FIRPTA filing

[IsDVCForMe?]

I have bought a few international contracts, on one of them the seller requested the tax to be waived. Well it wasn’t and I got a letter from the IRS requesting payment about 3 months after closing. It does become the buyer’s responsibility in the eyes of the IRS since it’s filed under your ssn. I sent the letter onto the title agency and they got the sellers to pay for it and I got sent the proof of payment to the IRS. It all worked out but it was not fun getting the IRS notification in the mail.

That doesn’t sound like fun. Any tips for going through this process to prevent that from happening?

 

[princesscinderella]

That doesn’t sound like fun. Any tips for going through this process to prevent that from happening?

Make sure they are paid at closing vs the seller hoping a waiver is approved.