California FTB Issues 30-Day Proposed Amendment Notice on Withholding Rules for Foreign Partners, Trusts, Estates

The California Franchise Tax Board Dec. 30, 2022 issued a 30-day notice of newly proposed amendments to withholding rules concerning foreign partners, trusts, and estates for individual income and corporate income tax purposes. The proposal includes measures to: 1) remove simple trusts from pass-through entity treatment; 2) delete Form 592-PTE and change Form 592 to allow all domestic non-real estate withholding, including domestic pass-through entity withholding, to be reported on annual Form 592; 3) clarify that certain out-of-state trusts, estates, and pass-through entities, that had tax withheld, will have similar filing, notification, credit requirements, and self-certification safe harbor options, as ...