FIRPTA Problem? We Can Help

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FIRPTA Problem

Are you buying real property from a foreign person? Or are you a foreign person selling real property in the United States? If so, the Foreign Investment in Real Property Tax Act (FIRPTA) may apply to you.

If you are subject to FIRPTA, the buyer must withhold a percentage of the sale and turn it over to the Internal Revenue Service. This is 10%, 15%, or more, depending on the sale price and certain conditions and circumstances.

Of course, whenever taxes are involved, it is complicated. There are many factors to consider and questions to answer. These include the following:

  1. Is the sellers a foreign person under the definition of the Act?
  2. Are there exceptions in your case?
  3. How much do you withhold from the sale?
  4. When must the withholding be paid to the IRS?

Be aware that failing to strictly comply with the time limits to submit the tax results in significant penalties. This is the buyer’s responsibility, not the closing agent. You must know your rights.

If you need help with a FIRPTA issue, please call me for free, confidential consultation at 305-682-1118.

About Steven Klitzner

Steven Klitzner is a tax attorney based in Miami, Florida. He has been practicing tax law for over 40 years, and currently holds a 10.0 rating by Avvo. Mr. Klitzner is a charter member of the American Society of Tax Problem Solvers, and he was appointed to the IRS Service Advisory Council in 2021. When not fighting for his clients, Mr. Klitzner is frequently found lecturing around the country and being quoted in various publications and news outlets about IRS tax and debt resolution matters.

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