Form 8288-A Instructions: How to Fill Out and File

Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests, is a document used under the Foreign Investment in Real Property Tax Act (FIRPTA). When a foreign person sells a U.S. real property interest, the buyer is required to withhold 15% of the amount realized from the sale. This rate is reduced to 10% if the property sells for over $300,000 but not more than $1 million and the buyer will use it as a personal residence. No withholding is required if the sales price is $300,000 or less and the buyer intends to use the property as their primary residence.

This form is prepared by the buyer, who acts as the withholding agent, to report each foreign seller’s share of the withheld amount to the Internal Revenue Service (IRS). It is an attachment to Form 8288, the U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests. While Form 8288 reports the total amount withheld, one Form 8288-A must be completed for each foreign seller, as it is needed to claim a credit for the withheld taxes.

Information Required to Complete Form 8288-A

Before a withholding agent can complete Form 8288-A, several pieces of information must be gathered regarding the withholding agent, the foreign seller, and the property transaction.

Information About the Withholding Agent (Buyer/Transferee)

The withholding agent, who is the buyer of the property, must provide their identifying information. This includes their full name, complete mailing address, and a U.S. Taxpayer Identification Number (TIN). For an individual buyer, this TIN is a Social Security Number (SSN), and for a business entity, it is an Employer Identification Number (EIN).

Information About the Foreign Seller (Transferor)

The withholding agent needs the seller’s (transferor’s) full name and complete address. A U.S. Taxpayer Identification Number for the seller is also required, such as an Individual Taxpayer Identification Number (ITIN). If the foreign seller’s TIN is not provided on Form 8288-A, the IRS will not stamp and send Copy B of the form to the seller, which is required to claim a credit for the withholding. The agent must also report the amount realized from the sale and the specific amount of tax withheld from that seller. The amount realized is the sum of the cash paid, the fair market value of any other property transferred, and the amount of any liability the buyer assumes.

Step-by-Step Guide to Filling Out Form 8288-A

Completing Form 8288-A requires entering information that matches the corresponding Form 8288. The form is divided into sections for the foreign seller (transferor) and the withholding agent (transferee).

The top portion of the form is for the foreign seller whose share of withholding is being reported. Line 1 is for the seller’s Taxpayer Identification Number. Line 2 asks for the full name of the transferor, and Line 3 is for their complete mailing address.

Part I of the form covers the transaction details. Line 4 is where the withholding agent enters the amount of withholding tax liability for this specific seller. Line 5 requires the amount realized, which is the share of the total sales price attributable to this seller.

Part II is dedicated to the withholding agent. Line 6 is for the agent’s TIN, which is the buyer’s SSN or EIN. Line 7 asks for the withholding agent’s full name, and Line 8 is for their complete address. Line 9 requires the date of transfer, and Line 10 asks for a description of the property, such as the physical address.

Filing Form 8288-A with Form 8288

Form 8288-A is not a standalone document and must be filed as an attachment to Form 8288. For each foreign seller subject to withholding, the agent must prepare a separate Form 8288-A. The form consists of three copies: Copy A, Copy B, and Copy C. The withholding agent sends Copies A and B to the IRS along with Form 8288 and retains Copy C for their records.

The complete filing must be sent to: Ogden Service Center, P.O. Box 409101, Ogden, UT 84409. The deadline for this submission is the 20th day following the date of transfer. However, if an application for a withholding certificate (Form 8288-B) was submitted to the IRS on or before the date of transfer, the deadline to file Form 8288 and pay the tax is extended. The new deadline is the 20th day after the day the IRS mails the withholding certificate or a notice of denial.

The Stamped Copy of Form 8288-A

After the withholding agent files Form 8288 and the attached Form 8288-A copies, the IRS will process the submission. Once the information is verified, the IRS will place an official stamp on Copy B of Form 8288-A. This stamped copy is then mailed directly to the foreign seller at the address provided on the form.

This stamped document serves as the official proof that the IRS has received and credited the withheld tax amount to the seller’s account. The seller must have this stamped copy to claim the withholding as a credit on their U.S. income tax return, such as the Form 1040-NR for non-resident aliens. Without it, the IRS may reject the claim for the tax credit, leading to a higher tax liability or a delayed refund. When filing their U.S. tax return, the seller must attach the stamped Copy B.