California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 2.6 - Administration of Franchise and Income Tax › Subchapter 2 - Returns › Article 4 - Information Returns › Section 18631-18681(a) - Payments of Interest or Dividends

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(1) Except as provided in (2) below, for
					 calendar years beginning after December 31, 1969, every individual,
					 partnership, bank, corporation, mutual savings bank, savings and loan
					 association, building and loan association, cooperative bank, homestead
					 association, credit union, stock broker, dealer in securities, or similar
					 entity, including a nonprofit corporation, joint stock company or association,
					 insurance company, or Massachusetts or business trust, engaged in a trade or
					 business in this State, and making payment in the course of such trade or
					 business, must make an information return on forms prescribed by the Franchise
					 Tax Board for each calendar year respecting payments of interest or dividends,
					 as described in subdivision (a) or (c) of Section
					 18639, and distributions out of
					 earnings or profits accumulated since February 28, 1913 (except nontaxable
					 stock dividends and distributions in liquidation), aggregating $10 or more to
					 any individual, fiduciary, or partnership shareholder whose last known address
					 is in this State. Payments or distributions to shareholders, whose last known
					 address is outside this State need be reported only if the paying entity has
					 reason to believe that the shareholder (or any member in case the shareholder
					 is a partnership) is a resident of this State.
(2) In the case of distributions which are
					 made from a depletion or depreciation reserve, or which for any other reason
					 are deemed by the distributing entity to be nontaxable or partly nontaxable to
					 its shareholders, the distributing entity should complete the prescribed forms
					 and forward them to the Franchise Tax Board, Operations Division, Sacramento,
					 California 95814, not later than February 1 of the year following the year in
					 which made. Upon receipt of this information, the Franchise Tax Board will
					 determine and advise the distributing entity by letter whether any portion of
					 such distribution is subject to tax.
1. New
						group 19 ( 18801-18804(a) through 18805-18810(h)) filed 2-4-60; effective
						thirtieth day thereafter (Register 60, No. 3).
2. Amendment of
						Sections 18801-18804(a)
						through 18801-18804(d)
						filed 3-26-68; effective thirtieth day thereafter (Register 68, No.
						13).
3. Amendment filed 7-1-70; effective thirtieth day thereafter
						(Register 70, No. 27).
4. Change without regulatory effect adding
						new article 4 (sections
						18631-18681(a)
						through 18642) and renumbering and
						amending former section
						18801-18804(a) to
						section 18631-18681(a)
						filed 11-23-98 pursuant to section
						100, title 1, California Code of
						Regulations (Register 98, No. 48).
Note: Authority cited: Section
						  19253,
						  Revenue and Taxation Code. Reference: Section
						  18801, Rev. and Tax.
						  Code.