Mary,
I am certainly happy it all worked out.
Ed
Edwin G. Generes, CPA (Inactive)
Member: American Land Title Association
Member: Association of International Certified Public Accountants
Certified: Cybersecurity for Finance and Accounting Professionals
FIRST ESCROW ACCOUNTING SERVICES, LLC
1040 Old Spanish Trail, Suite 10
Slidell, LA 70458
985-317-3398 (Direct)
985-641-3490, ext. 101
All our outgoing emails are supported by TLS encryption. We have verified the recipient(s) of this message has/have also enabled TLS encryption. Email communications are automatically secure if their email server supports Transport Layer Security (TLS). This means the entire transmission is 100% secure and meets all NPI requirements for secure email communications.
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Original Message:
Sent: 4/2/2024 1:27:00 PM
From: Mary Enzi
Subject: RE: FIRPTA - W9, W8 and W8 BEN
Edwin:
Thank you for asking, since the title company approached us, and the listing agent was also aware of the compliance, I first communicated to the seller and his agent that the attorney's advice was incorrect, I sent them the section of the IRS code, paragraph and supporting information so they didn't have to take my word for it, like he did with his attorney, I also emphasized the importance and risk of not doing this correctly to the agent. The seller was not happy, but who is? Sellers have to send 15% (10% in the best case) of the sales price to the IRS for almost a year! I totally understand the frustration, I also understand the liability and the problems, after a little back and forth and the fact that I reminded him of the conversation we had over the phone which I summarized on an email for him the same day we talked he finally understood he was in fact subject to FIRPTA and the withholding was sent.
It doesn't take "convincing" it takes understanding and explaining, it was a couple of interesting days.
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Mary Enzi CAA
Tax Solutions – FIRPTA Consulting
mary.santiago@taxss.com
+1 (281) 578-1040
Barker TX
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Original Message:
Sent: 04-02-2024 11:44
From: Edwin Generes
Subject: FIRPTA - W9, W8 and W8 BEN
Hi Mary, Interesting situation. What did you do and how did you work it out?
Edwin G. Generes, CPA (Inactive)
Member: American Land Title Association
Member: Association of International Certified Public Accountants
Certified: Cybersecurity for Finance and Accounting Professionals
FIRST ESCROW ACCOUNTING SERVICES, LLC
1040 Old Spanish Trail, Suite 10
Slidell, LA 70458
985-317-3398 (Direct)
985-641-3490, ext. 101
All our outgoing emails are supported by TLS encryption. We have verified the recipient(s) of this message has/have also enabled TLS encryption. Email communications are automatically secure if their email server supports Transport Layer Security (TLS). This means the entire transmission is 100% secure and meets all NPI requirements for secure email communications.
Notice: This communication, including attachments, may contain information that is confidential and protected by the laws of privilege. It constitutes non-public information intended to be conveyed only to the designated recipient(s). If the reader or recipient of this communication is not the intended recipient, an employee or agent of the intended recipient who is responsible for delivering it to the intended recipient, or you believe that you have received this communication in error, please notify the sender immediately by return e-mail and promptly delete this e-mail, including attachments without reading or saving them in any manner. The unauthorized use, dissemination, distribution or reproduction of this e-mail, including attachments is prohibited and may be unlawful. Further, nothing in this communication and/or its attachments should be considered legal, tax or accounting advice or the rendering thereof.
Original Message:
Sent: 4/1/2024 12:13:00 PM
From: Mary Enzi
Subject: FIRPTA - W9, W8 and W8 BEN
Hello everyone,
I hope you all had a great weekend; I want to take this opportunity to share a situation we encounter last week.
The seller called our office requesting our services to complete FIRPTA paperwork, he stated that even when he was granted an investor's visa, he does not spend more than 183 days in the U.S. knowing all the fiscal compliance a foreign person is subject to, SMART!
The sales price of the property was over $1.1 million so there was no room for reduction, a few days later I contacted him to follow up and he said to me:
"My tax attorney told me I only need to complete a W-9 and send it over to the Title Company"
This is not only totally incorrect but worrisome, he is taking advise from his lawyer who clearly does not know FIRPTA rules.
Again, when it comes to FIRPTA compliance I urge you to seek advice of a license tax professional specialized in this particular section of the tax code. A W-9, W-8 and/or W8-BEN are not "substitutes" for FIRPTA compliance forms.
We are always happy to answer any questions you may have, do not hesitate to give us a call.
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Mary Enzi CAA
Tax Solutions – FIRPTA Consulting
mary.santiago@taxss.com
+1 (281) 578-1040
Barker TX
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