Form 592 Draft - Quarterly Resident And Nonresident Withholding Statement

Instructions for Form 592

Quarterly Nonresident Withholding Statement

General Information

D Amending Form 592

Important: This form is also used to report

and remit withholding payments by a resident

Tax withheld on California source payments

Amended forms can only be filed by the

payee.

made to domestic nonresidents is remitted to

withholding agent. To amend Form 592:

Do not use Form 592 if you are the buyer or

the Franchise Tax Board (FTB) on a quarterly

• Complete a new Form 592 with the correct

escrow person withholding on the sale of real

basis (similar to estimated tax payments) using

information.

estate. Use Form 593, Real Estate Withholding

Form 592, Quarterly Resident and Nonresident

• Check the “Amended” box at the top of the

Tax Statement, to remit and report real estate

Withholding Statement. Form 592 includes

revised form.

withholding. Do not use Form 592 to report

a Schedule of Payees section that requires

• Include a letter explaining what changes

tax withheld on foreign partners. For more

the withholding agent to identify the payment

were made and why.

information regarding reporting tax withheld

recipients (vendor/payee) and the income and

• Send the amended form and letter to the

on foreign partners, get Form 592-A, Foreign

withholding amounts. This schedule will allow

address listed under General Information C,

Partner or Member Quarterly Withholding

the FTB to allocate the withholding payments

When and Where to File.

Remittance Statement, and Form 592-F,

to the taxpayer (payee) upon receipt of the

Foreign Partner or Member Annual Return.

E Electronic Filing and Magnetic

completed Form 592.

Media Requirements

The revised quarterly Form 592 process

B Common Errors/Helpful Hints

replaces the prior version of Form 592,

Form 592 information must be filed with the

If you are filing Form 592 only to flow through

Nonresident Withholding Annual Return,

FTB via magnetic media or electronically,

withholding credits to your S corporation

and Form 592- A, Foreign Partner or Member

using FTB’s Secure Web Internet File Transfer

shareholders, partners, members, or

Quarterly Withholding Remittance Statement.

(SWIFT), instead of paper when the number of

beneficiaries, enter your information in

In addition, when filing Form 592 with the

payees on Form 592 is 250 or more. However,

Part I as the withholding agent. Do not enter

FTB, the withholding agent is no longer

withholding agents must continue to provide

the name or ID number of the entity which

required to submit a Form 592-B, Resident and

vendors/payees with paper Forms 592-B.

originally withheld payments from you.

Nonresident Withholding Tax Statement, to

Submitting Form 592:

the FTB, for each payee. However, withholding

C When and Where to File

agents must continue to provide the payees

• For electronic filing, submit your file using

The tax withheld on payments to independent

with paper Forms 592-B at the end of the year

the SWIFT process as outlined in FTB

contractors, recipients of rents and royalties,

which show the total amount withheld for that

Pub 923, SWIFT Guide for Nonresident and

distributions to domestic nonresident

year.

Real Estate Withholding.

S corporation shareholders, partners,

Round Cents To Dollars – Round cents to the

• For magnetic media, submit all the

members, and beneficiaries of estates and

nearest whole dollar. For example, round $50.50

information from Form 592 on a disk to:

trusts, are remitted quarterly. Each quarter

up to $51 or round $25.49 down to $25.

WITHHOLDING SERVICES AND

has a specific payment due date. The payment

For California withholding purposes only, a

COMPLIANCE

quarters and due dates are:

reference in these instructions to:

FRANCHISE TAX BOARD

For the payment quarter:

Due Date:

PO BOX 942867

• “Nonresident” includes all of the following:

January 1 through

SACRAMENTO CA 94267-0651

• Individuals who are not residents of

March 31, 2009 . . . . . . . . . . April 15, 2009

California.

For the required file format and record

April 1 through

• Corporations not qualified through the

layout for both electronic and magnetic

May 31, 2009 . . . . . . . . . . . . June 15, 2009

Secretary of State to do business in

media filing, get FTB Pub. 1023 S, Resident

California or having no permanent place of

and Nonresident Withholding Electronic

June 1 through

business in California.

Submission Requirements.

August 31, 2009 . . . . September 15, 2009

• Partnerships or limited liability companies

If you are the preparer for more than one

September 1 through

(LLCs) with no permanent place of

withholding agent, provide a separate

December 31, 2009 . . . . .January 15, 2010

business in California.

electronic file or disk for each withholding

If the due date falls on a weekend, or legal

• Any trust without a resident grantor,

agent.

holiday, use the next business day.

beneficiary, or trustee, or estates where the

For electronic filing or magnetic media, submit

decedent was not a California resident.

Send any payment due and Form 592 to:

your payment using Electronic Funds Transfer

• “Foreign” refers to non-U.S.

WITHHOLDING SERVICES AND

(EFT) or Form 592-V, Payment Voucher

COMPLIANCE

A Purpose

for Nonresident Withholding Electronic

FRANCHISE TAX BOARD

Submission.

Use Form 592 to report the total withholding

PO BOX 942867

for each quarter under California Revenue

F Interest and Penalties

SACRAMENTO CA 94267-0651

and Taxation Code (R&TC) Section 18662.

Federal law requires that payees be notified

Interest on late payments is computed from

The amount of tax to be withheld shall be

within 10 days of the quarterly installment

the due date of the withholding to the date

computed by applying a rate or 7% or such

payment date regarding any tax withheld. For

paid. Failure to withhold may result in the

lesser rate as authorized in writing by the

California withholding purposes, withholding

withholding agent being personally liable

Franchise Tax Board. Get Form 589, Resident

agents should make similar notification. No

for the amount of tax that should have been

and Nonresident Reduced Withholding

particular form is required for this notification,

withheld and for interest and penalties. Failure

Request, for more information. Also,

and it is commonly done on the statement

to provide correct Forms 592-B to the payees

Form 592 is used by pass-through entities

accompanying the distribution or payment.

by the due date may result in penalties up to

to flow through withholding credit to their

However, the withholding agent may choose

$100 per Form 592-B.

S corporation shareholders, partners,

to report the tax withheld to the payee on a

members, or beneficiaries.

Form 592-B.

Form 592 Instructions 2008 Page 1

Form 592 Draft - Quarterly Resident And Nonresident Withholding Statement - 2009 Page 4

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