FIRPTA Forms IRS FIRPTA Forms Guide

Form 8288 is filed by the buyer or the settlement agent within 20 days of closing. It reports the amount of FIRPTA withholding collected and accompanies the payment sent to the IRS. As the seller, you do not file this form yourself, but you should confirm with your closing agent that it was submitted correctly.

Form 8288-A is a companion to Form 8288. The IRS stamps it and returns Copy B to the seller. This stamped copy is your proof that the withholding was paid and is the document you attach to Form 1040-NR to claim the withholding as a tax credit. Without the stamped 8288-A, you cannot claim credit for the withholding on your tax return. Request it from your closing agent if you have not received it within 60 days of closing.

Form 8288-B lets you apply to the IRS for a withholding certificate that reduces the withholding to your estimated actual tax liability rather than the full 15 percent. You must apply before closing, and the IRS has 90 days to respond. If you expect little or no gain on your DVC sale, a 8288-B application can significantly reduce the amount withheld at closing, meaning you get more money immediately instead of waiting for a refund.

Form 1040-NR is the US income tax return for non-resident aliens. Foreign DVC sellers use this form to report the gain from their DVC sale, calculate the federal tax owed, and apply the FIRPTA withholding from Form 8288-A as a credit. If the withholding exceeds your actual tax, the IRS issues a refund. Returns are generally due June 15 for the prior calendar year, though extensions are available. You need an ITIN to file 1040-NR if you do not have a Social Security number.

Form W-7 is the application for an Individual Taxpayer Identification Number, or ITIN. Foreign nationals who do not have a US Social Security number need an ITIN to file Form 1040-NR and claim their FIRPTA refund. You apply for an ITIN by submitting Form W-7 to the IRS along with certified copies of your identity documents and your completed 1040-NR return. Processing typically takes seven to eleven weeks. Plan ahead and submit well before the tax return deadline to avoid delays in your refund.