FIRPTA Timeline: What to Expect and When
One of the most common questions from international DVC sellers is: how long does all of this take? FIRPTA involves several sequential steps, each with its own processing time. Understanding the full timeline helps you plan and avoid surprises.
Step 1: Closing Day
On the day your sale closes, the closing agent withholds 15% of the sale price from your proceeds. That money must be sent to the IRS within 20 days of closing, along with Form 8288. You receive the rest of your proceeds minus commission and closing costs.
Step 2: Stamped Form 8288-A (2 to 4 Months After Closing)
The IRS processes Form 8288 and mails you a stamped copy of Form 8288-A. This is your official receipt showing how much was withheld. It typically arrives 2 to 4 months after closing. You need it when you file your tax return, but if it never arrives, you can file using the unstamped copy from the closing agent.
Step 3: Tax Year Ends (December 31)
You cannot file your Form 1040-NR until after December 31 of the year your sale closed. A sale that closes in January means you wait almost a full year before you can file. A sale that closes in December means you can file just weeks later.
Step 4: Filing Your 1040-NR (January or February)
File as early in the new year as possible. Attach Form W-7 if you need an ITIN. Mail everything to the IRS address in the 1040-NR instructions.
Step 5: ITIN Processing (7 to 11 Weeks, If Needed)
If you included a W-7, the IRS assigns your ITIN first, then begins processing your tax return. If you already have an active ITIN, skip this step and your return goes straight into processing.
Step 6: Refund Issued (4 to 6 Months After Filing)
Non-resident returns are processed manually, not electronically. After your ITIN is assigned (if needed), the IRS processes your 1040-NR and issues a refund check. The IRS mails the check to your address on the return. There is no direct deposit option for non-resident returns.
Total Timeline
From closing to refund check in hand, plan on 8 to 18 months depending on when in the year you sold and whether you needed a new ITIN. A December closing with an existing ITIN is the fastest path. A February closing with a new ITIN application is the longest. Use our tax estimator to calculate your expected refund while you wait.
