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 5 - Withholding › Section 19002 - Credit for Tax Withheld

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
					 tax withheld under Article 5 (commencing with Section
					 18661) of the Revenue and Taxation
					 Code or Section
					 13020
					 of the Unemployment Insurance Code is allowable as a credit against the tax of
					 the income on a return for the taxable year with respect to the amount
					 withheld, as set forth in FTB Form 592-B, Resident and Nonresident Withholding
					 Tax Statement, or any successor form designated by the Franchise Tax Board on
					 its website at
www.ftb.ca.gov
("FTB Form
					 592-B") and FTB Form 593, Real Estate Withholding Tax Statement, or any
					 successor form designated by the Franchise Tax Board on its website at
www.ftb.ca.gov
("FTB Form 593"). The
					 required information specified in FTB Form 592-B and FTB Form 593 is set forth
					 in subsection (f) and subsection (g), respectively, herein. If the tax has
					 actually been withheld at the source, a credit or refund shall be made to the
					 recipient of the income even though the tax has not been paid over to the
					 Franchise Tax Board. For purposes of the credit, the recipient of the income is
					 the taxpayer who received amounts that were subject to withholding, as reported
					 on FTB Form 592-B and FTB Form 593, and included those income amounts on a
					 return. Under Revenue and Taxation Code section
					 19307,
					 no refund or credit of tax withheld and reported on FTB Form 592-B and FTB Form
					 593 or estimated tax paid can be allowed unless and until a taxpayer has filed
					 a valid return for the year.
(b)
					 Payments to Pass-Through Entities. Tax withheld from payments to pass-through
					 entities must be passed through to the entity's owners and reported on FTB Form
					 592-B according to their ownership interest in the pass-through entity, except
					 that owners of pass-through entities may authorize the pass-through entity to
					 use some or all of the withholding credit to satisfy the entity-level tax of
					 the pass-through entity due for the taxable year. No refund of tax withheld
					 from payments to pass-through entities is allowed. Any credit passed through
					 and reported on FTB Form 592-B must be claimed by the entity's owners on their
					 respective tax returns.
(c) Special
					 Rule for Pass-Through Entity Year-End Distributions. Subject to the
					 authorization of the owners of the pass-through entity, taxes withheld on FTB
					 Form 592, Resident and Nonresident Withholding Statement, or any successor form
					 designated by the Franchise Tax Board on its website at
www.ftb.ca.gov
("FTB Form 592") and FTB
					 Form 592-V, Payment Voucher for Resident and Nonresident Withholding, or any
					 successor form designated by the Franchise Tax Board on its website at
www.ftb.ca.gov
("FTB Form 592-V"), from
					 payments made after the close of the taxable year can be applied as payments
					 either to the previous taxable year or to the following taxable year to the
					 extent those payments represent income required to be included in the return
					 for that respective taxable year. The required information specified in FTB
					 Form 592 and FTB Form 592-V is set forth in subsection (h) and subsection (i),
					 respectively, herein.
(d) Date of
					 Credit.
(1) For purposes of computing the
					 statute of limitations on refund claims, the date of all withholding payments
					 is deemed to be the original due date for filing the income tax
					 return.
(2) For purposes of
					 computing the estimated tax penalty, the date the withholding is credited to
					 the account is deemed to be the date withheld on FTB Form 592 and FTB Form
					 592-V. For individuals, withholding is treated as paid on each applicable
					 estimated tax payment due date, unless an individual taxpayer elects to treat
					 all withholding of tax at source for the year as paid on the date withheld.
					 (For further discussion of the date for the crediting of the estimated tax
					 payments, see Internal Revenue Code section
					 6654, subsection (g).)
(3) For purposes of computing interest and
					 penalties imposed under Revenue and Taxation Code section
					 18668,
					 withholding payments are credited on the date such payments are remitted to the
					 Franchise Tax Board on FTB Form 592, FTB Form 592-V, FTB Form 593, and FTB
					 593-V, Payment Voucher for Real Estate Withholding, or any successor form
					 designated by the Franchise Tax Board on its website at
www.ftb.ca.gov
("FTB Form 593-V"). The
					 required information specified in FTB Form 593-V is set forth in subsection
					 (j), herein.