California Resident and Nonresident Withholding Tax Statement

Resident and Nonresident Withholding Tax Statement
2023 Form 592-B Resident and Nonresident Withholding Tax Statement with Instructions
TAXABLE YEAR

2023

Resident and Nonresident Withholding
Tax Statement

CALIFORNIA FORM

592-B

□ Amended

Part I Withholding Agent Information
Name of withholding agent (from Form 592, 592-PTE, or 592-F)

SSN or ITIN

□ FEIN □ CA Corp no. □ CA SOS file no.

Address (apt./ste., room, PO box, or PMB 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

□ FEIN □ CA Corp no. □ CA SOS file no.

Address (apt./ste., room, PO box, or PMB 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□
B□
C□
D□

Payments to Independent Contractors
Trust Distributions
Rents or Royalties
Distributions to Domestic (U.S.)
Nonresident Partners/Members/
Beneficiaries/S Corporation Shareholders

E □ Estate Distributions
F □ Elective Withholding
G □ Elective Withholding/Indian Tribe

H □ Allocations to Foreign (non-U.S.)
Nonresident Partners/Members
I □ Other ___________________________

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

2023 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).

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 must
file Form 592-B with their California tax return
to claim the credit for the withheld amount.
See General Information A Purpose, for more
information.
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.

For Privacy Notice, get FTB 1131 EN-SP.

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.

7101233

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.

A

Purpose

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, 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
provided to the payee electronically.

Form 592-B  2022

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.

B
•
•
•

C

Helpful Hints
Get taxpayer identification numbers (TINs)
from all payees.
Complete all applicable fields.
Complete all forms timely to avoid
penalties.

Who 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.

D

When 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 payment

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Form 592-B Instructions 2022

due date, or, if paid later, the date the
withholding payment is made. See Treas. Reg.
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.

E

Amending 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.

F

Penalties

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 at 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 at 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, 2022, use the 2022 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 nongrantor 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.

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.
For more information on California filing
requirements, go to ftb.ca.gov/file.
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’sEdge 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, Real Estate Withholding
Statement. 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

Franchise Tax Board Privacy Notice on
Collection
Our privacy notice can be found in annual tax
booklets or online. Go to ftb.ca.gov/privacy
to learn about our privacy policy statement, or
go to ftb.ca.gov/forms and search for 1131 to
locate FTB 1131 EN-SP, Franchise Tax Board
Privacy Notice on Collection – Aviso de
Privacidad del Franchise Tax Board sobre la
Recaudación. To request this notice by mail,
call 800.338.0505 and enter form code 948
when instructed.
For questions unrelated to withholding, or to
download, view, and print California tax forms
and publications, or to access the California
Relay Service, 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
California
Relay
Service:
711 or 800.735.2929 for
persons with hearing or
speaking limitations.
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
Servicio de
Retransmisión
de California: 711 o 800.735.2929 para
personas con limitaciones
auditivas o del habla.

Form 592-B Instructions 2022

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