Open Forum

Hola ALTA!!

Yesterday we received a call in which the real estate agent inquired on what is the process to verify SPT or tax residency status for an individual who has been in the U.S., living and working for the past 15 years but lacks immigration status.

I explained to her, "The way we do it is, we check with IRS the tax returns he has filed for the past 3 years and with CBP the days in and out of the U.S. to stablished SPT and be able to draft an opinion letter based on facts"

Holy Wacamole.... she accused me of discrimination practices and to put her client's stay in the U.S. in jeopardy.

We HAVE TO VERIFY this information, is NOT discrimination is DUE diligence  you can trust but also you are obligated to verify the information given when you are not presented with the 4 documents that automatically exempt a person from FIRPTA.....   Anyone know what are those documents?

I tried to explained to her that in the next transaction she could be representing the buyer, who in this situation would be at risk of being charge not only the FIRPTA deposit but also penalties an interest because of her "good will", this is serious, we are talking bad practices and potential law sues.

Moral of the story, you can still be exempt  from FIRPTA even if you do not have immigration status, we just have to verify that you fall within the IRS standards to be deemed U.S. Tax Resident.

Call us if you have any questions.

Hi Mary,

The FIRPTA is very clear in the listing agreement, and Texas Real Estate contract of sale. Firpta is the responsibility of Buyer and Seller. O do not get involved other than to notify all parties there may be a potential FIRPTA concern. Title policies in Texas do not cover FIRPTA. The IRS rules are very clear also how is should be managed between both parties. I think your policy is smart, but ultimately it is between buyer and seller.

Hope this helps 

Thank You,

Ben

Ben Yeatts

President

Designated Title

Dallas/Fort Worth Metroplex

9180 North Frwy Suite 532 | Fort Worth, TX 76177

C 940.597.6086  |  O 682.276.7200  |  F 682.276.7201

benyeatts@designatedtitle.com  |  facebook.com/designatedtitle

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Hola ALTA!!

Yesterday we received a call in which the real estate agent inquired on what is the process to verify SPT or tax residency status for an individual who has been in the U.S., living and working for the past 15 years but lacks immigration status.

I explained to her, "The way we do it is, we check with IRS the tax returns he has filed for the past 3 years and with CBP the days in and out of the U.S. to stablished SPT and be able to draft an opinion letter based on facts"

Holy Wacamole.... she accused me of discrimination practices and to put her client's stay in the U.S. in jeopardy.

We HAVE TO VERIFY this information, is NOT discrimination is DUE diligence  you can trust but also you are obligated to verify the information given when you are not presented with the 4 documents that automatically exempt a person from FIRPTA.....   Anyone know what are those documents?

I tried to explained to her that in the next transaction she could be representing the buyer, who in this situation would be at risk of being charge not only the FIRPTA deposit but also penalties an interest because of her "good will", this is serious, we are talking bad practices and potential law sues.

Moral of the story, you can still be exempt  from FIRPTA even if you do not have immigration status, we just have to verify that you fall within the IRS standards to be deemed U.S. Tax Resident.

Call us if you have any questions.

Hola ALTA!!

Yesterday we received a call in which the real estate agent inquired on what is the process to verify SPT or tax residency status for an individual who has been in the U.S., living and working for the past 15 years but lacks immigration status.

I explained to her, "The way we do it is, we check with IRS the tax returns he has filed for the past 3 years and with CBP the days in and out of the U.S. to stablished SPT and be able to draft an opinion letter based on facts"

Holy Wacamole.... she accused me of discrimination practices and to put her client's stay in the U.S. in jeopardy.

We HAVE TO VERIFY this information, is NOT discrimination is DUE diligence  you can trust but also you are obligated to verify the information given when you are not presented with the 4 documents that automatically exempt a person from FIRPTA.....   Anyone know what are those documents?

I tried to explained to her that in the next transaction she could be representing the buyer, who in this situation would be at risk of being charge not only the FIRPTA deposit but also penalties an interest because of her "good will", this is serious, we are talking bad practices and potential law sues.

Moral of the story, you can still be exempt  from FIRPTA even if you do not have immigration status, we just have to verify that you fall within the IRS standards to be deemed U.S. Tax Resident.

Call us if you have any questions.

What is CBP?  What is SPT?.......Arthur

Original Message:
Sent: 8/17/2023 1:35:00 PM
From: Mary Enzi
Subject: FIRPTA - "discrimination"?!?!

Hola ALTA!!

Yesterday we received a call in which the real estate agent inquired on what is the process to verify SPT or tax residency status for an individual who has been in the U.S., living and working for the past 15 years but lacks immigration status.

I explained to her, "The way we do it is, we check with IRS the tax returns he has filed for the past 3 years and with CBP the days in and out of the U.S. to stablished SPT and be able to draft an opinion letter based on facts"

Holy Wacamole.... she accused me of discrimination practices and to put her client's stay in the U.S. in jeopardy.

We HAVE TO VERIFY this information, is NOT discrimination is DUE diligence  you can trust but also you are obligated to verify the information given when you are not presented with the 4 documents that automatically exempt a person from FIRPTA.....   Anyone know what are those documents?

I tried to explained to her that in the next transaction she could be representing the buyer, who in this situation would be at risk of being charge not only the FIRPTA deposit but also penalties an interest because of her "good will", this is serious, we are talking bad practices and potential law sues.

Moral of the story, you can still be exempt  from FIRPTA even if you do not have immigration status, we just have to verify that you fall within the IRS standards to be deemed U.S. Tax Resident.

Call us if you have any questions.

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