Subject: Tax reporting and withholding for U.S. Residents outside of California
Dear Property Management Client,
Tax laws have been revised recently and we need you to complete an Internal Revenue Service (IRS) form and possibly a California Franchise Tax Board (FTB) form and return it to us before the end of the year.
Both the IRS and the FTB consider California property managers as tax withholding agents. Unless certain exceptions apply, property managers must file information returns and possibly withhold taxes on rent payments.
In order to determine which forms to file and how much, if any, to withhold, we need to have you complete certain IRS and FTB forms. Without these forms, these tax agencies require that we withhold the maximum amount. It is therefore to your advantage that you complete these forms and return them to us promptly.
In order to determine which forms to file and how much, if any, to withhold, we need to have you complete certain IRS and FTB forms. Without these forms, these tax agencies require that we withhold the maximum amount. It is therefore to your advantage that you complete these forms and return them to us promptly.
For the IRS, we must receive a W-9, W-8BEN or W-8ECI.
For more information, please vist our IRS tax withholding and reporting page. You may also obtain a copy at:
For the California Franchise Tax Board, you only need to fill out a form if you live outside of California. In this case, we must receive a Form 590, Form 588 or Form 589.
For more information, please visit our FTB tax withholding and reporting page. You may also obtain a copy at:
If you have any questions, please contact us.
Sincerely,
Mischa & David Montagna
MontagnaProperties, Inc.
410 N Santa Cruz Ave
Los Gatos, CA 95030
Phone: 408-354-2465
Fax: 408-827-8942
Rent@MPropM.com
