Tax News
Penalty and Notice Information for Withholding Agents of Real Estate, Nonresident and Backup Withholding

Over the last few years, we reached out to educate withholding agents on their obligations and the penalties that apply if they don’t meet those obligations. If you are unfamiliar with the applicable penalties, see FTB 1150, Withhold at Source Penalty Information.

As part of our continued efforts to provide clear instructions and improve efficiencies, beginning January 2013, we started using a new information notice to better explain issues we experience with the withholding forms and payments we receive. The notice is called a FTB 4098, Withholding Information Notice, Notice of Overpayment or Unpaid Liability. It describes whether a reporting, remitting, or filing discrepancy occurred on the following forms:

  • Form 592, Resident and Nonresident Withholding Statement
  • Form 592-V, Payment Voucher for Resident and Nonresident Withholding
  • Form 592-F, Foreign Partner or Member Annual Return
  • Form 592-A, Payment Voucher for Foreign Partner or Member Withholding
  • Form 593, Real Estate Withholding Tax Statement
  • Form 593-V, Payment Voucher for Real Estate Withholding

When we issue the form, we will include a description of errors or balances and penalties when applicable. As in the past, if you have a balance due, we will mail a separate billing statement indicating the amount due. Follow the instructions on the billing statement to remit your payment.

For more information, go to ftb.ca.gov and search for california source income.

Back to February 2013 Tax News