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It's Official! California Backup Withholding Begins January 1, 2010

October 2009 - Beginning January 1, 2010, with certain limited exceptions, payers that are required to withhold and remit backup withholding to the Internal Revenue Service (IRS) are also required to withhold and remit seven percent of the payment to FTB.

Assembly Bill X4 18 requires California backup withholding when federal backup withholding is required. If a payer issues a payment to a payee that is subject to federal backup withholding, and the payee is a resident of California, or if the payee is a nonresident of California and the payment is sourced to California, California backup withholding is required, except for:

  • Payments of interest and dividends.
  • Any release of loan funds made by a financial institution in the normal course of business.

California Forms, Instructions, and Publications

For information on filing, remitting, or reporting California backup withholding, go to and search for backup withholding. Our following forms will be updated and available on or after December 15, 2009:

  • 592, Resident and Nonresident Withholding Statement.
  • 592-A, Payment Voucher for Foreign Partner or Member Withholding.
  • 592-B, Resident and Nonresident Withholding Tax Statement.
  • 592-V, Payment Voucher for Resident and Nonresident Withholding.
  • 1023S, Resident and Nonresident Withholding Electronic Submission Requirements.

Additional Information

For additional information about federal backup withholding, refer to and the following IRS products:

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916.845.4900 outside the U.S.

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