Form 8288 vs 8288-A vs 8288-B: Which Forms Do You Need?

FIRPTA involves three related but distinct forms (8288, 8288-A, and 8288-B. If you are selling DVC as a foreign owner, understanding which form does what helps you know what to expect at closing, how to claim your refund, and whether you should try to reduce the withholding before the sale closes.

Form 8288: Filed by the Closing Agent

Form 8288 is the withholding remittance form. The buyer's closing agent (title company) completes and files Form 8288 with the IRS within 20 days of the closing date. It reports the sale price, the seller's information, and the withholding amount. Along with Form 8288, the closing agent remits the withheld funds) 15% of the gross sale price (directly to the IRS.

As the seller, you do not file Form 8288. You do not need to touch it. But you should confirm that your closing agent is filing it) ask for confirmation at or after closing.

What Information Is on Form 8288?

• Seller's name, address, and taxpayer identification number (ITIN or SSN)
• Buyer's name and address
• Description of the property (resort, contract size, contract number)
• Sale date and gross sale price
• Amount withheld (15% of gross sale price)
• Closing agent's name and address

If any of your information is incorrect on Form 8288 (especially your ITIN or address) it can cause problems when the IRS matches the withholding to your tax return. Review the form at or before closing if possible.

Form 8288-A: Your Withholding Receipt

Form 8288-A is filed at the same time as Form 8288. After the IRS processes the remittance, they stamp Form 8288-A and mail a copy to the address the closing agent listed for the seller. This is your official receipt confirming the withholding amount the IRS received.

You attach the stamped Form 8288-A to your Form 1040-NR when you file your tax return to claim the withholding as a credit. If your actual tax (on your capital gain) is less than what was withheld, the IRS refunds the difference.

What If Form 8288-A Never Arrives?

Form 8288-A typically arrives 2-4 months after closing. If it has not arrived within 6 months:

1. Contact your closing agent (they should have an unstamped copy they can provide.
2. File your 1040-NR using the unstamped copy. The IRS accepts it.
3. As a last resort, a tax professional can request an IRS account transcript for the sale year showing the withholding credit on file.

Do not delay filing your tax return waiting for the stamped Form 8288-A.

If the Information on 8288-A Is Wrong

Common errors include a misspelled name, wrong ITIN, or incorrect address. Notify your closing agent of any errors promptly after receiving the form. Corrections require filing a corrected Form 8288-A) a process the closing agent handles on your behalf.

Form 8288-B: Reduce Your Withholding Before Closing

Form 8288-B is the withholding certificate application. Instead of accepting the full 15% withholding at closing and waiting months for a refund, you can ask the IRS to approve a reduced withholding amount based on your estimated actual tax liability.

How Form 8288-B Works

1. You (or your tax professional) calculate your estimated gain and your estimated US tax.
2. You file Form 8288-B with the IRS before your closing date, requesting withholding of only the estimated tax amount.
3. If the IRS approves, they issue a withholding certificate specifying the reduced amount.
4. You give the certificate to your closing agent before closing.
5. At closing, only the reduced amount is withheld (you receive the rest of your proceeds immediately.

The Processing Time Problem

The IRS takes approximately 90 days to process Form 8288-B. Most DVC resales close within 60-90 days of the accepted offer. This creates a timing problem: you need to file 8288-B immediately after your offer is accepted to have any realistic chance of receiving the certificate before closing. Even then, it may not arrive in time.

If the certificate does not arrive before closing, the sale proceeds with standard 15% withholding. Your 8288-B application is not wasted) you simply file for a refund the normal way after year end. There is no penalty or fee for applying and not receiving the certificate in time.

When Form 8288-B Is Worth Filing

• Your sale price is high ($30,000+) and 15% represents a large sum you would prefer not to have tied up for a year
• Your gain is small relative to the sale price (actual tax is far less than 15%)
• You are selling at a loss and your actual tax is $0
• Your closing timeline is longer than 90 days

What to Include on Form 8288-B

• Your name, address, and ITIN (or SSN)
• Buyer's name and address
• Property description (resort, point count, contract number)
• Agreed sale price
• Your cost basis (original purchase price plus qualifying closing costs)
• Calculated capital gain
• Estimated tax on the gain
• The reduced withholding amount you are requesting
• Supporting documentation: original closing statement, proof of purchase price

Summary: Which Form Does What

Frequently Asked Questions

Do I need to file Form 8288 myself as the seller?
No. Form 8288 is filed by the closing agent. As the seller, you do not file Form 8288.

What do I do with Form 8288-A?
Attach it to your Form 1040-NR when you file your tax return to claim the withholding as a credit against your actual tax liability.

Is there a fee to file Form 8288-B?
No IRS fee. However, preparing the form accurately requires a tax professional, which is not free. Most firms charge $200-$400 for 8288-B preparation as a standalone service.

How do I know if Form 8288-B was approved?
The IRS sends a withholding certificate directly to you. If you have not received anything within 90 days of filing, contact the IRS or your tax professional (do not assume approval by silence.

What happens if I close before Form 8288-B is approved?
Standard 15% withholding applies at closing. File your 1040-NR normally after year end to claim the full refund.