Help - how to prepare a CA 592 for passthrough withholding

[BulldogTom]

I am overthinking this, at least I think I am overthinking this?   What do you think?

Seriously, I have a trust that had a broker withhold because the trustee never gave them the EIN of the Trust.   Broker withheld and sent the trust a 592B.   Stupid me, I put the withholding on the final return.   Now the FTB is denying the refund and says the trust needs to prepare a 592 and give 592Bs to the beneficiaries.   OK, I can do that, or maybe.

What has me flustered is page 2, schedule of payees.   If I was a company, and I withheld from a vendor or other business, I would put them on schedule of payees.  But the trust did not withhold from the beneficiaries.

How do I tell the FTB that the money was withheld by the brokerage.   How do I tell the FTB that the Beneficiaries are entitled to the amounts withheld?

Can someone walk me through the process because the FTB instructions want to make me puke.

I am very tired.

Tom
Longview, TX

[Max W]

Tom, try this number 916-845-4900, Withholding Services and Compliance phone service.  

[BulldogTom]

I figured it out.   I was just too tired to think.   Yes, the beneficiaries are the payees and they are entered on page 2.   The FTB should be able to match the EIN of the original withholding agent to our 592 submission, because they put the trust on their page 2 of their 592.   Everything should work out as soon as the trustee signs and sends in the 592. 

I know why the FTB does that, they want the non-resident beneficiaries to have to file a return to get their portion of the refund.   At first I was ticked because I know that is a capital, ie corpus, transaction and it goes to the trust.   But I forgot about the rule for distribution of the assets generating the withholding.   My bad.   Seems like I need more and more brain space for all the different rules and different taxing authorities.   My brain is like a hard drive from the 90's, it is too small for the world we live in today.

Thanks for replying Max, appreciate you.

Tom
Longview, TX

[Lion EA]

6 hours ago, BulldogTom said:

My brain is like a hard drive from the 90's, it is too small for the world we live in today.