Flash - Withholding Voluntary Compliance Program
July 15, 2013
Beginning July 1, 2013, we implemented an ongoing Withholding Voluntary Compliance Program (WVCP) that allows eligible withholding agents (businesses and individuals) to remit past-due, nonwage withholding for the previous two calendar years, including interest. We offer this program to withholding agents who have a requirement to withhold resident, nonresident, and real-estate withholding and have not previously withheld.
The program is available to all withholding agents, except if:
- · The withholding agent participated in the 2008 Nonresident Withholding Incentive Program.
- · We audited the withholding agent for nonwage withholding.
- · We assessed a withholding liability or information return penalty for nonwage withholding.
If the withholding agent qualifies, the program offers an opportunity to become current on the withholding obligation. In exchange for the withholding agent coming forward voluntarily, we agree to:
- Waive information return penalties for the required look-back period.
- Eliminate withholding audits prior to the look-back period.
- Limit the tax withholding liability to the look-back period, plus interest.
To participate, we require you to:
- Submit an application.
- Submit an estimate of the amount of withholding for each calendar year covered.
- Pay the required withholding amount, plus interest.
We cannot waive interest.
If we accept the application, the applicant enters into an agreement for the approved calendar years and agrees to:
- Pay the past-due withholding amounts, including interest.
- Comply with California's nonwage withholding requirements going forward.
- Make all books and records available to us upon reasonable notice to verify the withholding liability calculation the applicant includes in the application.
We will keep the agreement confidential and will not disclose any agreement terms or conditions to any other state or governmental tax authorities, except as provided under California Revenue and Taxation Code (R&TC) Section19551, as required by law.
For the application and instructions, go to ftb.ca.gov and search for wvcp.