California FTB Issues FAQs to Clarify Pass-Through Entity Annual Withholding Return, Form 592-PTE

The California Franchise Tax Board Jan. 28 issued frequently asked questions (FAQs) clarifying the Pass-Through Entity Annual Withholding Return for individual income and corporate income tax purposes. The FAQs clarify: 1) when Form 592-PTE is used; 2) how Form 592-PTE differs from Form 592; 3) withholding for the 2021 year moves over to Form 592-Q for per period payments and then Form 592-PTE is used to reconcile all of 2021; and 4) pass-through entities that operate a business are required to complete Form 592 and Form 592-V to report the amount of tax withheld from nonresident independent contractors; and 5) ...