Gather the sale evidence and tax calculation before asking the IRS to reduce withholding.
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Form 8288-B requests an IRS withholding certificate for certain foreign-seller property transactions. The request needs evidence, not just a completed cover form.IRS Filing it does not itself authorize the buyer to release the withheld money. Coordinate the application, any ITIN need and the closing date.
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Get help reviewing the closing and withholding records. FIRPTA refunds start at US$499 and include the ITIN application if you need one.
Claim back tax withheld when you sold U.S. property.
Includes:
Your sale contract may show a large withholding amount even when the expected tax on the gain is smaller. A certificate request gives the IRS the calculation and documents needed to review a reduced amount. Begin with that question rather than treating the form as a routine part of every foreign sale.
The form covers three kinds of claim: tax exemption or nonrecognition, a maximum tax liability below normal withholding, and specified installment-sale treatment.IRS A different application format is used for other certificate categories.IRS Identify the actual category before assembling the packet.
Write a short account of the transaction for your preparer: who owns the property, who buys it, the expected closing date and why normal withholding seems too high. Include any trust, company or other owner in the description. A personal return calculation should not be used for an entity without review.
If the property has already sold, say whether the buyer withheld, whether the funds have reached the IRS and whether any earlier application exists. A certificate issued after transfer can affect a refund procedure, but it does not erase the need to identify the correct filing route.IRS Keep that question separate from a pre-closing request.
Make one list of all sellers and buyers, with legal names, addresses and tax numbers. Use the contract and ownership record to check it. Multiple parties require more than one name squeezed into a single line. Tell the preparer which seller is requesting relief and how the ownership is held.
Keep the property address beside the legal description. A unit number, parcel reference and county record can help explain what is being transferred. If furniture or another interest is included, show that separately in the contract documents and identify the treatment of each item.
Choose an address where correspondence will be noticed promptly. The IRS FIRPTA guidance allows an overseas seller to put the escrow or closing company's information in box 5 so the decision reaches that party.IRS Agree with the recipient who will check the mail and share the response.
Confirm the expected transfer date before signing. If the contract changes, retain both versions and explain which one is current. The request should describe the transaction the parties actually plan to complete, not an earlier negotiation that has already been replaced.
Start a folder with the signed sale contract and the purchase closing statement. Then add the improvement invoices, earlier returns and rental depreciation records. Label the documents by purpose so the reviewer can follow the difference between what you originally paid, later changes and the amount now being received.
The maximum-liability category needs support for the amount realized and adjusted basis, plus a calculation addressing recapture and the applicable tax treatment.IRS A statement that the sale made little profit does not replace that evidence.
If you rented the property, explain the rental years and provide the schedules used in earlier filings. A bank statement showing the purchase payment cannot explain the later depreciation history. If a prior preparer holds the records, ask for the actual schedules rather than a one-line balance.
Separate repairs, improvements and selling costs in your working list. Let the preparer decide how each item enters the calculation; do not simply deduct every payment related to the house. Write a short explanation for any invoice whose description is unclear.
Also identify missing documents early. Keep a list of the record, who may have it and what you have already obtained. That is more useful than submitting a calculation that looks complete while hiding an unsupported number inside it.
Check for an existing SSN, ITIN or entity EIN before requesting a new number. The correct identifier depends on the party; the owner company's number and an individual owner's number are not interchangeable.
A qualifying individual who needs an ITIN can send Form W-7 with Form 8288-B through the specific property transaction route.IRS This is a documented W-7 exception, not a general permission to get an ITIN without a tax purpose.
Tell the closing team which number is missing and which package is being prepared. Keep the W-7 identity review alongside the certificate calculation so one packet does not contradict the other. A different spelling or owner name can be harder to explain after both submissions have gone out.
Use the current instructions for the destination of a combined package. W-7 submissions use the ITIN procedure; a certificate-only request has its own instructions.IRSIRS Do not mail the same request to several offices hoping one will process it faster.
If the application is submitted by the transfer date, the buyer still retains the applicable withholding while waiting. The amount generally does not have to be paid over until the twentieth day after the IRS mails the certificate or denial.IRS This distinction matters when you are planning the cash available after closing.
The seller must give the buyer written notice of the request by the transfer date.IRS Retain that notice and the submission evidence with the closing records. Do not rely on a verbal conversation between people who may not handle the final payment.
The IRS generally acts within 90 days of receiving a complete application, including the parties' tax numbers.IRS This is an IRS description of the certificate process, not a promise of a decision before your closing. Missing evidence can prevent the request from being ready for that review.
When the response arrives, have the withholding agent compare it with the actual transfer. If money remains payable, follow the certificate and reporting instructions. Keep the response with the later return records: it determines withholding, rather than settling every substantive tax issue connected with the sale.IRS
Explain the transaction and the legal basis for reduced withholding.
ScopeBring the contract, acquisition records, improvements and rental history.
DocumentsMatch the parties and prepare any eligible W-7 package with written buyer notice.
TimingGive the response to the withholding agent and keep it for the final return.
DecisionNo. A pending application does not itself release the money. The timely-application rules can defer paying it over while the IRS reviews the request.IRS
A qualifying individual can coordinate Form W-7 with Form 8288-B under the specific IRS property-transaction procedure.IRS
No. The IRS needs a supported calculation and the relevant transaction evidence.IRS
No. Withholding relief and the final tax reporting are separate questions.IRS
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Every IRS fact on this page comes from IRS.gov or the other official pages listed below and was checked on October 3, 2026. Nolly.com's own prices are the only exception. Nolly.com is a private company and is not part of the IRS.
Nolly Services Inc, d/b/a Nolly.com, appears on the IRS page Acceptance agents – Canada. Nolly.com is a private company and isn't part of the IRS.
Checked against IRS.gov on October 3, 2026. General information, not tax advice.
Start with the documents and the federal tax purpose.
