FIRPTA Refunds, LLC — Services & Fees

Services and fees are per applicant unless otherwise specified or agreed.

All services are specified by invoice.

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1. FIRPTA Transaction Assessment — $

A low-cost professional assessment for buyers, foreign sellers, closing agents, attorneys, or other parties who need to determine what FIRPTA requirements apply to a proposed or pending U.S. real estate transaction.

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• Review of the basic transaction facts

• Preliminary review of pertinent transaction documentation

• Determination of whether FIRPTA withholding appears applicable

• Identification of the applicable withholding rate

• Preliminary consideration of available exemptions, exceptions, or withholding reductions

• Identification of potential ITIN requirements

• Determination of whether a Form 8288-B Withholding Certificate should be considered

• Identification of required FIRPTA forms and filings

• Identification of potential compliance or closing issues

• Recommended next steps and appropriate FIRPTA services

 

Fee: $100 per transaction assessment.

 

If the taxpayer proceeds with an applicable FIRPTA Refunds service arising directly from the assessment, the $ assessment fee may be credited toward that service fee.

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2. FIRPTA Buyer’s Closing Package (BCP)

 

Title/Closing Agent Forms-Only BCP — $

Each Additional Foreign Seller: $
Preparation of Forms 8288 and 8288-A from completed information supplied by the title/closing agent, signed by FIRPTA Refunds as paid preparer to help mitigate the closing agent’s compliance risk.

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Comprehensive BCP — Forms & Services Included

Base Fee: $ — One Foreign Seller
Each Additional Foreign Seller: $

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• FIRPTA transaction assessment

• Review and analysis of transaction and closing documentation

• Determination of FIRPTA withholding requirements

• Preparation of IRS Form 8288

• Preparation of IRS Form 8288-A, Copy A/B/C

• Corrective-results reporting when documentation or proposed withholding requires modification

• FIRPTA risk assessment and recommended risk-abatement modifications

• Analysis of potential FIRPTA withholding exemptions

• Analysis of potential FIRPTA withholding exceptions and reductions

• Analysis of eligibility for a Form 8288-B Withholding Certificate

• Analysis of eligibility for reduction of the standard 15% withholding rate to 10%, when applicable

• Detailed instructions for remitting FIRPTA withholding to the IRS

• Instructions for remittance by mail or EFTPS, with assistance as required

• Necessary telephone and email consultation during the transaction

• Assistance necessary for the parties to understand FIRPTA requirements and complete the transaction fully informed

 

The base charge includes one foreign seller; each additional foreign seller is $. The IRS likewise instructs that Form 8288-A is prepared for each person subject to withholding.

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3. 10% Buyer Affidavit

 

First Buyer: $
Each Additional Buyer: $

 

Preparation of the applicable Buyer Affidavit supporting qualification for the reduced 10% FIRPTA withholding rate, when pertinent to the transaction.

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4. Non-Foreign Status Affidavit

$

Preparation of a Non-Foreign Status Affidavit when pertinent, including transactions involving both foreign and non-foreign sellers.

 

$ Optional Add-On: Written CAA attestation of service, suitable for retention as permanent record.  IRS Certified Acceptance Agent (CAA) services to examine and verify the authenticity of documents in support of the non-foreign status claim. 

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5. ITIN Application & FIRPTA Closing Facilitation

 

$ Per Applicant

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• Preparation and submission of the ITIN application

• Certified Acceptance Agent (CAA) services

• Remote processing — keep your original passport

• Review of required identity and foreign-status documentation

• Assistance obtaining and preparing required supporting documentation

• Coordination of the ITIN application with the FIRPTA transaction

• Closing facilitation when the foreign seller does not yet have an ITIN

• Acting as the seller’s U.S. representative when required to facilitate the FIRPTA process

• Necessary telephone and email assistance concerning the ITIN/FIRPTA process

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Requires the applicant to obtain a certified copy of their passport from the issuing agency, consulate, embassy, or other source acceptable to the IRS. Includes a Zoom, WhatsApp, or other acceptable video conference between the CAA and applicant, as required by IRS procedures.

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The IRS specifically provides procedures for obtaining ITINs in connection with FIRPTA Forms 8288/8288-A and 8288-B.

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6. Form 8288-B FIRPTA Withholding Certificate

 

First Application: $895
Each Additional Application in the Same Transaction: $

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• Review of the transaction and eligibility for a withholding certificate

• Preparation of IRS Form 8288-B

• Accumulation and review of required backup documentation

• Accounting and bookkeeping necessary for the application

• Calculation and documentation of transaction figures

• Adjusted-basis, gain, and applicable tax-liability analysis

• Preparation and organization of forensic documentary exhibits

• Assembly of the complete IRS application package

• Certified mailing to the IRS

• Necessary communications and assistance relating to preparation and submission

 

The reduced additional-application charge reflects the ability to incorporate the common transaction documentation and forensic exhibit package developed for the first application.

 

Form 8288-B is the IRS application used in applicable cases to request reduced or eliminated FIRPTA withholding.

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7. FIRPTA Exemption / Exception Document Review

 

$ Per Applicant

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• Review of the transaction and supporting documentation

• Analysis of the claimed FIRPTA exemption or exception

• Examination and verification of the factual basis

• Review and confirmation of supporting documents

• Determination of whether the claimed exemption or exception is supportable

• Identification of documentation deficiencies or matters requiring correction

• Findings and recommendations concerning appropriate FIRPTA treatment

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8. Formal FIRPTA Opinion Letter

 

Additional $ Per Applicant

 

Available following completion of the Exemption / Exception Document Review:

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• Preparation of a formal written professional opinion

• Documentation of relevant facts and materials examined

• Statement of the basis supporting the FIRPTA exemption or exception

• Formal Affirmation/Opinion of Exemption letter suitable for retention in the transaction or closing file

 

Exemption/Exception Review + Formal Opinion Letter: $ per applicant.

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9. U.S. IRS Representative Services

Available for foreign sellers not domiciled in the United States during the collection period, including circumstances where representation is necessary to facilitate a FIRPTA transaction or related IRS matter.

 

Specific representation charges are governed by the applicable services below.

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Difficult Cases & IRS Matters

 

10. FIRPTA Difficult Case Resolution (DCR)

 

Assessment & Written Report — $

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• Review of the FIRPTA matter and current status

• Review of IRS correspondence and transaction documentation

• Analysis of prior filings, submissions, and actions

• Identification of problems, deficiencies, and unresolved issues

• Assessment of available resolution alternatives

• Recommended course of action

• Written findings and resolution report

 

Taxpayer Advocate Service (TAS) Application

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Fee: $–$ depending upon the extent of documentary evidence and historical interaction involved

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When the assessment determines that TAS assistance is appropriate:

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• Preparation of the TAS application/request for assistance

• Review and organization of supporting documentary evidence

• Reconstruction and documentation of relevant historical IRS interactions, as necessary

• Preparation of supporting chronology and case narrative

• Assembly of the supporting case package

• Submission preparation and related assistance

 

TAS is an independent organization within the IRS intended, among other things, to assist taxpayers with problems they have been unable to resolve through ordinary IRS channels.

 

Alternative Retainer & Contingency Arrangements

 

For certain long-term, complex DCR matters, FIRPTA Refunds, LLC may agree to an upfront retainer combined with a contingency fee.

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• May reduce, but does not necessarily eliminate, upfront charges

• Offered selectively on a case-by-case basis

• Retainer, contingency percentage, covered services, and conditions agreed upon in writing

• Certain contingencies are required

• Where required by the engagement, any resulting IRS refund must be issued to the taxpayer in care of FIRPTA Refunds, LLC or Richard Kahn, as specified in the written agreement

• Additional or extraordinary services outside the agreed scope may be separately charged

 

Retainer and contingency fee: As quoted and agreed in writing.

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11. IRS Letter Assessment & Recommended Action

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$ Per Applicant

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• Review of the IRS letter or notice

• Review of pertinent supporting documentation and history

• Assessment of the issue and potential consequences

• Identification of available response alternatives

• Written summary of findings and recommended action

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12. IRS Letter Response — AFSP Matters

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$ Per Applicant

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When qualified to respond as the taxpayer’s AFSP preparer:

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• Review and analysis of IRS correspondence

• Preparation of the appropriate written response

• Compilation and organization of supporting documentation

• Preparation of applicable explanations and exhibits

• Response submission assistance

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13. IRS Agent Audit or Review Response

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$ Per Applicant

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• Review of the IRS Agent’s inquiry or request

• Analysis of the underlying FIRPTA/tax matter

• Review and organization of supporting documentation

• Preparation of the taxpayer’s response

• Preparation of necessary explanations, schedules, and exhibits

• Response submission assistance

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14. IRS Power of Attorney Representation

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Initial Fee: $ Per Applicant
Annual Renewal: $ Per Applicant

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When IRS Power of Attorney authority must be obtained and representation may be required:

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• Preparation and processing of the applicable IRS Power of Attorney authorization

• Establishment of representative authority

• Representation in the applicable IRS matter as authorized and appropriate

• Communications with the IRS within the authorized scope

 

If the Power of Attorney is used during any subsequent annual period, the full $ annual renewal fee is earned, regardless of the number of days it is used during that year.

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15. Taxpayer-Requested IRS Inquiry Letters

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$–$595 

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• Review of the matter requiring inquiry

• Review of pertinent IRS and transaction history

• Review and organization of supporting documentation

• Preparation of the inquiry letter

• Preparation of necessary historical summaries and supporting materials

 

Fee is per applicant, depending upon the amount of documentation and historical information involved.

 

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Post-Closing Tax Reporting & Refund

 

16. Year-End Nonresident Tax Reporting — Form 1040-NR

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Basic Tax Preparation: $
Bookkeeping, Verification & Reporting: $
Basic Combined Charge: $ Per Taxpayer

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• Year-end CPA tax reporting on Form 1040-NR

• FIRPTA withholding reconciliation

• Reporting of the applicable U.S. real estate transaction

• Application of applicable FIRPTA withholding credits

• Calculation of resulting tax liability or refund

• Bookkeeping and verification of all amounts reported

• Reconciliation of transaction figures to underlying financial and closing documentation

• Preparation of supporting accounting schedules as necessary

• When necessary, preparation and organization of forensic documentary proof and exhibits for the CPA

• Supporting documentation and reporting to the CPA as required

 

The IRS generally requires the foreign transferor to file the applicable U.S. income-tax return to obtain credit for FIRPTA withholding; for an individual this is generally Form 1040-NR.

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Additional Services & Terms

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17. Additional Charges & General Terms

Rush Service Charges

Rush charges are in addition to the underlying service fee and subject to availability:

• Required within 7 business days — $

• Required within 4 business days — $

• Required within 2 business days — $

• Required within 1 business day — $

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Days are calculated from the time all needed documentation has been delivered and receipt acknowledged.

 

Secure document delivery services are included at no additional charge. Instructions are at bottom of emails as well as online.

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Special, Unlisted & Extraordinary Services

• Unless otherwise noted, charges are base prices per applicant.

• If a particular service requires extraordinary work beyond its normal scope, an additional surcharge may apply, as applicable and agreed.

• Additional fees for unlisted or special-request services are as quoted and agreed.

 

Payment Processing Fees

Bank/payment processing fees charged to FIRPTA Refunds, LLC are passed through to the client:

• Domestic bank wire — $

• Non-U.S. bank wire — $

• Credit card payment — 3.5% processing fee

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18. FPG-USA Services

 

Additional services are available separately through FPG-USA, including:

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• Project-Based CFO Advisory

• Bookkeeping and Accounting

• Form 5472 compliance and filings

• Form 1120 / 1120-S annual filings

• Foreign-owned LLC compliance

• Accounting and bookkeeping reconstruction

• Forensic accounting and related advisory services

 

FPG-USA services are separately engaged and separately priced.

 

Services provided by FPG-USA are separate from FIRPTA Refunds, LLC services and are subject to FPG-USA’s separate scope and charges. FPG-USA is a DBA of FIRPTA Refunds, LLC.