IRS Form 8288

What Is IRS Form 8288

IRS Form 8288, known as the U.S. Withholding Tax Return for Dispositions by Foreign Persons, is used to report and withhold taxes on the sale or transfer of U.S. real property interests by non-U.S. individuals or foreign entities.

What Is Form 8288 Used For

The document serves the following purposes:

• reporting and withholding taxes on the sale or transfer of U.S. real property interests by foreigners or foreign organizations;
• calculating and remitting the required withholding tax on these property transfers;
• identifying the parties involved (transferor, transferee) and providing property details;
• determining the withholding amount based on the transaction value;
• reporting transaction information to ensure tax compliance with the IRS;
• ensuring proper withholding and reporting per U.S. laws for foreign individuals involved in real estate transactions.

How to Fill Out Tax Form 8288

Follow these steps to complete Tax Form 8288:

1. Obtain the doc template from the IRS website or a tax professional or access it through PDFLiner.
2. Review the entire form to get the gist of its layout.
3. Provide the withholding agent's basic information at the top, including name, address, and taxpayer identification number (SSN or EIN).
4. Enter property information, such as address and description.
5. Report the total amount realized from the property transfer in Part I.
6. Determine the withholding tax amount (usually 15% of the total amount realized) in Part II unless a reduced rate or exemption applies.
7. If an exemption from withholding is applicable, specify the exemption code and include supporting documentation in Part III.
8. Complete Part IV if a foreign corporation is involved, providing their name, address, and taxpayer identification number.
9. Attach necessary supporting documents like the sales contract or settlement statement, as instructed.
10. Digitally sign the file using PDFLiner's e-signature feature.
11. Review all entered information for maximum accuracy before saving a copy for your personal records.

Difference Between Form 8288 and 8288 A

Both documents are utilized for reporting and withholding taxes on the disposition of U.S. real property interests by nonnationals. However, Form 8288 is used by the transferee/buyer to report and withhold tax, while 8288-A is used by the withholding agent to report and remit the amount withheld. We hope it makes the picture clearer for you.