The gain is small relative to sale price
Long-held property, depreciated rentals, modest appreciation.
- 15% of gross can be 5–10× the actual tax
- Largest dollar savings
- Highest ROI on the engagement
The single most powerful tool for foreign sellers facing FIRPTA. Done right, it reduces 15% of the gross sale price down to the actual tax owed on the gain — and keeps the difference in escrow rather than locked at the IRS for 12 to 18 months.
Form 8288-B is the IRS Application for Withholding Certificate. It's filed by (or on behalf of) the foreign seller before closing, asking the IRS to authorize a reduced FIRPTA withholding amount based on the actual expected tax on the gain — instead of the default 15% of the gross sale price.
The math difference is often dramatic. On a typical $750,000 sale where the seller's actual U.S. tax liability on the gain is $30,000:
Same total tax. Vastly different cash flow.
Long-held property, depreciated rentals, modest appreciation.
No U.S. tax owed at all.
You need the money for the next purchase, expenses, or repatriation.
No-charge intake call. We confirm FIRPTA applicability, gather basis documentation, model the expected gain or loss, and quote a flat fee in writing.
If the seller doesn't already have an ITIN, we file Form W-7 under Exception 4 (FIRPTA) — the specific exception designed for this case. IRS processing 7–12 weeks.
Form prepared with full basis documentation, expected gain calculation, and proposed withholding. Filed with IRS Ogden along with the $1,510 IRS user fee (passthrough).
Property closes on schedule. The buyer's withholding agent (typically the title company) holds funds equal to the full statutory withholding in escrow rather than remitting to the IRS.
IRS Ogden processes the 8288-B and issues a Withholding Certificate, typically 60–90 days after filing. The certificate states the actual amount of withholding required.
Buyer remits the certified amount to the IRS within 20 days of the certificate ruling. The over-withheld difference is released from escrow back to the seller.
Flat fees. The IRS charges a separate $1,510 user fee for the 8288-B application, billed as a passthrough — the firm doesn't mark it up.
Combine the line items above for your specific transaction. We provide a fixed written quote at the end of the no-charge intake call — before any work begins.
The 8288-B works best when filed 60–90 days before closing. Filed within 30 days, the IRS typically can't rule before the 20-day post-closing window expires — at which point withholding must be remitted normally and the application becomes a refund mechanism.
The IRS won't process Form 8288-B without a valid taxpayer ID for each seller. If you don't have an ITIN yet, we apply via Form W-7 Exception 4 in parallel — but the 7–12 week IRS processing time has to be factored into the schedule.
The buyer's withholding agent (typically the title or settlement company) must agree to hold the funds in escrow rather than remitting to the IRS at closing. This is standard practice with experienced title companies on FIRPTA transactions, but it's worth confirming early. If your title company is unfamiliar, we coordinate with them directly.
Sellers from countries the U.S. has classified as imposing "unfair foreign taxes" on U.S. persons may face an additional Section 899 surcharge — 5 to 20 percentage points above the standard FIRPTA rate. We confirm country status at intake and reflect it in the 8288-B calculation.
The IRS now requires a separate Form 8288 for each disposition and a separate Form 8288-A for each foreign seller. Multi-seller transactions that previously used a single combined form now need per-seller forms — driving the per-seller fee structure above.
A no-charge intake call confirms applicability, sets the schedule, and produces a written quote. Most engagements begin within 48 hours of the call.