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Fill a Valid California 592 F Form

The California 592-F form, known as the Foreign Partner or Member Annual Return, is a crucial document for partnerships and limited liability companies (LLCs) with foreign partners or members. It serves to report total withholding for the year and allocate income and related withholding to these foreign entities or individuals. This form simplifies the process by allowing withholding agents to provide a consolidated report without needing to submit individual forms for each partner or member, streamlining the allocation of withholding credits and ensuring compliance with California's Revenue and Taxation Code.

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Article Guide

Managing financial responsibilities is a crucial aspect of facilitating international business operations, particularly for entities engaging with foreign partners or members. The California Form 592-F plays a pivotal role in this process, serving as the Foreign Partner or Member Annual Return. This form is essential for partnerships and limited liability companies (LLCs) that have foreign partners or members, enabling them to report total withholding for the year and allocate income and related withholding accordingly. Beyond the financial accounting, Form 592-F ensures compliance with California's tax laws, requiring meticulous attention to the taxable year, withholding agent information, and details regarding tax withheld. It outlines specific instructions for the taxable year, addressing how entities should report prior payments, amount credited from the prior year, and balance due or overpayment. The form also integrates a perjury statement, underscoring the legal declaration of the authenticity of the submitted information by the withholding agent and, if applicable, the preparer. Significantly, it emphasizes electronic filing requirements for those with a substantial number of payees, reflecting a push towards efficient and secure processing of such vital financial documentation. Moreover, understanding the penalties associated with late payments or failure to withhold emphasizes the necessity of careful adherence to the stipulated guidelines, reinforcing the form's role not just in tax compliance but also in maintaining the fiscal integrity of cross-border partnerships.

Document Example

TAXABLE YEAR	CALIFORNIA FORM
2011 Foreign Partner or Member Annual Return	592-F

I฀฀ Amended I฀฀ Federal Extension

Taxable year: Beginning month __________________ day ________ year ________, and ending month __________________ day ________ year ________.

Part I Withholding Agent

Business name

฀SSN or ITIN ฀FEIN ฀CA Corp no. SOS file no.

First name

Initial Last name

Address (suite, room, PO Box, or PMB no.)

City (if you have a foreign address, see instructions)

State ZIP Code

Total Number of Foreign Partners or Members Included

Part II Tax Withheld

Total tax withheld from Schedule of Payees, excluding backup withholding	I฀
(Side 2 and any additional pages)

2 Total backup withholding (Side 2 and any additional pages) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I฀ ฀2

3 Add line and line 2. This is the total amount of tax withheld. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I฀ ฀3

4 Amount withheld by another entity and being allocated to partners or members . . . . . . . . . . . . . . . . . . . . I฀ ฀4

5 Prior payments of foreign partners’ or members’ withholding for taxable year shown above . . . . . . . . . . . I฀ ฀5

6 Amount credited from prior year’s withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I฀ ฀6

7 Total payments. Add line 4, line 5, and line 6.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I฀ ฀7

8 Balance due. If line 3 is more than line 7, subtract line 7 from line 3. Remit the withholding payment using Electronic Funds Transfer (EFT), or the Supplemental Payment Voucher from Form 592-A, along with Form 592-F. Make a check or money order for the full amount payable to the “Franchise Tax Board.”

Write the tax ID number and “2011 Form 592-A” on the check or money order and mail to: . . . . . . . . . . . I฀ 8

WITHHOLDING SERVICES AND COMPLIANCE

FRANCHISE TAX BOARD

PO BOX 942867

SACRAMENTO CA 94267-065


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9	Overpayment. If line 7 is greater than line 3, subtract line 3 from line 7 (complete lines 10 and 11)	I฀ 9	,		,		.	00
9		I฀ 9	,		,		.
0	Credit to next year. Enter the amount from line 9 that you want applied to the 2012 Form 592-F	I฀0					.	00
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	Refund. Subtract line 10 from line 9	I		,		,	.		00

Part III Perjury Statement

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than withholding agent) is based on all information of which preparer has any knowledge.

( )

Withholding agent’s name ______________________________________________ Withholding agent’s daytime phone number ______________________

Withholding agent’s signature ______________________________________________________________ Date ____________________________________

Preparer’s name __________________________________________________________________________________________________________________

Preparer’s signature ______________________________________________________________________ Date ____________________________________

Preparer’s address ________________________________________________________________________________________________________________

( )

Preparer’s PTIN/SSN __________________________________________________ Preparer’s daytime phone number _____________________________

For Privacy Notice, get form FTB 1131.

8081113

Form 592-F C3 2010 Side

Withholding Agent’s (Payer’s) Name: _______________________ Withholding Agent’s (Payer’s) ID No.: _________________

Schedule of Payees

PRINT CLEARLY

Business name

SSN or ITIN

FEIN CA Corp no.

SOS ﬁle no.

First name

Initial

Last name

฀

If backup withholding, check

the box (see instructions)

Address (suite, room, PO Box, or PMB no.)

City (if you have a foreign address, see instructions)

State

ZIP Code

Total Income

Amount of Tax Withheld

Business name

SSN or ITIN

FEIN CA Corp no.

SOS ﬁle no.

First name

Initial

Last name

฀

If backup withholding, check

the box (see instructions)

Address (suite, room, PO Box, or PMB no.)

City (if you have a foreign address, see instructions)

State

ZIP Code

Total Income

Amount of Tax Withheld

Business name

SSN or ITIN

FEIN CA Corp no.

SOS ﬁle no.

First name

Initial

Last name

฀

If backup withholding, check

the box (see instructions)

Address (suite, room, PO Box, or PMB no.)

City (if you have a foreign address, see instructions)

State

ZIP Code

Total Income

Amount of Tax Withheld

Business name

SSN or ITIN

FEIN CA Corp no.

SOS ﬁle no.

First name

Initial

Last name

฀

If backup withholding, check

the box (see instructions)

Address (suite, room, PO Box, or PMB no.)

City (if you have a foreign address, see instructions)

State

ZIP Code

Total Income

Amount of Tax Withheld

Total Income and Withholding for This Page Only

Notice to Withholding Agents: We require the total amounts below to be calculated and submitted separately for each page.

Total Income Page				Total California Tax Withheld Excluding					Total Backup Withholding
					Backup Withholding
,	,	.	00		,	,	.	00	,	,	.	00
		.					.				.

Side 2 Form 592-F C3 2010

8082113

Instructions for Form 592-F

Foreign Partner or Member Annual Return

What’s New

For taxable years beginning on or after January 1, 2011, the maximum personal income tax rate is 9.3%. 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 9.3% of gain. The alternative withholding rate for the gain on sale of California real property by S corporations is 10.8% and 12.8% for ﬁnancial S corporations.

General Information

At the end of the taxable year, partnerships and limited liability companies (LLCs) complete Form 592-F, Foreign Partner or Member Annual Return, to report the total withholding for the year and to allocate the income and related withholding to the foreign partners or members. When ﬁling Form 592-F with the Franchise Tax Board (FTB), the withholding agent is no longer required to submit to the FTB Form 592-B, Resident and Nonresident Withholding Tax Statement, for each partner or member. However, withholding agents must continue to provide the partners or members with copies of Form 592-B.

•For California withholding purposes, nonresident includes all of the following:

•Individuals who are not residents of California.

•Corporations not qualiﬁed through the California Secretary of State to do business in California or having no permanent place of business in California.

•Partnerships or LLCs with no permanent place of business in California.

•Any trust without a resident grantor, beneﬁciary, or trustee, or estates where the decedent was not a California resident.

•Foreign refers to non-U.S.

Withholding on foreign partners or members is remitted to the FTB using Form 592-A, Payment Voucher for Foreign Partner or Member Withholding. For more information on the withholding requirements or to send withholding payments during the year, get Form 592-A.

Round Cents To Dollars – Round cents to the nearest whole dollar. For example, round

$50.50 up to $51 or round $25.49 down to $25.

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 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 more information, go to ftb.ca.gov and search for backup withholding.

Submitting Payments – Use the Supplemental Payment Voucher from Form 592-A if you have a ﬁnal withholding payment to remit with Form 592-F.

A Purpose

Use Form 592-F to report the total withholding for the year on foreign partners or members under California Revenue and Taxation Code (R&TC) Section 18666. Form 592-F is used by pass-through entities to ﬂow-through withholding credit to their foreign partners or members. Caution: Real Estate Withholding should not be reported on this form.

Do not use Form 592-F if:

•You are reporting withholding on domestic nonresident partners or members. Use Form 592, Resident and Nonresident Withholding Statement.

•You are the buyer or escrow person withholding on the sale of real estate. Use Form 593, Real Estate Withholding Tax Statement, to report real estate withholding.

B When and Where to File

For withholding on foreign partners or members, ﬁle Form 592-F, on or before the 15th day of the 4th month following the close of the partnership’s or LLC’s taxable year.

If all the partners or members are foreign, Form 592-F must be ﬁled on or before the 15th day of the 6th month after the close of the partnership’s or LLC’s taxable year. The withholding agent retains this form for a minimum of four years and must provide it to the FTB upon request.

Mail Form 592-F, the Supplemental Payment Voucher from Form 592-A, and payment to:

WITHHOLDING SERVICES AND COMPLIANCE

FRANCHISE TAX BOARD PO BOX 942867 SACRAMENTO CA 94267-0651

0-Day Notiication – California follows federal law, which requires that withholding agents notify foreign payees within 10 days of any tax withheld. For California withholding purposes, withholding agents should make a similar notiﬁcation to nonresident payees. 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.

C Amending Form 592-F

Amended forms can only be ﬁled by the withholding agent. To amend Form 592-F:

•Complete a new Form 592-F with the correct information.

•Check the “Amended” box at the top of the revised form.

•Include a letter explaining what changes were made and why.

•Send the amended Form 592-F and letter to the address on the form.

D Federal Extension

Check the “Federal Extension” box at the top of the form if you ﬁled for an extension to ﬁle federal Form 8804, Annual Return for Partnership Withholding Tax.

Caution: An extension to ﬁle is not an extension to pay. The ﬁnal withholding payment is due on or before the original due date for Form 592-F regardless of an extension to ﬁle.

EElectronic Filing Requirements

Form 592-F information must be ﬁled with the FTB electronically, using FTB’s Secure Web Internet File Transfer (SWIFT), instead of paper when the number of payees on Form 592-F is 250 or more. However, withholding agents must continue to provide payees with paper copies of Form 592-B. To submit your Form 592-F for electronic ﬁling, submit your ﬁle using the SWIFT process as outlined in FTB Pub. 923, SWIFT Guide for Resident, Nonresident, and Real Estate Withholding.

For the required ﬁle format and record layout for electronic ﬁling, get FTB Pub. 1023S, Resident and Nonresident Withholding Electronic Submission Requirements. If you are the preparer for more than one withholding agent, provide a separate electronic ﬁle for each withholding agent.

For electronic ﬁling submit your payment using EFT or Form 592-A.

F Interest and Penalties

Interest on late payments is computed from the due date of the withholding to the date paid. Failure to withhold may result in the withholding agent being personally liable for the amount of tax that should have been withheld and for interest and penalties.

A penalty will be assessed for failure to ﬁle complete, correct, and timely information returns (Form 592-F schedule of payees) to the FTB. The penalty is calculated per payee:

•$15 if ﬁled 1 to 30 days after the due date.

•$30 if ﬁled 31 days to 6 months after the due date.

•$50 if ﬁled more than 6 months after the due date.

Speciﬁc Instructions

Taxable Year

•Enter the beginning and ending dates for the partnership’s or LLC’s taxable year.

•Make sure the year in the upper left corner of the form matches the ending date of the taxable year.

Form 592-F Instructions 2010 Page

Foreign Address – Enter the information in the following order: City, Province/Region, Postal Code, and Country. Follow the country’s practice for entering the postal code. Do not abbreviate the country’s name.

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

If completing Form 592-F by hand, enter all the information requested using black or blue ink.

Part I Withholding Agent

Enter the business or individual withholding agent’s name, ID number, and address. If your entity is a partnership, LLC, estate,

or trust that was withheld upon by another entity because you are a foreign (non-U.S.) partner or member of that entity and you are ﬂowing through the withholding credit to your partners, members, or beneﬁciaries, enter your entity’s name, ID number, and address in the business name area.

If you are ﬁling Form 592-F only to ﬂow- through withholding credits to your partners, members, or beneﬁciaries, enter your information in Part I.

Do not enter the name or ID number of the entity which originally withheld payments from you.

Enter the total number of foreign partners or members included on all Schedule of Payees from Side 2 (including all additional Schedule of Payees you attached).

Part II Tax Withheld

Line – Enter the total withholding, excluding backup withholding, from the Schedule

of Payees listed on Side 2 (including any additional Schedule of Payees you attached).

Line 2 – Enter the total backup withholding from the Schedule of Payees listed on Side 2 (including any additional Schedule of Payees you attached).

Line 3 – Add line 1 and line 2. This is the total amount of tax withheld.

Line 4 – Enter the amount withheld by another entity and being allocated to your foreign partners or members. If any of the amount withheld by the other entity is to be used against the tax owed by your entity, do not include that amount in line 4. Attach a note to Form 592-F explaining how much of the credit will be used to offset your tax due.

Line 5 – Enter prior payments for the taxable year shown above from Forms 592-A.

Line 6 – Enter the amount of foreign partner or member credit carried over from the prior withholding year.

Line 8 – If line 3 is more than line 7, subtract line 7 from line 3. If the result is less than zero, enter -0-. Remit the withholding payment using Electronic Funds Transfer (EFT), or the Supplemental Payment Voucher

from Form 592-A, along with Form 592-F. Important: Include but do not attach a check or money order to the Supplemental Payment Voucher from Form 592-A for the full amount payable to the “Franchise Tax Board.” Using black or blue ink, write the tax ID number and “2011 Form 592-A” on the check or money order.

Line 9 – If line 7 is greater than line 3, subtract line 3 from line 7 (complete lines 10 and 11).

Line 0 – Enter the amount of your overpayment on line 9 that you want to credit to the 2012 Form 592-F.

Part III Perjury Statement

Complete the withholding agent’s and preparer’s information.

Schedule of Payees Instructions

Enter all the requested information for each payee you report as having received California source income to ensure each payee’s withholding payment is applied timely and properly.

You must use the Schedule of Payees on Side 2 of Form 592-F to report additional payees – If you withheld tax on multiple payees for the period, use and attach additional Schedule of Payees from Side 2 of Form 592-F, as necessary. Do not use your own version

of the Schedule of Payees to report additional payees. We can only accept and process additional payees reported on the Schedule of Payees from Side 2 of Form 592-F. Be sure to include the withholding agent’s or payer’s name and ID number at the top of each additional page.

Business or Individual Name, Tax ID Number, and Address – Enter the business or individual name, tax identiﬁcation number, and address for the partner or member. For foreign addresses, see Speciﬁc Instructions.

Backup Withholding – If the payee is subject to backup withholding, check this box. If you are a foreign ﬂow-through entity reporting backup withholding, attach the withholding statement that enables you to determine the speciﬁc payment to each recipient as required by the IRS.

Total Income – Enter the total income subject to withholding.

Amount of Tax Withheld – Enter the amount of tax withheld. Determine the California source taxable income allocable for the partner or member, then multiply by the applicable tax rate:

Income amount X Maximum tax rate for the partner or member.

Tax Rates

9.3% Non-corporate maximum tax rate

8.84% Corporate maximum tax rate

10.84% Bank and ﬁnancial institution maximum tax rate

Additional Information

For additional information or to speak to a representative regarding this form, call the Withholding Services and Compliance automated telephone service at: 888.792.4900 or 916.845.4900.

OR write to:

WITHHOLDING SERVICES AND COMPLIANCE

FRANCHISE TAX BOARD PO BOX 942867 SACRAMENTO CA 94267-0651

You can download, view, and print California tax forms and publications at ftb.ca.gov.

OR to get forms by mail write to:

TAX FORMS REQUEST UNIT FRANCHISE TAX BOARD PO BOX 307

RANCHO CORDOVA CA 95741-0307

For all other questions unrelated to withholding or to access the TTY/TDD number, 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 impairments
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 personas con
	discapacidades auditivas y del
	habla

Page 2 Form 592-F Instructions 2010

Click for PDF Form

Form Breakdown

Fact Number	Fact Name	Description
1	Form Designation	California Form 592-F is known as the "Foreign Partner or Member Annual Return."
2	Purpose	Used to report total withholding for the year on foreign partners or members.
3	Governing Law	Governed by California Revenue and Taxation Code (R&TC) Section 18666.
4	Tax Rates	Specifies different tax rates including 9.3% for non-corporate, 8.84% for corporate, and 10.84% for banks and financial institutions.
5	Electronic Filing Requirement	Must be filed electronically using FTB’s Secure Web Internet File Transfer (SWIFT) if reporting 250 or more payees.
6	Due Date	Must be filed on or before the 15th day of the 4th month following the close of the taxable year. If all partners or members are foreign, the deadline extends to the 15th day of the 6th month.
7	Backup Withholding	California backup withholding rate is 7%, applying to certain payments if required by the IRS.
8	Amending a Return	Allows for amendments to be made by checking the “Amended” box and explaining the changes in a letter attached to the revised form.

How to Write California 592 F

Filing the California Form 592-F, which pertains to the Foreign Partner or Member Annual Return, is a process that requires careful attention to detail. This form is essential for partnerships and limited liability companies (LLCs) with foreign partners or members, serving as a means to report withheld taxes for the year and allocate these and income to those foreign entities. Here is a straightforward, step-by-step guide to help you accurately complete the Form 592-F.

Begin by indicating whether the submission is an amended return or if a federal extension has been filed at the top of the form.
Fill out the taxable year section, including the beginning and ending month, day, and year.
In Part I, enter the Withholding Agent's details, including business name, SSN or ITIN, FEIN, CA Corp number, SOS file number, and contact information.
List the Total Number of Foreign Partners or Members Included in the designated box.
In Part II under Tax Withheld, input the total tax withheld from the Schedule of Payees. This excludes backup withholding, which is entered next.
Add the total backup withholding amount.
Combine the amounts from the previous two steps for the total amount of tax withheld. This figure goes on line 3.
Input any amount withheld by another entity and being allocated to partners or members, if applicable.
Enter prior payments and amounts credited from the previous year’s withholding, if any.
Calculate and enter the Balance Due. If the amount withheld (line 3) exceeds the total payments, the difference should be remitted as per the form’s instructions. Conversely, if there's an overpayment, proceed to indicate your preference for a credit to next year or a refund.
In Part III, the Perjury Statement section, the withholding agent and preparer (if applicable) must sign and date the form, indicating their declaration that the information provided is accurate.
For the Schedule of Payees on Side 2, clearly print the required information for each payee, including the total income and amount of tax withheld. If backup withholding applies, ensure to check the appropriate box.
Summarize the Total Income and Withholding for This Page Only at the bottom of the Schedule of Payees section.
Add any additional schedules if you have more than the space provided. Make sure to include the withholding agent’s name and ID number on each additional page.
Review the entire form to ensure all information is correct and complete.
Submit the form to the address indicated in the instructions, along with any required payment, by the specified due date to avoid penalties.

While completing the Form 592 will require gathering detailed financial information, following these steps will help ensure that the process is done correctly. It's crucial to adhere strictly to all the guidelines provided in the form instructions to accurately report and withhold taxes for foreign partners or members. Should questions or uncertainties arise during this process, consulting with a tax professional or the Franchise Tax Board directly can provide clarity and assistance.

Listed Questions and Answers

What is California Form 592-F?

California Form 592-F, also known as the Foreign Partner or Member Annual Return, is a form used by partnerships and limited liability companies (LLCs) to report total withholding for the year and allocate income and related withholding to foreign partners or members. It's specifically for non-US partners or members and is utilized for reporting total withholding tax to the Franchise Tax Board (FTB).

When should Form 592-F be filed?

This form should be filed on or before the 15th day of the 4th month following the close of the partnership's or LLC's taxable year. If all partners or members are foreign, the form must be filed by the 15th day of the 6th month after the close of the taxable year.

Who needs to file Form 592-F?

Pass-through entities like partnerships and LLCs that have foreign (non-US) partners or members need to file Form 592-F to report total withholding for the year and allocate income and related withholding to these foreign entities.

What information is needed to complete Form 590-F?

To complete Form 592-F, you'll need the following information:

The beginning and ending dates of the taxable year.
Withholding agent's details, including business or individual name, ID numbers, and address.
Total number of foreign partners or members.
Total tax withheld, including any backup withholding.
Details of any amount withheld by another entity allocated to partners or members.
Details of prior payments, amount credited from the prior year’s withholding, overpayment, and amounts to be credited to the next year.

How is Form 592-F submitted?

Form 592-F can be submitted to the FTB through mail at the address specified in the form's instructions. If a partnership or LLC has 250 or more payees, the information must be filed electronically using the FTB’s Secure Web Internet File Transfer (SWIFT) system.

What are the penalties for not filing or late filing of Form 592-F?

Penalties may be assessed for failing to file complete, correct, and timely information returns. The penalties are calculated per payee and can range from $15 to $50 depending on how late the form is filed. Additionally, interest on late payments and personal liability for the withholding amount, including interest and penalties, may apply.

Can Form 592-F be amended?

Yes, Form 592-F can be amended by the withholding agent. To amend the form, complete a new Form 592-F with the corrected information, check the "Amended" box, include a letter explaining the changes, and send it to the address provided in the form instructions.

What is backup withholding?

Backup withholding is a form of withholding for certain payments to ensure tax collection on income. Beginning January 1, 2010, payers required to withhold and remit backup withholding to the IRS are also required to do so for California. The California backup withholding rate is 7% of the payment.

What are the tax rates applicable for withholding on foreign partners or members?

The tax rates for withholding on foreign partners or members depend on the entity type and include:

9.3% for non-corporate maximum tax rate.
8.84% for corporate maximum tax rate.
10.84% for bank and financial institution maximum tax rate.

These rates are applied to the California source taxable income allocable to the partner or member.

Where can I get more information about Form 592-F?

For more information, you can contact the FTB's Withholding Services and Compliance by phone at 888.792.4900 or 916.845.4900, or visit the FTB website at ftb.ca.gov. Additionally, you can write to the FTB at the address provided in the form instructions for further assistance.

Common mistakes

Not checking the "Amended" box when filing a corrected Form 592-F. This oversight can lead to confusion and processing delays by the Franchise Tax Board (FTB).

Failing to complete the "Federal Extension" section correctly when a federal extension has been filed. Neglecting this step may result in penalties for failing to file on time, despite having an extension.

Incorrectly entering the taxable year start and end dates, which can lead to improper assessment of taxes and penalties for underpayment or late payment.

Omitting or inaccurately reporting the Total Number of Foreign Partners or Members Included. This error can affect the allocation of income and withholding, potentially leading to discrepancies and audits.

Misreporting amounts in Part II, specifically lines - "Total tax withheld" and line 2 - "Total backup withholding." Such mistakes can cause an incorrect calculation of the total tax obligation.

Not properly allocating amounts withheld by another entity to partners or members as required in line 4. This can result in a misreporting of tax credits and liabilities.

Errors in calculating the balance due or overpayment in lines 8 and 9, which can lead to incorrect payments to the FTB or delayed refunds to the filer.

Failing to include the preparer's information and signature if the preparer is someone other than the withholding agent. This could invalidate the filing if the FTB has questions or requires verification.

Using incorrect tax rates for non-corporate, corporate, and bank/financial institution partners or members in calculating the Amount of Tax Withheld. The use of outdated or incorrect rates can result in under- or over-withholding.

Not rounding cents to the nearest dollar as instructed, leading to potential processing errors or the need for the form to be amended and resubmitted.

Each of these mistakes can have significant implications, including delayed processing, incorrect tax calculations, and potentially the imposition of penalties and interest for underpayment. Paying close attention to detail and thoroughly reviewing the form before submission can help avoid these errors.

Documents used along the form

When dealing with the California Form 592-F, Foreign Partner or Member Annual Return, there are several other forms and documents that may be used in conjunction. These play a critical role in ensuring that the withholding and allocation process is completed accurately and in compliance with California's tax laws. Here’s a concise look at some of these forms and their purposes:

Form 592-A, Payment Voucher for Foreign Partner or Member Withholding: This form is used to remit withholding payments to the Franchise Tax Board (FTB) for foreign partners or members.
Form 592-B, Resident and Nonresident Withholding Tax Statement: Provides detailed information about the amount withheld from the payee’s distribution and is required to be given to each partner or member.
Form 592, Resident and Nonresident Withholding Statement: Used for reporting withholding on domestic nonresident partners or members, separate from foreign partners or members.
Form 593, Real Estate Withholding Tax Statement: Required for real estate transactions to report and remit withholding from the sale of California real property.
Form 8804, Annual Return for Partnership Withholding Tax (Federal): A federal form that might align with the filing for Form 592-F if extensions or amendments are applicable.
Electronic Funds Transfer (EFT) Payment: While not a form, EFT payments are commonly used in conjunction with Form 592-F filings for the remittance of withheld taxes.
Secure Web Internet File Transfer (SWIFT): Required for electronic filing of Form 592-F information if the number of payees is 250 or more. This process ensures secure submission of sensitive information.
FTB Pub. 1023S, Resident and Nonresident Withholding Electronic Submission Requirements: Provides the necessary information and guidelines for electronically submitting withholding information.
FTB Pub. 923, SWIFT Guide for Resident, Nonresident, and Real Estate Withholding: Offers detailed instructions on using SWIFT for electronic filings relating to withholding.
Form 593-E, Real Estate Withholding – Computation of Estimated Gain or Loss: Although not directly connected to foreign partners, it may be necessary when dealing with real estate transactions involving foreign investment.

This list encompasses the crucial documents necessary for correctly handling the California Form 592-F and associated processes. Whether it’s for remitting payments, providing necessary statements to partners, or ensuring compliance through electronic submissions, each document has its role. It’s essential to familiarize oneself with these forms and understand their application to manage foreign partner or member annual returns effectively.

Similar forms

The California 592-F form is closely related to the Form 592-B, Resident and Nonresident Withholding Tax Statement. Both forms address the withholding tax requirements for payments made to nonresidents of California. While Form 592-F is for foreign partners or members, reporting their annual return and total withholding, the 592-B form serves to provide detailed information about the income and the tax withheld for each nonresident individual or entity. This allows individuals or entities to understand their tax liabilities or refunds regarding income sourced from California.

Form 592-A, Payment Voucher for Foreign Partner or Member Withholding, functions alongside Form 592-F, offering a method for remitting the withholding payments to the California Franchise Tax Board (FTB). Essentially, after computing the total withholding on the 592-F form, the withholding agent utilizes Form 592-A to make the actual payment. This voucher ensures that payments are correctly applied to the foreign partners or members' tax obligations, securing the linkage between withheld amounts reported and the payments made.

Another similar document is Form 593, Real Estate Withholding Tax Statement, which pertains to withholding on the sale of California real estate. While Form 592-F targets foreign partners or members’ income and related withholding, Form 593 focuses on transactions involving real property. Both forms facilitate compliance with California's withholding requirements, but they cater to different sources of income (operational vs. real estate sales).

Form 8804, Annual Return for Partnership Withholding Tax (Section 1446) at the federal level mirrors the purpose of California's Form 592-F, albeit in a broader jurisdiction. Form 8804 is used to report the federal withholding tax on the income of foreign partners derived from the United States. Both forms share the objective of ensuring foreign entities pay their appropriate share of taxes on income sourced from their respective jurisdictions.

California Form 592, Resident and Nonresident Withholding Statement, is akin to Form 592-F as both are integral to the withholding processes for nonresident income. While Form 592 addresses domestic nonresident partners or members, Form 592-F focuses on foreign partners or members. Each form is tailored to its specific audience but collectively they ensure nonresident income from California sources is accurately reported and taxed.

For real estate transactions involving a foreign seller, Form 593-C, Real Estate Withholding Certificate, is used in tandem with Form 592-F. The 593-C allows a seller to certify if an exemption from withholding applies or to agree to a reduced withholding amount. When foreign partners are involved in such real estate transactions, details from Form 593-C can directly impact the information and withholding reported on Form 592-F.

The Schedule of Payees section within Form 592-F bears a resemblance to IRS Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding. Both provide detailed information on the income and tax withheld for each foreign payee or partner. These documents ensure transparency and accuracy in reporting to tax authorities, delineating the tax withheld on various income streams to foreign entities or individuals.

Lastly, Form 592-F parallels IRS Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax. Form 8805 is used to inform foreign partners of the income earned and the corresponding tax withheld in the U.S., similar to how Form 592-F communicates this information for California. Both forms play crucial roles in international tax compliance, providing necessary documentation for foreign entities to claim credits or fulfill tax obligations in their home countries.

Dos and Don'ts

Do ensure all personal and business information is filled out completely and correctly. Missing or incorrect information can lead to processing delays or issues with the withheld amount.

Don't round your figures in the middle of calculations. Round cents to the nearest dollar, but only do this after you've completed all necessary calculations.

Do check the "Amended" box at the top of Form 592-F if you are making any amendments to previously submitted information. This helps the Franchise Tax Board quickly identify the purpose of your submission.

Don't forget to include the total number of foreign partners or members on Part I of the form. This number should reflect all individuals included on the Schedule of Payees.

Do use the Supplemental Payment Voucher from Form 592-A for any final withholding payment when submitting Form 592-F. This ensures your payment is processed accurately and efficiently.

Don't disregard the due dates. Submit Form 592-F on or before the 15th day of the 4th month following the close of the taxable year for the partnership or LLC. Late submissions can incur penalties and interest.

Do make sure to consult the specific instructions for completing the Schedule of Payees if you have multiple payees. The correct completion of this schedule is critical for the proper allocation of withholding to each payee.

Misconceptions

There are several misconceptions surrounding the California Form 592-F, which is utilized for reporting withholding information for foreign partners or members by partnerships and limited liability companies (LLCs). By clarifying these misconceptions, taxpayers can better understand their obligations and ensure compliance with state tax laws.

Misconception 1: Form 592-F is only for entities with foreign partners or members.
While Form 592-F is indeed designed to report the total withholding for foreign partners or members, it is not exclusively for entities that only have foreign partners or members. Domestic partnerships and LLCs with both domestic and foreign partners or members may also need to file this form to report and allocate income and withholding for their foreign partners or members.
Misconception 2: Withholding is not necessary if the foreign partner or member did not earn income.
Even if a foreign partner or member did not receive income directly, the withholding agent (the entity) is responsible for withholding taxes on California source income that is allocable to the foreign partners or members. This allocation is based on their share of the entity's income, not necessarily on distributions made.
Misconception 3: Form 592-F serves as the payment voucher for withheld taxes.
Form 592-F is an annual return that reports the total withholding for the year. To remit withheld taxes, withholding agents must use Form 592-A, Payment Voucher for Foreign Partner or Member Withholding. This form accompanies payments made throughout the year, whereas Form 592-F provides a yearly summary and reconciliation of the withholding.
Misconception 4: Electronic filing of Form 592-F is optional.
For entities that withhold taxes from 250 or more payees, electronic filing of Form 592-F information with the Franchise Tax Board (FTB) is mandatory. This requirement ensures efficient and secure processing of the form. It's important for withholding agents to familiarize themselves with electronic submission requirements and utilize the State of California’s Secure Web Internet File Transfer (SWIFT) or other approved electronic filing methods.

Understanding and addressing these misconceptions about Form 592-F is crucial for compliance with California’s tax withholding requirements for foreign partners or members. Entities should review their obligations carefully, and consult with professional tax advisors or the FTB for guidance specific to their situation.

Key takeaways

When completing the California Form 592-F, here are key takeaways to remember:

Form 592-F is specifically for withholding tax for foreign partners or members of partnerships and limited liability companies (LLCs) earning income in California.
Withholding agents must file Form 592-F by the 15th day of the 4th month following the close of the taxable year for the partnership or LLC. If all partners or members are foreign, the deadline extends to the 15th day of the 6th month.
The form requires detailed information, including the withholding agent's business name, identification numbers, and the total number of foreign partners or members. Accurate completion helps ensure timely and proper application of the withholding payment.
For payments exceeding a threshold of 250 payees, withholding agents are required to file the information electronically through the Franchise Tax Board’s Secure Web Internet File Transfer system.
Amendments to Form 592-F can only be made by the withholding agent. If corrections are needed, a new form should be completed with the amended box checked, and a letter explaining the changes should be included with the submission.

It is critical to adhere to the deadlines and requirements for filing to avoid interest and penalties for late or incorrect submissions. The Franchise Tax Board provides resources and assistance for questions regarding Form 592-F and other withholding obligations.

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