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State of California Franchise Tax Board

Backup Withholding

Payer Information

We require payers who remit backup withholding to the Internal Revenue Service (IRS) to also withhold and remit to us, the Franchise Tax Board (FTB)[1]. Payers must withhold and remit 7 percent of reportable income payments when performing federal backup withholding, except for income payments of interest or dividends.

As a payer, generally, the IRS requires you to withhold on certain taxable payments for which you filed an information return if the payee failed to furnish you with a taxpayer identification number (TIN), or had a missing or invalid TIN prior to payment. You can use IRS Form W-9, Request for Taxpayer Identification Number and Certification, or Form 590, Withholding Exemption Certificate, to request payees to furnish a TIN.

Payments subject to backup withholding include interest and dividends (IRS only), broker and barter exchanges, fishing boat operator's payments, rents, royalties, commissions, nonemployee compensation, payments made in settlement of payment card or third-party network transactions, and certain other payments you make in the course of your trade or business. The income payments and backup withholding credits are remitted and reported to us. Payers use Form 592, Resident and Nonresident Withholding Statement, and Form 592-V, Payment Voucher for Resident and Nonresident Withholding, from our withholding forms and publications page to report and remit backup withholding.

For federal information on backup withholding, refer to IRS Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s).

Payee Information

As a payee, when you open a new account to make an investment or begin to receive payments reportable on Form 592-B, Resident and Nonresident Withholding Tax Statement, or IRS Form 1099-MISC, Miscellaneous Income,  (or other types of Form 1099), you must furnish your TIN to the payer. In some cases, the IRS requires you to furnish your TIN in writing and certify under penalties of perjury that it is correct. The payer will give you Form 590 and IRS Form W-9 (or a similar form). You must enter your TIN, certify that your TIN is true and correct, and return these forms to the payer.

Backup withholding is required when you do not provide a payer with your TIN or certify that your TIN is true and correct. When you do not provide a TIN, a payer is required to withhold on your income. This is backup withholding[2]. We follow the IRS except[3] 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.

If a payer backup withheld on your income, they will provide you with a Form 592-B showing the amount of income and backup withholding. When you receive this form, contact us to provide a valid TIN before filing a tax return so we can apply the backup withholding to you. The following are valid TINs:

  • Social security number (SSN).
  • Individual taxpayer identification number (ITIN).
  • Federal employer identification number (FEIN).
  • California corporation number (CCN).
  • California Secretary of State (CA SOS) file number.

Failure to provide a valid TIN may result in the denial of the backup withholding credit.

Contact Us

Withholding Services and Compliance

Business hours


  • 888.792.4900.
  • 916.845.4900 (outside U.S.).
  • 800.822.6268 (TTY/TDD - Assistance for persons with hearing or speech impairments).


  • 916.845.9512


  • Email Withholding Services - Use this email service for general questions that do not require entering confidential information.

[1] R&TC § 18664

[2] R&TC § 18664(a)(3)

[3] California Revenue and Taxation Code Section (R&TC §) 18664

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