Get expert tax and accounting help!
Call (866) 681-2140
Call (866) 681-2140
When a foreign person sells US real estate, the buyer withholds up to 15 percent of the price for the IRS. Dimov Tax applies for a lower amount before closing, files the buyer's forms on time, and claims any excess on the seller's return.
Call (866) 681-2140.
We prepare the Form 8288-B application for reduced withholding, based on your maximum tax liability
We file Forms 8288 and 8288-A for buyers and title companies inside the 20 day window
We get individual sellers an ITIN where needed, file the 1040-NR and claim any refund, in all 50 states
10,000+ successful tax filings
3,000+ five star reviews
Federally Enrolled IRS Agents on staff
7am to 8pm seven days a week
Foreign sellers applying for reduced withholding before closing
Buyers and closing agents responsible for Forms 8288 and 8288-A
Individual sellers who need an ITIN, a 1040-NR and a refund claim, with a fixed quote up front
FIRPTA is the 1980 law under which the buyer of US real estate withholds tax when the seller is a foreign person. The buyer keeps back up to 15 percent of the amount realized, the sale price in a plain sale, and pays it to the IRS. The withholding is a deposit, not the FIRPTA tax rate itself. The seller works out the actual tax on a US return the following year, and the IRS refunds the difference.
We check the withholding rate, the certificate status at closing and the return timing to estimate how much cash is tied up and for how long.
The FIRPTA withholding rate 2026 sellers face depends on the price and on what the buyer will do with the property (Form 8288 instructions):
| Amount realized | Buyer's use | Withholding |
|---|---|---|
| $300,000 or less | Individual buyer or family member will live there | None |
| $300,001 to $1,000,000 | Buyer or family member will live there | 10 percent |
| Over $1,000,000 | Any | 15 percent |
| Any amount | Investment or rental | 15 percent |
Assume a $750,000 investment sale, a $40,000 maximum tax liability, and a certificate approved before closing:
Standard withholding: $112,500
With the certificate: $40,000 withheld, $72,500 more to the seller at closing
One condition applies to the residence rows. The buyer or a family member must plan to live there for at least half the days anyone uses the property in each of the first two 12 month periods. If the buyer falls short, the IRS can collect the withholding from the buyer.
A FIRPTA withholding certificate is the IRS's written agreement that the buyer can withhold less than the table rate, down to zero. We apply for the FIRPTA certificate on Form 8288-B with the gain calculation, the basis records and the contract. The IRS normally decides within 90 days of a complete file. Apply before closing.
An individual seller without a US tax number applies for an ITIN on Form W-7. We file the W-7 with the 8288-B and prepare both together, because the IRS does not process an 8288-B when it rejects the W-7 attached to it.
FIRPTA timeline from contract to refund
For a foreign individual seller who needs an ITIN and a withholding certificate.
Seller sends the contract and purchase records.
Day 0We compute the gain and send the certificate application and any W-7 to the IRS.
90 days before closingBuyer withholds the applicable amount if the IRS has not decided.
Closing dayIf the IRS approves, the closing agent releases the excess to the seller.
IRS normally decides within 90 days of a complete fileBuyer files and pays; the IRS later sends stamped copy B.
Within 20 days after transfer, or after the IRS mails a decision on a pending applicationSeller claims the credit and recovers any excess.
Following filing seasonSource: IRS FIRPTA withholding page and Form 8288 instructions. Dimov Tax prepares steps 2, 5 and 6 and instructs the closing agent at step 3.
The buyer carries FIRPTA compliance and is liable for the tax if the withholding is missed. What we file for buyers and closing agents:
The withholding tax return, with payment, by the 20th day after the transfer date.
Prepare one form per foreign seller; send copies A and B with Form 8288. The IRS stamps copy B and returns it to the seller to claim the credit on the applicable US return.
We file the forms on time with or without it. The IRS holds the stamped 8288-A until the seller's US tax ID is on file, so we follow the ITIN through.
If an 8288-B application is pending at closing, the buyer still withholds, then files and pays within 20 days after the IRS mails its certificate or denial. The IRS charges section 6651 penalties for late filing and up to $10,000 under section 7202 for willful failure.
A FIRPTA affidavit is the certification a US seller signs, under penalties of perjury, that they are not a foreign person, so the buyer can skip withholding. The buyer keeps it for five years. There is no FIRPTA exemption form for a foreign seller; a foreign seller reduces withholding through the certificate or the residence and other exceptions. We tell both sides which paper applies before closing.
A FIRPTA accountant calculates the gain and prepares the forms. Our FIRPTA CPA and Enrolled Agent team signs the returns it prepares and represents you before the IRS on the certificate. Our FIRPTA services cover:
Gain and basis calculation for the 8288-B, with improvements, selling costs and depreciation on rentals
Form 8288-B application and IRS follow up through to the certificate
Forms 8288 and 8288-A for buyers, title companies and closing attorneys
ITIN applications and Form 1040-NR for individual sellers claiming the credit
State withholding on the sale where the property's state requires it, filed with the federal forms
Treaty positions with our international tax team, LLC and partnership sellers, and estates selling inherited US property
If you are searching for a FIRPTA CPA near me, our team handles the federal work remotely in all 50 states.
We always had a 24-hour rule at the company. And really, if you ask me, it's a same day rule. The same day rule means that if you contact us and you're a client, you'll get a response that day, worst case, within 24 hours.
Send the contract, the purchase records and improvement invoices. We compute the gain and the expected tax that week.
We send Form 8288-B to the IRS, with a W-7 where an individual seller needs an ITIN, up to 90 days before closing. We give the buyer the written notice the IRS requires and send the title company its closing instructions.
The buyer withholds the table rate or the certificate amount, and we file the buyer's forms and track the stamped 8288-A.
We claim the credit on the US return for the sale year, and the IRS refunds any excess.
With a signed contract and the purchase closing statement we estimate the withholding; with basis, improvement and depreciation records we show what a certificate saves. A CPA or Enrolled Agent replies the same day.
We quote FIRPTA work per transaction. What we price against:
A single foreign seller with clean purchase records is the light end; we quote more for an estate or a partnership with several members. These are the factors, not a quote.
Had a very complicated tax return as a non-resident alien, but George did some awesome work and it all went smooth. I highly recommend this service. They are very good professionals and get the work done.
These figures are general. Speak to a CPA about your own sale before acting on any of them.
Send the contract and the purchase closing statement. We will tell you the withholding, what a certificate saves, and what the work costs. Or call (866) 681-2140.
