Instructions For Form 8288 (Page 3 of 5) in pdf

Late Filing of Certification or

any consideration that remains to be paid,

like-kind exchanges that have not been

if possible. You must do this by

completed when it is time to file Form

Notices

withholding and paying over the entire

8288. In these cases, a withholding

You may be eligible for relief for a late

amount of each successive payment of

certificate issued by the IRS, as described

filing if a statement or notice was not

consideration until the full 10% has been

next, must be obtained.

provided to the relevant person or the IRS

withheld and paid to the IRS. These

by the specified deadline and if you have

Withholding certificate issued by the

amounts must be reported and

reasonable cause for the failure to make

IRS. A withholding certificate may be

transmitted to the IRS by the 20th day

a timely filing. Once you become aware

issued by the IRS to reduce or eliminate

following the date of each payment.

that you have failed to timely file certain

withholding on dispositions of U.S. real

Transferred property that is not a U.S.

certificates or notices, you must file the

property interests by foreign persons.

real property interest. You acquire an

required certification or notice with the

Either a transferee or transferor may

interest in property that is not a U.S. real

appropriate person or the IRS. Also

apply for the certificate. The certificate

property interest (defined under U.S. real

include the following.

may be issued if:

•

property interest, earlier). A U.S. real

A statement at the top of the

Reduced withholding is appropriate

property interest includes certain interests

document(s) that it is “FILED PURSUANT

because the 10% or 35% amount

in U.S. corporations, as well as direct

TO REV. PROC. 2008-27.”

exceeds the transferor’s maximum tax

•

interests in real property and certain

An explanation describing why the

liability,

•

associated personal property.

failure was due to reasonable cause.

The transferor is exempt from U.S. tax

Within the explanation, provide that you

or nonrecognition provisions apply, or

No withholding is required on the

•

filed with, or obtained from, an

The transferee or transferor enters into

acquisition of an interest in a domestic

appropriate person the required

an agreement with the IRS for the

corporation if (a) any class of stock of the

certification or notice.

payment of the tax.

corporation is regularly traded on an

established securities market, or (b) the

An application for a withholding

The completed certification or notice

transferee receives a statement issued by

certificate must comply with the

attached to the explanation must be sent

the corporation that the interest is not a

provisions of Regulations sections

to the Ogden Service Center, P.O. Box

U.S. real property interest, unless you

1.1445-3 and 1.1445-6 and Rev. Proc.

409101, Ogden, UT 84409.

know that the statement is false or you

2000-35, 2000-35 I.R.B. 211. You can

For more information, see Rev. Proc.

receive a notice from your agent or the

find Rev. Proc. 2000-35 on page 211 of

2008-27, 2008-21 I.R.B. 1014, available

transferor’s agent that the statement is

Internal Revenue Bulletin 2000-35 at

false. A corporation’s statement may be

ar14.html.

relied on only if it is dated not more than

pdf. In certain cases, you may use Form

30 days before the date of transfer.

8288-B to apply for a withholding

Liability of Agents

Late notice of false statement. If,

certificate. The IRS will normally act on an

If you (or the qualified substitute) received

after the date of transfer, you receive a

application by the 90th day after a

(a) a transferor’s certification of

notice that the statement is false, see

complete application is received.

nonforeign status or (b) a corporation’s

Late notice of false certification, earlier.

If you receive a withholding certificate

statement that an interest is not a U.S.

Generally, no withholding is required

from the IRS that excuses withholding,

real property interest, and the transferee’s

on the acquisition of an interest in a

you are not required to file Form 8288.

or transferor’s agent, or the substitute,

foreign corporation. However, withholding

However, if you receive a withholding

knows the document is false, the agent

may be required if the foreign corporation

certificate that reduces (rather than

(or substitute) must notify you. If

has made the election under section

eliminates) withholding, there is no

notification is not provided, the agent (or

897(i) to be treated as a domestic

exception to withholding, and you are

substitute) will be liable for the tax that

corporation.

required to file Form 8288. Attach a copy

should have been withheld, but only to

of the withholding certificate to Form

the extent of the agent’s (or substitute’s)

Transferor’s nonrecognition of gain or

8288. See When To File, earlier for more

compensation from the transaction.

loss. You may receive a notice from the

information.

transferor signed under penalties of

If you (or the substitute) receive a

perjury stating that the transferor is not

No consideration paid. The amount

notice of false certification or statement

required to recognize gain or loss on the

realized by the transferor is zero (for

from your agent, the transferor’s agent, or

transfer because of a nonrecognition

example, the property is transferred as a

qualified substitute, you must withhold tax

provision of the Internal Revenue Code

gift and the recipient does not assume

as if you had not received a certification

(see Temporary Regulations section

any liabilities or furnish any other

or statement. See Late notice of false

1.897-6T(a)(2)) or a provision in a U.S.

consideration to the transferor).

certification, earlier.

tax treaty. You may rely on the

Options to acquire U.S. real property

An “agent” is any person who

transferor’s notice unless (a) only part of

interests. An amount is realized by the

represents the transferor or transferee in

the gain qualifies for nonrecognition or (b)

grantor on the grant or lapse of an option

any negotiation with another person (or

you know or have reason to know that the

to acquire a U.S. real property interest.

another person’s agent) relating to the

transferor is not entitled to the claimed

However, withholding is required on the

transaction or in settling the transaction.

nonrecognition treatment.

sale, exchange, or exercise of an option.

For purposes of section 1445(e), a

No particular form is required for this

Property acquired by a governmental

transferor’s or transferee’s agent is any

notice. By the 20th day after the date of

unit. The property is acquired by the

person who represents or advises an

transfer, you must send a copy of the

United States, a U.S. state or possession

entity, a holder of an interest in an entity,

notice of nonrecognition (with a cover

or political subdivision, or the District of

or a fiduciary with respect to the planning,

letter giving your name, address, and

Columbia.

arrangement, or completion of a

identification number) to the Ogden

transaction described in sections

For rules that apply to foreclosures,

Service Center, P.O. Box 409101, Ogden,

1445(e)(1) through (4).

see Regulations section 1.1445-2(d)(3).

UT 84409. See Regulations section

1.1445-2(d)(2) for more information on

A person is not treated as an agent if

Applicable wash sale transaction. A

the transferor’s notice of nonrecognition.

the person only performs one or more of

distribution from a domestically controlled

the following acts in connection with the

Note. A notice of nonrecognition cannot

qualified investment entity is treated as a

transaction:

be used for the exclusion from income

distribution of a U.S. real property interest

under section 121, like-kind exchanges

only because an interest in the entity was

1. Receiving and disbursing any part

that do not qualify for nonrecognition

disposed of in an applicable wash sale

of the consideration.

treatment in their entirety, and deferred

transaction. See section 897(h)(5).

2. Recording any document.

-3-

Instructions for Form 8288 (Rev. 6-2011)

Instructions For Form 8288 Page 3

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