Tax News
Solutions to Form 588 Errors

Here are the most common errors and solutions to prevent processing delays with Form 588, Nonresident Withholding Waiver Request. See the table below for error types and their corresponding solutions.

Category

Error

Solution

Year

Using incorrect tax year Form 588.

Use the correct tax year Form 588. Make sure the tax form matches the current tax year.

Identification

Withholding agent listed as the payee.

Withholding agent, also known as payer, is any individual or entity that is responsible for payment or distribution of California source income. All the withholding agent's information must be completed correctly in Part I of Form 588.

 

Payee listed as the withholding agent.

Payee is any individual or entity that receives California source income. Correct payee information must be completed in Part IV. Use side 2 of Form 588, if you have more than one payee. Submitting a spreadsheet of payees will not be accepted.

 

Requester information is incomplete.

A requester can be the withholding agent, payee, or an authorized third party. All the requester's information must be completed correctly in Part II of Form 588.

 

Incorrect or missing information for Grantor Trusts.

The grantor’s social security number, grantor's name, and the grantor trust’s name must be provided on Form 588.

Dates

Missing newly admitted date when requesting under reason “D.”

Requester must provide the date the payee became a member, shareholder, or partner. The date cannot be older than the current tax year.

Supporting Documents

No supporting documents provided, when reason “C” or “E” selected by the requester.

When requester select reason “C” or “E,” requester must provide the two most current copies of Schedule R-7 or Schedule 1067A when claiming as part of a combined or group return.

For more information, go to ftb.ca.gov, and search for:

  • Nonresident Withholding
  • Publication 1017, Resident and Nonresident Withholding Guidelines

Call us at: 

  • 888.792.4900
  • 916.845.4900 (outside U.S.)
  • 800.822.6268 (TTY/TDD - Assistance for persons with hearing or speech impairments)

Back to December 2012 Tax News