Chat with an FTB Representative

Changes to 2009 Forms

Updates to the Form 592-A on 05/19/2009 –– 2009 Instructions for Form 592-A, Foreign Partner or Member Quarterly Withholding Remittance Statement

We replaced text on:

  1. Form 592-A Instructions, page 1, column (a), What’s New Section.
  2. Form 592-A Instructions, page 1, column (a); B. Withholding Rates, 2nd sentence.
  3. Form 592-A Instructions, page 2, column (b), line 4.

Previous Version

  1. Space intentionally left blank.  There was no ‘What’s New’ paragraph.

  2. For foreign partners or members, the withholding rate is the maximum California tax rate applicable to the partner (corporations 8.84%, banks 10.84%, foreign partners 9.3% that are not corporations or banks).

  3. corporations, 10.84% for banks and financial institutions, and 9.3% for all others) instead of using this worksheet.

Revised Version

  1. Increase In Rates - For taxable years beginning on or after January 1, 2009, the maximum personal income tax rate is increased to 9.55%. In addition, non-California Partnerships are subject to withholding requirements on a sale of California real property at a rate of 3 1/3% of sales proceeds or 9.55% of gain. The alternative withholding rates for the sale of California real property by S corporations is increased to 11.05% and 13.05% for Financial S corporations.

  2. For foreign partners or members, the withholding rate is the maximum California tax rate applicable to the partner (corporations 8.84%, banks 10.84%, foreign partners 9.55% that are not corporations or banks).

  3. corporations, 10.84% for banks and financial institutions, and 9.55% for all others) instead of using this worksheet.

Reason for the changes

AB X3 3 was chaptered on 2/20/09, after the form 592-A was finalized and printed for 2009. This bill increased the Personal Income Tax Rates by .25%, for taxable years beginning on or after January 1, 2009.  Revisions were made to reflect the above .25% rate increase.

Tax Impact
Taxpayers may be under withheld which may increase tax liability. However, taxpayers that are under withheld will not be assessed an underpayment of estimated tax or underpayment of tax penalty to the extent that underpayment was created or increased by the change in the tax rate.

Back to Tax Form Changes for 2009