Application for Withholding Certificate for Dispositions

by Foreign Persons of U.S. Real Property Interests

Form 8288-B

(Rev. January 2004) OMB No. 1545-1060

Department of the Treasury

Internal Revenue Service

4 Name of withholding agent (see instructions) Identification number

Address where you want withholding certificate sent (street address, apt. or suite no., P.O. box, or rural route number)

City, state or province, and country (if not U.S.). Include ZIP code or postal code where appropriate.

Applicant is: Transferee

1 Name of transferor (attach additional sheets if more than one transferor) Identification number

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

City, state or province, and country (if not U.S.). Include ZIP code or postal code where appropriate.

2 Name of transferee (attach additional sheets if more than one transferee) Identification number

6 Description of U.S. real property transaction:

a Date of transfer (month, day, year) (see inst.) b Contract price $

Type of interest transferred: Associated personal property

Domestic U.S. real property holding corporation

c Real property

d Use of property at time of sale: Personal Rental or commercial Other (attach explanation)

e Adjusted basis $

Location and general description of property (for a real property interest), description (for associated personal property), or

the class or type and amount of the interest (for an interest in a U.S. real property holding corporation). See instructions.

f

Check the box to indicate the reason a withholding certificate should be issued. See the instructions for information that must

be attached to Form 8288-B.

7

a The transferor is exempt from U.S. tax or nonrecognition treatment applies.

b The transferor’s maximum tax liability is less than the tax required to be withheld.

c The special installment sales rules described in section 7 of Rev. Proc. 2000-35 allow reduced withholding.

8 Does the transferor have any unsatisfied withholding liability under section 1445? Yes No

9 Is this application for a withholding certificate made under section 1445(e)? Yes No

If “Yes,” check the applicable box in a and the applicable box in b below.

a Type of transaction: 1445(e)(1) 1445(e)(2) 1445(e)(3) 1445(e)(5)

b Applicant is: Taxpayer Other person required to withhold. Specify your title (e.g., trustee) 

Under penalties of perjury, I declare that I have examined this application and accompanying attachments, and, to the best of my knowledge and belief, they are true,

correct, and complete.

Signature Title (if applicable) Date

For Paperwork Reduction Act Notice, see instructions. Form 8288-B (Rev. 1-2004)

Transferor

Cat. No. 10128Z

 Please type or print.

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

City, state or province, and country (if not U.S.). Include ZIP code or postal code where appropriate.

Phone number (optional)

( )

3

a b

c Name of estate, trust, or entity (if applicable) d Identification number

5

See the instructions for information required to be attached.

g For the 3 preceding tax years:

(1)

(2)

Were U.S. income tax returns filed relating to the U.S. real property interest?

If “Yes,” when and where were those returns filed? 

Yes No

Were U.S. income taxes paid relating to the U.S. real property interest? Yes No

If “Yes,” enter the amount of tax paid for each year 
Form 8288-B (Rev. 1-2004) Page 2

2. Withhold 10% or lower amount

determined by the IRS (or the amount the

IRS determines to be appropriate under

section 1445(e)) of each subsequent

payment and the interest on the deferred

tax liability.

General Instructions

Section references are to the Internal

Revenue Code unless otherwise noted.

3. Use Forms 8288 and 8288-A (relating

to withholding on dispositions by foreign

persons of U.S. real property interests) to

pay over all amounts withheld. The

identification number of the transferor (or

The IRS will normally act on an

application within 90 days of receipt of all

information necessary to make a proper

determination. The IRS will determine

whether withholding should be reduced or

eliminated or whether a withholding

certificate should not be issued.

4. Notify the IRS before the disposition

or encumbrance of the U.S. real property

interest (of the installment obligation under

section 1445(e)), and when it occurs, pay

over the remaining amount to be withheld.

Any withholding certificate issued by the

IRS applies only for the limited purpose of

determining the withholding obligation

under section 1445 and does not apply to

any substantive issue that may arise in

connection with the transfer. The

acceptance by the IRS of any evidence

submitted in connection with this

application is not binding on the IRS for

any purpose other than issuing the

withholding certificate. The information

submitted in support of the application

may be subject to verification by the IRS

prior to issuance of a withholding

certificate.

5. Continue to withhold under a reduced

withholding certificate until an amended

certificate is issued, even if the transferor

pledges the installment obligation in

exchange for all or part of the proceeds

due on the obligation and includes in gross

income under section 453A(d) the net

proceeds of the secured indebtedness.

Where to send applications for a

withholding certificate. Form 8288-B and

other applications for a withholding

certificate must be sent to the Director,

Philadelphia Service Center, P.O. Box

21086, Drop Point N423, FIRPTA Unit,

Philadelphia, PA 19114-0586.

If you receive a withholding certificate

from the IRS and withholding is still

required, a copy of the withholding

certificate must be attached to Form 8288,

U.S. Withholding Tax Return for

Dispositions by Foreign Persons of U.S.

Real Property Interests.

Purpose of form. Use Form 8288-B to

apply for a withholding certificate to

reduce or eliminate withholding on

dispositions of U.S. real property interests

by foreign persons, but only if the

application is based on:

Installment sales. A transferee is required

to withhold on the full sales price

regardless of the amount of the payment.

However, if the transferor is not a dealer

and will report gain using the installment

method under section 453, a withholding

certificate allowing reduced withholding

may be obtained. Any withholding

certificate based on the installment sale

method will provide for payment of interest

on the deferred tax liability under section

453A(c) when applicable.

Specific Instructions

Caution: Complete all information for each

line. An application that is not substantially

complete when submitted will be rejected.

For example, an application without a

specific or estimated date of transfer will

not be considered to be substantially

complete.

Do not use this form for applications:

For installment sales subject to

withholding under section 1445(a) or (e),

the IRS will consider applications for a

withholding certificate based on the

transferee’s (or entity’s or fiduciary’s)

agreement to all of the following:

1. Withhold and pay over 10% or lower

amount determined by the IRS (or the

amount the IRS determines to be

appropriate under section 1445(e)) of the

down payment. The amount of the down

payment includes any liabilities of the

transferor (entity in the case of section

1445(e)) assumed by the transferee, or

liabilities to which the U.S. real property

interest was subject immediately before

and after the transfer.

Who can apply for a withholding

certificate. Either the transferee or the

transferor (or other authorized person) can

file this application.

Withholding certificate. The IRS can issue

a withholding certificate to reduce or

eliminate withholding under section 1445.

A certificate issued before the transfer

notifies the transferee that reduced

withholding or no withholding is required. A

certificate issued after the transfer may

authorize an early or a normal refund. If, on

the date of transfer, an application for a

withholding certificate is or has been

submitted to the IRS, the applicable

withholding is not required to be paid over

to the IRS until the 20th day after the day

that the IRS mails the withholding

certificate or notice of denial. A transferor

that applies for a withholding certificate

must notify the transferee in writing that

the certificate has been applied for on the

day of or prior to the transfer.

See Regulations sections 1.1445-3 and

1.1445-6 and Rev. Proc. 2000-35 for

information and procedures for applying for

a withholding certificate.

1. A claim that the transferor is entitled

to nonrecognition treatment or is exempt

from tax, 

● Based on an agreement for the payment

of tax with conforming security,

● For blanket withholding certificates

under Rev. Proc. 2000-35, or 

● Other than the three types described

above.

Line 6a. Enter the year as a four-digit

number (e.g., “2004”).

Identification number. The U.S. taxpayer

identification number (TIN) of all parties to

the transaction must be on the application

for a withholding certificate. For U.S.

individuals, the TIN is a social security

number (SSN). For all other entities, it is an

employer identification number (EIN). If you

do not have an EIN, you can apply for one

online at www.irs.gov/business or by

telephone at 1-800-829-4933. Also, you can

file Form SS-4, Application for Employer

Identification Number, by fax or mail.

Line 1. Enter the name, street address,

and identification number of the transferor.

If there are multiple transferors, attach

additional sheets giving the required

information about each one. For a

transaction under section 1445(e), enter

the required information for each foreign

person for whom you are requesting

reduced withholding.

Line 2. Enter the name, street address,

and identification number of the transferee.

If there are multiple transferees, attach

additional sheets giving the required

information about each one.

Line 4a. The withholding agent will

normally be the buyer or other transferee

as described in section 1445(d)(4). For

distributions under section 1445(e), the

withholding agent also includes a trustee,

executor, or other authorized person.

Line 4b. If you are not applying for this

withholding certificate in your personal

capacity, enter your SSN or ITIN (see

Identification number on this page for

more information).

Line 4c. If you are acting on behalf of an

estate or trust, or are signing as an

authorized person for an entity other than

an individual (e.g., a corporation or

partnership), enter the name of the estate,

trust, or entity.

Line 4d. Enter the EIN of the estate, trust,

or entity.

Line 5. Enter the address you want the

IRS to use for purposes of returning the

withholding certificate.

Line 6c. “Associated personal property”

means property (e.g., furniture) sold with a

building. See Regulations section 1.897-1. 

2. A claim solely on a calculation that

shows the transferor’s maximum tax

liability is less than the tax otherwise

required to be withheld, or

3. A claim that the special installment

sales rules described in section 7 of Rev.

Proc. 2000-35 allowed reduced

withholding.

If you are a nonresident alien individual

who is required to have a TIN, but is not

eligible to obtain an SSN, you must apply

for an IRS individual taxpayer identification

number (ITIN). If you do not have a TIN

and are eligible for an ITIN, you can apply

for an ITIN by attaching the completed

Form 8288-B to a completed Form W-7

and forwarding the package to the IRS at

the address given in the Form W-7

instructions. Get Form W-7, Application for

IRS Individual Taxpayer Identification

Number, for more information.

interest holder subject to withholding under

section 1445(e)) must be included on

Forms 8288 and 8288-A.
Form 8288-B (Rev. 1-2004) Page 3

Line 7b. If you checked 7b, attach a

calculation of the maximum tax that can

be imposed on the disposition. You must

also include a statement signed by the

transferor under penalties of perjury that

the calculation and all supporting evidence

is true and correct to the best knowledge

of the transferor.

Evidence that there is no unsatisfied

withholding liability includes any of the

following:

Line 7a. If you checked 7a, attach:

Line 7c. If you checked 7c, see

Installment sales on page 2.

Line 8. You must provide a calculation of

the transferor’s unsatisfied withholding

liability or evidence that it does not exist.

This liability is the amount of any tax the

transferor was required to, but did not,

withhold and pay over under section 1445

when the U.S. real property interest now

being transferred was acquired, or upon a

prior acquisition. The transferor’s

unsatisfied withholding liability is included

in the calculation of maximum tax liability

so that it can be satisfied by the

withholding on the current transfer.

Line 9a. If the transaction is subject to

withholding under section 1445(e), check

the box to indicate which provision of

section 1445(e) applies. 

A nonresident alien or foreign

corporation must also attach a statement

of the adjusted basis of the property

immediately before the distribution or

transfer.

Signature. The application must be signed

by an individual, a responsible corporate

officer, a general partner of a partnership,

If the purchase price includes personal

property not subject to tax under section

897, for the calculation of maximum tax,

the transferor must also include a

Line 6d. Check “Other” if the property was

used for both personal and rental use and

attach an explanation.

Line 6f. Enter the address and description

of the property (e.g., “10-story, 100-unit

luxury apartment building”). For a real

estate holding corporation interest

transferred, enter the class or type and

amount of the interest (e.g., “10,000 shares

Class A Preferred Stock XYZ Corporation”).

You may attach additional sheets. Be sure

to include your name and TIN on each

sheet you attach.

Privacy Act and Paperwork Reduction

Act Notice. We ask for the information on

this form to carry out the Internal Revenue

laws of the United States. Section 1445

generally imposes a withholding obligation

on the buyer or other transferee

(withholding agent) when a U.S. real

property interest is acquired from a foreign

person. Section 1445 also imposes a

withholding obligation on certain

partnerships, foreign and domestic

corporations, and the fiduciary of certain

trusts and estates. This form is used to

apply for a withholding certificate to reduce

or eliminate withholding on dispositions of

U.S. real property interests by foreign

persons if certain conditions apply.

The time needed to complete and file

this form will vary depending on individual

circumstances. The estimated average time

is:

Recordkeeping 2 hr., 4 min.

Learning about the

law or the form 2 hr., 7 min.

Preparing the form 1 hr., 7 min.

Copying, assembling,

and sending the form

to the IRS 20 min.

You are not required to provide the

information requested on a form that is

subject to the Paperwork Reduction Act

unless the form displays a valid OMB

control number. Books or records relating

to a form or its instructions must be

retained as long as their contents may

become material in the administration of

any Internal Revenue law. Generally, tax

returns and return information are

confidential, as required by section 6103.

If you have comments concerning the

accuracy of these time estimates or

suggestions for making this form simpler,

we would be happy to hear from you. You

can write to the Tax Products Coordinating

Committee, Western Area Distribution

Center, Rancho Cordova, CA 95743-0001.

Do not send this form to this office.

Instead, see Where to send applications

for a withholding certificate on page 2.

1. A brief description of the transfer, 

2. A summary of the law,

3. Facts supporting the claim of

nonrecognition or exemption, 

4. Evidence that the transferor has no

unsatisfied withholding liability, and

5. The most recent assessed value for

state or local property tax purposes of the

interest to be transferred, or other estimate

of its fair market value. You need not

submit supporting evidence of the value of

the property.

1. Evidence that the transferor acquired

the subject or prior real property interest

before 1985; 

2. A copy of Form 8288 filed and proof

of payment;

3. A copy of a withholding certificate

issued by the IRS plus a copy of Form

8288 and proof of payment of any amount

required by that certificate; 

4. A copy of the nonforeign certificate

furnished by the person from whom the

U.S. real property interest was acquired.

(The certificate must be executed at the

time of acquisition);

5. Evidence that the transferor

purchased the subject or prior real

property interest for $300,000 or less and

a statement, signed by the transferor under

penalties of perjury, that the transferor

purchased the property for use as a

residence within the meaning of

Regulations section 1.1445-2(d)(1);

6. Evidence that the person from whom

the transferor acquired the subject or prior

U.S. real property interest fully paid any tax

imposed on that transaction under section

897; 

7. A copy of a notice of nonrecognition

treatment provided to the transferor under

Regulations section 1.1445-2(d)(2) by the

person from whom the transferor acquired

the subject or prior U.S. real property

interest; or 

8. A statement, signed by the transferor

under penalties of perjury, explaining why

the transferor was not required to withhold

under section 1445(a) with regard to the

transferor’s acquisition of the subject or

prior real property interest.

The calculation of the maximum tax that

can be imposed must include:

1. Evidence of the amount to be realized

by the transferor, such as a copy of the

signed contract of transfer,

2. Evidence of the adjusted basis of the

property, such as closing statements,

invoices for improvements, and

depreciation schedules, or if no

depreciation schedules are submitted, a

statement of the nature of the use of the

property and why depreciation was not

allowed,

3. Amounts to be recaptured for

depreciation, investment credit, or other

items subject to recapture,

4. The maximum capital gain and/or

ordinary income tax rates applicable to the

transfer,

5. The tentative tax owed, and

6. Evidence showing the amount of any

increase or reduction of tax to which the

transferor is subject, including any

reduction to which the transferor is entitled

under a U.S. income tax treaty.

If you have a net operating loss, see

section 4.06 of Rev. Proc. 2000-35 for

special rules about the maximum tax

calculation.

Line 9b. Indicate whether the applicant is

the taxpayer or the person required to

withhold, and in what capacity that person

is required to withhold.

You are required to provide this

information. Section 6109 requires you to

provide your taxpayer identification

number. We need this information to

ensure that you are complying with the

Internal Revenue laws and to allow us to

figure and collect the right amount of tax.

Failure to provide this information in a

timely manner, or providing false

information, may subject you to penalties.

Routine uses of this information include

giving it to the Department of Justice for

civil and criminal litigation, and to cities,

states, and the District of Columbia for use

in the administration of their tax laws. We

may also disclose this information to

Federal and state agencies to enforce

Federal nontax criminal laws and to

combat terrorism.

statement listing each such item of

personal property transferred and the fair

market value attributable to each item. The

fair market value claimed should be

supported by an independent appraisal or

other similar documentation.

or a trustee, executor, or other fiduciary of

a trust or estate. The application may also

be signed by an authorized agent with a

power of attorney. Form 2848, Power of

Attorney and Declaration of

Representative, can be used for this

purpose.