Withholding Voluntary Compliance Program
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We offer a Withholding Voluntary Compliance Program (WVCP) to eligible withholding agents (businesses and individuals) who are required to remit California source nonwage withholding for nonresident payments and real estate transactions. Withholding agents who wish to come into compliance and remit past-due, nonwage withholding for the previous two calendar years, including interest, may receive benefits.
WVCP offers an opportunity for eligible withholding agents to meet outstanding withholding obligations in exchange for our agreement to:
- Waive information return penalties for the required look-back period.
- Eliminate withholding audits prior to the look-back period.
- Limit their tax withholding liability to the look-back period, plus interest.
We qualify withholding agents to participate in this program unless we:
- Approved their participation in our 2008 Nonresident Withholding Incentive Program.
- Audited them for nonwage withholding.
- Assessed a withholding liability or information return penalty for nonwage withholding.
To participate, we require eligible withholding agents to:
- Submit a completed WVCP Application.
- Provide a separate sheet, labeled Exhibit A, with an estimated withholding amount for each calendar year covered by the application.
- Pay the required withholding amount, plus interest.
If we accept their application, the applicant enters into an agreement for the approved calendar years and agrees to:
- Pay the past-due withholding amounts, including interest. We cannot waive interest.
- Comply with California's nonwage withholding requirements in the future.
- Make all their books and records available to us (with reasonable advance notice) to verify the withholding liability calculation they provided with their application.
We guarantee to keep the agreement confidential and to not disclose any agreement terms or conditions to any other state or governmental tax authorities, except as required by law under California Revenue and Taxation Code (R&TC) Section 19551.
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Last Updated: 03/13/2018