Form 592B Resident and Nonresident Withholding Tax Statement

$100 or 10 percent of the amount required to be reported (whichever is greater) if the failure is due to intentional disregard of the requirement $50 for each payee statement not provided by the due date (describe) 916 845 6500 from outside the United States 916 845 6500 fuera de los Estados Unidos A recipient before February 15 following the close of the calendar year for brokers Address (suite room PO Box or PMB no ) FEIN CA Corp no SOS file no City State ZIP Code Complete all fields Complete all forms timely to avoid penalties Each resident or nonresident by January 31 following the close of the calendar year except for brokers as stated in Internal Revenue Code (IRC) Section 6045 Foreign partners in a partnership or members in a limited liability company (LLC) on or before the 15th day of the 4th month following the close of the taxable year Get taxpayer identification numbers (TINs) from all payees Has withheld backup withholding on payments to residents or nonresidents Has withheld on payments to residents or nonresidents Is a pass through entity that was withheld upon and must flow through the withholding credit Name of recipient SSN or ITIN The amount of withholding does not satisfy your tax liability You do not file a California tax return You file your tax return late 1 Total income subject to withholding 1 00 2 Total California tax withheld (excluding backup withholding) 2 00 3 Total Backup Withholding 3 00 592 B 7101123 A m Payments to Independent Contractors A Purpose Additional Information Address (suite room PO Box or PMB no ) FEIN CA Corp no SOS file no Asistencia Por Internet y Tel fono B Common Errors/Helpful Hints B m Trust Distributions Backup Withholding Beginning on or after January 1 2010 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) 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 C m Rents or Royalties C Who Must Complete CALIFORNIA FORM Check the box(es) for the type of income subject to withholding City State ZIP Code Daytime telephone number D m Distributions to Domestic (U S ) Nonresident Partners/Members/Beneficiaries/S Corporation Shareholders D When To Complete DBA (if applicable) E m Estate Distributions E Penalties Enter the name of recipient DBA (if applicable) tax identification number and address for the recipient (payee) Enter the total backup withholding Compute backup withholding by applying a 7% rate to all reportable payments subject to IRS backup withholding with a few exceptions 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 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 i e interest dividends rents and royalties prizes and winnings premiums annuities emoluments compensation for personal services and other fixed or determinable annual or periodical gains profits and income 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 Enter the total income subject to withholding Enter the withholding agent s name tax identification number address and telephone number F m Allocations to Foreign (non U S ) Nonresident Partners/Members For all other questions unrelated to withholding or to access the TTY/TDD number see the information below 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 12/31/09 use the 2009 Form 592 B For more information or to speak to a representative regarding this form call the Withholding Services and Compliance s automated telephone service at: 888 792 4900 or 916 845 4900 For Privacy Notice get form FTB 1131 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 For purposes of Form 592 B the term nonresident refers to both domestic and foreign recipients A domestic nonresident is a person living outside of California but living in the United States If you are a resident living outside of the United States you are a foreign nonresident Foreign Address Enter the information in the following order: City Country Province/Region and Postal Code Follow the country s practice for entering the postal code Do not abbreviate the country s name Form 592 B 2011 (REV 12 12) Form 592 B 2011 (REV 12 12) Page 3 Form 592 B must be completed by any person who: Form 592 B must be provided to: FRANCHISE TAX BOARD ftb ca gov ftb ca gov and search for electronic 592 B requirements G m Payments to Independent Contractor Entertainers/Athletes/Speakers General Information H m Other How to Claim the Withholding If all the partners in the partnership or members in the LLC are foreign Form(s) 592 B must be provided on or before the 15th day of the 6th month after the close of the taxable year If the recipient is a grantor trust enter the grantor s individual name and social security number (SSN) or individual taxpayer identification number (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 recipient is a non grantor trust enter the name of the trust and the trust s federal employer identification number (FEIN) Do not enter trustee information If the recipients are married/RDP enter only the name and SSN or ITIN of the primary spouse/RDP However if the recipients 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 If the trust has applied for a FEIN but it has not been received zero fill 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 withholding agent fails to provide complete correct and timely Form(s) 592 B to the recipient (payee) the penalty per Form 592 B is: If the withholding exceeds the amount of tax you still owe on your tax return you must flow through the excess to your shareholders partners or members If you are an estate or trust you must flow through the withholding to your beneficiaries if the related income was distributed Use Form 592 to flow 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 If you are an S corporation partnership or LLC you may either flow 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 you do not have an outstanding balance on your tax return you must flow through the entire amount to your shareholders partners or members Use Form 592 to flow the withholding to your partners or members If you entered into a same sex legal union in another state other than a marriage and that union has been determined to be substantially equivalent to a California registered domestic partnership you are required to file a California income tax return using either the married/RDP filing jointly or married/RDP filing separately filing status If you have an amount in line 3 backup withholding you must provide us with your TIN before filing your tax return Using the information provided on this page contact us as soon as you receive this form Failure to provide your TIN will result in a denial of your backup withholding credit Increase in Rates For taxable years beginning on or after January 1 2012 the maximum personal income tax rate increased to 12 3% In addition non California partnerships are subject to withholding requirements on a sale of California real property at a rate of 3 1/3% ( 0333) of sales price or 12 3% of gain The alternative withholding rate for the gain on sale of California real property by S corporations increased to 13 8% and 15 8% for financial S corporations Instructions for Recipient Internet and Telephone Assistance Line 1 Line 2 Line 3 Name of withholding agent (Payer/S Corporation/Partnership/LLC/Trust) SSN or ITIN 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 recipient If a recipient notices an error the recipient should contact the withholding agent OR to get forms by mail write to: OR write to: Page 2 Form 592 B 2011 Part I Withholding Agent Part II Recipient Part III Type of Income Subject to Withholding Part III Type of Income Subject to Withholding Check the applicable box(es) Part IV Tax Withheld PO BOX 307 PO BOX 942867 Private Mail Box (PMB) Include the PMB in the address field Write PMB first then the box number Example: 111 Main Street PMB 123 RANCHO CORDOVA CA 95741 0307 Record Keeping Registered Domestic Partners (RDPs) Report the income as required and enter the amount from Form 592 B Part IV line 2 on your California tax return as real estate and other 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 Resident and Nonresident Withholding SACRAMENTO CA 94267 0651 Sitio web: ftb ca gov Specific Instructions TAX FORMS REQUEST UNIT Tax Statement TAXABLE YEAR Tel fono: 800 852 5711 dentro de los Estados Unidos Telephone: 800 852 5711 from within the United States 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 rents or royalties see your contract and/or Form 1099 to determine your California source income If you are an S corporation shareholder partner member or beneficiary of an S corporation partnership LLC estate or trust see your California Schedule K 1 (100S 565 568 541) Share of Income Deductions Credits etc issued by that entity to determine your California source income The withholding agent must furnish complete and correct copies of Form(s) 592 B to the recipient (payee) by the due date The withholding agent retains the proof of withholding for a minimum of four years and must provide it to the FTB upon request Form 592 B is provided to the recipient to file with their state tax return This form can be provided to the payee electronically A broker can provide Form 592 B as a composite statement For more information go to THIS PAGE INTENTIONALLY LEFT BLANK 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 TTY/TDD: 800 822 6268 for persons with hearing or speech impairments TTY/TDD: 800 822 6268 personas con discapacidades auditivas y del habla Under California law RDPs must file their California income tax returns using either the married/RDP filing jointly or married/RDP filing separately filing status RDPs have the same legal benefits protections and responsibilities as married couples unless otherwise specified Use Form 592 B to report to the recipient the amount of payment or distribution subject to withholding and tax Complete a separate Form 592 B for each resident or nonresident Pass through entities which were withheld upon by another entity should use Form 592 to flow through the withholding to their S corporation shareholders partners members or beneficiaries whether they are residents or nonresidents of California Use Form 592 V Payment Voucher for Resident and Nonresident Withholding to remit withholding payments during the year To remit foreign partner withholding payments use Form 592 A Payment Voucher for Foreign Partner or Member Withholding visit our website: Website: ftb ca gov What New 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 Withholding Agent Instructions WITHHOLDING SERVICES AND COMPLIANCE Year Make sure the year in the upper left corner of Form 592 B represents the calendar year in which the withholding took place If an S corporation s partnership s LLC s or trust s current distribution represents a prior taxable year of California source income the taxable year on Form 592 B must represent the year the income was earned (Except for foreign partners withholding of tax by withholding agents must be on a calendar year basis regardless of the accounting period adopted by the payee or withholding agent ) You may be assessed a penalty if: