Why FIRPTA Experience and Judgment Matter When Significant Funds Are at Stake
- Richard Kahn
- 4 days ago
- 2 min read
Since 2008, we've assisted buyers, closing agents, attorneys, Realtors, title companies, and foreign sellers with FIRPTA compliance.
One thing has remained remarkably consistent.
Most parties don't begin thinking about FIRPTA until they're preparing to close.
By then, hundreds of thousands of dollars may already be at stake.
FIRPTA Often Involves Large Amounts of Money
FIRPTA generally requires withholding equal to 15% of the amount realized from the sale.
Because the calculation is based on the sale price—not simply the seller's gain—the withholding can easily total tens or even hundreds of thousands of dollars.
The buyer is legally responsible for complying with the withholding, filing, and remittance requirements.
FIRPTA Is More Than Forms 8288 and EFTPS
To assist buyers and closing professionals, we prepare what we call our FIRPTA Closing Remittance Package (BCP), formerly known as our Buyer's Closing Package.
The package may include:
IRS Forms 8288 and 8288-A
Supporting documentation
Filing instructions
EFTPS remittance guidance
Closing coordination
Preparing the forms is important.
Evaluating the transaction before preparing them is even more important.
Experience Begins Before the First Form Is Prepared
The real value of an experienced FIRPTA specialist lies in evaluating the transaction before deciding what should be filed.
Questions we routinely consider include:
Can withholding be lawfully reduced or eliminated?
Should a withholding certificate application be filed?
Can the seller close before obtaining an ITIN?
Do the proposed closing documents properly support the intended IRS filing position?
Can the filing strategy reduce delays and help expedite the seller's refund?
We routinely work with closing agents to recommend documentation changes that help ensure the closing file and IRS filings are consistent.
Why FIRPTA Experience and Judgment Matter Before Closing
Preparing IRS forms is only one part of FIRPTA compliance.
Professional judgment comes from evaluating hundreds of transactions over many years and recognizing opportunities, potential issues, and alternatives before closing.
That experience cannot be learned by completing forms alone.
The Lowest Fee Isn't Always the Lowest Cost
Over the years, we've seen parties spend considerable time shopping for the lowest-priced FIRPTA service—or attempting to complete the process themselves—in an effort to save several hundred dollars.
When substantial withholding amounts are involved, that can become a costly decision.
Selecting a FIRPTA specialist should involve more than comparing fees.
It should include evaluating experience, judgment, and the ability to recognize opportunities before they become problems.
The Bottom Line
At FIRPTA Refunds, our objective has never been simply to prepare IRS forms.
Our objective is to evaluate every transaction, identify the best lawful strategy, prepare the required filings correctly, and help buyers and closing professionals complete the FIRPTA process accurately the first time.
Because successful FIRPTA representation begins with experience, is guided by sound judgment, and starts long before the first IRS form is ever prepared.
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