Common Errors Made on Form 593, Real Estate Withholding Statement July 2021 Tax News

We recently sent this article out to the public for anyone who files FTB Form 593, Real Estate Withholding Statement. If you have clients who submit Form 593 with us, it may be useful.

If you are a remitter who submits real estate withholding forms and payments to the Franchise Tax Board, use these tips to ensure proper submission and to avoid errors that could result in the assessment of penalties and interest.

Issue Resolution
Forms with incorrect tax year are submitted. Submit the form for the tax year the sales transaction took place. For example, if the transaction occurred on October 1, 2020, please submit the 2020 Form 593.
Modifications are made to the form. Do not modify forms.  
Incorrect or obsolete forms are submitted. As of 2020, do not submit:
  • Form 593-C, Real Estate Withholding Certificate
  • Form 593-E, Real Estate Withholding - Computation of Estimated Gain or Loss
  • From 593-I, Real Estate Withholding Installment Sale Acknowledgment
The Amended box is checked in error. Review the form thoroughly to ensure this box is not improperly checked.
The Perjury Statement isn’t complete. Seller must complete the Perjury Statement, when applicable.
The form is not signed. Seller must always sign the form. Buyer must sign only when the transaction is an installment sale.
Part VII of form isn’t complete. Ensure all applicable parts are complete.
Line 36 (Amount Withheld from Seller/Transferor) isn’t complete. Ensure all applicable parts are complete.