Open Forum

Good morning ALTA:

Beginning of the year we have to get 1099s out to everyone, and the title industry is not exception, if the seller of U.S. real estate property is/was foreign it has to be marked on box 5 of the 1099-S

But what if the seller has an LLC? Remember, LLCs come in different forms but keep in mind if a FOREIGN PERSON IS THE SOLE MEMBER of an LLC that entity is considered DISREGARDED for tax purposes by the IRS, but what does that mean?

It means the IRS looks at the status of the PERSON and not the LLC, so when looking at the LLC documents look at the IRS SS-4 letter.

If the owner of a SOLE MBR LLC is a foreign person the buyer has to send the FIRPTA withholding to the IRS,

The IRS SS-4 letter specifies what kind of entity you are dealing with, if the LLC is a formal corporation the SS-4 indicates that THE ENTITY has to file its own tax return.

Also, remember, a state level LLC do not void federal tax requirements.

Do not hesitate to give us a call if you have questions (we do NOT file 1099-S to the IRS)

------------------------------
Mary Enzi CAA
Tax Solutions – FIRPTA Consulting
mary.santiago@taxss.com
+1 (281) 578-1040
Barker TX
------------------------------

Hi everyone:

Tomorrow is the due date to issue 1099-S, if you had a closing involving a foreign seller late last year and you have not received the ITIN (if you applied for one) you can request an extension using form 8809 and/or 15397

https://www.irs.gov/pub/irs-pdf/f15397.pdf
https://www.irs.gov/pub/irs-pdf/f8809.pdf

In my opinion, you should not be penalized by an agency who has not issue a document that the same agency requires you to have to file a form with the same agency... Am I rambling.... ?! 😓

You can probably request your 1099 provider if this is an option for you.

Anyway, I hope the information is useful. 

Good morning ALTA:

Beginning of the year we have to get 1099s out to everyone, and the title industry is not exception, if the seller of U.S. real estate property is/was foreign it has to be marked on box 5 of the 1099-S

But what if the seller has an LLC? Remember, LLCs come in different forms but keep in mind if a FOREIGN PERSON IS THE SOLE MEMBER of an LLC that entity is considered DISREGARDED for tax purposes by the IRS, but what does that mean?

It means the IRS looks at the status of the PERSON and not the LLC, so when looking at the LLC documents look at the IRS SS-4 letter.

If the owner of a SOLE MBR LLC is a foreign person the buyer has to send the FIRPTA withholding to the IRS,

The IRS SS-4 letter specifies what kind of entity you are dealing with, if the LLC is a formal corporation the SS-4 indicates that THE ENTITY has to file its own tax return.

Also, remember, a state level LLC do not void federal tax requirements.

Do not hesitate to give us a call if you have questions (we do NOT file 1099-S to the IRS)

Hi everyone:

Tomorrow is the due date to issue 1099-S, if you had a closing involving a foreign seller late last year and you have not received the ITIN (if you applied for one) you can request an extension using form 8809 and/or 15397

https://www.irs.gov/pub/irs-pdf/f15397.pdf
https://www.irs.gov/pub/irs-pdf/f8809.pdf

In my opinion, you should not be penalized by an agency who has not issue a document that the same agency requires you to have to file a form with the same agency... Am I rambling.... ?! 😓

You can probably request your 1099 provider if this is an option for you.

Anyway, I hope the information is useful. 

Good morning ALTA:

Beginning of the year we have to get 1099s out to everyone, and the title industry is not exception, if the seller of U.S. real estate property is/was foreign it has to be marked on box 5 of the 1099-S

But what if the seller has an LLC? Remember, LLCs come in different forms but keep in mind if a FOREIGN PERSON IS THE SOLE MEMBER of an LLC that entity is considered DISREGARDED for tax purposes by the IRS, but what does that mean?

It means the IRS looks at the status of the PERSON and not the LLC, so when looking at the LLC documents look at the IRS SS-4 letter.

If the owner of a SOLE MBR LLC is a foreign person the buyer has to send the FIRPTA withholding to the IRS,

The IRS SS-4 letter specifies what kind of entity you are dealing with, if the LLC is a formal corporation the SS-4 indicates that THE ENTITY has to file its own tax return.

Also, remember, a state level LLC do not void federal tax requirements.

Do not hesitate to give us a call if you have questions (we do NOT file 1099-S to the IRS)

Hi everyone:

Tomorrow is the due date to issue 1099-S, if you had a closing involving a foreign seller late last year and you have not received the ITIN (if you applied for one) you can request an extension using form 8809 and/or 15397

https://www.irs.gov/pub/irs-pdf/f15397.pdf
https://www.irs.gov/pub/irs-pdf/f8809.pdf

In my opinion, you should not be penalized by an agency who has not issue a document that the same agency requires you to have to file a form with the same agency... Am I rambling.... ?! 😓

You can probably request your 1099 provider if this is an option for you.

Anyway, I hope the information is useful. 

Good morning ALTA:

Beginning of the year we have to get 1099s out to everyone, and the title industry is not exception, if the seller of U.S. real estate property is/was foreign it has to be marked on box 5 of the 1099-S

But what if the seller has an LLC? Remember, LLCs come in different forms but keep in mind if a FOREIGN PERSON IS THE SOLE MEMBER of an LLC that entity is considered DISREGARDED for tax purposes by the IRS, but what does that mean?

It means the IRS looks at the status of the PERSON and not the LLC, so when looking at the LLC documents look at the IRS SS-4 letter.

If the owner of a SOLE MBR LLC is a foreign person the buyer has to send the FIRPTA withholding to the IRS,

The IRS SS-4 letter specifies what kind of entity you are dealing with, if the LLC is a formal corporation the SS-4 indicates that THE ENTITY has to file its own tax return.

Also, remember, a state level LLC do not void federal tax requirements.

Do not hesitate to give us a call if you have questions (we do NOT file 1099-S to the IRS)

Dear Mary:  thanks for your focus on FIRPTA.  Can you recommend a short article discussing the basics of the law?........Thank you, Arthur

Hi everyone:

Tomorrow is the due date to issue 1099-S, if you had a closing involving a foreign seller late last year and you have not received the ITIN (if you applied for one) you can request an extension using form 8809 and/or 15397

https://www.irs.gov/pub/irs-pdf/f15397.pdf
https://www.irs.gov/pub/irs-pdf/f8809.pdf

In my opinion, you should not be penalized by an agency who has not issue a document that the same agency requires you to have to file a form with the same agency... Am I rambling.... ?! 😓

You can probably request your 1099 provider if this is an option for you.

Anyway, I hope the information is useful. 

Good morning ALTA:

Beginning of the year we have to get 1099s out to everyone, and the title industry is not exception, if the seller of U.S. real estate property is/was foreign it has to be marked on box 5 of the 1099-S

But what if the seller has an LLC? Remember, LLCs come in different forms but keep in mind if a FOREIGN PERSON IS THE SOLE MEMBER of an LLC that entity is considered DISREGARDED for tax purposes by the IRS, but what does that mean?

It means the IRS looks at the status of the PERSON and not the LLC, so when looking at the LLC documents look at the IRS SS-4 letter.

If the owner of a SOLE MBR LLC is a foreign person the buyer has to send the FIRPTA withholding to the IRS,

The IRS SS-4 letter specifies what kind of entity you are dealing with, if the LLC is a formal corporation the SS-4 indicates that THE ENTITY has to file its own tax return.

Also, remember, a state level LLC do not void federal tax requirements.

Do not hesitate to give us a call if you have questions (we do NOT file 1099-S to the IRS)

Hi Arthur:

Yes absolutely, you can check the IRS website https://www.irs.gov/individuals/international-taxpayers/firpta-withholding  

https://www.irs.gov/individuals/international-taxpayers/definitions-of-terms-and-procedures-unique-to-firpta

We also collaborated with the VLTA, here is the link FIRPTA Overview – VLTA Examiner Publication

Let me know if you are looking for something in particular, I know Marc has other resources.

Dear Mary:  thanks for your focus on FIRPTA.  Can you recommend a short article discussing the basics of the law?........Thank you, Arthur

Hi everyone:

Tomorrow is the due date to issue 1099-S, if you had a closing involving a foreign seller late last year and you have not received the ITIN (if you applied for one) you can request an extension using form 8809 and/or 15397

https://www.irs.gov/pub/irs-pdf/f15397.pdf
https://www.irs.gov/pub/irs-pdf/f8809.pdf

In my opinion, you should not be penalized by an agency who has not issue a document that the same agency requires you to have to file a form with the same agency... Am I rambling.... ?! 😓

You can probably request your 1099 provider if this is an option for you.

Anyway, I hope the information is useful. 

Good morning ALTA:

Beginning of the year we have to get 1099s out to everyone, and the title industry is not exception, if the seller of U.S. real estate property is/was foreign it has to be marked on box 5 of the 1099-S

But what if the seller has an LLC? Remember, LLCs come in different forms but keep in mind if a FOREIGN PERSON IS THE SOLE MEMBER of an LLC that entity is considered DISREGARDED for tax purposes by the IRS, but what does that mean?

It means the IRS looks at the status of the PERSON and not the LLC, so when looking at the LLC documents look at the IRS SS-4 letter.

If the owner of a SOLE MBR LLC is a foreign person the buyer has to send the FIRPTA withholding to the IRS,

The IRS SS-4 letter specifies what kind of entity you are dealing with, if the LLC is a formal corporation the SS-4 indicates that THE ENTITY has to file its own tax return.

Also, remember, a state level LLC do not void federal tax requirements.

Do not hesitate to give us a call if you have questions (we do NOT file 1099-S to the IRS)

Dear Mary:  thank you!  I was looking for something I can read in aout ten or fifteen minutes; just to understand the big picture of the laws.......Thanks!...Arthur

Hi Arthur:

Yes absolutely, you can check the IRS website https://www.irs.gov/individuals/international-taxpayers/firpta-withholding  

https://www.irs.gov/individuals/international-taxpayers/definitions-of-terms-and-procedures-unique-to-firpta

We also collaborated with the VLTA, here is the link FIRPTA Overview – VLTA Examiner Publication

Let me know if you are looking for something in particular, I know Marc has other resources.

Dear Mary:  thanks for your focus on FIRPTA.  Can you recommend a short article discussing the basics of the law?........Thank you, Arthur

Hi everyone:

Tomorrow is the due date to issue 1099-S, if you had a closing involving a foreign seller late last year and you have not received the ITIN (if you applied for one) you can request an extension using form 8809 and/or 15397

https://www.irs.gov/pub/irs-pdf/f15397.pdf
https://www.irs.gov/pub/irs-pdf/f8809.pdf

In my opinion, you should not be penalized by an agency who has not issue a document that the same agency requires you to have to file a form with the same agency... Am I rambling.... ?! 😓

You can probably request your 1099 provider if this is an option for you.

Anyway, I hope the information is useful. 

Good morning ALTA:

Beginning of the year we have to get 1099s out to everyone, and the title industry is not exception, if the seller of U.S. real estate property is/was foreign it has to be marked on box 5 of the 1099-S

But what if the seller has an LLC? Remember, LLCs come in different forms but keep in mind if a FOREIGN PERSON IS THE SOLE MEMBER of an LLC that entity is considered DISREGARDED for tax purposes by the IRS, but what does that mean?

It means the IRS looks at the status of the PERSON and not the LLC, so when looking at the LLC documents look at the IRS SS-4 letter.

If the owner of a SOLE MBR LLC is a foreign person the buyer has to send the FIRPTA withholding to the IRS,

The IRS SS-4 letter specifies what kind of entity you are dealing with, if the LLC is a formal corporation the SS-4 indicates that THE ENTITY has to file its own tax return.

Also, remember, a state level LLC do not void federal tax requirements.

Do not hesitate to give us a call if you have questions (we do NOT file 1099-S to the IRS)

Arthur:

I prepared this "quick FIRPTA datasheet" let me know if this is something you find useful. 

Dear Mary:  thank you!  I was looking for something I can read in aout ten or fifteen minutes; just to understand the big picture of the laws.......Thanks!...Arthur

Hi Arthur:

Yes absolutely, you can check the IRS website https://www.irs.gov/individuals/international-taxpayers/firpta-withholding  

https://www.irs.gov/individuals/international-taxpayers/definitions-of-terms-and-procedures-unique-to-firpta

We also collaborated with the VLTA, here is the link FIRPTA Overview – VLTA Examiner Publication

Let me know if you are looking for something in particular, I know Marc has other resources.

Dear Mary:  thanks for your focus on FIRPTA.  Can you recommend a short article discussing the basics of the law?........Thank you, Arthur

Hi everyone:

Tomorrow is the due date to issue 1099-S, if you had a closing involving a foreign seller late last year and you have not received the ITIN (if you applied for one) you can request an extension using form 8809 and/or 15397

https://www.irs.gov/pub/irs-pdf/f15397.pdf
https://www.irs.gov/pub/irs-pdf/f8809.pdf

In my opinion, you should not be penalized by an agency who has not issue a document that the same agency requires you to have to file a form with the same agency... Am I rambling.... ?! 😓

You can probably request your 1099 provider if this is an option for you.

Anyway, I hope the information is useful. 

Good morning ALTA:

Beginning of the year we have to get 1099s out to everyone, and the title industry is not exception, if the seller of U.S. real estate property is/was foreign it has to be marked on box 5 of the 1099-S

But what if the seller has an LLC? Remember, LLCs come in different forms but keep in mind if a FOREIGN PERSON IS THE SOLE MEMBER of an LLC that entity is considered DISREGARDED for tax purposes by the IRS, but what does that mean?

It means the IRS looks at the status of the PERSON and not the LLC, so when looking at the LLC documents look at the IRS SS-4 letter.

If the owner of a SOLE MBR LLC is a foreign person the buyer has to send the FIRPTA withholding to the IRS,

The IRS SS-4 letter specifies what kind of entity you are dealing with, if the LLC is a formal corporation the SS-4 indicates that THE ENTITY has to file its own tax return.

Also, remember, a state level LLC do not void federal tax requirements.

Do not hesitate to give us a call if you have questions (we do NOT file 1099-S to the IRS)