Question 1

What is FIRPTA?

Accepted Answer

FIRPTA (Foreign Investment in Real Property Tax Act) is a U.S. tax law that requires foreign persons selling U.S. real estate to file the necessary IRS tax documents and potentially have tax withheld on the sale proceeds to ensure compliance with U.S. tax obligations.

Question 2

What is a FIRPTA withholding certificate?

Accepted Answer

A FIRPTA withholding certificate is an IRS authorization that can reduce or eliminate the standard percentage withheld on the sale price of U.S. real estate by a foreign seller when the actual tax liability is expected to be lower.

Question 3

What is FIRPTA and who needs to file a FIRPTA return?

Accepted Answer

FIRPTA applies to foreign persons (non-U.S. residents and entities) who sell U.S. real property interests. Foreign sellers and their representatives may need to submit FIRPTA filings to comply with IRS requirements.

Question 4

Who can benefit from FIRPTA Tax Returns’ services?

Accepted Answer

Professionals such as real estate agents, title agents, attorneys, brokers, and foreign buyers and sellers benefit from FIRPTA Tax Returns’ services. The team helps simplify compliance and manage all required tax documents.

Question 5

How can FIRPTA Tax Returns help streamline my closing process?

Accepted Answer

FIRPTA Tax Returns handles FIRPTA-related documentation, including forms and affidavits, ensuring compliance with IRS regulations so you can focus on completing the real estate transaction without delay.

Question 6

How does FIRPTA Tax Returns assist with reducing or eliminating withholding at closing?

Accepted Answer

They provide expertise in obtaining FIRPTA withholding certificates, which can reduce or eliminate the amount withheld at closing by demonstrating lower expected tax liability to the IRS.

Question 7

Do I have to send my original passport or identity documents to the IRS?

Accepted Answer

No. As Certified Acceptance Agents (CAA), FIRPTA Tax Returns can certify original passports, visas, or national ID documents without submitting them to the IRS, keeping your important documents safe.

Question 8

What is an ITIN and do I need one to file a FIRPTA return?

Accepted Answer

An ITIN is an Individual Taxpayer Identification Number required for non-U.S. residents who need to file U.S. taxes but are not eligible for a Social Security Number. Foreign sellers typically need an ITIN for FIRPTA filings.

Question 9

Can FIRPTA Tax Returns help me get an early refund?

Accepted Answer

Yes. FIRPTA Tax Returns assists with preparing and submitting documents to file for an early refund, potentially within the same tax year rather than waiting for the next filing season.

Question 10

What other tax services does FIRPTA Tax Returns offer?

Accepted Answer

Besides FIRPTA filings, they offer accounting and tax services including IRS income tax returns, payroll tax filings, corporate tax filings, and tax consulting for audits and examinations.

Question 11

How experienced is the FIRPTA Tax Returns team?

Accepted Answer

The team has over 43 years of combined experience in tax preparation and compliance, helping clients manage complex U.S. tax filings with confidence.

Question 12

Is there a cost for a consultation with FIRPTA Tax Returns?

Accepted Answer

No. FIRPTA Tax Returns offers a free consultation to assess your needs and explain how they can assist you.

Blogs

How Foreign Investors Can Benefit from FIRPTA Exemption Rules?

How FIRPTA Withholding Impacts Your U.S. Real Estate Sale and Refund?

How FIRPTA Exemption Certificates Affect Cash Flow for Foreign Sellers?

How Does the Buyer’s FIRPTA Affidavit Work?

How Does an IRS Acceptance Agent Assist with ITIN Applications?

How an ITIN Simplifies U.S. Tax Compliance for Foreign Investors?

How an ITIN Simplifies FIRPTA Withholding for Foreign Property Sellers?

FIRPTA Withholding and its various aspects

FIRPTA Tax Strategies: What Most Foreign Sellers and Real Estate Agents Overlook?

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