FIRPTA Services
FIRPTA Remittance Filing Package
For FIRPTA transactions that have not yet closed or funded.
This is the MOST critical part of a FIRPTA transaction inasmuch as mistakes can lead to extensive delays in the IRS providing refunds. Mainly because the IRS send letter demands and notices which have response times, review and response times by the IRS. That process can significantly delay refunds. Our services serve to expedite refunds, not delay them.
We gather the information from the Settlement Agent (SA) to:
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Prepare all the IRS forms required;
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Establish the proper FIRPTA withholding amount;
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Prepare the receipt of payment by IRS;
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Agree to be notified in writing of payment received by IRS;
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Sign and send all the filings for submission by the SA;
Typically, it is the Seller who pays our fee for this service under most Real Estate Contracts but sometimes Buyers are known to pay. That's a negotiation between the Realtors and Parties.
Once we are paid for this service, we handle all the inquiry and preparation.
We obtain new or renew IRS Individual Taxpayer Identification Numbers (ITINs) and Employer Identification Numbers (EINs) for our clients.
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FIRPTArefunds has 3 IRS Certified Acceptance Agents (CAA's) qualified and certified by the IRS
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To facilitate the ITIN application process;
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To review documents and authenticate identity to the IRS;
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This means:
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We certifyour client's passports and other documentation. Our clients keep their original passports during the process.
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The ITIN application process speeds up dramatically and clients obtain ITINs in a hassle free environment.
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We Request & File Reduced IRS
Withholding Certificate at Closing
These complex tax filings are used when a Foreign Seller requests a Buyer to have the Foreign Seller's FIRPTA withholding retained by the settlement agent or title company for a period of up to 90 days while the Foreign Seller waits for an IRS written reply and directions.
This scenario can make sense depending on the time of year and Foreign Seller situation, the complete package has to be ready to go on the closing date of the transaction to utilize this option. This means becoming involved early on in the transaction to allow time for the complexities and filing requisites to be achieved.
We Can File Early Tax Return and Refund Filings In Same Year as Sale
Early tax return filing. Full refund request in the same year as transaction.
If you qualify and you don't want to wait until the next year tax filing period opens up for this year's income and tax events, this process requests an early tax return filing and refund in the same year as the transaction.
Specific supporting tax filings are required.
We Prepare and File Client's Year-End Non Resident Tax Filing
Final Year End IRS Non Resident Alien 1040-NR (individual and other entity) Tax Return Filings.
We perform tax accounting to file final year end IRS Form 1040-NR Tax Return Filings.
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Includes all calculations, forms, schedules and filings required.
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Basic: Calculates and uses basic purchase costs, sale costs.
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Itemized: We assist in helping you to detail allowable expenses, based on your input of qualifying expenses over the years.
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Forensic: Going back years and reviewing public records of tax basis and expenses
Our experienced tax and accounting division offers all types of accounting services.
We Offer Clients a 3 year IRS Audit Protection Plan
This is like a 3 year bumper to bumper warranty. No additional costs even if there is more work down the road. We interact with the IRS
instead of our clients having to do that.
Our Tax Division will handle limited representation to the IRS, meaning we will represent clients whose returns we prepared and signed, before IRS revenue agents, IRS customer service representatives, IRS employees and the IRS Taxpayer Advocate Service.
This is a 3 year commitment that covers the IRS statute of limitations on tax filings plus 6 months.
Difficult Case Resolution
IRS Problem Resolution, Audit &Collection Cases
This service pertains to case where there are or will be difficulties that translate into added time and effort involved in the process. We do not lay blame and are not accusatory. In this instance we are "fixers". FIRPTArefunds managing expert and TaxPro handle these cases personally.
Inaccurate or incorrect initial FIRPTA filing documents, complicated ownership issues, no receipt for IRS payment received, FIRPTA sent in when FIRPTA did not apply, late or improper FIRPTA withholding remittance, IRS cannot locate the payment(s), IRS levying penalties and interest against Clients or Buyers, Settlement Agents or both; and a whole host of other possibilities.
All of these can result in the Client experiencing delay or denial of tax refunds and in many instances IRS demands for penalties and interest.
And this doesn't just apply to the Client, it often includes IRS claims against the Buyer and Settlement Agent, even the Realtor if they gave any agent style advice in the process. Learn more.
Costs vary depending on time involved and are priced individually by case.
FIRPTA services on income OTHER than real estate transactions
FDAP: FIXED, DETERMINABLE, ANNUAL OR PERIODIC INCOME
FIRPTArefunds provides our foreign clients services when they have had FIRPTA withheld from taxable dispositions of holdings or income and would like to file for a refund because the withholding was significantly greater than the actual tax due.
The FDAP income is from sources other than gains from sale of real property where deductions from the operation of the business or property may be deducted. FDAP does not afford those types of deductions.
To learn more visit FDAP in our Client FAQs section.