Form 593 is a California state tax form used to report real estate withholding for a specific tax year, as well as to certify whether the seller is eligible for a full or partial tax exemption.
Our editable Form 593 streamlines the entire process. Once you fill out the form online, you can download it to your device and submit it.
Form 593, known as the Real Estate Withholding Statement, is used to manage income tax withholding on the sale or transfer of real property in California. Furthermore, sellers use it to determine whether they qualify for a tax exemption and estimate their loss or zero gain for withholding purposes.
Any seller or transferor of California real property must fill out Form 593, whether they qualify for full, partial, or no withholding exemption. Additionally, all remitters who withheld on the sale or transfer of real property in California must file this document to report the amount withheld.
Form 593 must be sent to the Franchise Tax Board (FTB) by the 20th of the calendar month following the month in which the escrow closed. When the seller or transferor is exempt from tax withholding, they must also give the form to the real estate escrow person (REEP) before the transaction closes.
Remitters who fail to submit Form 593 on time may face the following penalties, calculated per seller:
However, if failure to submit the form is due to an intentional disregard, the remitter will be required to pay $680 or 10% of the required withholding, whichever sum is greater.
You should file Form 593 with the Franchise Tax Board, either electronically or by mail. The specifics for both methods can be found on the official FTB website.
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You can get a blank Form 593 from pdf.net or from the official FTB website. In either case, open the document in our editor to enter the required information.
Yes, Form 593 can be submitted electronically instead of on paper through FTB's Secure Web Internet File Transfer (SWIFT), but only by the REEP or another remitter. Sellers don't file it themselves, but the REEP must provide them with a copy of the document.
If your Form 593 is missing information, the REEP will need to file an amended form with the FTB. Since only the REEP can submit an updated document, contact them if you notice any issues. To avoid this scenario altogether, always cross-check your form with a Form 593 example.
You can fill out your Form 593 online by opening it in our PDF editor and typing information directly in the empty slots.
This form is free to edit and view, but you can't download it to your device without purchasing a subscription plan.
You can correct mistakes on Form 593, but the process is the same as when updating the document due to missing information. Contact the REEP and ask them to submit an amended form. They will then check the "AMENDED" box on the new form and attach a letter explaining the corrections.
If you forgot to file Form 593, you'll likely face penalties and interest as the remitter. To avoid their accumulation, submit the document as soon as possible, or contact your REEP right away if you're the seller.