Withholding California 592 Form Details

Are you a business owner who is required to submit the Form 592 B? If so, you may be wondering what information is included on the form. This article will provide a brief overview of the form, including what information is required. By understanding what information is included on the form, you can ensure that your submission is accurate and complete.

Below is the data relating to the form you were seeking to fill out. It will show you how long it will require to complete form 592 b, what fields you will need to fill in and a few further specific details.

QuestionAnswer
Form NameForm 592 B
Form Length3 pages
Fillable?Yes
Fillable fields37
Avg. time to fill out8 min 13 sec
Other names592 b withholding, 592 b 2020, 592 b, ca form 592 b

Form Preview Example

TAXABLE YEAR

Resident and Nonresident Withholding

 

 

 

CALIFORNIA FORM

 

 

 

 

 

2020

Tax Statement

 

 

 

592-B

 

 

 

 

 

 

m Amended

 

 

 

 

 

Part I Withholding Agent Information

 

 

 

 

 

 

 

 

 

Name of withholding agent (from Form 592, 592-PTE, or 592-F)

 

 

SSN or ITIN

 

 

 

 

 

Address (apt./ste., room, PO box, or PMB no.)

 

m FEIN m CA Corp no. m CA SOS file no.

 

 

 

 

 

 

City (If you have a foreign address, see instructions.)

State ZIP code

Daytime telephone number

Part II Payee Information

Name of payee

 

 

 

SSN or ITIN

 

 

 

 

 

Address (apt./ste., room, PO box, or PMB no.)

m FEIN

m CA Corp no. m CA SOS file no.

 

 

 

 

 

City (If you have a foreign address, see instructions.)

 

State

 

ZIP code

 

 

 

 

 

Part III Type of Income Subject to Withholding. Check the applicable box(es)

A m Payments to Independent Contractors

E m Estate Distributions

H m Allocations to Foreign (non-U.S.)

B m Trust Distributions

F m Elective Withholding

Nonresident Partners/Members

C m Rents or Royalties

G m Elective Withholding/Indian Tribe

I m Other ___________________________

D m Distributions to Domestic (U.S.)

 

 

 

Nonresident Partners/Members/

 

 

 

Beneficiaries/S Corporation Shareholders

 

 

Part IV Tax Withheld

 

 

1

Total income subject to withholding

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . 1

2

Total resident and/or nonresident tax withheld (excluding backup withholding)

. . . . . . . 2

3

Total backup withholding

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . 3

2020 Instructions for Form 592-B

Resident and Nonresident Withholding Tax Statement

References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and to the California Revenue and Taxation Code (R&TC).

What's New

Pass-Through Entity Annual Withholding Return - For taxable years beginning on or after January 1, 2020, a pass-through entity that has paid withholding on behalf of a nonresident owner or has been withheld upon must use Form 592-PTE, Pass-Through Entity Annual Withholding Return, to report the total withholding. For more information, get Form 592-PTE.

GENERAL INFORMATION

California Revenue and Taxation Code (R&TC) Sections 18662 and 18664 require the withholding agent to provide a completed Form 592-B, Resident and Nonresident Withholding Tax Statement, to the payee to report the amount of payment or distribution subject to withholding and tax. The payee files Form 592-B with their California tax return to claim the credit for the withheld amount. See General Information A Purpose, for more information.

Backup Withholding – 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) on income sourced to California. 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.

If a payee has backup withholding, the payee must contact the FTB to provide a valid Taxpayer Identification Number (TIN) before filing a tax return. The following are acceptable TINs: social security number (SSN); individual taxpayer identification number (ITIN); federal employer identification number (FEIN); California corporation number (CA Corp no.); or California Secretary of State (CA SOS) file number. Failure to provide a valid TIN will result in the denial of the backup withholding credit.

Registered Domestic Partners (RDPs) – 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.

APurpose

Use Form 592-B, to report to the payee the amount of payment or distribution subject to withholding and tax withheld as reported on Form 592, Resident and Nonresident Withholding Statement, Form 592-PTE, Pass-Through Entity Annual Withholding Return, or Form 592-F, Foreign Partner or Member Annual Withholding Return. Complete a separate Form 592-B for each payee.

Form 592-B is provided to the payee to file with their state tax return. This form can be

For Privacy Notice, get FTB 1131 ENG/SP.

7101203

 

 

Form 592-B 2019

provided to the payee electronically. For more information, go to ftb.ca.gov and search for electronic 592-B requirements. A broker can provide Form 592-B as a composite statement. For more information, go to ftb.ca.gov and search for composite 592-B.

Do not use Form 592-B to allocate or distribute withholding to each payee, use Form 592, Form 592-PTE, or Form 592-F.

Pass-through entities withheld upon by another entity use:

Form 592-PTE to pass through the withholding to domestic nonresident partners in a partnership, members of a limited liability company (LLC), estate or trust beneficiaries, and S corporation shareholders.

Form 592-F to pass through the withholding to foreign (non U.S.) partners or members.

BHelpful Hints

Get taxpayer identification numbers (TINs) from all payees.

Complete all applicable fields. Complete all forms timely to avoid

penalties.

CWho Must Complete

Form 592-B must be completed by the withholding agent, including any person or entity who:

Has withheld on payments to residents or nonresidents.

Has withheld backup withholding on payments to residents or nonresidents.

Was withheld upon and must pass through the withholding credit to their pass-through entity owners.

Record Keeping

The withholding agent retains the proof of withholding for a minimum of five years and must provide it to the FTB upon request.

DWhen To Complete

Form 592-B must be completed and provided to each payee by:

January 31st following the close of the calendar year for residents or nonresidents.

February 15th following the close of the calendar year for brokers as stated in Internal Revenue Code (IRC) Section 6045.

Form 592-B must be provided to each foreign (non-U.S.) partner or member by:

The 15th day of the 3rd month following the close of the partnership's or LLC's taxable year.

The 15th day of the 6th month following the close of the partnership's or LLC's taxable year, if all the partners in the partnership or members in the LLC are foreign.

10-Day Notification – 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.

EAmending Form 592-B

If an error is discovered after the withholding agent provides Form 592-B to the payee, then the withholding agent must follow the amending instructions for Form 592, Form 592-PTE, or Form 592-F and follow the steps below:

Complete a new Form 592-B using the same taxable year form as originally provided to the payee.

Check the Amended box at the top left corner of the form.

Provide the amended copy of Form 592-B to the payee.

FPenalties

The withholding agent must furnish complete and correct copies of Form(s) 592-B to the payee by the due date.

If the withholding agent fails to provide complete, correct, and timely Form(s) 592-B to the payee, the penalty per Form 592-B is:

Up to $270 for each payee statement not provided by the due date.

$550 or 10% of the amount required to be reported (whichever is greater), if the failure is due to intentional disregard of the requirement.

Specific Instructions

Instructions for Withholding Agent

Year – The year in the top left corner of Form 592-B represents the calendar year in which the withholding took place.

For foreign partners or foreign members, match the year in the top left corner of Form 592-B to the year that the partnership’s or LLC’s taxable year ended. For example, if the partnership’s or LLC’s taxable year ended December 31, 2019, use the 2019 Form 592-B.

Private Mail Box (PMB) – Include the PMB in the address field. Write “PMB” first, then the box number. Example: 111 Main Street PMB 123.

Foreign Address – Follow the country's practice for entering the city, county, province, state, country, and postal code, as applicable, in the appropriate boxes. Do not abbreviate the country name.

Part I – Withholding Agent Information

Enter the withholding agent’s name, TIN, address, and telephone number.

Part II – Payee Information

Enter the payee's name, TIN, and address.

If the payee is a grantor trust, enter the individual name and SSN or ITIN of the grantor that is required to file a tax return and report the income. 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 payee is a non-grantor trust, enter the name of the trust and the trust’s FEIN. Do not

enter trustee information.

If the trust has applied for a FEIN, but it has not been received, enter "applied for" in the space for the trust’s FEIN and attach a copy of the federal application to the back of Form 592-B. After the FEIN is received, amend Form 592-B to submit the assigned FEIN.

If the payees are married/RDP, enter only the name and SSN or ITIN of the primary spouse/RDP. However, if the payees 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.

Part III – Type of Income Subject to Withholding

Check the box(es) for the type of income subject to withholding.

Part IV – Tax Withheld

Line 1

Enter the total income subject to withholding.

Line 2

Enter the total resident and/or nonresident 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. 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.

Line 3

Enter the total backup withholding, if applicable.

Page 2 Form 592-B Instructions 2019

Instructions for Payee

This withholding of tax does not relieve you of the requirement to file a California tax return.

You may be assessed a penalty if:

You do not file a California tax return. You file your tax return late.

The amount of withholding does not satisfy your tax liability.

How To Correct An Error

If a payee notices an error, the payee should contact the withholding agent. 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 payee.

How to Claim the Withholding

Claim your withholding credit on one of the following:

Form 540, California Resident Income Tax Return

Form 540NR, California Nonresident or Part-Year Resident Income Tax Return

Form 541, California Fiduciary Income Tax Return

Form 100, California Corporation Franchise or Income Tax Return

Form 100S, California S Corporation Franchise or Income Tax Return Form 100W, California Corporation

Franchise or Income Tax Return – Water’s- Edge Filers

Form 109, California Exempt Organization Business Income Tax Return

Form 565, Partnership Return of Income Form 568, Limited Liability Company

Return of Income

If you have backup withholding, you must contact the FTB to provide a valid TIN before filing a tax return. The following are acceptable TINs: SSN, ITIN, FEIN, CA Corp no., or CA SOS file number. Failure to provide a valid TIN will result in the denial of the backup withholding credit. Using the information provided on this page, contact the FTB as soon as you receive this form.

Report the income as required and enter the amount from Form 592-B, Part IV, line 2 on your California tax return as 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. Keep a copy for a minimum of five years and provide it to the FTB upon request.

If you are an S corporation, partnership, or LLC, you may either pass 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 the withholding exceeds the amount of tax you owe on your tax return, you must pass through the excess to your shareholders, partners, or members.

If you do not have an outstanding balance on your tax return, you must pass through the entire amount to your shareholders, partners, or members. Use Form 592-PTE to pass the withholding to your domestic shareholders, partners, or members. Use Form 592-F to pass the withholding to your foreign (non U.S.) partners or members.

If you are an estate or trust, you must pass through the withholding to your beneficiaries if the related income was distributed. Use Form 592-PTE to pass through the withholding to your beneficiaries. If you did not distribute the income, you must claim the withholding on the fiduciary return, Form 541.

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 rent, endorsement income, royalties, see your contract and/or federal Form 1099 to determine your California source income.

If you are a shareholder of an S-corporation, partner in a partnership, or a member in an LLC, see your California Schedule K-1, Share of Income, Deductions, Credits, etc., issued by that entity to determine your California source income.

Additional Information

Website:

For more information go to

 

ftb.ca.gov and search for

 

nonwage.

 

MyFTB offers secure online tax

 

account information and services.

 

For more information, go to

 

ftb.ca.gov and login or register

 

for MyFTB.

Telephone:

888.792.4900 or 916.845.4900,

 

Withholding Services and

 

Compliance phone service

Fax:

916.845.9512

Mail:

WITHHOLDING SERVICES AND

 

COMPLIANCE MS F182

 

FRANCHISE TAX BOARD

 

PO BOX 942867

 

SACRAMENTO CA 94267-0651

For questions unrelated to withholding, or to download, view, and print California tax forms and publications, or to access the TTY/TDD numbers, see the information below.

Internet and Telephone Assistance Website: ftb.ca.gov

Telephone: 800.852.5711 from within the United States

916.845.6500 from outside the United States

TTY/TDD: 800.822.6268 for persons with hearing or speech disability

711 or 800.735.2929 California relay service

Asistencia Por Internet y Teléfono Sitio web: ftb.ca.gov

Teléfono: 800.852.5711 dentro de los

Estados Unidos

916.845.6500 fuera de los Estados Unidos

TTY/TDD: 800.822.6268 para personas con discapacidades auditivas o de habla

711 ó 800.735.2929 servicio de relevo de California

Form 592-B Instructions 2019 Page 3

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