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Posted - July 27, 2012

 

(FIRPTA TAX) 8288-B APPLICATIONS ARE IN JEOPARDY OF GETTING REJECTED BY THE IRS

 

In lieu of the recent IRS tax law changes implemented on June
22, 2012; the IRS will no longer allow an IRS acceptance agent to submit an
ITIN Application with a notarized copy of the ITIN Applicant’s original
passport picture page; the IRS now requires that the acceptance agent include
original OR certified documentation (ITIN Applicant’s identity documentation
must be certified by the issuing agency or their local consulate’s office) when
applying for an nonresident individual’s ITIN Number along with the submission
of an income tax return
.  Initially the IRS had advised that these interim changes would
not affect ITIN Application submissions when applying for an ITIN Number along
with an Exception (AS FIRPTA FALLS UNDER THIS CATEGORY – Exception 4 – Disposition by a Foreign person of U.S. real property interest) as a reason to file the
ITIN Application, however, as this process has evolved and is now four weeks
into these changes; obviously, this is not the case, as the IRS has also
applied these interim tax law changes to the FIRPTA Tax filing requirement
 - 8288-B application submission (placing this in the category of a U.S.
income Tax Return submission).  In circumstances when either the buyer or
the seller do not have an SSN or ITIN Number, and their ITIN Applications have
been rejected, the IRS (FIRPTA Department) cannot review the 8288-B application
and issue the Withholding Certificate aka Determination Letter to reduce or
eliminate the 10% withholding - until all parties (both buyers and sellers) have
received the issuance of an ITIN Number.

 

 

Going forward, I am offering my tax services to international
individuals that have received the 8288-B application rejection letter and are
directly affected by these interim IRS tax law changes; my firm will endeavor
to assist these individuals in rectifying these errors or recovering the 10%
funds that international sellers must remit to the IRS.

 

 

 

 

 

…PLEASE REVIEW THE ATTACHED DOCUMENTS REFERENCING THE
IMPLEMENTED IRS TAX LAW CHANGES AND THE FIRPTA TAX FILING PROCEDURES THAT MUST BE FOLLOWED IN ORDER TO BESUCCESSFULWITH THE 8288-B APPLICATION SUBMISSION.

ITIN GUIDANCE FOR INTERNATIONAL INDIVIDU[...]
Adobe Acrobat document [743.8 KB]
IRS IMPLEMENTS CHANGES TO ITIN APPLICATI[...]
Adobe Acrobat document [373.5 KB]