Withholding Voluntary Compliance Program

Franchise Tax Board (FTB) offers eligible withholding agents an opportunity to voluntarily come into compliance with California’s nonwage withholding requirements. California’s nonwage withholding requirements are determined by Revenue and Taxation Code (R&TC) Sections 18662 through 18668.

The Withholding Voluntary Compliance Program (WVCP) is a voluntary program for eligible withholding agents to self-assess the liability for failing to withhold as required for the previous two calendar years, plus interest. The withholding agent’s liability for failing to withhold as required is calculated as 100% of the amount that should have been withheld.

Payments submitted through the WVCP process are applied to the withholding agent’s liability and cannot be allocated to payees and cannot be claimed as a withholding credit. The program applies to resident, nonresident, backup, and real estate withholding.

If the withholding agent qualifies, we will:

  • Waive information return penalties for the required look-back period.
  • Eliminate withholding audits prior to the look-back period.
  • Limit the unpaid withholding liability to the look-back period plus interest.

Eligibility Requirements

All withholding agents are eligible, except if the withholding agent:

  • Participated in the 2008 Nonresident Withholding Incentive Program.
  • Has been audited by FTB for nonwage withholding.
  • Has ever been assessed a withholding liability or information return penalty for nonwage withholding.

To apply, withholding agents submit:

  • FTB Form 4827, Withholding Voluntary Compliance Program Application.
  • Separate sheet labeled Exhibit A that provides an estimate of the withholding amount due for each calendar year.
WVCP Application MS F182
Franchise Tax Board
PO Box 1779
Rancho Cordova CA 95741-1779
After you apply

It takes us about:

  • 1 month if you applied by mail or fax.

Additional Information

For additional information or to speak to a representative about withholding, call Withholding Services and Compliance at: 888-792-4900 or 916-845-4900.

TTY/TDD: 800-822-6868 for persons with hearing or speech impairments.