In general, within 20 days of the closing date, the funds withheld are to be forwarded along with IRS Forms 8288 and 8288-A to the IRS. Nonetheless, the correct withholding tax is to be withheld but does not have to be reported and paid immediately in case an application for a withholding certificate is submitted to the IRS prior to the date of a sale and is still pending with the IRS on the closing date. It should be noted that the withheld amount (or a lower amount as determined by the IRS) has to be reported and paid within 20 days of the day on which the IRS mails a copy of the withholding certificate or notice of denial.