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 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

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

FIRPTA stands for Foreign Investment in Real Property Tax Act. It applies to any sale by a foreign national person, corporation or...