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2008 Nonresident Withholding Allocation Worksheet 587

Part I Withholding Agent
Withholding agent’s name

Address (including number and street, PO Box, or PMB no.) Apt. no./Ste. no.

City State ZIP Code

Part II Nonresident Vendor/Payee (Complete Part II through Part V and return this form to the above withholding agent)
Vendor/payee’s name Owner’s full name if sole proprietor

Address (including number and street, PO Box, or PMB no.) Apt. no./Ste. no.

City State ZIP Code

Daytime telephone number

 SSN or ITIN   CA Corp. no.   FEIN Secretary of State (SOS) file no.

(       ) -
Nonresident Vendor/Payee’s Entity Type: (Check one)
 Individual/Sole Proprietor  Corporation  Partnership  Limited Liability Company (LLC)
 Estate or Trust  Tax-Exempt (withholding not required, skip to Part V)
Part III Payment Type
Nonresident Vendor/Payee: (Check one)
 Performs services totally outside California (no withholding required, skip to Part V)
 Provides only goods or materials (no withholding required, skip to Part V)
 Provides goods and services in California (see allocation in Part IV)
 Provides services within and outside California (see allocation in Part IV)
 Other (Describe)____________________________________________________________
If the vendor/payee performs all the services within California, withholding is required on the entire payment for services unless the vendor/payee is granted a
withholding waiver from the Franchise Tax Board. For more information, get FTB Pub. 1017, Nonresident Withholding Guidelines.
Part IV Income Allocation
Gross payments expected from the above withholding agent during the calendar year for:
(a)  Within California (b)  Outside California (c)  Total Payments
1 Goods and Services:
Goods/materials (no withholding required) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ___________________________

Services (withholding required) . . . . . . . . . . . . ___________________________ ___________________________ ___________________________
2 Rents on commercial or business property . . . . . ___________________________ ___________________________ ___________________________
3 Royalties on natural resources . . . . . . . . . . . . . . . ___________________________ ___________________________ ___________________________
4 Prizes and other winnings . . . . . . . . . . . . . . . . ___________________________ ___________________________ ___________________________
5 Other payments . . . . . . . . . . . . . . . . . . . . . . . . . . ___________________________ ___________________________ ___________________________
6 Total payments subject to withholding.
  Add column (a), line 1 through line 5 . . . . . . . . ___________________________ ___________________________ ___________________________
Withholding threshold amount: . . . . . . . . . . . . ___________________________

If the amount on line 6 is $1,500 or less, no withholding is required. If the amount on line 6 is greater than $1,500, withholding is required on the entire amount
at the rate of seven percent. If the FTB grants the withholding waiver, attach a copy of the FTB determination letter. See General Information E, Waivers.

Part V Certification Of Vendor/Payee

Under penalties of perjury, I certify that the information provided on this document is true and correct. If the reported facts change, I will promptly inform the withholding agent.

 (     )
Authorized representative’s signature Title Daytime telephone number

 (     )
Vendor/Payee’s signature Date Daytime telephone number

For Privacy Notice, get form FTB 1131. 7041083 Form 587 C2  2007
Instructions for Form 587
Nonresident Withholding Allocation Worksheet
References in these instructions are to the ­California Revenue and Taxation Code (R&TC).

What’s New California. The withholding rate is seven • To a corporation qualified to do

percent unless the FTB grants a waiver. business in ­California.
Beginning January 1, 2008, Domestic
See General Information E, Waivers. • To a partnership that has a permanent
nonresidents may use the new Form 589,
place of business in California.
Nonresident Request for Reduced
C When to File This Form • For sale of goods.
Withholding, to request the reduction in
• For income from intangible personal
the standard seven percent withholding The withholding agent requests that the property, such as interest and
amount that is applicable to California ­vendor/payee completes, signs, and dividends, unless the property has
source payments made to nonresidents. returns Form 587 when a contract is acquired a business situs in ­California.
entered into or ­before payment is made to • For services performed outside of
General Information the vendor/payee. ­California
A Purpose Form 587 remains valid for the duration • To a vendor/payee that is a tax-exempt
of the contract (or term of payments), ­organization under either ­California or
Use Form 587, Nonresident Withholding
provided there is no material change federal law.
A­llocation Worksheet, to determine if
in the facts. By signing Form 587, the • Representing wages paid to employees.
withholding is required on payments to
vendor/payee agrees to promptly notify Wage withholding is administered
the withholding agent of any changes in by the ­California Employment
The vendor/payee completes, signs, and the facts. Development Department (EDD). For
returns Form 587 to the withholding more information, contact your local
agent. The withholding agent relies on the
certification made by the vendor/payee D Withholding Requirements EDD office.
• To reimburse a vendor/payee
to ­determine if withholding is required, Payments made to nonresident
for expenses relating to services
provided the completed and signed vendors/payees (including individuals,
performed in ­California if the
Form 587 is ­accepted in good faith. Retain corporations, partnerships, LLCs, estates,
reimbursement is separately accounted
the completed Form 587 for your records, and trusts) are subject to withholding.
for and not subject to federal
and provide a copy to the Franchise Tax However, no withholding is required
Form 1099 reporting. Corporate
Board (FTB) upon request. if total payments of ­California source
vendor/payees, for purposes of this
Do not use Form 587 if any of the income to the vendor/payee during the
exception, are treated as individual
following applies: calendar year are $1,500 or less.
• Payment to a nonresident is only for If the California resident, qualified
corporation, or partnership is acting as an
the purchase of goods.
agent for the nonresident vendor/payee, E Waivers
• You sold ­California real estate. Use A nonresident vendor/payee may request
Form 593-C, Real Estate Withholding the payment is subject to withholding if
the nonresident vendor/payee does not that withholding be waived. To apply
­Certificate. for a withholding waiver, use Form 588,
• The vendor/payee is a resident of meet any of the exceptions on Form 590.
Payments subject to withholding include Nonresident Withholding Waiver Request.
­California or is a non-grantor trust that If the FTB has granted a waiver, you must
has at least one ­California resident the following:
attach a copy of FTB’s determination letter
trustee. Use Form 590, Withholding • Payments for services performed in to Form 587.
Exemption ­Certificate. ­California by nonresidents.
• The vendor/payee is a corporation, • Rent paid to nonresidents if the rent is
partnership, or limited liability paid in the course of the withholding F Requirement to File a
company (LLC) that has a permanent agent’s business. California Tax Return
place of business in ­California or is • Royalties paid to nonresidents for the A vendor’s/payee’s exemption
qualified to do business in ­California. right to use natural resources located certification on Form 587, Form 590,
Use Form 590. in ­California. or a determination letter from the FTB
• The payment is to an estate and the • Payments of prizes for contests waiving withholding does not eliminate
decedent was a ­California resident. Use entered in ­California. the requirement to file a ­California tax
Form 590. • Distributions of ­California source return and pay the tax due. For return
income to nonresident beneficiaries filing requirements, see the instructions
B Requirement from an estate or trust. for Long or Short Form 540NR, ­California
• Other payments of ­California source Nonresident or Part-Year Resident Income
Revenue and Taxation Code (R&TC)
income made to nonresidents. Tax Return; Form 541, ­California Fiduciary
Section 18662 and the related regulations
require withholding of income or Payments not subject to withholding Income Tax Return; Form 100, ­California
franchise tax on certain payments made include payments: Corporation Franchise or Income
to nonresidents of California for personal • To a resident of ­California or to a Tax Return; or Form 100S, ­California
services performed in California and for corporation with a permanent place of S Corporation Franchise or Income
rents and royalties on property located in business in ­California. Tax Return.

Form 587 Instructions  2007  Page 1

G Where to get Publications, Assistance for persons with disabilities case of payments for services performed
when part of the services are performed
Forms, and Additional We comply with the Americans with
outside ­California, enter the amount paid
Disabilities Act. Persons with hearing or
Information speech impairments call: for performing services within ­California
By Internet: You can download, view, and in column (a). Enter the amount paid
TTY/TDD . . . . . . . . . . . . . (800) 822-6268 for performing services while outside
print California tax forms and publications
from our Website at www.ftb.ca.gov. Asistencia para personas ­California in column (b). Enter the total
discapacitadas. Nosotros estamos en amount paid for services in column (c).
By Phone: To have publications or
conformidad con el Acta de Americanos If the vendor’s/payee’s trade, business,
forms mailed to you, or to get additional
Discapacitados. Personas con problemas or profession carried on in ­California
nonresident withholding information,
auditivos pueden llamar al TTY/TDD is an integral part of a unitary business
contact the Withholding Services and
(800) 822-6268. carried on within and outside California,
Compliance at the address or automated
telephone number below: Specific Instructions the amounts included on line 1 through
WITHHOLDING SERVICES AND line 5 should be computed by applying the
Private Mail Box vendor’s/payee’s ­California apportionment
FRANCHISE TAX BOARD Include the Private Mail Box (PMB) in the percentage (determined in accordance
PO BOX 942867 address field. Write the acronym “PMB” with the provisions of the Uniform
SACRAMENTO CA 94267-0651 first, then the box number. Example: 111 Division of Income for Tax Purposes
Main Street PMB 123. Act) to the payment amounts. For more
Telephone: (888) 792-4900 information on apportionment, get
(916) 845-4900 Part I – Withholding Agent
­California Schedule R, Apportionment and
(not toll-free) The withholding agent must complete Allocation of Income.
Fax: (916) 845-9512 Part I before giving Form 587 to the
Withholding agent. If the amount
on line 6 is greater than $1,500, the
H To Get Publications, Forms, Part II – Nonresident Vendor/Payee withholding agent must withhold on all
payments made to the vendor/payee until
and Information Unrelated The vendor/payee must complete all
the entire amount on line 6 has been
information in Part II including the FEIN,
to Nonresident Withholding social security number, or individual withheld upon. If circumstances change
By Automated Phone Service: Use this taxpayer identification number, and during the year (such as the total amount
service to check the status of your refund, vendor’s/payee’s entity type. No of payments), which would change the
order California forms, obtain payment withholding is required if the vendor/ amount on line 6, the vendor/payee must
and balance due information, and hear payee is a tax-exempt entity. Check the submit a new Form 587 to the withholding
recorded answers to general questions. tax‑exempt box if the vendor/payee is one agent reflecting those changes. The
This service is available 24 hours a day, of the following: withholding agent should evaluate the
7 days a week, in English and Spanish. need for a new Form 587 when a change
• An entity that is exempt from tax under in facts occurs.
From within the either ­California or federal law such as
  United States . . . . . . . . (800) 338-0505 a church, pension, or profit-sharing Part V – Certification of Vendor/Payee
From outside the plan. Enter your name, title, and daytime
  United States . . . . . . . . (916) 845-6600 • An insurance company, IRA. telephone number, including area code.
(not toll-free) • A federal, state, or local government Sign and date the form and return it to the
Follow the recorded instructions. Have agency. withholding agent.
paper and pencil handy to take notes. Tax-exempt vendors/payees do not need
By Internet: You can download, view, and to complete Part III and Part IV, but must
print California tax forms and publications complete Part V.
from our Website at www.ftb.ca.gov.
Part III – Payment Type
By Mail: Allow two weeks to receive your
The nonresident vendor/payee must check
order. If you live outside of California,
the box that identifies the type of payment
allow three weeks to receive your order.
being received.
Write to:
No withholding is required when vendors/
payees are residents or have a permanent
place of business in ­California.
PO BOX 307
RANCHO CORDOVA CA 95741-0307 Part IV – Income Allocation
In Person: Many libraries have forms Use Part IV to identify payments that are
and schedules for you to photocopy (a subject to withholding. Only payments
nominal fee may apply). Employees at sourced within ­California are subject
libraries cannot provide tax information or to withholding. Services performed in
assistance. ­California are sourced in ­California. In the

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