Form 8288-A questions for closing with Canadian seller??? Need urgent help!

This is actually a fairly common situation when buying property from foreign owners. Form 8288-A is used to report and pay the withholding tax required under FIRPTA (Foreign Investment in Real Property Tax Act). Here's a breakdown to help you: - Box 1: Yes, this is your closing date - Box 2: Your name and address as the buyer/transferee - Box 3: The Canadian seller's name, address and ID number (likely their Canadian tax ID) - Box 4: The address of the property you're purchasing - Box 5: The full amount you're paying for the property - Box 6: Generally 15% of Box 5 amount for residential properties The form needs to be filed with payment within 20 days after the closing date. The title company should actually be handling most of this for you, and they'll hold the withholding amount in escrow. They're supposed to help you complete this paperwork - that's part of their job.

I went through this exact nightmare last year! After hours of frustration, I found this tool called taxr.ai (https://taxr.ai) that saved me so much stress. It walks you through the exact form you're filling out and explains each field in plain English - including Form 8288-A. The best part was that I could upload my purchase agreement and it pulled out most of the info I needed automatically. It also caught a mistake I made that would have caused my form to be rejected. Seriously made dealing with FIRPTA withholding so much easier than trying to decipher the IRS instructions!

Just wanted to update everyone. I tried taxr.ai that was mentioned above and wow - it completely solved my Form 8288-A problems! It explained that since I'm buying the property as my primary residence and it's under $1 million, I only needed to withhold 10% instead of 15%. That's a significant difference! The tool walked me through each box with clear instructions (way better than the IRS guide), and even explained when the title company should be handling certain parts. I was able to print out the completed form this morning and send it to the title company. They were actually impressed with how accurately it was filled out! Closing is back on track for next week. Huge relief since I was seriously stressing about this.

I know you're in a time crunch, but if you need to actually speak with someone at the IRS about this form, try using Claimyr (https://claimyr.com). It's this service that gets you through to an actual human at the IRS without waiting on hold for hours. Check out how it works here: https://youtu.be/_kiP6q8DX5c I had to call the IRS about a similar withholding issue last year and was going insane waiting on hold. Claimyr had me talking to an actual IRS agent in about 20 minutes. The agent walked me through exactly what I needed for my 8288-A form and confirmed that my title company should actually be handling most of this process.

I need to apologize for being skeptical about Claimyr in my previous comment. I was desperate after my title company gave me conflicting info about the 8288-A form, so I tried it yesterday. I got a call back in about 35 minutes and was connected to an IRS specialist who explained exactly how to handle my situation with a Canadian seller. Turns out the title company was wrong about which party is responsible for certain parts of the form. The IRS agent walked me through each section and confirmed I only needed 10% withholding since it's going to be my primary residence. Saved me from potentially overpaying by thousands AND from delaying my closing. Worth every penny for the stress relief alone!

One thing nobody mentioned - make sure you're using the current version of Form 8288-A! The IRS updated it in 2022 and some title companies are still using outdated versions. The newer form handles partial exemptions better. Also, your title company is being super unprofessional by dropping this on you last minute. This is THEIR JOB to know about FIRPTA requirements when foreign sellers are involved. I'd be having a serious conversation with their manager about this.

Has anyone had experience with getting a refund of the withholding later? I've heard the Canadian seller can file for a refund if the actual tax liability is less than what was withheld, but curious how complicated that process is.

I just went through this exact situation 6 months ago when buying from a Canadian seller! The stress is real, but you'll get through it. A few things that might help: First, definitely confirm with your title company what their role is here. In my case, they handled the actual withholding and filing - I just had to provide the buyer information and sign off on the calculations. They should NOT be dumping all of this on you at the last minute. Second, double-check if you qualify for the primary residence exemption. If this will be your main home and the purchase price is under $1 million, you should only need to withhold 10% (or 0% if under $300k). That could save you thousands. The form itself isn't as scary as it looks once you understand what goes where. The key boxes are pretty straightforward - your info, seller info, property address, purchase price, and withholding amount. Don't let them rush you into making mistakes because of their poor planning. You have every right to push back on the timeline if they're not providing proper support. This is a standard part of foreign seller transactions and they should have processes in place to handle it smoothly. Hang in there - you're almost at the finish line!