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Changes to 2009 Forms

Updates to the Form 592-B on 05/19/2009 –– 2009 Instructions for Form 592-B, Resident and Nonresident Withholding Tax Statement

We replaced text on:

  1. Form 592-B Instructions, Copy A, front page, column (a), What’s New section.
  2. Form 592-B Instructions, Copy A, back page, column (c), Part IV – Tax Withheld, Line 2, 3rd sentence.

    Previous Version

  1. For taxable years beginning on or after January 1, 2009, the title for Form 592-B has changed from Nonresident Withholding Tax Statement, to Resident and Nonresident Withholding Tax Statement, however, the filing requirements have not changed.

  2. For foreign partners the rate is 9.3%.

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.

    For taxable years beginning on or after January 1, 2009, the title for Form 592-B has changed from, Nonresident Withholding Tax Statement, to Resident and Nonresident Withholding Tax Statement, however, the filing requirements have not changed.

  2. For foreign partners the rate is 9.55%.

Reason for the changes

AB X3 3 was chaptered on 2/20/09, after the form 592-B 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