2023, Form 588 Nonresident Withholding Waiver Request. 2023, Form 588, Nonresident Withholding Waiver Request-2025

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  1. Click ‘Get Form’ to open it in the editor.
  2. Begin with Part I by entering your SSN or ITIN, business name, and contact information. Ensure all fields are filled accurately to avoid processing delays.
  3. In Part II, select your role by checking one box: Withholding Agent, Payee, or Authorized Representative. Fill in the corresponding details as required.
  4. Proceed to Part III and check the type of income subject to withholding. Choose only one option that applies to your situation.
  5. Complete Side 2, Part IV Schedule of Payees. Do not use a separate version; ensure all additional payees are reported on this form.
  6. Finally, sign and date the form at the bottom of Part III. Review all entries for accuracy before submission.

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The amount is withheld by the Settlement Agent from the Sellers account at the closing of the transaction and sent to the Franchise Tax Board (FTB). The amount is considered a prepayment of income taxes on the potential gain.
Nonresident income types Your payer must withhold 7% from your CA source income that exceeds $1,500 in a calendar year.
California Businesses If you have a permanent place of business in California or you are qualified to do business through the California Secretary of State, then complete: Franchise Tax Board Form 590 Withholding Exemption Certificate.
Use Form 588, Nonresident Withholding Waiver Request, to request a waiver from withholding on payments of California source income to nonresident payees. Do not use Form 588 to request a waiver if you are a foreign (non-U.S.) partner or member.
Claim your nonwage withholding credit on one of the following: Form 540, California Resident Income Tax Return. Form 540NR, California Nonresident or Part-Year Resident Income Tax Return. Form 541, California Fiduciary Income Tax Return.

People also ask

FTB Form 588, Nonresident Withholding Waiver Request Nonresident payee who qualifies can use Form 588 to get a waiver from withholding based generally on California tax filing history. Form 588 must be submitted at least 21 business days before payment is made.
Generally, NRA withholding describes the withholding regime that requires 30% withholding on a payment of U.S. source income and the filing of Form 1042 and related Form 1042-S.

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