California Form 592-PTE, Pass-Through Entity Annual WH Return

[Lord Happy]

Happy day,

Facts:  California LLC filing as a partnership withheld for 3 non-residents.  Bookkeeper did as she has always done, which is to file the 592 and submit the funds quarterly.  I missed that there was a rule change.

I visited the Form Availability page today to learn more about California's 592-PTE.  There's nothing in the software that indicates that it won't be e-filed, or that it has to be mailed, and no instructions about the form print, but the forms availability page says EF Not Allowed. 

I also note that the form states it is for taxable year 2021, which also confuses me. 

I am sure that I am misunderstanding something, so if one of you have some insights or can provide clarity, I'd love to hear what I am doing wrong.

[qbteachmt]

What rule change are you referring to, specifically?

As to Form Availability status, the program you are using might not be able to send something E-filed, but that doesn't control the receiving entity. Look here, towards the bottom:

https://www.ftb.ca.gov/pay/withholding/withholding-on-nonresidents.html

[Lord Happy]

Happy day,

Thank you for the speedy reply.  On the page you were kind enough to link to, in the grey box at the top, it says "For taxable years beginning January 1, 2020, a pass-through entity that has paid withholding on behalf of a nonresident owner or has been withheld upon must use Form 592-PTE, Pass-Through Entity Annual Withholding Return."

I am using Proseries Professional.  I was hoping that Proseries e-filed it.  On many forms PS includes, the form is often notated that it needs to be paper-filed, and includes the address.  This form had no such notation, which is what confused me.

The form PS produces also says it is for taxable year 2021, which also doesn't make sense to me since we're just calculating the 2020 returns now. 

[qbteachmt · Accepted solution]

I see Spidell has this reply: "I was told by FTB to amend the Q1 and Q2 2020 592 forms to -0- and report the entire withholding on 592-PTE."

Have you opened ProSeries 2019, to see if it has the 2020 payments form or the annual reporting form? I would expect, since it's too late to make 2020 payments, to only find the 2021 Q. I see the annual PTE has a box to checkmark that this is reporting last year's distributions. Maybe Intuit misunderstood the update that was required.

@Just-Lisa-Now-  is in CA. Any input?

[Lord Happy]

Happy day,

This is why you are Level 14 and I am but a 3.  The 2020 form is in the 2019 software, and I will use that.  We file for 4 LLCs out there and received no demands to amend, nor did they send back the checks 🙂 

I will presume that Proseries is not going to e-file it, and we'll either do it at FTB or mail it. 

I would treasure @Just-Lisa-Now- insight. 

I'd offer insights on Florida's income tax forms but wait...ya...we don't have it 🙂

[qbteachmt]

"I will presume that Proseries is not going to e-file it"

If their own Forms Availability states not EF, then no EF from them.

"I'd offer insights on Florida's income tax forms but wait"

And it drives me up a wall when one of my clients is from a State that has sales taxes, or worse: local, county and State. Because wait...we don't have them. I keep offering to sell my IL Sales tax Worksheets to the State to use instead of a fill-in form that has no built in math logic. That just seems behind the times.