A $5 million sale. $750,000 withheld under FIRPTA. Then another problem surfaced: missed Form 5472 and Form 1120 filing requirements creating potential IRS penalty exposure approaching $100,000. Foreign sellers—and the professionals assisting them—should know when to ask the question.
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.
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
