FIRPTA Solutions for CPAs — What Tax Pros Need to Help International Clients

Tax professionals play a pivotal role in helping foreign clients navigate FIRPTA compliance. But the rules are nuanced, the forms are detailed, and one oversight can cause unnecessary delays or over-withholding.

That’s why it’s essential to use informed, accurate FIRPTA solutions that are tailored to each client’s investment profile and sales scenario.

📄 Key Considerations for CPAs:

• Foreign sellers must file Form 8288-B if they wish to reduce or eliminate the standard 15% withholding at closing.

• Timing matters — the IRS must receive and process FIRPTA-related forms promptly to avoid holding sale proceeds indefinitely.

• ITINs are mandatory for most foreign clients but often overlooked until it's too late.

🧠 Tips for Providing Strong FIRPTA Guidance:

• Submit ITIN applications (W-7) early and correctly.

• Educate clients on documentation needed to support Form 8288-B filings.

• Estimate capital gains based on adjusted basis, depreciation, and selling costs.

• Coordinate directly with real estate attorneys or title companies to manage IRS timelines.

🌐 Trusted Resource:

The IRS’s FIRPTA Withholding FAQ is a useful reference for updated forms and thresholds.

📌 Don’t risk errors with international clients. FIRPTA compliance is too complex to wing it.

Partner with White Sands Tax for dependable support on foreign real estate transactions and client filings.