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 18662-8 - Reporting and Remitting Amounts Withheld, Penalties, and Interest; Other Procedures

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 General. The Franchise Tax Board shall prescribe necessary forms identified in
					 Regulation sections
					 18662-0 through
					 18662-8, or any successor forms
					 designated by the Franchise Tax Board on its website at
www.ftb.ca.gov
, for the reporting and
					 remitting of withholding of tax amounts.
(b) Real Estate Sales -- Information Returns.
(1) Payment Due Dates and Form. Real estate
					 withholding is due by the 20th day of the calendar month following the month
					 escrow closes. For example, if escrow closes on January 3rd, payment is due on
					 or before February 20th. If February 20th falls on a weekend or holiday, the
					 payment may be remitted pursuant to FTB Form 593, Real Estate Withholding
					 Statement, or any successor form designated by the Franchise Tax Board on its
					 website at
www.ftb.ca.gov
("FTB Form 593")
					 and FTB Form 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") on the
					 next business day without penalty. The required information specified in FTB
					 Form 593 and FTB Form 593-V is set forth in subsection (g) and subsection (h),
					 respectively, below. Payment of withholding on Section
					 1031 like-kind exchanges is due on
					 the 20th day of the calendar month following the month in which the exchange
					 was completed or failed. For simultaneous exchanges, the exchange is completed
					 in the month escrow closes. For deferred exchanges, the exchange is completed
					 in the month the last requirement of the exchange is completed. For failed
					 exchanges, the exchange fails in the month when the proceeds were distributed
					 to the seller/transferor after a determination that the exchange would not meet
					 the Internal Revenue Code section
					 1031 exchange requirements.
					 Remittance shall be in the form and manner as the Franchise Tax Board may
					 prescribe in FTB Form 593.
(2)
					 Reporting.
(A) In General. Real estate
					 sales/transfers and withholding are reportable to the Franchise Tax Board on
					 FTB Form 593, which can be filed on paper or electronically (where allowable).
					 Withholding payments made via check or money order must be remitted with FTB
					 Form 593-V. Withholding payments made electronically do not require FTB Form
					 593-V.
(B) Information Returns. An
					 FTB Form 593 stating the amount of the real estate withholding shall be
					 provided to the seller/transferor either at the time of sale or not later than
					 the 20th day following the month in which escrow
					 closes, and may be required to be filed with the Franchise Tax Board, in the
					 form and manner that the Franchise Tax Board may prescribe in FTB Form 593 and
					 FTB Form 593-V. The seller/transferor may be required to attach a copy of the
					 FTB Form 593 to the appropriate tax return to be filed with the Franchise Tax
					 Board in order to claim a credit for the withheld
					 amount.