Fellow CA preparers

[DTS]

I have LLCs who have members that are out of state residents and PY residents and have never had a problem with the state NOT filing Form 592. Not sure, but I think because these entities have always shown losses. I have one this year that has a member that is a PY resident with a very modest amount of income from the LLC. No w/h was done on this member.

What is your experience with this form and the FTB, if your clients have not filed it? And, should I inform the LLC to be filing this form going forward?

Thanks,

D

[DMICPA]

592

I have out of state taxpayers that pay the quarterly estimates and have never had a problem with the 592. They have been out of state for over ten years and have never heard from the FTB. I believe that they are to have tax taken out of each distribution. So far, I have been having the client pay the 540ES and never had a query from the FTB. I base the quarterly estimates on the projected income of the venture and not the distributions taken.