Chapter 04 · Sale
Form 8288-B: FIRPTA Early Refund
How to request a reduced FIRPTA withholding certificate before closing.
Direct answer · 60-second summary
The 60-second version
- Standard FIRPTA: 15% withholding
- Form 8288-B reduces if gain is low
- File 20 days before closing
- IRS processes ~90 days
- Early refund 45–90 days if approved
- File: contract, appraisal, tax projections
- Canadian non-residents often eligible
- No guarantee
Acronyms used in this guide
- FIRPTA — Foreign Investment in Real Property Tax Act
- IRS — Internal Revenue Service
- Form 8288-B — Form 8288-B (withholding certificate)
- ITIN — Individual Taxpayer Identification Number
- Form 843 — Form 843 (refund claim)
Form 8288-B: request certificate
Official IRS request for reduced withholding certificate. If estimated gain < 15%, you can reduce withholding at closing.
Timeline: 20 days before
File at least 20 days before closing to IRS Ogden Service Center. Processing ~90 days, but delays to 120+ days common.
Required documents
Signed contract, appraisal, estimated capital gain, tax ID (ITIN/number), justification for reduced withholding.
Early refund vs. normal refund
Approved: Form 843 after closing = 45–90 day refund. Otherwise, 1040-NR in spring = next-spring refund.
Every figure, rate, threshold, and deadline in this guide is drawn from a verifiable primary source listed at the bottom of the page. The article is updated whenever the underlying rules change, with a fresh review date stamped at the top.
Sources and references
Disclaimer
This guide is for educational purpose only.
For concrete decisions, consult a licensed attorney.