How do I prepare California Form 592-PTE in a 1065 return using worksheet view in CCH Axcess™ Tax and CCH® ProSystem fx® Tax?

  • Article Type:
  • How To
  • Last Modified:
  • 11/05/2022

Objectives

Learn how to generate and populate California Form 592-PTE for nonresident passthrough entity partners in a 1065 return using worksheet view.

Environment

  • CCH Axcess
  • CCH Axcess Tax
  • CCH ProSystem fx Tax
  • 1065
  • Worksheet 
  • Form 592-PTE

Procedure

Verify the state of California is active in the return; either state Form 565 or 568 should be generated.

  1. Go to Partners > Partner Information worksheet. 
  2. Select applicable passthrough partner.
  3. Select Detail.
  4. In Line 13 - Partner entity type, select or verify applicable partner type.
    • Valid entity types to be included on Form 592-PTE are estates, trusts, S corporations, LLCs and partnerships.
  5. In Line 18 - Partner Residency - State if different code, select an applicable state other than CA.
  6. Go to California > Nonresident Withholding worksheet.
  7. Expand Section 1 - Basic Data.
  8. In Line 1 - Produce Form 592, select the checkbox.
  9. Calculate the return.

Notes

Passthrough partners will be included if the following conditions are met:

  • The partner is coded as a nonresident to California.
  • The partner is coded as a passthrough entity type P, A, TG, S, E, T, L, N.
  • At least $1 of 592-PTE withholding is calculated, or the partner number and a zero is input for at least the first 2021 Form 592 payment voucher at California > Nonresident Withholding worksheet > Section 5, lines 9-12 Amount Withheld - O/R column.
  • California > Nonresident Withholding worksheet > Section 5 - Detail > Line 9 - Include on Form 592-PTE can be used to include, or exclude, specific partners from the 592-PTE Schedule of Payees.
Two sets of 592-Q payment vouchers are automatically prepared providing two payment options for your client:
  1. 592-Estimate - Estimate Payment Voucher for Pass-Through Entity Withholding.
    • Four separate payment vouchers by default for the client to spread out the calculated 592-PTE withholding.
    • This iteration of the 592-Q voucher(s) can be suppressed using California > Nonresident Withholding worksheet > Section 9 - Form 592-Q, line 1, and each voucher can be overridden in lines 2-5.
  2. 592-Q Payment Final Payment Voucher for Pass-Through Entity Withholding.
    • A single payment voucher with the total calculated on 592-PTE, page 1, line 7.
    • 592-Q Final can only be overridden with input made to California > Nonresident Withholding worksheet > Section 5 - Form 592 Partner / Member Information > Detail > Lines 11-14, column Amount Withheld - O/R.
    •  California > Nonresident Withholding worksheet > Section 2 - Options > Lines 7-10, selecting any of these checkboxes will cause 592-PTE to prepare without partners on the Schedule of Payees, and thus 592-Q Final will not prepare, unless California > Nonresident Withholding worksheet > Section 5 > Detail > Lines 11-14.

Additional Information

CCH Axcess™ Tax F1 Cross-Reference:
Form 592-PTE
CCH® ProSystem fx® Tax Worskheet view F1 Cross-Reference:
Form 592-PTE
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