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FTB Form 588

January 30, 2017 • Kareena Karnani • Log In to Post Comments

I am currently filling out a form 1042 for a CA C-Corp who is paying dividends to foreign (non US person). The person living outside the US does not live in the United States. In addition to filling out the 1042, do I need to do anything for the state of CA? I saw that there is CA form 588 but not sure if that applies. Would any tax need to be paid? Would any forms need to be filed?



and also if the form 588 is not the right one to use, which one do i use? Is the foreign person required to pay tax in CA?

Kareena, the equivalent forms to the 1042 are FTB Form 592, Resident and Nonresident Withholding Statement, and 592-F, Foreign Partner or Member Annual Return.  However, if the only payments are dividends then I don't believe that these need to be filed (see R&TC 18666, FTB 1017 and Form 592 instructions). The foreign person would only be required to pay tax on dividends if they are considered a California resident.  


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