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STATE OF.CAUFORI4IA VENDOR DATA RECORD STD.204(REV.1244)(REVERSE) ARE YOU SUBJECT TO NONRESIDENT ARE YOU A RESIDENT OR A NONRESIDENT? WITHHOLDING? Each corporation,individual/sole proprietor,partnership,estate Payments made to nonresident vendors,including corporations, or trust doing business with the State of California must individuals, partnerships, estates and trusts, are subject to indicate their residency status along with their vendor withholding. Nonresident vendors performing services in identification number. California or receiving rent, lease or royalty payments from A corporation will be considered a "resident" if it has a property(real or personal)located in California will have 7% permanent place of business in California.The corporation has of their total payments withheld for state income taxes. a permanent place of business in California if it is organized However,no withholding is required if total payments to the and existing under the laws of this state or, if a foreign vendor are$1500 or less for the calendar year. corporation has qualified to transact intrastate business. A A nonresident vendor may request that income taxes be corporation that has not qualified to transact intrastate business withheld at a lower rate or waived by sending a completed form (e.g.,a corporation engaged exclusively in interstate commerce) FIB 588 to the address listed below. A waiver will generally will be considered as having a permanent place of business in be granted when a vendor has a history of filing California this state only if it maintains a permanent office in this state that returns and making timely estimated payments. If the vendor is permanently staffed by its employees. activity is carried on outside of California or partially outside For individuals/sole proprietors,the term"resident"includes of California, a waiver or reduced withholding rate may be granted every individual who is in California for other than a temporary For more information,contact: or transitory purpose and any individual domiciled in California Franchise Tax Board who is absent fora temporary or transitory purpose.Generally, Withhold at Source Unit an individual who comes to California fora purpose which will Attention: State Agency Withholding Coordinator extend over a long or indefinite period will be considered a P.O.Box 651 resident. However, an individual who comes to perform a Sacramento,CA 95812-0651 particular contract of short duration will be considered a Telephone: (916)845-4900 nonresident. FAX: (916)845-4831 For withholding purposes, a partnership is considered a resident partnership if it has a permanent place of business in If a reduced rate of withholding or waiver has been California. An estate is considered a California estate if the authorized by the Franchise Tax Board,attach a copy decedent was a California resident at the time of death and a to this form. trust is considered a California trust if at least one trustee is a California resident. More information on residency status can be obtained by calling the Franchise Tax Board at the numbers listed below: From within the United States,call 1-800-852-5711 From outside the United States,call 1-916-854-6500 For hearing impaired with TDD,call 1-800-822-6268 PRIVACY STATEMENT Section7(b)of the Privacy Act of 1974(Public Law 93-5791)requires that any federal,state,or local governmental agency which requests an individual to disclose his social security account number shall inform that individual whether that disclosure is mandatory or voluntary, by which statutory or other authority such number is solicited,and what uses will be made of it. The State of California requires that all parties entering into business transactions that may lead to payment(s)from the State must provide their Taxpayer Identification Number (TIN) as required by the State Revenue and Taxation Code, Section 18646 to facilitate tax compliance enforcement activities and to facilitate the preparation of Form 1099 and other information returns as required by the Internal Revenue Code,Section 6109.The TIN for individual and sole proprietorships is the Social Security Number(SSN). It is mandatory to furnish the information requested.Federal law requires that payments for which the requested information is not provided be subject to a 31%withholding and state law imposes noncompliance penalties of up to$20,000. You have the right to access records containing your personal information,such as your SSN.To exercise that right,please contact the business services unit or the accounts payable unit of the state agency(ies)with which you transact business. Please call the Department of Finance,Fiscal Systems and Consulting Unit at(916)324-0385 if you have any questions regarding this Privacy Statement.Questions related to residency or withholding should be referred to the telephone numbers listed above.All other questions should be re 1 to the requesting agency listed in Section 1.