Don’t Let FIRPTA Deadlines Steal Your Holiday Cheer

Let’s dive into what makes FIRPTA deadlines so crucial during the holidays and how you can manage them effectively while still enjoying the season of cheer.

Why FIRPTA Deadlines Are Especially Stressful During the Holidays

The End-of-Year Rush:

The IRS doesn’t pause for the holidays, and FIRPTA deadlines are no exception. The IRS still expects the required FIRPTA funds and paperwork 20 calendar days after the closing of the transaction. The end of the year is a busy time for real estate transactions as buyers and sellers rush to close deals before December 31st. FIRPTA compliance adds an extra layer of urgency.

Reduced Workdays:

With holidays like Christmas and New Year’s Day, workweeks are shorter, which can make meeting FIRPTA deadlines even more challenging. Processing times at the IRS can also slow down due to the influx of year-end filings.

High Stakes:

FIRPTA requires withholding 15% of the sales price of a property sold by a foreign seller and remitting it to the IRS. Missing the withholding deadline or failing to submit the correct forms can result in penalties for both the buyer and seller—not exactly the kind of gift anyone wants.

Key FIRPTA Deadlines to Keep in Mind

Form 8288 and 8288-A Submission:

These forms must accompany the withholding payment and be submitted by the same 20-day deadline.

Withholding Certificate Application:

If a reduced withholding amount is requested, form 8288-B must be filed on or before the closing date to avoid the full withholding amount being sent to the IRS.

How to Stay FIRPTA-Compliant During the Holidays

Start Early:

The best way to avoid FIRPTA-related stress is to begin the process as early as possible. Communicate with all parties involved to ensure everyone understands the deadlines and required documents.

Keep a Holiday Calendar:

With shortened workweeks and office closures, it’s important to plan FIRPTA filings around holiday schedules. Mark key dates on your calendar and set reminders to stay on track.

Partner with Experts:

FIRPTA transactions can be complex, especially during the holiday season when time is limited. Partnering with an expert like FIRPTA Solutions can save you time, money, and stress.

This Holiday Season, Let Us Handle FIRPTA

FIRPTA deadlines don’t have to ruin your holiday cheer. By planning ahead and partnering with experts, you can ensure smooth, stress-free transactions and make time for what really matters—celebrating with loved ones.