588 or 3832? - Spidell

588 or 3832?

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Message Board 588 or 3832?

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    • #220060

      What is the difference between CA Form 588 and 3832?  LLC has non-resident members and have always filed a 3832 every year.  Is this correct or should they also file a Form 588?

    • #220350
      Lynn Freer

      3832 must be filed for the first year a nonresident member consents to be taxed by CA. If not filed, the LLC must withhold tax at the maximum rate.

      All nonresidents are subject to 7% withholding on taxable distributions that exceed $1,500 in total

      588 is to request a waiver from withholding in a case where the nonresident is already subject to withholding for not filing the 3832.

      We have complete information in the Big Blue Answer Book.

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