I am an Escrow Officer/Settlement Provider in California and our industry CPAs and FIRPTA processing vendors have advised us that due to the amount of time needed to get a Withholding Certificate back from the IRS, it is best to just send in the 10% or 15% at closing. At this rate they would probably get their money back faster by filing their income tax at the end of the year. Plus if sent out correctly to the IRS the liability and penalties to the Buyer and Settlement Provider is removed.
Hope this helps.
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Juliana Tu, CSEO, CEO, CBSS, CEI, SASIP
Escrow Manager
Viva Escrow! Inc.
Arcadia CA 91006
Member, California Escrow Association
Member. Escrow Institute of California
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Original Message:
Sent: 06-06-2024 08:55
From: Mary Carroll
Subject: FIRPTA (again)
Asking for a friend regarding FIRPTA:
Has anyone had experience with a seller waiting for IRS Clearance and requesting the money be held in escrow until that comes through? Is that recommended? And if so for how long and how much? The IRS Publication seems to indicate that under certain circumstances, the agent could be held liable for penalties and interest. The Settlement Provider has been put in an uncomfortable situation since the Title Agent is not being helpful.
Carroll Title Agency, Inc.
P.O. Box 12, Hawthorne, NJ 07507-0012 - US MAIL DELIVERIES ONLY
662 Goffle Road, Suite 1, Hawthorne, NJ 07506 - FEDEX and UPS DELIVERIES ONLY
Email - [email protected]