# Assess FTB nonresident withholding obligations for Sungho Park distributions

**Linear:** MAN-82 — https://linear.app/manglasabang/issue/MAN-82/assess-ftb-nonresident-withholding-obligations-for-sungho-park
**Status:** Junwon to reply
**Project:** default

## Description
California FTB sent a Withholding Tax at Source Requirements notice dated 03/10/2026. California requires withholding 7% of California-source income paid to nonresidents when annual payments exceed $1,500 (Form 592-B required).

Sungho Park is a Korean resident (nonresident of CA) and 100% capital interest holder in Palace Fund LLC. Before any distributions are made, need to:

1. Determine if Sungho qualifies for a withholding exemption (Form 590)
2. If no exemption, set up 7% withholding process
3. Review FTB Pub. 1017 for full exception list

Notice images: `palacefund/compliance/ftb-nonresident-withholding-notice-2026-03-10-p1.HEIC`
Notes: `palacefund/compliance/ftb-nonresident-withholding-notice-2026-03-10.md`