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U.S.

Withholding Tax Return for


Form 8288
(Rev. November 2006)
Dispositions by Foreign Persons of OMB No. 1545-0902
Department of the Treasury
Internal Revenue Service
U.S. Real Property Interests
Complete Part I or Part II. Also complete and attach Copies A and B of Form(s) 8288-A.
(Attach additional sheets if you need more space.)
Part I To Be Completed by the Buyer or Other Transferee Required To Withhold Under Section 1445(a)
1 Name of buyer or other transferee responsible for withholding (see page 6) Identifying number

Street address, apt. or suite no., or rural route. Do not use a P.O. box.

City or town, state, and ZIP code Phone number (optional)


( )
2 Description and location of property acquired

3 Date of transfer 4 Number of Forms 8288-A attached 5 Amount realized on the transfer

6 Check applicable box. 7 Amount withheld


a Withholding is at 10%
b Withholding is of a reduced amount

Part II To Be Completed by an Entity Subject to the Provisions of Section 1445(e)


1 Name of entity or fiduciary responsible for withholding (see instructions) Identifying number

Street address, apt. or suite no., or rural route. Do not use a P.O. box.

City or town, state, and ZIP code Phone number (optional)


( )
2 Description of U.S. real property interest transferred or distributed

3 Date of transfer 4 Number of Forms 8288-A attached

5 Complete all items that apply. 6 Total amount withheld


a Amount subject to withholding at 35%
b Amount subject to withholding at 10%
c Amount subject to withholding at reduced rate
d Large trust election to withhold at distribution
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge
and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Sign
Here
© Signature of withholding agent, partner, fiduciary, or corporate officer Title (if applicable) Date

Paid
Preparer’s
Preparer’s
signature © Date
Check if self-
employed ©
Preparer’s SSN or PTIN

©
Firm’s name (or EIN ©
Use Only yours if self-employed)
ZIP code ©
and address
For Privacy Act and Paperwork Reduction Act Notice, see the instructions. Cat. No. 62260A Form 8288 (Rev. 11-2006)
Form 8288 (Rev. 11-2006) Page 2
Section references are to the Internal Amount To Withhold Where To File
Revenue Code unless otherwise noted. Generally, you must withhold 10% of the If you are filing in 2006, send Form 8288
amount realized on the disposition by with the amount withheld, and Copies A
General Instructions the transferor (see Definitions on and B of Form(s) 8288-A to Internal
page 3). Revenue Service, Philadelphia, PA
Purpose of Form
See Entities Subject to Section 1445(e) 19255. If you are filing after 2006, send
A withholding obligation under section on page 5 for information about when Form 8288 with the amount withheld,
1445 is generally imposed on the buyer withholding at 35% is required. Also see and copies A and B of Form(s) 8288-A
or other transferee (withholding agent) Withholding certificate issued by the IRS to the Ogden Service Center,
when a U.S. real property interest is on page 4 for information about applying P.O. Box 409101, Ogden, UT 84409.
acquired from a foreign person. The for reduction or elimination of
withholding obligation also applies to withholding. Forms 8288-A Must Be
foreign and domestic corporations, Attached
qualified investment entities, and the Joint transferors. If one or more foreign
fiduciary of certain trusts and estates. persons and one or more U.S. persons Anyone who completes Form 8288 must
This withholding serves to collect U.S. jointly transfer a U.S. real property also complete a Form 8288-A,
tax that may be owed by the foreign interest, you must determine the amount Statement of Withholding on
person. Use this form to report and subject to withholding in the following Dispositions by Foreign Persons of U.S.
transmit the amount withheld. manner. Real Property Interests, for each person
1. Allocate the amount realized from subject to withholding. Copies A and B
You are not required to of Form 8288-A must be attached to
the transfer among the transferors based
TIP withhold if any of the
Exceptions (which begin on on their capital contribution to the Form 8288. Copy C is for your records.
page 3) apply. property. For this purpose, a husband After receipt of Form 8288 and
and wife are treated as having Form(s) 8288-A, the IRS will stamp Copy
Who Must File contributed 50% each. B of Form 8288-A to show receipt of the
A buyer or other transferee of a U.S. real 2. Withhold on the total amount withholding and will forward the
property interest, and a corporation, allocated to foreign transferors. stamped copy to the foreign person
qualified investment entity, or fiduciary subject to withholding at the address
3. Credit the amount withheld among shown on Form 8288-A.
that is required to withhold tax, must file the foreign transferors as they mutually
Form 8288 to report and transmit the agree. The transferors must request that You are not required to furnish a copy
amount withheld. If two or more persons the withholding be credited as agreed of Form 8288 or 8288-A directly to the
are joint transferees, each is obligated to upon by the 10th day after the date of transferor. To receive credit for the
withhold. However, the obligation of transfer. If no agreement is reached, withheld amount, the transferor generally
each will be met if one of the joint credit the withholding by evenly dividing must attach the stamped Copy B of
transferees withholds and transmits the it among the foreign transferors. Form 8288-A to a U.S. income tax return
required amount to the IRS. (for example, Form 1040NR or 1120-F)
Do not use Forms 8288 and 8288-A When To File or application for early refund filed with
for the following distributions. the IRS.
A transferee must file Form 8288 and
1. A distribution of effectively transmit the tax withheld to the IRS by You are required to include
connected income by a publicly traded the 20th day after the date of transfer. the taxpayer identification
partnership is subject to the withholding You must withhold even if an numbers (TIN) of the transferor
requirements of section 1446. CAUTION and transferee on Forms 8288
application for a withholding certificate is
2. A distribution from a trust that is or has been submitted to the IRS on the and 8288-A. A stamped copy of Form
regularly traded on an established date of transfer. However, you do not 8288-A will not be provided to the
securities market is subject to section have to file Form 8288 and transmit the transferor if the transferor’s TIN is not
1445, but is not reported on Forms 8288 withholding until the 20th day after the included on that form. In this case, to
and 8288-A. day the IRS mails you a copy of the get credit for the withheld amount, the
3. A distribution by a qualified withholding certificate or notice of transferor must attach to its U.S. income
investment entity to a nonresident alien denial. But if the principal purpose for tax return substantial evidence of
or a foreign corporation is treated as a filing the application for a withholding withholding (for example, closing
dividend and is not subject to certificate was to delay paying the IRS documents) and a statement that
withholding under section 1445 as a the amount withheld, interest and contains all the required information on
gain from the sale or exchange of a U.S. penalties will apply to the period after Forms 8288 and 8288-A including the
real property interest if: the 20th day after the date of transfer. transferor’s TIN.
a. The distribution is on stock regularly Installment payments. You must
traded on a securities market in the withhold the full amount at the time of Penalties
United States, and the first installment payment. If you Under section 6651, penalties apply for
b. The alien or corporation did not cannot because the payment does not failure to file Form 8288 when due and
own more than 5% of that stock at any involve sufficient cash or other liquid for failure to pay the withholding when
time during the 1-year period ending on assets, you may obtain a withholding due. In addition, if you are required to
the date of the distribution. certificate from the IRS. See the but do not withhold tax under section
Use Form 1042, Annual Withholding instructions for Form 8288-B, 1445, the tax, including interest, may be
Tax Return for U.S. Source Income of Application for Withholding Certificate collected from you. Under section 7202,
Foreign Persons, and Form 1042-S, for Dispositions by Foreign Persons of you may be subject to a penalty of up to
Foreign Person’s U.S. Source Income U.S. Real Property Interests, for more $10,000 for willful failure to collect and
Subject to Withholding, to report and information. pay over the tax. Corporate officers or
pay over the withheld amounts. other responsible persons may be
subject to a penalty under section 6672
equal to the amount that should have
been withheld and paid over to the IRS.
Form 8288 (Rev. 11-2006) Page 3

Definitions ● A regulated investment company (RIC) This exception applies whether or not
that is a U.S. real property holding the transferor (seller) is an individual,
Transferee. Any person, foreign or corporation. partnership, trust, corporation, or other
domestic, that acquires a U.S. real transferor. However, this exception does
For more information, see Pub. 515.
property interest by purchase, exchange, not apply if the actual transferee (buyer)
gift, or any other transfer. Domestically controlled qualified is not an individual, even if the property
investment entity. A qualified is acquired for an individual.
Transferor. For purposes of this
investment entity is domestically
withholding, this means any foreign 2. Transferor not a foreign person.
controlled if at all times during the
person that disposes of a U.S. real You receive a certification of nonforeign
testing period less than 50% in value of
property interest by sale, exchange, gift, status from the transferor, signed under
its stock was held, directly or indirectly,
or any other disposition. A disregarded penalties of perjury, stating that the
by foreign persons. The testing period is
entity cannot be the transferor for transferor is not a foreign person and
the shorter of (a) the 5-year period
purposes of section 1445. Instead, the containing the transferor’s name,
ending on the date of the disposition (or
person considered as owning the assets address, and identification number
distribution), or (b) the period during
of the disregarded entity for federal tax (social security number (SSN) or
which the entity was in existence.
purposes is regarded as the transferor. employer identification number (EIN)). If
A disregarded entity for these purposes Amount realized. The sum of the cash you receive a certification, the
means an entity that is disregarded as paid or to be paid (not including interest withholding tax cannot be collected from
an entity separate from its owner under or original issue discount), the fair you unless you knew that the
Regulations section 301.7701-3, a market value of other property certification was false or you received a
qualified real estate investment trust transferred or to be transferred, and the notice from your agent or the
subsidiary as defined in section 856(i), or amount of any liability assumed by the transferor’s agent that it was false. The
a qualified subchapter S subsidiary transferee or to which the U.S. real certification must be signed by the
under section 1361(b)(3)(B). property interest is subject immediately individual, a responsible officer of a
before and after the transfer. Generally, corporation, a general partner of a
Withholding agent. For purposes of this the amount realized for purposes of this
return, this means the buyer or other partnership, or the trustee, executor, or
withholding is the sales or contract fiduciary of a trust or estate.
transferee who acquires a U.S. real price.
property interest from a foreign person. A disregarded entity may not certify
Date of transfer. The first date on which
Foreign person. A nonresident alien that it is the transferor for U.S. tax
consideration is paid or a liability is
individual, a foreign corporation that purposes, including sections 897 and
assumed by the transferee. However, for
does not have a valid election under 1445. Rather, the owner of the
purposes of sections 1445(e)(2), (3), and
section 897(i) to be treated as a disregarded entity is treated as the
(4), and Regulations sections
domestic corporation, a foreign transferor of the property and must
1.1445-5(c)(1)(iii) and 1.1445-5(c)(3), the
partnership, a foreign trust, or a foreign provide the certificate of nonforeign
date of transfer is the date of distribution
estate. A resident alien individual is not status to avoid withholding under
that creates the obligation to withhold.
a foreign person. section 1445.
Payment of consideration does not
U.S. real property interest. Any include the payment before passage of A foreign corporation electing to be
interest, other than an interest solely as legal or equitable title of earnest money treated as a domestic corporation under
a creditor, in: (other than pursuant to an initial section 897(i) must attach to the
purchase contract), a good-faith deposit, certification a copy of the
1. Real property located in the United
or any similar amount primarily intended acknowledgment of the election received
States or the U.S. Virgin Islands.
to bind the parties to the contract and from the IRS. The acknowledgment must
2. Certain personal property subject to forfeiture. A payment that is state that the information required by
associated with the use of real property. not forfeitable may also be considered Regulations section 1.897-3 has been
3. A domestic corporation, unless it is earnest money, a good-faith deposit, or determined to be complete. If the
shown that the corporation was not a a similar sum. acknowledgment is not attached, you
U.S. real property holding corporation may not rely on the certification. Keep
during the previous 5 years (or during Exceptions any certification of nonforeign status you
the period in which the transferor held You are not required to withhold if any receive in your records for 5 years after
the interest, if shorter). of the following applies. the year of transfer.
A U.S. real property interest does not 1. Purchase of residence for You may also use other means to
include: $300,000 or less. One or more determine that the transferor is not a
individuals acquire U.S. real property for foreign person. But if you do, and it is
1. An interest in a domestically later determined that the transferor is a
controlled qualified investment entity. use as a residence and the amount
realized (sales price) is not more than foreign person, the withholding tax may
2. An interest in a corporation that has be collected from you.
$300,000. A U.S. real property interest is
disposed of all its U.S. real property Late notice of false certification. If,
acquired for use as a residence if you or
interests in transactions in which the full after the date of transfer, you receive a
a member of your family has definite
amount of any gain was recognized as notice from your agent or the
plans to reside in the property for at
provided in section 897(c)(1)(B). transferor’s agent that the certification of
least 50% of the number of days the
3. An interest in certain publicly traded property is used by any person during nonforeign status is false, you do not
corporations, partnerships, and trusts. each of the first two 12-month periods have to withhold on consideration paid
See Regulations sections 1.897-1 and following the date of transfer. Do not before you received the notice. However,
-2 for more information. Also see take into account the number of days you must withhold the full 10% of the
Transferred property that is not a U.S. the property will be vacant in making amount realized from any consideration
real property interest on page 4. this determination. No form or other that remains to be paid, if possible. You
document is required to be filed with the must do this by withholding and paying
Qualified investment entity. A qualified over the entire amount of each
IRS for this exception; however, if you
investment entity is: successive payment of consideration
do not in fact use the property as a
● A real estate investment trust (REIT), residence, the withholding tax may be until the full 10% has been withheld and
and collected from you.
Form 8288 (Rev. 11-2006) Page 4
paid to the IRS. These amounts must be Note. A notice of nonrecognition cannot For rules that apply to foreclosures,
reported and transmitted to the IRS by be used for the exclusion from income see Regulations section 1.1445-2(d)(3).
the 20th day following the date of each under section 121, like-kind exchanges 9. Applicable wash sale transaction.
payment. that do not qualify for nonrecognition A distribution from a domestically
3. Transferred property that is not a treatment in their entirety, and deferred controlled qualified investment entity is
U.S. real property interest. You acquire like-kind exchanges that have not been treated as a distribution of a U.S. real
an interest in property that is not a U.S. completed when it is time to file Form property interest only because an
real property interest (defined on page 8288. In these cases, a withholding interest in the entity was disposed of in
3). A U.S. real property interest includes certificate issued by the IRS, as an applicable wash sale transaction. See
certain interests in U.S. corporations, as described next, must be obtained. section 897(h)(5).
well as direct interests in real property 5. Withholding certificate issued by
and certain associated personal the IRS. A withholding certificate may Liability of Agents
property. be issued by the IRS to reduce or If the transferee or other withholding
No withholding is required on the eliminate withholding on dispositions of agent has received (a) a transferor’s
acquisition of an interest in a domestic U.S. real property interests by foreign certification of nonforeign status or (b) a
corporation if (a) any class of stock of persons. Either a transferee or transferor corporation’s statement that an interest
the corporation is regularly traded on an may apply for the certificate. The is not a U.S. real property interest, and
established securities market, or certificate may be issued if: the transferee’s or transferor’s agent
(b) the transferee receives a statement a. Reduced withholding is appropriate knows that the document is false, the
by the corporation that the interest is not because the 10% or 35% amount agent must provide notice to the
a U.S. real property interest, unless you exceeds the transferor’s maximum tax transferee or other withholding agent. If
know that the statement is false or you liability, the notice is not provided, the agent will
receive a notice from your agent or the b. The transferor is exempt from U.S. be liable for the tax that should have
transferor’s agent that the statement is tax or nonrecognition provisions apply, been withheld, but only to the extent of
false. A corporation’s statement may be or the agent’s compensation from the
relied on only if it is dated not more than c. The transferee or transferor enters transaction.
30 days before the date of transfer. into an agreement with the IRS for the If you are the transferee or withholding
Late notice of false statement. If, payment of the tax. agent and you receive a notice of false
after the date of transfer, you receive a An application for a withholding certification or statement from your
notice that an interest in a corporation is certificate must comply with the agent or the transferor’s agent, you must
not a U.S. real property interest is false, provisions of Regulations sections withhold tax as if you had not received a
see Late notice of false certification on 1.1445-3 and 1.1445-6 and Rev. Proc. certification or statement. But see Late
page 3. 2000-35, 2000-35 I.R.B. 211. You can notice of false certification on page 3.
Generally, no withholding is required find Rev. Proc. 2000-35 on page 211 of The terms “transferor’s agent” and
on the acquisition of an interest in a Internal Revenue Bulletin 2000-35 at “transferee’s agent” mean any person
foreign corporation. However, www.irs.gov/pub/irs-irbs/irb00-35.pdf. who represents the transferor or
withholding may be required if the In certain cases, you may use transferee in any negotiation with
foreign corporation has made the Form 8288-B to apply for a withholding another person (or another person’s
election under section 897(i) to be certificate. The IRS will normally act on agent) relating to the transaction or in
treated as a domestic corporation. an application by the 90th day after a settling the transaction. For purposes of
4. Transferor’s nonrecognition of complete application is received. section 1445(e), a transferor’s or
gain or loss. You may receive a notice If you receive a withholding certificate transferee’s agent is any person who
from the transferor signed under from the IRS that excuses withholding, represents or advises an entity, a holder
penalties of perjury stating that the you are not required to file Form 8288. of an interest in an entity, or a fiduciary
transferor is not required to recognize However, if you receive a withholding with respect to the planning,
gain or loss on the transfer because of a certificate that reduces (rather than arrangement, or completion of a
nonrecognition provision of the Internal eliminates) withholding, there is no transaction described in sections
Revenue Code (see Temporary exception to withholding, and you are 1445(e)(1) through (4).
Regulations section 1.897-6T(a)(2)) or a required to file Form 8288. Attach a A person is not treated as an agent if
provision in a U.S. tax treaty. You may copy of the withholding certificate to the person only performs one or more of
rely on the transferor’s notice unless Form 8288. See When To File on page 2 the following acts in connection with the
(a) only part of the gain qualifies for for more information. transaction:
nonrecognition or (b) you know or have 6. No consideration paid. The 1. Receiving and disbursing any part
reason to know that the transferor is not amount realized by the transferor is zero of the consideration.
entitled to the claimed nonrecognition (for example, the property is transferred
treatment. 2. Recording any document.
as a gift and the recipient does not
No particular form is required for this assume any liabilities or furnish any 3. Typing, copying, and other clerical
notice. By the 20th day after the date of other consideration to the transferor). tasks.
transfer, you must send a copy of the 7. Options to acquire U.S. real 4. Obtaining title insurance reports
notice of nonrecognition (with a cover property interests. An amount is and reports concerning the condition of
letter giving your name, address, and realized by the grantor on the grant or the property.
identification number) to the Director, lapse of an option to acquire a U.S. real 5. Transmitting documents between
Philadelphia Service Center, P.O. Box property interest. However, withholding the parties.
21086, FIRPTA Unit, Philadelphia, PA is required on the sale, exchange, or
19114-0586. If you are filing after 2006, exercise of an option. 6. Functioning exclusively in his or her
you must send a copy of the notice of capacity as a representative of a
8. Property acquired by a condominium association or cooperative
nonrecognition to the Ogden Service governmental unit. The property is
Center, P.O. Box 409101, Ogden, UT housing corporation. This exemption
acquired by the United States, a U.S. includes the board of directors, the
84409. See Regulations section state or possession or political
1.1445-2(d)(2) for more information on committee, or other governing body.
subdivision, or the District of Columbia.
the transferor’s notice of nonrecognition.
Form 8288 (Rev. 11-2006) Page 5

Entities Subject to Section withhold 35% of the amount distributed Section 1445(e)(5) Transactions
to a foreign person from the account
1445(e) during the tax year of the trust or estate
The transferee of a partnership interest
must withhold 10% of the amount
Withholding is required on certain in which the disposition occurred. The
realized on the disposition by a foreign
distributions and other transactions by withholding must be paid over to the IRS
partner of an interest in a domestic or
domestic or foreign corporations, within 20 days of the date of distribution.
foreign partnership in which at least
qualified investment entities, trusts, and Special rules apply to grantor trusts. See
50% of the value of the gross assets
estates. A domestic trust or estate must Regulations section 1.1445-5 for more
consists of U.S. real property interests
withhold 35% of the amount distributed information and how to compute the
and at least 90% of the value of the
to a foreign beneficiary from a “U.S. real amount subject to withholding.
gross assets consists of U.S. real
property interest account” that it is Large trust election. Trusts with property interests plus any cash or cash
required to establish under Regulations more than 100 beneficiaries may make equivalents. However, no withholding is
section 1.1445-5(c)(1)(iii). A foreign an election to withhold upon distribution required under section 1445(e)(5) for
corporation that has not made the rather than at the time of transfer. The dispositions of interests in other
election under section 897(i) must amount to be withheld from each partnerships, trusts, or estates until the
withhold 35% of the gain it recognizes distribution is 35% of the amount effective date of a Treasury Decision
on the distribution of a U.S. real property attributable to the foreign beneficiary’s under section 897(g). No withholding is
interest to its shareholders. Certain proportionate share of the current required if, no earlier than 30 days
domestic corporations are required to balance of the trust’s section 1445(e)(1) before the transfer, the transferee
withhold tax on distributions to foreign account. This election does not apply to receives a statement signed by a general
shareholders. any qualified investment entity or to any partner under penalties of perjury that at
No withholding is required on the publicly traded trust. Special rules apply least 50% of the value of the gross
transfer of an interest in a domestic to large trusts that make recurring sales assets of the partnership does not
corporation if any class of stock of the of growing crops and timber. consist of U.S. real property interests or
corporation is regularly traded on an A trust’s section 1445(e)(1) account is that at least 90% of the value of the
established securities market. Also, no the total net gain realized by the trust on gross assets does not consist of U.S.
withholding is required on the transfer of all section 1445(e)(1) transactions after real property interests plus cash or cash
an interest in a publicly traded the date of the election, minus the total equivalents. The transferee may rely on
partnership or trust. of all distributions made by the trust the statement unless the transferee
No withholding will be required with after the date of the election from such knows it is false or the transferee
respect to an interest holder if the entity total net gain. See Regulations section receives a false statement notice
or fiduciary receives a certification of 1.1445-5(c)(3) for more information. pursuant to Regulations section
nonforeign status from the interest 1.1445-4.
holder. An entity or fiduciary may also Section 1445(e)(2) Transactions
use other means to determine that an A foreign corporation that distributes a Section 1445(e)(6) Transactions
interest holder is not a foreign person, U.S. real property interest must generally A qualified investment entity must
but if it does so and it is later withhold 35% of the gain recognized by withhold 35% of a distribution to a
determined that the interest holder is a the corporation. No withholding or nonresident alien or a foreign
foreign person, the withholding may be reduced withholding is required if the corporation that is treated as gain
collected from the entity or fiduciary. corporation receives a withholding realized from the sale or exchange of a
certificate from the IRS. U.S. real property interest. No
Section 1445(e)(1) Transactions
Section 1445(e)(3) Transactions withholding under section 1445 is
Partnerships. A domestic partnership required on a distribution to a
that is not publicly traded must withhold Generally, a domestic corporation that nonresident alien or foreign corporation
tax under section 1446 on effectively distributes any property to a foreign if the distribution is on stock regularly
connected income allocated to its person that holds an interest in the traded on a securities market in the
foreign partners and must file Form corporation must withhold 10% of the United States and the alien or
8804, Annual Return for Partnership fair market value of the property corporation did not own more than 5%
Withholding Tax (Section 1446), and distributed if: of that stock at any time during the
Form 8805, Foreign Partner’s 1. The foreign person’s interest in the 1-year period ending on the date of
Information Statement of Section 1446 corporation is a U.S. real property distribution.
Withholding Tax. A publicly traded interest under section 897, and
partnership or nominee generally must 2. The property is distributed in Specific Instructions
withhold tax under section 1446 on redemption of stock under section 302,
distributions to its foreign partners and Complete only Part I or
in liquidation of the corporation under Part II.
must file Forms 1042 and 1042-S. sections 331 through 341, or with
Because a domestic partnership that respect to stock under section 301 that
disposes of a U.S. real property interest is not made out of the earnings and
CAUTION
is required to withhold under section profits of the corporation. Example 1. B, a corporation,
1446, it is not required to withhold under purchases a U.S. real property interest
section 1445(e)(1). No withholding or reduced withholding
is required if the corporation receives a from F, a foreign person. On settlement
Trusts and estates. If a domestic trust withholding certificate from the IRS. day, the settlement agent pays off
or estate disposes of a U.S. real existing loans, withholds 10% of the
property interest, the amount of gain Section 1445(e)(4) Transactions amount realized on the sale, and
realized must be paid into a separate disburses the remaining amount to F. B,
“U.S. real property interest account.” For No withholding is required under section not the agent, must complete Part I of
these purposes, a domestic trust is one 1445(e)(4), relating to certain taxable Form 8288 and Form 8288-A.
that does not make the “large trust distributions by domestic or foreign
partnerships, trusts, and estates, until Example 2. C, a domestic
election” (explained later), is not a corporation, distributes property to F, a
qualified investment entity, and is not the effective date of a Treasury Decision
under section 897(e)(2)(B)(ii) and (g). foreign shareholder whose interest in C
publicly traded. The fiduciary must
Form 8288 (Rev. 11-2006) Page 6
is a U.S. real property interest. The For a nonresident alien individual who tax. Failure to provide this information in
distribution is in redemption of C’s stock is not eligible for a social security a timely manner, or providing false
(section 1445(e)(3) transaction). C must number, this is an IRS individual information, may subject you to
withhold 10% of the fair market value of taxpayer identification number (ITIN). If penalties. Routine uses of this
the property distributed to F. C must the individual does not already have an information include giving it to the
complete Part II of Form 8288, and Form ITIN, he or she must apply for one by Department of Justice for civil and
8288-A. attaching the completed Form 8288 to a criminal litigation, and to cities, states,
Lines 1. In Part I, enter the name, completed Form W-7, Application for and the District of Columbia for use in
address, and identifying number of the IRS Individual Taxpayer Identification the administration of their tax laws. We
buyer or other transferee responsible for Number, and forwarding the package to may also disclose this information to
withholding under section 1445(a). Do the IRS at the address given in the Form other countries under a tax treaty, to
not enter the name, address, and W-7 instructions. federal and state agencies to enforce
identifying number of a title company, Lines 2. Enter the location and a federal nontax criminal laws, or to
mortgage company, etc. unless it description of the property, including any federal law enforcement and intelligence
happens to be the actual buyer or substantial improvements (for example, agencies to combat terrorism.
transferee. “12-unit apartment building”). In the You are not required to provide the
In Part II, enter the name, address, case of interests in a corporation that information requested on a form that is
and identifying number of the entity or constitute a U.S. real property interest, subject to the Paperwork Reduction Act
fiduciary responsible for withholding enter the class or type and amount of unless the form displays a valid OMB
under section 1445(e). Do not enter the the interest (for example, “10,000 shares control number. Books or records
name, address, and identifying number Class A Preferred Stock XYZ relating to a form or its instructions must
of a title company, mortgage company, Corporation”). be retained as long as their contents
etc. unless it happens to be the actual Lines 4. Copies A and B of each Form may become material in the
entity responsible for withholding under 8288-A should be counted as one form. administration of any Internal Revenue
section 1445(e). law. Generally, tax returns and return
Part II, line 3. If you are a qualified information are confidential, as required
The IRS will contact the investment entity, domestic trust or by section 6103.
person or entity listed on estate, or you make the large trust
line 1 to resolve any problems election, enter the date of distribution. The time needed to complete and file
CAUTION that may arise concerning
these forms will vary depending on
Privacy Act and Paperwork Reduction individual circumstances. The estimated
underwithholding and/or penalties. Act Notice. We ask for the information average times are:
Name and address. If you are a on this form to carry out the Internal
Revenue laws of the United States. Form 8288 Form 8288-A
fiduciary, list your name and the name of
the trust or estate. Enter the home Section 1445 generally imposes a Recordkeeping 5 hr., 15 min. 2 hr., 52 min.
address of an individual or the office withholding obligation on the buyer or Learning about
address of an entity. other transferee (withholding agent) the law or the
when a U.S. real property interest is form 5 hr., 8 min. 30 min.
Identifying number. For a U.S. acquired from a foreign person. Section
individual, this is a social security Preparing and
1445 also imposes a withholding sending the form
number (SSN). For any entity other than obligation on certain foreign and
an individual (for example, corporation, to the IRS 6 hr., 38 min. 34 min.
domestic corporations, qualified
qualified investment entity, estate, or investment entities, and the fiduciary of If you have comments concerning the
trust), this is an employer identification certain trusts and estates. This form is accuracy of these time estimates or
number (EIN). If you do not have an EIN, used to report and transmit the amount suggestions for making these forms
you can apply for one online at withheld. simpler, we would be happy to hear
www.irs.gov/smallbiz or by telephone at
You are required to provide this from you. You can write to the Internal
1-800-829-4933. Also, you can file Form
information. Section 6109 requires you Revenue Service, Tax Products
SS-4, Application for Employer
to provide your taxpayer identification Coordinating Committee,
Identification Number, by fax or mail.
number. We need this information to SE:W:CAR:MP:T:T:SP, 1111 Constitution
ensure that you are complying with the Ave. NW, IR-6406, Washington, DC
Internal Revenue laws and to allow us to 20224. Do not send the forms to this
figure and collect the right amount of address. Instead, see Where To File on
page 2.