A common cause of delay in Foreign Sellers collecting refunds from the IRS is seen when FIRPTArefunds is not involved in the initial withholding and remittance process on a FIRPTA withholding transaction.
There are strict documentation, information and filing requirements and actual payment process that seem simple on their face but in fact can be the cause and basis for the IRS to not simply accept a refund request. In many cases the result is that the IRS says they cannot locate the Foreign Seller's money. Or, the documentation was sent incorrectly and that is the cause.
This is a case of "it seems easy enough" at the outset but in reality, if not done exactly properly and within certain specified manner and time frames, the Foreign Clients can encounter delays with multiple clarification requests by the IRS.
FIRPTArefunds initial Closing Buyer/Settlement Agent documentation and remittance or withholding packages are specifically designed to streamline receipt and speedy refund requests.
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