1.1446-6 reduced withholding for foreign partners.

• Position: FTBNEWS

Effective Jan. 1, 2011, the FTB began applying Federal Treasury Regulation 1.1146-6 procedures, which allow foreign partners to request reduced or no withholding of California tax on effectively connected taxable income from California sources allocable to a foreign partner. The foreign partner certifies to the partnership, and to the FTB, that no or reduced California tax will be due.

If the FTB approves the request, it notifies the foreign partner and the partnership. Foreign partners can request reduced withholding from the FTB annually before the first installment period using FTB Form 589. Nonresident Reduced Withholding Request. A...