On certain occasions, such as in case of short sales, the proceeds from the sale do not meet the withholding requirements under FIRPTA. Still, considering that these requirements are not based on the seller’s proceeds but on the sales price itself, no automatic exemption applies for transactions whereby the seller is receiving no or insufficient proceeds. Should that be the case, the seller needs to apply for an exemption or reduced withholding from the IRS. It is important to note that this process can be time-consuming, so settlement agents are advised to bring up such issues with the foreign seller at the beginning rather than at the end of the process.