Form 8288-B is the application for a withholding certificate that reduces or eliminates FIRPTA withholding when a foreign person sells a US real property interest. It works on only three grounds: the seller is exempt or gets nonrecognition treatment, the seller's maximum tax is less than the withholding, or special installment sale rules apply. The IRS normally acts within 90 days of having everything it needs.
This guide follows Form 8288-B and its instructions (Rev. December 2025), plus the Instructions for Form 8288 (Rev. January 2026), as of October 2026.
Why sellers file it
FIRPTA withholding is a flat percentage of the price, generally 15% of the amount realized, not of the gain. A seller with a small gain, or a loss, can have far more withheld than they'll ever owe. Form 8288-B is how that's fixed in advance, or how a later early refund is unlocked: the instructions for Form 8288-A say an early refund needs a withholding certificate first.
The three grounds, and what isn't covered
| Line 7 box | Ground | What to attach |
|---|---|---|
| 7a | Seller is exempt from US tax or nonrecognition treatment applies | Description of the transfer, summary of the law, supporting facts, evidence of no unsatisfied withholding liability, and the latest assessed value or other estimate of fair market value |
| 7b | Seller's maximum tax liability is less than the tax to be withheld | A calculation of the maximum tax, signed by the seller under penalties of perjury, with evidence |
| 7c | Special installment sale rules in Rev. Proc. 2000-35 allow reduced withholding | The agreement terms described under installment sales |
The form can't be used for applications based on an agreement to pay tax backed by security, for blanket withholding certificates, or for any other basis. Those go to the IRS under the regulations and Rev. Proc. 2000-35 instead.
What the maximum tax calculation needs
- Evidence of the amount realized, such as the signed contract.
- Evidence of adjusted basis: closing statements, invoices for improvements and depreciation schedules, or an explanation of why depreciation wasn't allowed.
- Amounts to be recaptured for depreciation or other items.
- The maximum capital gain or ordinary income rates that apply, and the tentative tax.
- Any increase or reduction of tax, including a treaty reduction.
- If personal property such as furniture is in the price, a list of each item and its fair market value, supported by an independent appraisal or similar documentation.
Timing: you still withhold at closing
Applying doesn't switch off the buyer's duty. The Form 8288 instructions say the buyer must withhold even if an application is pending on the date of transfer. What changes is when the tax is paid over: if an application was submitted on or before that date, the buyer doesn't file Form 8288 and send the withholding until the 20th day after the IRS mails the certificate or a notice of denial.
Two conditions come with that. The seller must tell the buyer in writing, on or before the day of transfer, that a certificate has been applied for. And if the main purpose of applying was to delay paying the IRS, interest and penalties run from the 21st day after the transfer.
Line 8: unsatisfied withholding liability
Every application has to show whether the seller still owes withholding from when they bought the property. Evidence that nothing is owed includes proof the property was acquired before 1985, a copy of the Form 8288 filed on the purchase with proof of payment, the seller's nonforeign certificate from their own seller, or evidence the property was bought for $300,000 or less as a residence with a signed statement. Any old liability is folded into the maximum tax so it's settled out of this withholding.
TINs and ITINs
The US TIN of every party must be on the application. A nonresident individual who can't get an SSN needs an ITIN, and the instructions allow you to apply for one by attaching the completed Form 8288-B to a completed Form W-7 and sending the package to the address in the W-7 instructions.
Installment sales
A buyer has to withhold on the full price even when only a deposit changes hands. A seller who isn't a dealer and reports on the installment method can get a certificate for reduced withholding if the buyer agrees to withhold 15%, or a lower amount the IRS sets, of the down payment and of each later payment and interest, use Forms 8288 and 8288-A, and notify the IRS before the property is disposed of or encumbered.
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Filing it so it isn't rejected
- Complete every line. An application that isn't substantially complete is rejected, and one without a specific or estimated date of transfer is the example the IRS gives.
- Either the buyer or the seller can apply. Sign as the individual, a responsible officer, a general partner, or a fiduciary. An agent can sign with a power of attorney such as Form 2848.
- Send it to the Internal Revenue Service, P.O. Box 409101, Ogden, UT 84409.
- If withholding is still required under the certificate, attach a copy of it to Form 8288.
The verdict
If the seller's real tax on the sale will be well below 15% of the price, Form 8288-B is worth filing before closing, not after. Get the TINs sorted, attach the full calculation, give the buyer written notice, and remember the certificate only settles withholding, not the tax itself.
Frequently asked questions
What is Form 8288-B used for?
To apply for an IRS withholding certificate that reduces or eliminates FIRPTA withholding on a foreign person's sale of a US real property interest.
Who can file Form 8288-B?
Either the buyer or the seller, or another authorized person, can file the application.
How long does the IRS take on Form 8288-B?
The IRS normally acts within 90 days of receiving all the information it needs.
Does filing Form 8288-B stop withholding at closing?
No. The buyer still withholds, but if the application was submitted by the transfer date, the tax isn't paid over until the 20th day after the IRS mails its decision.
Where do I send Form 8288-B?
To the Internal Revenue Service, P.O. Box 409101, Ogden, UT 84409.
Can I get an ITIN with Form 8288-B?
Yes. Attach the completed Form 8288-B to a completed Form W-7 and send them to the address in the W-7 instructions.
