Many foreign sellers mistakenly believe FIRPTA withholding is the final U.S. tax. In reality, it is only a withholding against the final tax liability. Learn how a series of overlooked steps can ultimately result in losing hundreds of thousands of dollars—and how proper planning can prevent it.

Mandatory EFTPS remittance has changed FIRPTA compliance. Although the statutory 20-day deadline remains unchanged, payment scheduling rules, enrollment requirements, weekends, and banking delays can significantly shorten the practical time available to remit withholding on time.

Most people focus on the 15% FIRPTA withholding. The greater risk often begins after closing when withholding or reporting is mishandled and an IRS notice arrives. Learn why buyers may become liable, how closing professionals are affected, and why proper due diligence before closing is always less expensive than resolution.

A claimed FIRPTA exemption is not a substitute for due diligence. Learn why buyers and closing professionals should independently verify the facts before relying on an exemption from withholding.

Can FIRPTA withholding be avoided? In one recently completed case, the IRS reduced the required FIRPTA withholding to $0.00 after reviewing the taxpayers' application. Every FIRPTA transaction is unique and deserves an independent review.

FIRPTA compliance involves far more than preparing Forms 8288 and remitting funds through EFTPS. Learn why experience and judgment can make all the difference before closing.

Many foreign sellers mistakenly believe they must first obtain an ITIN before exploring FIRPTA withholding certificate options. Timing and coordination often matter more than people realize.

Many FIRPTA problems are not caused by the transaction itself. They are caused by waiting too long to address FIRPTA requirements.

One of the Most Misunderstood Areas of FIRPTA One of the most misunderstood areas of FIRPTA compliance involves whether withholding funds must always be immediately remitted to the IRS at closing. Many buyers and settlement agents assume the answer is yes. In many cases, it is. However, there is an important exception. Form 8288-B May Allow a Temporary Deferral When a properly prepared and timely submitted IRS Form 8288-B withholding certificate application is filed, IRS proc

Can FIRPTA Withholding Still Be Paid by Paper Check? Recent IRS procedures have shifted FIRPTA withholding remittances toward the Electronic Federal Tax Payment System (EFTPS). For many settlement agents, title companies, and repeat FIRPTA filers, electronic remittance is now the standard process. EFTPS Requires Advance Planning Successful EFTPS remittance involves more than simply making an electronic payment. Settlement agents typically must prepare for: EFTPS enrollment Pa

Does FIRPTA Apply to LLC Ownership? Many buyers and closing agents assume purchasing property from a U.S. LLC automatically avoids FIRPTA withholding. That assumption is not always correct. In some cases, the LLC's underlying ownership may include foreign persons or foreign-owned entities that trigger FIRPTA considerations. Every LLC Should Be Evaluated Individually The answer often depends on several factors, including: Ownership structure Tax classification Disregarded enti

What Happens If FIRPTA Is Discovered After Closing? Most FIRPTA issues are resolved before closing. Unfortunately, not all of them are. When FIRPTA compliance problems are discovered after the transaction has closed, resolving them often becomes more complicated, more time-consuming, and more expensive. Why This Matters Under FIRPTA, the buyer is generally responsible for ensuring the required withholding is properly handled and remitted to the IRS when purchasing U.S. real e

In many FIRPTA transactions, withholding may be lawfully reduced before closing through a properly prepared and timely submitted Form 8288-B withholding certificate application. Can FIRPTA Withholding Be Reduced Before Closing? Yes—in many transactions, it may be possible. Many foreign sellers are surprised to learn that FIRPTA withholding may be reduced before closing through a properly prepared and timely submitted Form 8288-B Withholding Certificate Application. Why This M

FIRPTA applies to many U.S. real estate transactions involving foreign sellers. Proper planning before closing helps buyers, sellers, and closing professionals complete the transaction with confidence. The Foreign Investment in Real Property Tax Act (FIRPTA) was enacted by Congress in 1980 to help ensure that foreign sellers of U.S. real estate report and pay any U.S. tax that may be due on the transaction. To accomplish that goal, FIRPTA generally requires the buyer to withh

The FIRPTA Closing Remittance Package (BCP) helps buyers, closing agents, and settlement professionals complete FIRPTA withholding requirements accurately and confidently before closing. Every successful FIRPTA transaction begins with one critical responsibility. The buyer must satisfy the IRS withholding, filing, and remittance requirements imposed under FIRPTA. Our FIRPTA Closing Remittance Package (BCP) is designed to help buyers, closing agents, attorneys, Realtors, and s

Section 1445 of the Internal Revenue Code (“IRC”) [a/k/a 26 C.F.R. § 1.1445 and/or Treas. Reg. § 1.1445] provides that the Buyer(s)...

IRS Statute of Limitations are Strict. Periods of limitation on filing claims for refunds with the IRS are strictly delineated in the IRS...

The Foreign Investment in U.S. Real Property Tax Act of 1980 Empowered by the Debt Reduction Act of 1984 and modified by the Path Act in...

The Foreign Investment in U.S. Real Property Tax Act of 1980 Prior to 1980 no FIRPTA withholding or tax on Foreigners selling US...

The IRS holds the Buyer/ Payor 100% liable for the full 15% of gross sale or distribution FIRPTA withholding, remitting these Seller /...