Form 8288-B (9-88)

Page 4

For a transaction under section
1445(e), enter information about each
foreign person, for whom adjusted
withholding is sought, who will bear
substantive income tax liability because
of the transaction subject to
withholding under section 1445(e).
Line 3.—Enter the name, address, and
identification number of the transferee.
If you are filing this application as the
transferee, enter “Same as line 1”
unless you are entering another
address. If you entered a mailing
address on line 1 that is not your actual
address, enter your actual address on
line 3. If there are multiple transferees,
attach additional sheets giving the
required information about each one.
Line 4.—Enter the appropriate
information. Associated personal
property means property such as
furniture sold with a building. For
further guidance, see Regulations
section 1.897-1. Enter the address and
description of the property, such as
“10-story, 100-unit luxury apartment
building.” For the class or type and
amount of an interest, enter
information such as “10,000 shares
Class A Preferred Stock XYZ
Corporation.”

Line 5.—If box “a” is checked, attach
to Form 8288-B a brief description of
the transfer, a brief summary of the law
and facts supporting the claim of
nonrecognition or exemption, evidence
that the transferor has no unsatisfied
withholding liability, and 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.

Anonresident alien or foreign
corporation must also attach a
statement of the adjusted basis of the
property immediately before the
distribution or transfer. If you are
claiming nonrecognition under section
1034, relating to the rollover of the
gain on the sale of a personal
residence, and another principal
residence in the U.S. has not been
purchased as of the date of sale, you
must also attach either (1) a copy of
the transferor’s binding contract to buy
a principal residence in the U.S. having
a purchase price greater than the
adjusted sales price of the old principal
residence, or (2) the transferor’s
affidavit, signed under penalties of
perjury, stating that the transferor
intends to buy another principal
residence in the U.S. having a purchase

price greater than the adjusted sales
price of the old residence by April 15 of
the year following the year of sale of the
old residence, and that the transferor
expects to be employed or stationed in
the U.S. for at least 2 years from the
date of sale of the old residence. In lieu
of the above, you may attach a copy of
the notice required by Temporary
Regulations section 1.1445-9T(b).
Evidence that the transferor has no
unsatisfied withholding liability. —
You must provide a calculation of the
transferor’s unsatisfied withholding
liability or evidence that it does not
exist. That liability is the amount of any
tax that 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.
Evidence that there is no unsatisfied
withholding liability includes any of the
following: (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 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, executed at the time of that
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, of why the

transferor was not required to withhold
under section 1445(a) with respect to
the transferor’s acquisition of the
subject or prior real property interest.

If box “b” is checked, attach to Form
8288-B a calculation of the maximum
tax that can be imposed on the
disposition and evidence of the
transferor’s unsatisfied withholding
liability as explained above. The
calculation of the maximum tax 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 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
accelerated 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. 88-23 for special rules about
the maximum tax calculation.

If box “c” is checked, see /nsta/lment
sales, earlier.
Line 6.—See Evidence that the
transferor has no unsatisfied
withholding liability, earlier.
Line 7.—If the transaction is subject to
withholding under section 1445(e),
check the box to indicate which
provision of section 1445(e) applies.
Also indicate whether the applicant is
the taxpayer or the person required to
withhold and in what capacity that
person is required to withhold.
Signature.—The application must be
signed by a responsible corporate
officer, a general partner of a
partnership, a trustee, executor, or
other fiduciary of a trust or estate, or,
in the case of an individual, the
individual. In addition, the application
may 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.


com 8288-B Application for Withholding Certificate

(September 1988) for Dispositions by Foreign Persons of OMB No, 1545-0902
Department of the Treasury U.S. Real Property Interests Expires 8-31-91
Internal Revenue Service

1 Name of applicant Identification number

Mailing address where you want withholding certificate sent

City, state, and ZIP code (province, country, and postal zone) Applicant is: Transferee L]

Transferor

2 Names of all transferors (Attach additional sheets if more than one transferor.) Identification number

Address (number and street)

City, state, and ZIP code (province, country, and postal zone)

3 Names of all transferees (Attach additional sheets if more than one transferee.) Identification number

Address (number and street)

City, state, and ZIP code (province, country, and postal zone)

4 Description of U.S. real property transaction:

a Type of interest transferred: OC Real property CJ Associated personal property C1 Domestic U.S. real property holding corporation

b Contract price $ ¢ Date of transfer

d Location and general description of property (for a real property interest), description (for 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.

5 Check the box to indicate the reason a withholding certificate should be issued. (See instructions for information required to be
attached to Form 8288-B.)
a CJ The transferor is exempt from U.S. tax or nonrecognition treatment applies.
b LC] The transferor's maximum tax liability is less than the tax required to be withheld.

c CL The special installment sales rules of Revenue Procedure 88-23 allow reduced withholding. (If you are requesting a withholding
certificate under section 1445(e), see instructions.) _

6 Does the transferor have any unsatisfied withholding liability under section 1445?» 6 ss eC - LJ Yes L]_No
7 Is this an application for withholding under section 1445(e)? . . 2 ss se Ces LI No
If “Yes,” check the applicable boxes below.

a Type of transaction: [] 1445(e(1) (1 1445(e\(2) CJ 1445¢e3) 1 1445(e)(5)
b Applicant is: oO Taxpayer UO Person required to withhold. Specify your title, such as trustee. >

Under penalties of perjury, | declare that | 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 (9-88)




Form 8288-8 (9-88)

Page 3

General Instructions

(Section references are to the Internal
Revenue Code, unless otherwise
noted.)

Paperwork Reduction Act
Notice.—We ask for this information
to carry out the Internal Revenue laws
of the United States. We need it to
ensure that taxpayers are complying
with these laws and to allow us to figure
and collect the right amount of tax. You
are required to give us this information.

The time needed to complete and
file this form will vary depending on
individual circumstances. The
estimated average time is:

Recordkeeping Lhr., 33 min.
Learning about the

law or the form Lhr., 43 min.
Preparing the form 37 min.
Copying, assembling,

and sending the form

toIRS 20 min.

If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form more
simple, we would be happy to hear from
you. You can write to the Internal
Revenue Service, Washington, DC
20224, Attention: IRS Reports
Clearance Officer, TR:FP; or the Office
of Management and Budget,
Paperwork Reduction Project,
Washington, DC 20503.

Purpose of Form.—Use Form 8288-B
to apply for a withholding certificate to
reduce or eliminate withholding on
dispositions by foreign persons of U.S.
real property interests. However, use
this form only for applications based on
(1) a claim that the transferor is
entitled to nonrecognition treatment or
is exempt from tax, (2) a calculation
solely of the transferor’s maximum tax
liability, or (3) the special installment
sales rules of Revenue Procedure 88-
23, 1988-19 I.R.B. 32.

DO NOT USE THIS FORM for
applications (1) based on an agreement
for the payment of tax with conforming
security, (2) for blanket withholding
certificates under Rev. Proc. 88-23, or
(3) made on any other basis.
Regulations sections 1.1445-3 and
1.1445-6 and Rev. Proc. 88-23
describe procedures for applying for a
withholding certificate.

Who Can Apply for a Withholding
Certificate.—Either the transferee or
the transferor can file this application.

For partnerships subject to section
1445(e)(1), the application may be
made by either the partnership, the
foreign partner, or the partner’s agent
under a power of attorney.

Withholding Certificates. —IRS can
issue a withholding certificate to
reduce or eliminate withholding
under section 1445. A certificate
issued before the transfer notifies the
transferee that no withholding or
reduced withholding is required. A
certificate issued after the transfer
may authorize a normal or an early
refund. If, on the date of transfer, an
application for a withholding
certificate is or has been submitted to
IRS, the applicable withholding is not
required to be paid over to IRS until
the 20th day after the day that IRS
mails the withholding certificate or
notice of denial.

IRS will normally act on an
application within 90 days of receipt of
all information necessary to make a
proper determination. IRS will
determine whether withholding should
be eliminated or reduced or whether a
withholding certificate should not
be issued.

Any withholding certificate issued by
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 of any
evidence submitted to IRS in
connection with this application is not
binding on IRS for any purpose other
than the withholding certificate.

If you receive a withholding
certificate from 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.

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.

For installment sales subject to
withholding under section 1445(a) (or
1445(e)), IRS will consider applications
for a withholding certificate based on
the transferee’s (or entity’s or
fiduciary’s) agreement to:

(1) Withhold and pay over 10% (or
the amount IRS determines to be
appropriate under section 1445(e)), or
the lesser amount determined by IRS,
of the down payment, including 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.

(2) Withhold 10% (or the amount IRS
determines to be appropriate under
section 1445(e)), or the lesser amount
determined by IRS, on each
subsequent payment and, for
withholding under section 1445(a), the
interest on the deferred tax liability.

(3) Pay over all amounts withheld
with Forms 8288 and 8288-A (relating
to withholding on dispositions by
foreign persons of U.S. real property
interests) and include the transferor’s
(interest holder subject to withholding
under section 1445(e)) identification
number.

(4) Notify IRS before the disposition
or encumbrance of the U.S. real
property interest (of the installment
obligation under section 1445(e)), and
when such occurs, pay over the
remaining amount to be withheld.

(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 such obligation
and includes in gross income under
section 453A(d) the net proceeds of
the secured indebtedness.

Where To Send Form 8288-B.—Form
8288-B must be sent to the Director,
Philadelphia Service Center, P.O. Box
21086, Philadelphia, PA 19114.
Applications for which Form 8288-B
cannot be used, as described earlier
under Purpose of Form, must be sent to
the address given in Rev. Proc. 88-23.

Required Attachments to Form
8288-B.—Please read the Specific
Instructions carefully to determine
what information is required to be
attached to this form when submitted.
Failure to include all the required
information and documents may delay
issuance of the withholding certificate.

Specific Instructions

Read the following instructions
carefully. In certain cases, attachments
to this form are required.

Line 2.—Enter the name, address, and
identification number of the transferor.
If you are filing this application as the
transferor, enter “Same as line 1”
unless you are entering another
address. If you entered a mailing
address on line 1 that is not your actual
address, enter your actual address on
line 2. If there are multiple transferors,
attach additional sheets giving the
required information about each one.