Understanding Lacerte diagnostic ref 15323 - CA credit for backup withholding for Form 592‑B

This article will help to understand the following informational diagnostic:

• To receive credit for backup withholding shown on form 592-B, you must provide the FTB (Franchise Tax Board) with your TIN before filing your tax return. Failure to Provide your TIN will result in a denial of your backup withholding Credit. (ref. #15323)

Per instructions on the 592 Pro website:

• When filing Form 592 with the FTB, the withholding agent is no longer required to submit a Form 592‑B, Resident and Nonresident Withholding Tax Statement to the FTB for each payee.
• Withholding agents must continue to provide the payees with paper Forms 592-B at the end of the year which show the total amount withheld for that year.
• The FTB is requiring taxpayers to provide the information instead of the withholding agents.