TAXABLE YEAR CALIFORNIA FORM
Nonresident Withholding Allocation Worksheet
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)
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 (FTB) . For more information, get FTB Pub . 1017, Resident and 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
Form 587 C2 2008
For Privacy Notice, get form FTB 1131.
Instructions for Form 587
Nonresident Withholding Allocation Worksheet
References in these instructions are to the California Revenue and Taxation Code (R&TC).
General Information to nonresidents of California for personal Payments not subject to withholding
services performed in California and for include payments:
Beginning January 1, 2008, domestic
rents and royalties on property located in • To a resident of California or to a
nonresidents may use Form 589,
California . The withholding rate is seven corporation with a permanent place of
Nonresident Request for Reduced
percent unless the FTB grants a waiver . business in California .
Withholding, to request the reduction in
See General Information E, Waivers . • To a corporation qualified to do
the standard seven percent withholding
business in California .
amount that is applicable to California
C When to File This Form • To a partnership or LLC that has
source payments made to nonresidents .
a permanent place of business in
The withholding agent requests that the
Private Mail Box
vendor/payee completes, signs, and
Include the Private Mail Box (PMB) in the • For sale of goods .
returns Form 587 when a contract is
address field . Write “PMB” first, then the • For income from intangible personal
entered into or before payment is made to
box number . Example: 111 Main Street property, such as interest and
the vendor/payee .
PMB 123 . dividends, unless the property has
Form 587 remains valid for the duration acquired a business situs in California .
A Purpose of the contract (or term of payments), • For services performed outside of
provided there is no material change
Use Form 587, Nonresident Withholding California .
in the facts . By signing Form 587, the
Allocation Worksheet, to determine if • To a vendor/payee that is a tax-exempt
vendor/payee agrees to promptly notify
withholding is required on payments to organization under either California or
the withholding agent of any changes in
nonresidents . federal law .
the facts . • Representing wages paid to employees .
The vendor/payee completes, signs, and
Wage withholding is administered
returns Form 587 to the withholding
D Withholding Requirements by the California Employment
agent . The withholding agent relies on the
Development Department (EDD) . For
certification made by the vendor/payee Payments made to nonresident
more information, contact your local
to determine if withholding is required, vendors/payees (including individuals,
EDD office .
provided the completed and signed corporations, partnerships, LLCs, estates,
• To reimburse a vendor/payee
Form 587 is accepted in good faith . Retain and trusts) are subject to withholding .
for expenses relating to services
the completed Form 587 for your records, However, no withholding is required
performed in California if the
and provide a copy to the Franchise Tax if total payments of California source
reimbursement is separately accounted
Board (FTB) upon request . income to the vendor/payee during the
for and not subject to federal
calendar year are $1,500 or less .
Do not use Form 587 if any of the
Form 1099 reporting . Corporate
following applies: If the California resident, qualified vendor/payees, for purposes of this
corporation, LLC, or partnership is
• Payment to a nonresident is only for exception, are treated as individual
acting as an agent for the nonresident
the purchase of goods . persons .
vendor/payee, the payment is subject to
• You sold California real estate . Use
withholding if the nonresident vendor/
Form 593-C, Real Estate Withholding
payee does not meet any of the exceptions
on Form 590 . A nonresident vendor/payee may request
• The vendor/payee is a resident of
that withholding be waived . To apply
California or is a non-grantor trust that Payments subject to withholding include
for a withholding waiver, use Form 588,
has at least one California resident the following:
Nonresident Withholding Waiver Request .
trustee . Use Form 590, Withholding • Payments for services performed in
If the FTB has granted a waiver, you must
Exemption Certificate . California by nonresidents .
attach a copy of FTB’s determination letter
• The vendor/payee is a corporation, • Payments made in connection with a
to Form 587 .
partnership, or limited liability California performance .
company (LLC) that has a permanent • Rent paid to nonresidents if the rent is
place of business in California or is F Requirement to File a
paid in the course of the withholding
qualified to do business in California .
California Tax Return
agent’s business .
Use Form 590 . • Royalties paid to nonresidents for the A vendor’s/payee’s exemption
• The payment is to an estate and the right to use natural resources located certification on Form 587, Form 590,
decedent was a California resident . Use in California . or a determination letter from the FTB
Form 590 . • Payments of prizes for contests waiving withholding does not eliminate
entered in California . the requirement to file a California tax
B Requirement • Distributions of California source return and pay the tax due . For return
income to nonresident beneficiaries
Revenue and Taxation Code (R&TC) filing requirements, see the instructions
from an estate or trust .
Section 18662 and the related regulations for Long or Short Form 540NR, California
• Other payments of California source
require withholding of income or Nonresident or Part-Year Resident Income
income made to nonresidents .
franchise tax on certain payments made Tax Return; Form 541, California Fiduciary
Form 587 Instructions 2008 Page 1
Income Tax Return; Form 100, California In Person: Many libraries now have when part of the services are performed
Corporation Franchise or Income internet access . A nominal fee may apply outside California, enter the amount paid
Tax Return; or Form 100S, California to download, view, and print California for performing services within California
S Corporation Franchise or Income forms and publications . Employees at in column (a) . Enter the amount paid
Tax Return . libraries cannot provide tax information or for performing services while outside
assistance . California in column (b) . Enter the total
amount paid for services in column (c) .
G Where to get Publications, Assistance for persons with disabilities
If the vendor’s/payee’s trade, business,
Forms, and Additional We comply with the Americans with
or profession carried on in California
Disabilities Act . Persons with hearing or
Information is an integral part of a unitary business
speech impairments call:
By Internet: You can download, view, and carried on within and outside California,
TTY/TDD . . . . . . . . . . . . . . 800 .822 .6268
print California tax forms and publications the amounts included on line 1 through
Asistencia para personas
from our website at ftb .ca .gov . line 5 should be computed by applying the
discapacitadas . Nosotros estamos en vendor’s/payee’s California apportionment
By Phone: To have publications or
conformidad con el Acta de Americanos percentage (determined in accordance
forms mailed to you, or to get additional
Discapacitados . Personas con problemas with the provisions of the Uniform
nonresident withholding information,
auditivos pueden llamar al TTY/TDD Division of Income for Tax Purposes
contact Withholding Services and
800 .822 .6268 . Act) to the payment amounts . For more
Compliance at the address or automated
information on apportionment, get
telephone number below:
Specific Instructions California Schedule R, Apportionment and
WITHHOLDING SERVICES AND
Allocation of Income .
Part I – Withholding Agent
COMPLIANCE MS F182
Withholding agent . If the amount
FRANCHISE TAX BOARD The withholding agent must complete
on line 6 is greater than $1,500, the
PO BOX 942867 Part I before giving Form 587 to the
withholding agent must withhold on all
SACRAMENTO CA 94267-0651 vendor/payee .
payments made to the vendor/payee until
Telephone: 888 .792 .4900 Part II – Nonresident Vendor/Payee the entire amount on line 6 has been
916 .845 .4900 The vendor/payee must complete all withheld upon . If circumstances change
(not toll-free) information in Part II including the FEIN, during the year (such as the total amount
Fax: 916 .845 .9512 social security number, or individual of payments), which would change the
taxpayer identification number, and entity amount on line 6, the vendor/payee must
type . No withholding is required if the submit a new Form 587 to the withholding
H To Get Publications, Forms,
vendor/payee is a tax-exempt entity . Check agent reflecting those changes . The
and Information Unrelated the tax-exempt box if the vendor/payee is withholding agent should evaluate the
to Nonresident Withholding one of the following: need for a new Form 587 when a change
in facts occurs .
By Automated Phone Service: Use this • An entity that is exempt from tax under
service to check the status of your refund, either California or federal law such as Part V – Certification of Vendor/Payee
order California forms, obtain payment a church, pension, or profit-sharing
Enter your name, title, and daytime
and balance due information, and hear plan .
telephone number, including area code .
recorded answers to general questions . • An insurance company, IRA .
Sign and date the form and return it to the
This service is available 24 hours a day, • A federal, state, or local government
withholding agent .
7 days a week, in English and Spanish . agency .
From within the Tax-exempt vendors/payees do not need
United States . . . . . . . . . . 800 .338 .0505 to complete Part III and Part IV, but must
From outside the complete Part V .
United States . . . . . . . . . . 916 .845 .6600
Part III – Payment Type
The nonresident vendor/payee must check
Follow the recorded instructions . Have
the box that identifies the type of payment
paper and pencil handy to take notes .
being received .
By Internet: You can download, view, and
No withholding is required when vendors/
print California tax forms and publications
payees are residents or have a permanent
from our website at ftb .ca .gov .
place of business in California .
By Mail: Allow two weeks to receive your
Part IV – Income Allocation
order . If you live outside of California,
allow three weeks to receive your order . Use Part IV to identify payments that are
Write to: subject to withholding . Only payments
sourced within California are subject
TAX FORMS REQUEST UNIT MS F284
to withholding . Services performed in
FRANCHISE TAX BOARD
California are sourced in California . In the
PO BOX 307
case of payments for services performed
RANCHO CORDOVA CA 95741-0307
Page 2 Form 587 Instructions 2008