding, go to and
balance due on Form 592-F, line 8, remit payment with the Supplemental Payment
search for backup withholding.
Voucher provided. The Supplemental Payment Voucher and payment are due by
A Purpose
the original due date of Form 592-F, regardless of extension. Using black or blue
ink, make your check or money order payable to: “Franchise Tax Board.” Write
Use Form 592-A to remit withholding payments to the FTB made during the
your SSN or ITIN, FEIN, CA Corp no., or SOS file number, and “2012 Form 592-A”
year, or to remit the balance due on partnership or LLC income or gain allocable
on it. Make all checks or money orders payable in U.S. dollars and drawn against
under Internal Revenue Code (IRC) Section 704 to foreign (non-U.S.) partners or
a U.S. financial institution.
If you are remitting payment only, detach the appropriate installment voucher from
Use Form 592-A to remit withholding payments under California Revenue and Tax
Form 592-A and enclose, but do not staple the payment with the voucher and mail to:
Code (R&TC) 18664. Backup withholding supersedes all types of withholding. For
more information on backup withholding, go to and search for backup
PO BOX 942867
SACRAMENTO CA 94267-0651
B Withholding Rates
If you are submitting Form 592-F with a payment, you must enclose, Form 592-F,
the Supplemental Payment Voucher from Form 592-A, and your payment, but do
R&TC Section 18662 requires withholding on payments made to nonresidents
not staple.
for income received from California sources. For foreign partners or members,
the withholding rate is the maximum California tax rate applicable to the partner
Mail these items to the address above.
or member (currently, 8.84% for corporations, 10.84% for banks and financial
The withholding agent retains this form for a minimum of four years and must
institutions, and 12.3% for all others).
provide it to the FTB upon request.
C Waivers
There is no provision in the law to allow waivers of withholding to foreign
partners. However, if a foreign partner has ECTI from California sources they may
apply for reduced withholding. Follow instructions using Form 589.
If the distribution from a partnership or LLC is determined to be a return of
capital or does not represent taxable income for the current or prior years, no
withholding is required. Although a waiver is not required in these situations, the
partnership or LLC may be subject to the penalty for failing to withhold if, at audit,
the FTB determines that the distribution represented taxable income.
D Interest and Penalties
The law provides for interest and penalties on late payments of withholding.
Interest is computed from the due date of the withholding to the date paid.
• Failure to timely withhold may result in the withholding agent being personally
liable for the amount of tax that should have been withheld and for interest and
• Failure to provide Form(s) 592-B to the payees may result in penalties up to
$100 per Form 592-B.
Form 592-A Instructions 2011 (REV. 12-12) Page 1


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