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cannot because the payment does not

other responsible persons may be

U.S. real property holding corporation

involve sufficient cash or other liquid

subject to a penalty under section 6672

during the previous 5 years (or during

assets, you may obtain a withholding

equal to the amount that should have

the period in which the transferor held

certificate from the IRS. See the

been withheld and paid over to the IRS.

the interest, if shorter).

instructions for Form 8288-B for more

Definitions

A U.S. real property interest does not

information.

include:

Transferee. Any person, foreign or

Where To File

1. An interest in a domestically

domestic, that acquires a U.S. real

Send Form 8288 with the amount

controlled qualified investment entity.

property interest by purchase,

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

exchange, gift, or any other transfer.

2. An interest in a REIT that is held

8288-A to:

by a qualified shareholder. For the

Transferor. For purposes of this

definition of a qualified shareholder see

withholding, this means any foreign

Ogden Service Center

section 897(k)(3). But see section

person that disposes of a U.S. real

P.O. Box 409101

897(k)(2)(B) for the cut-back rule if the

property interest by sale, exchange, gift,

Ogden, UT 84409.

qualified shareholder has one or more

or any other disposition. A disregarded

applicable investors.

entity cannot be the transferor for

Forms 8288-A Must Be

3. An interest in a corporation that:

purposes of section 1445. Instead, the

Attached

Did not hold any U.S. real property

person considered as owning the assets

Anyone who completes Form 8288

interest as of the date the interest in

of the disregarded entity for federal tax

must also complete a Form 8288-A for

such corporation is disposed,

purposes is regarded as the transferor.

each person subject to withholding.

Has disposed of all its U.S. real

A disregarded entity for these

Copies A and B of Form 8288-A must

property interests in transactions in

purposes means an entity that is

be attached to Form 8288. Copy C is for

which the full amount of any gain was

disregarded as an entity separate from

your records. Multiple Forms 8288-A

recognized as provided in section

its owner under Regulations section

897(c)(1)(B), and

related to a transaction can be filed with

301.7701-3, a qualified real estate

Neither such corporation nor any

one Form 8288. You are not required to

investment trust subsidiary as defined in

predecessor of such corporation was a

furnish a copy of Form 8288 or 8288-A

section 856(i), or a qualified subchapter

REIT or a RIC at any time during the

directly to the transferor.

S subsidiary under section 1361(b)(3)

shorter of the previous 5 years or the

(B).

The IRS will stamp Copy B of each

period in which the transferor held the

Qualified substitute. For this purpose,

Form 8288-A and will forward the

interest.

a qualified substitute is (a) the person

stamped copy to the foreign person

4. An interest in certain publicly

(including any attorney or title company)

subject to withholding at the address

traded corporations, partnerships, and

responsible for closing the transaction,

shown on Form 8288-A. To receive

trusts.

other than the transferor’s agent, and (b)

credit for the withheld amount, the

the transferee’s agent.

transferor generally must attach the

See Regulations sections 1.897-1

stamped Copy B of Form 8288-A to a

and 1.897-2 for more information. Also

Withholding agent. For purposes of

U.S. income tax return (for example,

see

Transferred property that is not a

this return, this means the buyer or other

Form 1040NR or 1120-F) or application

U.S. real property

interest, later.

transferee who acquires a U.S. real

for early refund filed with the IRS.

property interest from a foreign person.

Qualified investment entity (QIE). A

Transferor's TIN missing. If you do

QIE is:

Foreign person. A nonresident alien

not have the transferor's taxpayer

Any REIT, and

individual, a foreign corporation that

identification number (TIN), you still

Any RIC which is a United States real

does not have a valid election under

must file Forms 8288 and 8288-A. A

property holding corporation or which

section 897(i) to be treated as a

stamped copy of Form 8288-A will not

would be a United States real property

domestic corporation, a foreign

be provided to the transferor if the

holding corporation.

partnership, a foreign trust, or a foreign

transferor’s TIN is not included on that

estate. A resident alien individual is not

In determining if a RIC is a U.S. real

form. The IRS will send a letter to the

a foreign person.

property holding corporation, the RIC is

transferor requesting the TIN and

required to include as U.S. real property

A qualified foreign pension fund or

providing instructions for how to get a

interests its holdings of stock in a RIC or

any entity wholly owned by such fund

TIN. When the transferor provides the

REIT that is a U.S. real property holding

that disposes U.S. real property interest

IRS with a TIN, the IRS will provide the

company, even if such stock is regularly

or receives a distribution from a REIT is

transferor with a stamped Copy B of

traded and the RIC did not own more

not a foreign person. See sections

Form 8288-A.

than 10% of such stock in the case of a

897(l) and 1445(f)(3) for more

REIT (5% for dispositions before

Penalties

information.

December 17, 2015) or 5% of such

Under section 6651, penalties apply for

U.S. real property interest. Any

stock in case of a RIC, and even if such

failure to file Form 8288 when due and

interest, other than an interest solely as

stock is domestically controlled.

for failure to pay the withholding when

a creditor, in:

For more information, see Pub. 515.

due. In addition, if you are required to

1. Real property located in the

but do not withhold tax under section

Domestically controlled qualified in-

United States or the U.S. Virgin Islands.

1445, the tax, including interest, may be

vestment entity. A QIE is domestically

2. Certain personal property

collected from you. Under section 7202,

controlled if at all times during the

associated with the use of real property.

you may be subject to a penalty of up to

testing period less than 50% in value of

$10,000 for willful failure to collect and

3. A domestic corporation, unless it

its stock was held, directly or indirectly,

pay over the tax. Corporate officers or

is shown that the corporation was not a

-2-

Instructions for Form 8288 (Rev. 2-2017)

Instructions For Form 8288 - U.s. Withholding Tax Return For Dispositions By Foreign Persons Of U.s. Real Property Interests Page 2

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