Lisa:
Thank you for your messages, We handle all FIRPTA matters, from explaining the process to the seller, answering any questions for the buyer, preparing the FIRPTA compliance forms, certifying documents for the ITIN application in case a U.S. tax ID is needed for the seller, buyer or both, preparing and filing the U.S. tax return for seller to recover the FIRPTA withholding, handling all correspondence with IRS. WE DO IT ALL,
So if you ask, my suggestions is, please give your sellers and buyers our phone number 281 578-1040, our email address [email protected] and we will be glad to assist them.
Have you seen our FIRPTA videos? we have them in English, Spanish, Cantonese and Mandarin. Let me know if you want, I can send you the links to our FIRPTA videos.
Do not hesitate to reach out to us should you have additional questions, we want to be a resource and make FIRPTA easy for you!
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Mary Enzi
Tax Solutions – FIRPTA Consulting
Barker TX
+1 (281) 578-1040
[email protected]
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Original Message:
Sent: 09-12-2023 09:04
From: Lisa Mahlerwein
Subject: FIRPTA - Certificate of Non-Foreign Status
Mary,
Do you have suggestions on how to guide buyer and seller to handle the 15% withholding on their own and not have us as the Title/Escrow Company handle this for them? I just struggle to see this getting done property if we leave it up to the parties to do so on their own. I have only had one transaction that FIRPTA applied and we had the forms completed as part of closing and submitted the 15% withholding to the IRS for the clients. Please let me know if you have any thoughts/guidance?
Thank You,
Lisa Mahlerwein
Columbus Title Agency
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Lisa Mahlerwein
Columbus Title Agency of Westerville, Inc.
Westerville OH
+1 (614) 890-3888
Original Message:
Sent: 09-11-2023 17:08
From: Mary Enzi
Subject: FIRPTA - Certificate of Non-Foreign Status
Hello ALTA members;
I want to post a Q&A following the FIRPTA Checklist posted last week.
Q: "Does Escrow Officer have to collect a Certificate of Non Foreign Status in every closing?"
A: The short answer is maybe.
Technically, according to the tax law and Treasury Regulation it is the Buyer's obligation to collect the Certificate of Non-Foreign Status (CNS).
Most states real estate sale contracts have a FIRPTA provision that mandates collecting the CNS. You will have to check with your legal counsel to determine if this obligates Title or Escrow Officer to collect and maintain the CNS. I don't believe it does, however Buyer IS obligated to either collect the CNS or withhold 15% FIRPTA and deposit it with IRS within 20 days. This applies to EVERY real estate transaction. Buyer either collects a valid CNS or Buyer withholds and files FIRPTA docs and deposit with IRS.
Escrow is however obligated to inform Buyer if Escrow had reason to believe Seller's CNS is false. If Escrow has reason to believe CNS is false, Escrow is also obligated to inform IRS.
Let me know if you need the statutory chapter & verse from the Treasury Regulations.
If you need further information please let me know, we will be glad to answer to answer your FIRPTA questions, we want to be a resource and make FIRPTA easy for you!
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Mary Enzi
Tax Solutions – FIRPTA Consulting
Barker TX
+1 (281) 578-1040
[email protected]
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