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
