U.S. Withholding Tax Return for

Dispositions by Foreign Persons of

U.S. Real Property Interests

Form 8288

(Rev. January 2004) OMB No. 1545-0902

Department of the Treasury

Internal Revenue Service

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.)

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 5) 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

2 Description and location of property acquired

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

7 Amount withheld

a

Check applicable box.

b Withholding is of a reduced amount

To Be Completed by a Corporation, Partnership, Trust, or Estate Subject to the Provisions of

Section 1445(e)

1 Name of corporation, partnership, 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

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

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

6

a

Total amount withheld

Withholding is at 10% or 35%

Check all applicable boxes.

b Withholding is of a reduced amount

c 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

Date Preparer’s SSN or PTIN Preparer’s

signature

Check if selfemployed 

Paid

Preparer’s

Use Only

Firm’s name (or

yours if self-employed)

and address

EIN 

ZIP code 

For Privacy Act and Paperwork Reduction Act Notice, see page 6. Cat. No. 62260A Form 8288 (Rev. 1-2004)





Part I

Part II

6

Withholding is at 10%

5

Phone number (optional)

( )

Phone number (optional)

( )
Form 8288 (Rev. 1-2004) Page 2

Who Must File

General Instructions

A buyer or other transferee of a U.S. real

property interest, and a corporation,

partnership, or fiduciary that is required

to withhold tax, must file Form 8288 to

report and transmit the amount withheld.

If two or more persons are joint

transferees, each is obligated to

withhold. However, the obligation of

each will be met if one of the joint

transferees withholds and transmits the

required amount to the IRS.

Section references are to the Internal

Revenue Code unless otherwise noted.

Publicly traded partnerships, publicly

traded trusts, and REITs. Distributions

from a publicly traded partnership are

generally subject to the withholding

requirements of section 1446 and are

not subject to the withholding

requirements of section 1445. See Rev.

Proc. 89-31, 1989-1 C.B. 895.

Distributions from a trust that is regularly

traded on an established securities

market and distributions from a real

estate investment trust (REIT) are

subject to section 1445 and its

regulations. However, for such

partnerships and trusts, generally the

method of paying over and reporting the

withholding to the IRS is governed by

section 1461 and its regulations and the

deposit rules in Regulations section

1.6302-2. Use Form 1042, Annual

Withholding Tax Return for U.S. Source

Income of Foreign Persons, and Form

1042-S, Foreign Person’s U.S. Source

Income Subject to Withholding, to report

and pay over the withheld amounts. Do

not use Forms 8288 and 8288-A for

these distributions. See Regulations

section 1.1445-8.

Penalties

Under section 6651, penalties apply for

failure to file Form 8288 when due and

for failure to pay the withholding when

due. In addition, if you are required to

but do not withhold tax under section

1445, the tax, including interest, may be

collected from you. Under section 7202,

you may be subject to a penalty of up to

$10,000 for willful failure to collect and

pay over the tax. Corporate officers or

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.

Definitions

Transferee. Any person, foreign or

domestic, that acquires a U.S. real

property interest by purchase, exchange,

gift, or any other transfer.

Purpose of Form

A withholding obligation under section

1445 is generally imposed on the buyer

or other transferee (withholding agent)

when a U.S. real property interest is

acquired from a foreign person. The

withholding obligation also applies to

certain partnerships, foreign and

domestic corporations, and the fiduciary

of certain trusts and estates. This

withholding serves to collect U.S. tax

that may be owed by the foreign person.

Use this form to report and transmit the

amount withheld.

Transferor. For purposes of this

withholding, this means any foreign

person that disposes of a U.S. real

property interest by sale, exchange, gift,

When To File

A transferee must file Form 8288 and

transmit the tax withheld to the IRS by

the 20th day after the date of transfer.

You must withhold even if an

application for a withholding certificate is

or has been submitted to the IRS on the

date of transfer. However, you do not

have to file Form 8288 and transmit the

withholding until the 20th day after the

day the IRS mails you a copy of the

withholding certificate or notice of

denial. But if the principal purpose for

filing the application for a withholding

certificate was to delay paying the IRS

the amount withheld, interest and

penalties will apply to the period after

the 20th day after the date of transfer.

Note: You are not required to withhold if

any of the Exceptions (which begin on

page 3) apply.

Amount To Withhold

Generally, you must withhold 10% of the

amount realized on the disposition by

the transferor (see Definitions beginning

on this page).

Installment payments. You must

withhold the full amount at the time of

the first installment payment. If you

cannot because the payment does not

involve sufficient cash or other liquid

assets, you may obtain a withholding

certificate from the IRS. See the

instructions for Form 8288-B,

Application for Withholding Certificate

for Dispositions by Foreign Persons of

U.S. Real Property Interests, for more

information.

Joint transferors. If one or more foreign

persons and one or more U.S. persons

jointly transfer a U.S. real property

interest, you must determine the amount

subject to withholding in the following

manner.

Where To File

Send Form 8288 with the amount

withheld, and Copies A and B of Form(s)

8288-A to the Director, Philadelphia

Service Center, P.O. Box 21086, Drop

Point N423, FIRPTA Unit, Philadelphia,

PA 19114-0586.

Forms 8288-A Must Be

Attached

Anyone who completes Form 8288 must

also complete a Form 8288-A,

Statement of Withholding on

Dispositions by Foreign Persons of U.S.

Real Property Interests, for each person

subject to withholding. Copies A and B

of Form 8288-A must be attached to

Form 8288. Copy C is for your records.

See Corporations, Partnerships,

Trusts, and Estates Subject to Section

1445(e) on page 4 for information about

when withholding at 35% is required.

Also see Withholding certificate issued

by the IRS on page 4 for information

about applying for reduction or

elimination of withholding.

1. Allocate the amount realized from

the transfer among the transferors based

on their capital contribution to the

property. For this purpose, a husband

and wife are treated as having

contributed 50% each.

2. Withhold on the total amount

allocated to foreign transferors.

3. Credit the amount withheld among

the foreign transferors as they mutually

agree. The transferors must request that

the withholding be credited as agreed

upon by the 10th day after the date of

transfer. If no agreement is reached,

credit the withholding by evenly dividing

it among the foreign transferors.

After receipt of Form 8288 and

Form(s) 8288-A, the IRS will stamp Copy

B of Form 8288-A to show receipt of the

withholding and will forward the

stamped copy to the foreign person

subject to withholding at the address

shown on Form 8288-A.

You are not required to furnish a copy

of Form 8288 or 8288-A directly to the

transferor. To receive credit for the

withheld amount, the transferor generally

must attach the stamped Copy B of

Form 8288-A to a U.S. income tax return

(e.g., Form 1040NR or 1120-F) or

application for early refund filed with the

IRS.

CAUTION

!

You are required to include

the taxpayer identification

numbers ( TIN) of the

transferor and transferee on

Forms 8288 and 8288-A. A stamped

copy of Form 8288-A will not be

provided to the transferor if the

transferor’s TIN is not included on that

form. In this case, to get credit for the

withheld amount, the transferor must

attach to its U.S. income tax return

substantial evidence of withholding (e.g.,

closing documents) and a statement that

contains all the required information on

Forms 8288 and 8288-A including the

transferor’s TIN.
Form 8288 (Rev. 1-2004) Page 3

This exception applies whether or not

the transferor (seller) is an individual,

partnership, trust, corporation, or other

transferor. However, this exception does

not apply if the actual transferee (buyer)

is not an individual, even if the property

is acquired for an individual.

Late notice of false statement. If,

after the date of transfer, you receive a

notice that an interest in a corporation is

2. Transferor not a foreign person.

You receive a certification of nonforeign

status from the transferor, signed under

penalties of perjury, stating that the

transferor is not a foreign person and

containing the transferor’s name,

address, and identification number

(social security number (SSN) or

employer identification number (EIN)). If

you receive a certification, the

withholding tax cannot be collected from

you unless you knew that the

certification was false or you received a

notice from your agent or the

transferor’s agent that it was false. The

certification must be signed by the

individual, a responsible officer of a

corporation, a general partner of a

partnership, or the trustee, executor, or

fiduciary of a trust or estate.

You may also use other means to

determine that the transferor is not a

foreign person. But if you do, and it is

later determined that the transferor is a

foreign person, the withholding tax may

be collected from you.

Late notice of false certification. If,

after the date of transfer, you receive a

notice from your agent or the

transferor’s agent that the certification of

nonforeign status is false, you do not

have to withhold on consideration paid

before you received the notice.

However, you must withhold the full

10% of the amount realized from any

consideration that remains to be paid, if

possible. You must do this by

withholding and paying over the entire

amount of each successive payment of

consideration until the full 10% has been

withheld and paid to the IRS. These

amounts must be reported and

transmitted to the IRS by the 20th day

following the date of each payment.

3. Transferred property that is not a

U.S. real property interest. You acquire

an interest in property that is not a U.S.

real property interest. A U.S. real

property interest includes certain

interests in U.S. corporations, as well as

direct interests in real property and

certain associated personal property

(see Definitions on page 2).

No withholding is required on the

acquisition of an interest in a domestic

corporation if (a) any class of stock of

the corporation is regularly traded on an

established securities market, or 

(b) the transferee receives a statement

by the corporation that the interest is

not a U.S. real property interest, unless

you know that the statement is false or

you receive a notice from your agent or

the transferor’s agent that the statement

is false. A corporation’s statement may

be relied on only if it is dated not more

than 30 days before the date of transfer.

A foreign corporation electing to be

treated as a domestic corporation under

section 897(i) must attach to the

certification a copy of the

acknowledgment of the election received

from the IRS. The acknowledgment must

state that the information required by

Regulations section 1.897-3 has been

determined to be complete. If the

acknowledgment is not attached, you

may not rely on the certification. Keep

any certification of nonforeign status you

receive in your records for 5 years after

the year of transfer.

U.S. real property interest. Any

interest, other than an interest solely as

a creditor, in:

1. Real property located in the United

States or the Virgin Islands.

2. Certain personal property

associated with the use of real property.

3. A domestic corporation, unless it is

shown that the corporation was not a

U.S. real property holding corporation

during the previous 5 years (or during

the period in which the transferor held

the interest, if shorter).

A U.S. real property interest does not

include:

1. An interest in a domestically

controlled real estate investment trust

(REIT).

2. An interest in a corporation that has

disposed of all its U.S. real property

interests in transactions in which the full

amount of any gain was recognized as

provided in section 897(c)(1)(B).

3. An interest in certain publicly traded

corporations, partnerships, and trusts.

See Regulations sections 1.897-1 and

-2 for more information. Also see

Transferred property that is not a U.S.

real property interest on this page.

Amount realized. The sum of the cash

paid or to be paid (not including interest

or original issue discount), the fair

market value of other property

transferred or to be transferred, and the

amount of any liability assumed by the

transferee or to which the U.S. real

property interest is subject immediately

before and after the transfer. Generally,

the amount realized for purposes of this

withholding is the sales or contract

price.

Date of transfer. The first date on which

consideration is paid or a liability is

assumed by the transferee. However, for

Exceptions

You are not required to withhold if any

of the following applies:

1. Purchase of residence for

$300,000 or less. One or more

individuals acquire U.S. real property for

use as a residence and the amount

realized (sales price) is not more than

$300,000. A U.S. real property interest is

acquired for use as a residence if you or

a member of your family has definite

plans to reside in the property for at

least 50% of the number of days the

property is used by any person during

each of the first two 12-month periods

following the date of transfer. Do not

take into account the number of days

the property will be vacant in making

this determination. No form or other

document is required to be filed with the

IRS for this exception; however, if you

do not in fact use the property as a

residence, the withholding tax may be

collected from you.

Foreign person. A nonresident alien

individual, a foreign corporation that

does not have a valid election under

section 897(i) to be treated as a

domestic corporation, a foreign

partnership, a foreign trust, or a foreign

estate. A resident alien individual is not

a foreign person.

Withholding agent. For purposes of this

return, this means the buyer or other

transferee who acquires a U.S. real

property interest from a foreign person.

or any other disposition. A disregarded

entity cannot be transferor for purposes

of section 1445. Instead, the person

considered as owning the assets of the

disregarded entity for federal tax

purposes is regarded as the transferor. A

disregarded entity for these purposes

means an entity that is disregarded as

an entity separate from its owner under

Regulations section 301.7701-3, a

qualified REIT subsidiary as defined in

section 856(i), or a qualified subchapter

S subsidiary under section 1361(b)(3)(B).

A disregarded entity may not certify

that it is the transferor for U.S. tax

purposes, including sections 897 and

purposes of sections 1445(e)(2), (3), and

(4), and Regulations sections

1.1445-5(c)(1)(iii) and 1.1445-5(c)(3), the

date of transfer is the date of distribution

that creates the obligation to withhold.

Payment of consideration does not

include the payment before passage of

legal or equitable title of earnest money

(other than pursuant to an initial

purchase contract), a good-faith deposit,

or any similar amount primarily intended

to bind the parties to the contract and

subject to forfeiture. A payment that is

not forfeitable may also be considered

earnest money, a good-faith deposit, or

a similar sum.

1445. Rather, the owner of the

disregarded entity is treated as the

transferor of the property and must

provide the certificate of nonforeign

status to avoid withholding under

section 1445.
Form 8288 (Rev. 1-2004) Page 4

No withholding will be required with

respect to an interest holder if the entity

or fiduciary receives a certification of

nonforeign status from the interest

holder. An entity or fiduciary may also

use other means to determine that an

interest holder is not a foreign person,

but if it does so and it is later

determined that the interest holder is a

foreign person, the withholding may be

collected from the entity or fiduciary.

5. Withholding certificate issued by

the IRS. A withholding certificate may

be issued by the IRS to reduce or

eliminate withholding on dispositions of

U.S. real property interests by foreign

persons. Either a transferee or transferor

may apply for the certificate. The

certificate may be issued if:

6. No consideration paid. The

amount realized by the transferor is zero

(e.g., the property is transferred as a gift

8. Property acquired by a

governmental unit. The property is

acquired by the United States, a U.S.

state or possession or political

subdivision, or the District of Columbia.

7. Options to acquire U.S. real

property interests. An amount is

realized by the grantor on the grant or

lapse of an option to acquire a U.S. real

property interest. However, withholding

is required on the sale, exchange, or

exercise of an option.

An application for a withholding

certificate must comply with the

provisions of Regulations sections

1.1445-3 and 1.1445-6 and Rev. Proc.

2000-35, 2000-35 I.R.B. 211. You can

For rules that apply to foreclosures,

see Regulations section 1.1445-2(d)(3).

If you receive a withholding certificate

from the IRS that excuses withholding,

you are not required to file Form 8288.

However, if you receive a withholding

certificate that reduces (rather than

eliminates) withholding, there is no

exception to withholding, and you are

required to file Form 8288. Attach a

copy of the withholding certificate to

Form 8288. See When To File on

page 2 for more information.

a. Reduced withholding is appropriate

because the 10% or 35% amount

exceeds the transferor’s maximum tax

liability,

b. The transferor is exempt from U.S.

tax or nonrecognition provisions apply,

or

c. The transferee or transferor enters

into an agreement with the IRS for the

payment of the tax.

Liability of Agents

If the transferee or other withholding

agent has received (a) a transferor’s

certification of nonforeign status or (b) a

corporation’s statement that an interest

is not a U.S. real property interest, and

the transferee’s or transferor’s agent

knows that the document is false, the

agent must provide notice to the

transferee or other withholding agent. If

the notice is not provided, the agent will

be liable for the tax that should have

been withheld, but only to the extent of

the agent’s compensation from the

transaction.

If you are the transferee or withholding

agent and you receive a notice of false

certification or statement from your

agent or the transferor’s agent, you must

withhold tax as if you had not received a

certification or statement. But see Late

notice of false certification on page 3.

The terms “transferor’s agent” and

“transferee’s agent” mean any person

who represents the transferor or

transferee in any negotiation with

another person (or another person’s

agent) relating to the transaction or in

settling the transaction. For purposes of

section 1445(e), a transferor’s or

A person is not treated as an agent if

the person only performs one or more of

the following acts in connection with the

transaction:

1. Receiving and disbursing any part

of the consideration.

2. Recording any document.

3. Typing, copying, and other clerical

tasks.

4. Obtaining title insurance reports

and reports concerning the condition of

the property.

5. Transmitting documents between

the parties.

6. Functioning exclusively in his or her

capacity as a representative of a

condominium association or cooperative

housing corporation. This exemption

includes the board of directors, the

committee, or other governing body.

Corporations, Partnerships,

Trusts, and Estates Subject

to Section 1445(e)

Withholding is required on certain

distributions and other transactions by

domestic or foreign corporations,

partnerships, trusts, and estates. A

domestic trust or estate must withhold

35% of the amount distributed to a

foreign beneficiary from a “U.S. real

property interest account” that it is

required to establish under Regulations

section 1.1445-5(c)(1)(iii). A foreign

corporation that has not made the

election under section 897(i) must

withhold 35% of the gain it recognizes

on the distribution of a U.S. real

property interest to its shareholders.

Certain domestic corporations are

required to withhold tax on distributions

to foreign shareholders.

No withholding is required on the

transfer of an interest in a domestic

corporation if any class of stock of the

corporation is regularly traded on an

established securities market. Also, no

withholding is required on the transfer of

an interest in a publicly traded

partnership or trust.

No particular form is required for this

notice. By the 20th day after the date of

transfer, you must send a copy of the

notice of nonrecognition (with a cover

letter giving your name, address, and

identification number) to the address

listed under Where To File on page 2.

See Regulations section 1.1445-2(d)(2)

for more information on the transferor’s

notice of nonrecognition.

Note: A notice of nonrecognition cannot

be used for the exclusion from income

under section 121, like-kind exchanges

that do not qualify for nonrecognition

treatment in their entirety, and deferred

like-kind exchanges that have not been

completed when it is time to file Form

8288. In these cases, a withholding

certificate issued by the IRS, as

described next, must be obtained.

and the recipient does not assume any

liabilities or furnish any other

consideration to the transferor).

Generally, no withholding is required

on the acquisition of an interest in a

foreign corporation. However,

withholding may be required if the

foreign corporation has made the

election under section 897(i) to be

treated as a domestic corporation.

4. Transferor’s nonrecognition of

gain or loss. You may receive a notice

from the transferor signed under

penalties of perjury stating that the

transferor is not required to recognize

gain or loss on the transfer because of a

nonrecognition provision of the Internal

Revenue Code (see Temporary

Regulations section 1.897-6T(a)(2)) or a

provision in a U.S. tax treaty. You may

rely on the transferor’s notice unless

(a) only part of the gain qualifies for

nonrecognition or (b) you know or have

reason to know that the transferor is not

entitled to the claimed nonrecognition

treatment.

not a U.S. real property interest is false,

see Late notice of false certification

on page 3.

find Rev. Proc. 2000-35 on page 211 of

Internal Revenue Bulletin 2000-35 at

www.irs.gov/pub/irs-irbs/irb00-35.pdf.

In certain cases, you may use

Form 8288-B to apply for a withholding

certificate. The IRS will normally act on

an application by the 90th day after a

complete application is received.

transferee’s agent is any person who

represents or advises an entity, a holder

of an interest in an entity, or a fiduciary

with respect to the planning,

arrangement, or completion of a

transaction described in sections

1445(e)(1) through (4).
Form 8288 (Rev. 1-2004) Page 5

Section 1445(e)(3) Transactions

1. The foreign person’s interest in the

corporation is a U.S. real property

interest under section 897 and

2. The property is distributed in

redemption of stock under section 302,

in liquidation of the corporation under

sections 331 through 341, or with

respect to stock under section 301 that

is not made out of the earnings and

profits of the corporation.

No withholding or reduced withholding

is required if the corporation receives a

withholding certificate from the IRS.

Section 1445(e)(4) Transactions

Section 1445(e)(5) Transactions

Large trust election. Trusts with

more than 100 beneficiaries may make

an election to withhold upon distribution

rather than at the time of transfer. The

amount to be withheld from each

distribution is 35% of the amount

attributable to the foreign beneficiary’s

proportionate share of the current

balance of the trust’s section 1445(e)(1)

account. This election does not apply to

any REIT or to any publicly traded trust.

Special rules apply to large trusts that

make recurring sales of growing crops

and timber.

Specific Instructions

Lines 1. In Part I, enter the name,

address, and identifying number of the

buyer or other transferee responsible for

withholding under section 1445(a). Do

not enter the name, address, and

identifying number of a title company,

mortgage company, etc. unless it

happens to be the actual buyer or

transferee.

A trust’s section 1445(e)(1) account is

the total net gain realized by the trust on

all section 1445(e)(1) transactions after

the date of the election, minus the total

of all distributions made by the trust

after the date of the election from such

total net gain. See Regulations section

1.1445-5(c)(3) for more information.

Section 1445(e)(2) Transactions

A foreign corporation that distributes a

U.S. real property interest must generally

withhold 35% of the gain recognized by

the corporation. No withholding or

Generally, a domestic corporation that

distributes any property to a foreign

person that holds an interest in the

corporation must withhold 10% of the

fair market value of the property

distributed if:

No withholding is required under section

1445(e)(4), relating to certain taxable

distributions by domestic or foreign

partnerships, trusts, and estates, until

the effective date of a Treasury Decision

under section 897(e)(2)(B)(ii) and (g).

The transferee of a partnership interest

must withhold 10% of the amount

realized on the disposition by a foreign

partner of an interest in a domestic or

foreign partnership in which at least

50% of the value of the gross assets

consists of U.S. real property interests

and at least 90% of the value of the

gross assets consists of U.S. real

property interests plus any cash or cash

equivalents. However, no withholding is

required under section 1445(e)(5) for

dispositions of interests in other

partnerships, trusts, or estates until the

effective date of a Treasury Decision

under section 897(g). No withholding is

required if, no earlier than 30 days

before the transfer, the transferee

receives a statement signed by a

general partner under penalties of

perjury that at least 50% of the value of

the gross assets of the partnership does

not consist of U.S. real property

interests or that at least 90% of the

value of the gross assets does not

consist of U.S. real property interests

plus cash or cash equivalents. The

transferee may rely on the statement

unless the transferee knows it is false or

the transferee receives a false statement

notice pursuant to Regulations section

1.1445-4.

Identifying number. For a U.S.

individual, this is a social security

number (SSN). For any entity other than

an individual (e.g., corporation, estate, or

trust), this 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.

Name and address. If you are a

fiduciary, list your name and the name of

the trust or estate. Enter the home

address of an individual or the office

address of an entity.

The IRS will contact the

person or entity listed on

line 1 to resolve any problems

that may arise concerning

In Part II, enter the name, address,

and identifying number of the

corporation, partnership, or fiduciary

responsible for withholding under

section 1445(e). Do not enter the name,

address, and identifying number of a title

company, mortgage company, etc.

unless it happens to be the actual entity

responsible for withholding under

section 1445(e).

Complete only Part I or

Part II.

Example 1. B, a corporation,

purchases a U.S. real property interest

from F, a foreign person. On settlement

day, the settlement agent pays off

existing loans, withholds 10% of the

amount realized on the sale, and

disburses the remaining amount to F. B,

not the agent, must complete Part I of

Form 8288 and Form 8288-A.

Example 2. C, a domestic

corporation, distributes property to F, a

foreign shareholder whose interest in C

is a U.S. real property interest. The

distribution is in redemption of C’s stock

(section 1445(e)(3) transaction). C must

withhold 10% of the fair market value of

the property distributed to F. C must

complete Part II of Form 8288, and

Form 8288-A.

Trusts and estates. If a domestic trust

or estate disposes of a U.S. real

property interest, the amount of gain

realized must be paid into a separate

“U.S. real property interest account.” For

these purposes, a domestic trust is one

that does not make the “large trust

election” (explained below), is not a

REIT, and is not publicly traded. The

fiduciary must withhold 35% of the

amount distributed to a foreign person

from the account during the tax year of

the trust or estate in which the

disposition occurred. The withholding

must be paid over to the IRS within 20

days of the date of distribution. Special

rules apply to grantor trusts. See

Regulations section 1.1445-5 for more

information and how to compute the

amount subject to withholding.

CAUTION

!

CAUTION

!

underwithholding and/or penalties.

Section 1445(e)(1) Transactions

Partnerships. A domestic partnership

that is not publicly traded must withhold

tax under section 1446 on effectively

connected income of its foreign partners

and must file Form 8804, Annual Return

for Partnership Withholding Tax (Section

1446), and Form 8805, Foreign Partner’s

Information Statement of Section 1446

Withholding Tax. A publicly traded

partnership generally must withhold tax

under section 1446 on distributions to

its foreign partners and must file Forms

1042 and 1042-S. Because a domestic

partnership that disposes of a U.S. real

property interest is required to withhold

under section 1446, it is not required to

withhold under section 1445(e)(1).

reduced withholding is required if the

corporation receives a withholding

certificate from the IRS.
Form 8288 (Rev. 1-2004) Page 6

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

The time needed to complete and file

these forms will vary depending on

individual circumstances. The estimated

average times are:

Form 8288 Form 8288-A

Recordkeeping

Learning about

the law or the

form 5 hr., 8 min. 30 min.

Preparing and

sending the form

to the IRS 6 hr., 38 min. 34 min.

If you have comments concerning the

accuracy of these time estimates or

suggestions for making these forms

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 the forms to this address.

Instead, see Where To File on page 2.

5 hr., 15 min. 2 hr., 52 min.

You are not required to provide the

information requested on a form that is

subject to the Paperwork Reduction Act

Lines 2. Enter the location and a

description of the property, including any

substantial improvements (e.g., “12-unit

apartment building”). In the case of

interests in a corporation that constitute

a U.S. real property interest, enter the

class or type and amount of the interest

(e.g., “10,000 shares Class A Preferred

Stock XYZ Corporation”).

Part II, line 3. If you are a domestic

trust or estate or you make the large

trust election, enter the date of

distribution.

Lines 4. Copies A and B of each Form

8288-A should be counted as one form.

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.

For a nonresident alien individual who

is not eligible for a social security

number, this is an IRS individual

taxpayer identification number (ITIN). If

the individual does not already have an

ITIN, he or she must apply for one by

attaching the completed Form 8288 to a

completed Form W-7, Application for

IRS Individual Taxpayer Identification

Number, and forwarding the package to

the IRS at the address given in the Form

W-7 instructions.

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 report and

transmit the amount withheld.

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.