FTB Archive Disclaimer:  Archived content is not current and may contain broken links. It remains online for historical reference or research. The search function above allows you to search archived and current content separately. If you need archived content in a different format, contact us.

Backup Withholding

FTB Archive Disclaimer:  Archived content is not current and may contain broken links. It remains online for historical reference or research. The search function above allows you to search archived and current content separately. If you need archived content in a different format, contact us.

Purpose of bulletin

Starting January 1, 2010, payers, including individuals, businesses, and government entities that are required to withhold and remit backup withholding to the IRS, are also required to withhold and remit to the Franchise Tax Board.

Background

ABX4 18 added R&TC §18664.

Beginning January 1, 2010, payers must withhold and remit seven percent of reportable income to California when performing federal backup withholding (with certain limited exceptions). If a payer pays income to a nonresident or to a resident at certain minimum levels as required by the IRS, then California backup withholding is required, except for:

  • Payments of interest and dividends (reported on IRS Forms 1099 INT, 1099 DIV, 1099 OID, and 1099 PATR).
  • Any release of loan funds made by a financial institution in the normal course of business. 

When do payers backup withholding?

Payers backup withholding when a payee submits IRS Form W-9 that:

  • Does not provide a taxpayer identification number (TIN).
  • Provides an invalid TIN.
  • Fails to certify exemption from backup withholding.

Exempt payees

Certain payees are exempt from backup withholding, including tax exempt organizations. To get a complete list, see IRS Form W-9.

Taxpayer inquiries

Taxpayers can call our automated line at 888.792.4900, or 916.845.4900 (if outside the United States), Monday through Friday, 8 am to 5 pm, except state holidays.

They may also fax information to 916.845.9512.

Help Us Improve Our Website

Don't include social security numbers or other personal/confidential information.



Thank you for your help.

If you need assistance, contact us.

Oops! Something went wrong.

We appreciate your feedback. Please try again later

 

You are leaving ftb.ca.gov

We do not control the destination site and cannot accept any responsibility for its contents, links, or offers. Review the site's security and confidentiality statements before using the site.

If you have any issues or technical problems, contact that site for assistance.

Ahora está saliendo de ftb.ca.gov

Nosotros no controlamos el sitio web al que se destina y no podemos aceptar ninguna responsabilidad por su contenido, enlaces, u ofertas. Revise las declaraciones de seguridad y confidencialidad del sitio antes de usar el sitio. Si tiene algún problema en general o técnico, comuníquese con ese sitio para obtener asistencia.

Si tiene algún problema en general o técnico, comuníquese con ese sitio para obtener asistencia.