IRS Form 8288-A – In the complex world of international real estate transactions, IRS Form 8288-A plays a crucial role in ensuring compliance with U.S. tax laws. This form is essential for reporting withholding taxes when foreign individuals or entities sell or dispose of U.S. real property interests. Whether you’re a buyer, seller, or tax professional, understanding Form 8288-A can help navigate the requirements of the Foreign Investment in Real Property Tax Act (FIRPTA) and related provisions. In this article, we’ll break down what the form is, who needs it, how to complete it, and key considerations for 2026.
What Is IRS Form 8288-A?
IRS Form 8288-A, officially titled “Statement of Withholding on Certain Dispositions by Foreign Persons,” is a supporting document used alongside Form 8288 to report federal income tax withheld on the sale or disposition of U.S. real property interests (USRPI) by foreign persons. It details the withholding for each foreign seller involved in the transaction, ensuring the IRS can track and credit the withheld amounts properly.
The form is divided into sections for the withholding agent’s information (such as name, address, and U.S. TIN), the foreign person’s details (including U.S. TIN, name, foreign address, and optional mailing address), and specific transaction data. Key numbered fields include:
- Date of transfer (Field 1).
- Gain recognized by a foreign corporation (Field 2, if applicable).
- Amount realized (Field 3).
- Federal income tax withheld (Field 4).
- Type of withholding (Field 5: section 1445 or 1446(f)(1)).
- Type of foreign person (Field 6: individual, corporation, partnership, or other).
- Country code (Field 7).
- Description of property transferred (Field 8).
This structure ensures all necessary details are captured for accurate reporting.
Purpose of Form 8288-A and When It’s Required?
The primary purpose of Form 8288-A is to facilitate the withholding and reporting of taxes under section 1445 (FIRPTA) for dispositions of USRPI and under section 1446(f) for certain transfers of partnership interests. FIRPTA requires withholding to ensure foreign sellers pay U.S. taxes on gains from U.S. real estate sales.
You need Form 8288-A when:
- A foreign person disposes of a USRPI, such as land, buildings, or interests in U.S. real property holding corporations.
- There’s a transfer of a partnership interest where the partnership holds USRPI, triggering withholding under section 1446(f)(1) or (4).
- Distributions from trusts or estates involve USRPI gains.
The form is not used for regular dividend distributions from qualified investment entities (QIEs) or publicly traded partnership (PTP) interests unless specific conditions apply.
Who Must File Form 8288-A?
The withholding agent—typically the buyer (transferee)—is responsible for preparing and filing Form 8288-A. This includes:
- Buyers in real estate transactions involving foreign sellers.
- Partnerships making distributions or handling transfers under section 1446(f).
- Agents or fiduciaries in trusts/estates.
For each foreign person subject to withholding, a separate Form 8288-A must be prepared. Copies A and B are attached to Form 8288 and sent to the IRS, while Copy C is kept for records. The IRS stamps Copy B and sends it to the foreign seller, who attaches it to their U.S. tax return (e.g., Form 1040-NR or 1120-F) to claim credit for the withheld tax.
If the foreign seller’s Taxpayer Identification Number (TIN) is missing, the IRS won’t provide a stamped Copy B, but the seller can still claim credit by attaching substantial evidence of withholding to their return.
How to Fill Out IRS Form 8288-A?
Completing Form 8288-A requires accurate details from the transaction. Here’s a step-by-step overview:
- Withholding Agent’s Information: Enter your name, U.S. address, phone number, and U.S. TIN.
- Foreign Person’s Information: Provide the foreign seller’s U.S. TIN (if available), name, foreign address (must be outside the U.S.), and country code. Include a mailing address if different.
- Transaction Details:
- Field 1: Enter the date of transfer or distribution.
- Field 3: Input the amount realized (e.g., sales price, including liabilities assumed).
- Field 4: Calculate and enter the tax withheld (see rates below).
- Field 5: Check the applicable section (1445 or 1446(f)(1)).
- Field 6: Specify the type of foreign entity.
- Field 7: Use the two-letter country code from IRS lists.
- Field 8: Describe the property (e.g., “Residential property at [address]”).
For joint foreign sellers, allocate the amount realized based on capital contributions and withhold only on foreign portions. Always refer to the latest instructions for Form 8288 for detailed guidance.
Withholding Rates, Exemptions, and Reductions
Under Section 1445 (FIRPTA):
- Standard rate: 15% of the amount realized.
- Reduced rate: 10% for personal residences where the amount realized is between $300,001 and $1 million; 0% if $300,000 or less and intended for personal use.
- Exemptions include: Non-foreign seller certification (Form W-9), non-USRPI property, no gain recognized, zero amount realized, or governmental acquisitions.
Under Section 1446(f)(1):
- Rate: 10% of the amount realized if effectively connected gain.
- Exemptions: Non-foreign status, no realized gain, less than 10% effectively connected income, nonrecognition transactions, or treaty benefits.
Withholding certificates (Form 8288-B) can reduce or eliminate withholding if the tax liability is less than the withheld amount. Applications must be submitted to the IRS, and withholding is held until approval.
For overwithholding under section 1446(f)(4), use Form 8288 Part V to claim refunds.
Filing Instructions and Deadlines
File Form 8288 with attached Forms 8288-A by the 20th day after the transfer date. Mail to: Ogden Service Center, P.O. Box 409101, Ogden, UT 84409. Electronic filing via EFTPS is recommended for payments.
Penalties for late filing or payment can include interest, failure-to-file penalties under section 6651, and responsible person liability under section 6672.
Recent Updates for 2026
As of January 2026, the instructions for Form 8288 have been revised to clarify procedures for partnership interest transfers and withholding certificates. Key changes include updated guidance on modified amounts realized for foreign partnerships and emphasis on providing TINs to ensure stamped copies are issued. Always check the IRS website for the latest forms and instructions, as pages were last updated in early 2026.
Conclusion
IRS Form 8288-A is a vital tool for complying with U.S. withholding requirements on foreign real property dispositions. By understanding its purpose, filing obligations, and potential exemptions, you can avoid penalties and ensure smooth transactions. For personalized advice, consult a tax professional or visit the IRS website for official resources, including the downloadable PDF at https://www.irs.gov/pub/irs-pdf/f8288a.pdf. Staying informed about FIRPTA and section 1446 rules will help foreign investors and buyers navigate U.S. real estate taxation effectively.