Question about Form 8288-A and FIRPTA withholding tax

Hello,

My client sold a house in New Jersey last year. He was no longer a resident of the United States, having moved out in 2009.

Because he was not a resident of the United States, 10% of the sales price was withheld by the buyer's title company and remitted to the IRS, even though my client lost money on the sale of the home. This is required under the Federal Investment in Real Property Tax Act.

Now we are going to file his 1040-NR return to claim the refund of the money that was withheld. His return shows zero income from the United States, nothing else but this $ 32,000 payment of withholding tax which should be refunded in full.

The title company properly filed the Forms 8288 and 8288-A with the Internal Revenue Service, and also gave copies to the client. I believe I read somewhere that the Form 8288-A must be stamped by the IRS and mailed with the Form 1040-NR, and cannot be electronically filed. Is this true?

Also, while I believe that the IRS will eventually send my client a Form 8288-A that is stamped, they would be sending it from Utah to the United Kingdom and I don't have enough faith in the mail system that it will get to him. Will the IRS accept a Form 8288-A that isn't stamped by the IRS?

Thanks in advance.

Chris J, EA in NJ

Reply to
caj11
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Form 1040-NR can not be efiled. Therefore, neither can you e-file the stamped copy B of the 8288-A.

I have never encountered this. However, assuming that the IRS received the 8288 with the A & B copies of the 8288-A, I would mail the 1040-NR with the unstamped Copy B of the 8288-A. I also recommend that you account for the disposition of the property on the proper form (4797 for rental property or 8949 for personal use property).

Reply to
Alan

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