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 AVAILABLE NOW: Our Limited-Term 2008 Nonresident Withholding Incentive Program

We are offering a 2008 Nonresident Withholding Incentive Program (NWIP) for a limited time to withholding agents who are first-time filers and remitters of nonresident, nonwage withholding. Available until March 16, 2009, eligible withholding agents may remit past-due 2008 withholding as additional compensation on behalf of the nonresident payee and pay interest. We will credit the 2008 withholding to the nonresident payee.

We offer this program in order to provide a greater degree of awareness and to enhance compliance for withholding agents who have not previously withheld. The program does not apply to real estate withholding.

Benefits of the program

  • We will apply reasonable cause to waive the following 2008 penalties:
  • Failure to file correct information returns for 2008 Form 592, Quarterly Nonresident Withholding Statement.
  • Failure to file correct information returns for 2008 Form 592-B, Nonresident Withholding Tax Statement.
  • We will not audit withholding for the 2007 tax year and earlier.
  • You may deduct the amounts on your tax return.

Withholding and interest requirements

The program requires a special withholding calculation. In the program materials, we refer to this as "gross-up" quarterly compensation. We created an online calculator to assist withholding agents when calculating the gross-up quarterly compensation and amount of tax to be withheld. The gross-up is necessary because withholding agents have not previously withheld during 2008 and the withholding constitutes additional income to the nonresident payee.

How to participate

Submit the following to us by March 16, 2009 (early submission is encouraged):

  • A completed Form 1033, 2008 Nonresident Withholding Incentive Program Application.
  • A completed 2008 Form 592 for each quarter.
  • The required withholding amount plus interest.

For More Information

You may access news, forms, and detailed instructions at ftb.ca.gov and search for withholding incentive

For more information, contact us by:

  • Phone 888.792.4900 (toll-free) or 916.845.4900 (not toll-free).
  • Email at wscs.gen@ftb.ca.gov. Type "NWIP" in the subject line. This is not a secured email address. Please do not send confidential information.

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