In some real estate transactions, FIRPTA issues are not identified until after closing has already occurred. This can create significant complications for buyers, sellers, attorneys, and settlement agents. Under FIRPTA, buyers are generally responsible for ensuring that required withholding is properly handled and remitted to the IRS when purchasing U.S. real estate from a foreign seller. If FIRPTA withholding was overlooked or underpaid, potential issues may include: unpaid

Many foreign sellers are surprised to learn that FIRPTA withholding may potentially be reduced before closing through a properly prepared withholding certificate application. Under FIRPTA, buyers are generally required to withhold a percentage of the gross sales price when purchasing U.S. real estate from a foreign seller. However, the withholding amount is not always the seller’s actual U.S. tax liability. In some situations, the seller’s final tax obligation may ultimately