Instructions for the Person Subject to
Note. A transferee required to withhold under section1446(f)(1) must
write “Section 1446(f)(1) withholding” at the top of Copies A and B of
Form 8288-A before sending them to the IRS. See section 5 of Notice
2018-29 for more information.
Generally, if you are a foreign person that disposes of real property
located in the United States as seller or transferor, the buyer or other
transferee must withhold 15% of the amount realized. Certain foreign
interest holders that are beneficiaries or shareholders are subject to
federal income tax withholding at a rate of 21% (35% for distributions
made before January 1, 2018).
You must file a U.S. tax return (Form 1040NR, 1041, 1065, 1065-B, or
1120-F) to report the sale or other disposition as effectively connected
with the conduct of a trade or business in the United States. To receive
credit for any federal income tax withheld shown in box 2, attach Form
8288-A to your tax return, unless you make a request for early refund.
Foreign partnerships, other than publicly traded partnerships (PTPs),
should report the withholding on Form 8804, and attach Form 8288-A.
PTPs and their nominees should use Forms 1042 and 1042-S to report
the withholding. See Pub. 515 and Pub. 519 for more information.
If the amount shown in box 2 is greater than your maximum tax
liability, you may apply for an early refund. However, you must still file
your tax return when due. To apply for an early refund, you must first get
a withholding certificate. No particular form is required for an application
for early refund, but it must include the following information in separate
paragraphs numbered as shown below:
1. Your name, address, and U.S. taxpayer identification number;
2. The amount required to be withheld as stated in the withholding
certificate issued by the IRS;
3. The amount withheld shown in box 2 (attach a copy of this Form
4. The amount to be refunded.
Send your application for a withholding certificate and/or application
for early refund to Ogden Service Center, P.O. Box 409101, Ogden, UT
Note. The early refund procedures discussed above are not available
for withholding under section 1446(f)(1).
See Pub. 515 and Form 8288-B for information about withholding