Instructions For Form 8288 printable pdf download

Instructions for Form 8288

Department of the Treasury

Internal Revenue Service

(Rev. June 2011)

U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real

Property Interests

Use Form 1042, Annual Withholding

because the payment does not involve

Section references are to the Internal

Tax Return for U.S. Source Income of

sufficient cash or other liquid assets, you

Revenue Code unless otherwise noted.

Foreign Persons, and Form 1042-S,

may obtain a withholding certificate from

General Instructions

Foreign Person’s U.S. Source Income

the IRS. See the instructions for Form

Subject to Withholding, to report and pay

8288-B, Application for Withholding

Purpose of Form

over the withheld amounts.

Certificate for Dispositions by Foreign

Persons of U.S. Real Property Interests,

A withholding obligation under section

Amount To Withhold

for more information.

1445 is generally imposed on the buyer or

Generally, you must withhold 10% of the

other transferee (withholding agent) when

Where To File

amount realized on the disposition by the

a U.S. real property interest is acquired

Send Form 8288 with the amount

transferor (see Definitions, later).

from a foreign person. The withholding

withheld, and copies A and B of Form(s)

obligation also applies to foreign and

See Entities Subject to Section

8288-A to the Ogden Service Center,

domestic corporations, qualified

1445(e), later for information about when

P.O. Box 409101, Ogden, UT 84409.

investment entities, and the fiduciary of

withholding at 35% is required. Also see

certain trusts and estates. This

Forms 8288-A Must Be

Withholding certificate issued by the IRS,

withholding serves to collect U.S. tax that

Attached

later for information about applying for

may be owed by the foreign person. Use

reduction or elimination of withholding.

Anyone who completes Form 8288 must

this form to report and transmit the

Joint transferors. If one or more

also complete a Form 8288-A for each

amount withheld.

foreign persons and one or more U.S.

person subject to withholding. Copies A

persons jointly transfer a U.S. real

and B of Form 8288-A must be attached

You are not required to withhold if

property interest, you must determine the

to Form 8288. Copy C is for your records.

any of the exceptions apply. See

TIP

amount subject to withholding in the

Multiple Forms 8288-A related to a

Exceptions, later.

following manner.

transaction can be filed with one Form

Who Must File

8288. You are not required to furnish a

1. Allocate the amount realized from

copy of Form 8288 or 8288-A directly to

the transfer among the transferors based

A buyer or other transferee of a U.S. real

the transferor.

on their capital contribution to the

property interest, and a corporation,

property. For this purpose, a husband and

The IRS will stamp Copy B of each

qualified investment entity, or fiduciary

wife are treated as having contributed

Form 8288-A and will forward the

that is required to withhold tax, must file

50% each.

stamped copy to the foreign person

Form 8288 to report and transmit the

2. Withhold on the total amount

subject to withholding at the address

amount withheld. If two or more persons

allocated to foreign transferors.

shown on Form 8288-A. To receive credit

are joint transferees, each is obligated to

3. Credit the amount withheld among

for the withheld amount, the transferor

withhold. However, the obligation of each

the foreign transferors as they mutually

generally must attach the stamped Copy

will be met if one of the joint transferees

agree. The transferors must request that

B of Form 8288-A to a U.S. income tax

withholds and transmits the required

the withholding be credited as agreed

return (for example, Form 1040NR, U.S.

amount to the IRS.

upon by the 10th day after the date of

Nonresident Alien Income Tax Return, or

Do not use Forms 8288 and 8288-A

transfer. If no agreement is reached,

1120-F, U.S. Income Tax Return of a

for the following distributions.

credit the withholding by evenly dividing it

Foreign Corporation) or application for

among the foreign transferors.

1. A distribution of effectively

early refund filed with the IRS.

connected income by a publicly traded

Transferor’s TIN missing. If you do not

When To File

partnership is subject to the withholding

have the transferor’s taxpayer

requirements of section 1446.

identification number (TIN), you still must

A transferee must file Form 8288 and

2. A distribution from a trust that is

file Forms 8288 and 8288-A. A stamped

transmit the tax withheld to the IRS by the

regularly traded on an established

copy of Form 8288-A will not be provided

20th day after the date of transfer.

securities market is subject to section

to the transferor if the transferor’s TIN is

You must withhold even if an

1445, but is not reported on Forms 8288

not included on that form. The IRS will

application for a withholding certificate is

and 8288-A, Statement of Withholding on

send a letter to the transferor requesting

or has been submitted to the IRS on the

Dispositions by Foreign Persons of U.S.

the TIN and providing instructions for how

date of transfer. However, you do not

Real Property Interests.

to get a TIN. When the transferor

have to file Form 8288 and transmit the

3. A distribution by a qualified

provides the IRS with a TIN, the IRS will

withholding until the 20th day after the

investment entity to a nonresident alien or

provide the transferor with a stamped

day the IRS mails you a copy of the

a foreign corporation is treated as a

Copy B of Form 8288-A.

withholding certificate or notice of denial.

dividend and is not subject to withholding

Penalties

But if the principal purpose for filing the

under section 1445 as a gain from the

application for a withholding certificate

sale or exchange of a U.S. real property

Under section 6651, penalties apply for

was to delay paying the IRS the amount

interest if:

failure to file Form 8288 when due and for

withheld, interest and penalties will apply

a. The distribution is on stock

failure to pay the withholding when due.

to the period beginning on the 21st day

regularly traded on a securities market in

In addition, if you are required to but do

after the date of transfer and ending on

the United States, and

not withhold tax under section 1445, the

the day full payment is made.

b. The alien or corporation did not

tax, including interest, may be collected

Installment payments. You must

own more than 5% of that stock at any

from you. Under section 7202, you may

time during the 1-year period ending on

withhold the full amount at the time of the

be subject to a penalty of up to $10,000

the date of the distribution.

first installment payment. If you cannot

for willful failure to collect and pay over

Aug 08, 2011

Cat. No. 57528F

Instructions For Form 8288

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