Nationwide  Specialists in foreign-seller real estate withholding
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Service · Form W-7 Exception 4

ITIN application for foreign sellers.

Every foreign seller needs a U.S. taxpayer ID to file Form 8288-B, claim withholding credit, and file Form 1040-NR. We file the ITIN application under Exception 4 (FIRPTA) — the only path that doesn't require a tax return on file first.

What is an ITIN?

A U.S. taxpayer ID for people without SSNs.

An Individual Taxpayer Identification Number (ITIN) is a nine-digit tax processing number issued by the IRS to people who must file U.S. tax returns but aren't eligible for a Social Security Number. For foreign sellers of U.S. real estate, the ITIN is non-optional — you cannot file Form 8288-B, claim FIRPTA withholding credit, or file Form 1040-NR without one.

ITINs are not work authorization. They don't change your immigration status. They don't entitle you to Social Security benefits. Their sole purpose is allowing you to comply with U.S. tax law.

Exception 4 — the FIRPTA path

Why we use Exception 4.

Normally, an ITIN application (Form W-7) requires you to attach a U.S. tax return — meaning you can't get the ITIN until you've filed a return, and you can't file a return without the ITIN. The IRS recognizes this catch-22 and provides specific exceptions for situations where the ITIN is needed before a return exists.

Exception 4 covers FIRPTA. Under Exception 4, you can apply for the ITIN with documentation of the U.S. real estate transaction (sales contract, settlement statement, or Form 8288-B) instead of a tax return. This is the only viable path for foreign sellers who need their ITIN in time for closing.

What we file under Exception 4

  • ·
    Form W-7 — the ITIN application itself, completed with reason "h - Other / Exception 4 (FIRPTA)"
  • ·
    Original or certified copies of identity documents — typically passport. We coordinate Certifying Acceptance Agent (CAA) certification so you don't have to send your original passport to the IRS.
  • ·
    Documentation of the FIRPTA transaction — sales contract, draft settlement statement, or copy of the Form 8288-B we're filing on your behalf
  • ·
    Cover letter referencing FIRPTA Exception 4 specifically
Timeline

Realistic processing times.

The IRS publishes target processing times of 7–11 weeks for ITIN applications under Exception 4. In practice, current 2026 turnaround is closer to 7 to 12 weeks, with longer delays during peak filing season (February through April).

Once issued, your ITIN is permanent. You'll use the same ITIN for any future U.S. tax matters, including filing Form 1040-NR the year after closing to claim your withholding credit.

Practical scheduling: If your closing is more than 90 days out, ITIN timing is a non-issue. If your closing is within 60 days and you don't have an ITIN yet, the W-7 should be filed immediately — before any other paperwork — to maximize the chance of having the ITIN in time for the 8288-B.

Fees

Flat fee, per seller.

ITIN Application Service

Engagement & consultation
No-charge initial call. Engagement fee due at signing if you proceed. Covers FIRPTA applicability review and case setup.
$250
ITIN application — Form W-7 (Exception 4)
Form preparation, identity document certification (CAA service), IRS submission, follow-up. Per seller.
$350 per seller
Lost or rejected application — refile
If the IRS rejects an application due to documentation issues that originated on our side, we refile at no charge. If the rejection is due to client-supplied information being incorrect, refiling is at half-rate.
Included / $175

The ITIN service is most often combined with our Form 8288-B engagement, where the ITIN is one component of the broader package. We can also handle ITIN-only engagements for foreign sellers who already have other FIRPTA support arranged.

Get started

Need an ITIN in time for closing?

Tell us your closing date in the intake call. We'll tell you honestly whether the ITIN can arrive in time and what the timeline contingencies look like.