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Prepare Form 8288-A for each foreign person subject to withholding under section 1445 or 1446(f)(1). PTPs and their nominees should use Forms 1042 and 1042-S to report the withholding. Attach Copies A and B to Form 8288, U.S. Withholding Tax Return for Certain Dispositions by Foreign Persons.
267-941-1000 for international callers or overseas taxpayers. (Overseas taxpayers may also fax a tax question to 681-247-3101 or use our international contact address page.) 800-829-1040 if you are in Guam, the Bahamas, U.S. Virgin Islands, or Puerto Rico.
When you sell the property, a U.S. attorney will be required to withhold and remit 15% of the proceeds as withholding tax to the Internal Revenue Service (IRS). You may qualify for a withholding tax rate of 0%, if the sale price is under $300,000, or at a rate of 10%, if the price is between $300,000 and $1 million.
FIRPTA Certificate: A FIRPTA certificate is used to to notify the IRS that the seller of real estate is not a foreign-person. When a foreign person sells real estate, the IRS wants to know about it. Even though some capital gains income tax is exempt to foreign persons, real estate is not exempt.
The application for a withholding certificate should be prepared and submitted prior to the closing of the sale. This will authorize the escrow agent to hold the withholding amount in escrow until the application is processed by the IRS. This process will take a minimum of 90 days.
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Penalties and interest will be charged on late filed Forms 8288 (filed after the 20th day from the date of transfer or the response from the IRS to the withholding certificate). There is a penalty of up to $10,000 over the tax for a willful failure to collect and pay.
This forty-plus-year-old mechanism was designed to help ensure that non-U.S. citizens do not escape paying taxes on income from the sale of U.S. real property. It requires the buyer of real property from a foreign seller to withhold a portion of the sale price and remit the tax to the Internal Revenue Service (IRS).
Buyers and transferees use this form with Form 8288 for each foreign person that disposes of real property located in the U. S. to report withholding on the amount realized.

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