The buyer is the legal Withholding Agent under § 1445 — personally liable if the FIRPTA tax isn't withheld and remitted correctly. We prepare Forms 8288 and 8288-A, coordinate the EFTPS or wire payment, and confirm IRS receipt within the 20-day deadline.
FIRPTA's enforcement mechanism puts the buyer on the hook. If a foreign seller exits the country without paying U.S. tax on the gain, the IRS doesn't chase the seller across borders — it pursues the buyer who failed to withhold and remit. The buyer is the statutory Withholding Agent and bears personal liability for the full withholding amount plus penalties and interest.
In practice, most buyers delegate the mechanics to their title or settlement agent. The legal liability stays with the buyer. Clean documentation — properly prepared Forms 8288 and 8288-A, proof of timely IRS remittance, and a stamped 8288-A copy returned by the IRS — is what shields the buyer if the IRS ever audits the transaction.
Transmittal form sent with the withheld funds.
The IRS-stamped receipt for the seller.
We confirm FIRPTA applies, determine the correct withholding rate (15%, 10%, or per Withholding Certificate), and calculate the exact dollar amount the closing agent must withhold.
Form 8288 plus a separate Form 8288-A for each foreign seller. All seller and property information verified. Section 899 country status confirmed if applicable.
EFTPS enrollment guidance, IRS wire instructions, IRS Direct Pay coordination, or same-day federal wire if timing is tight. Whichever payment channel the buyer prefers, we route the funds correctly.
Forms mailed to IRS Ogden via certified mail with return receipt. Within 48 hours of the 20-day deadline, we verify IRS receipt and obtain EFT confirmation if the payment went electronic.
The IRS stamps and returns a copy of Form 8288-A several weeks later. We deliver this to the seller and to the buyer's transaction file. The seller will need it to claim withholding credit on their 1040-NR.
Title companies and closing law firms that see foreign-seller transactions regularly benefit from our title-agent member program — priority turnaround, designated FIRPTA contact, and standard pricing across volume.