Form 8288 Line by Line: How the Buyer Reports and Pays FIRPTA Withholding Within 20 Days
Form 8288 is the return the buyer uses to report and hand over FIRPTA tax withheld from a foreign seller of U.S. real estate. You must file it and pay the withholding to the IRS Ogden Service Center by the 20th day after the date of transfer, attaching Copies A and B of Form 8288-A for each seller. Miss the deadline and you, the buyer, are the one the IRS pursues for the tax plus penalties and interest.
What Form 8288 actually does
When a foreign person sells a U.S. real property interest, the law (Internal Revenue Code §1445) doesn't trust the seller to mail a check after they leave the country. So it shifts the job to the buyer: withhold a slice of the purchase price at closing and send it to the IRS. Form 8288 is the transmittal return that reports how much was withheld and pays it over.
Think of it as two documents working together:
- Form 8288 — the summary return filed by the buyer (the "withholding agent"). It shows the date of the deal, the amount realized, the rate, and the total tax remitted.
- Form 8288-A — a per-seller statement (like a 1099 for FIRPTA). One for each foreign seller. It tells the IRS who the tax belongs to so the seller can later claim it on a U.S. return.
The IRS confirms Form 8288 is used "to report and transmit amounts withheld" on dispositions by foreign persons under §1445 (and partnership transfers under §1446(f)). See the IRS pages About Form 8288 and FIRPTA Withholding.
Standard FIRPTA withholding is 15% of the amount realized (usually the gross sales price — not the seller's profit). There's a full exemption when the sales price is $300,000 or less and the buyer will use the property as a residence, and a reduced 10% rate when the price is over $300,000 but not over $1,000,000 with the same residence-use test. Anything over $1,000,000, or any non-residence use, is the full 15%. Source: IRS FIRPTA Withholding and the Instructions for Form 8288 (Rev. January 2026).
Worked example: a $480,000 sale with $72,000 withheld
The deal. Marcus Bell is buying a condo in Tampa for $480,000 from Sofia Navarro, an individual who lives in Spain and is a nonresident alien for U.S. tax purposes. Marcus intends to rent the unit out, not live in it — so no residence exception applies. Closing (the date of transfer) is June 12, 2026.
Step 1 — Confirm the seller is foreign and no exception applies. Sofia signs a statement confirming she is a nonresident alien. Because Marcus won't use the condo as a residence, neither the $300,000 exemption nor the 10% reduced rate is available. The full 15% rate applies.
Step 2 — Compute the withholding.
Amount realized: $480,000
× FIRPTA rate: 15%
= Amount to withhold: $72,000
Step 3 — Hold the $72,000 at closing. Sofia walks away with $408,000 (before her other closing costs); the closing agent sets aside $72,000 for Marcus to remit. Crucially, this money is now Marcus's responsibility to send to the IRS — not the title company's, not Sofia's.
Step 4 — Fill out Form 8288. Marcus completes Part I (the §1445 section). The key entries map like this:
Here is how the example flows onto the lines of Form 8288, Part I, following the official January 2026 instructions:
| Form 8288 line | What it asks for | Marcus's entry |
|---|---|---|
| Line 1 | Name, address & TIN of the withholding agent | Marcus Bell (the buyer), his SSN/ITIN, U.S. address |
| Line 2 | Description / location of the property | Tampa, FL condo (street address) |
| Line 3 | Date of transfer | 06/12/2026 |
| Line 4 | Withholding certificate date (if one was issued) | Blank — no Form 8288-B certificate |
| Line 5 | Number of Forms 8288-A attached | 1 (one foreign seller: Sofia) |
| Line 6 | Amount subject to withholding (the amount realized) | $480,000 |
| Line 7b | Amount on line 6 × 15% | $72,000 |
| Line 8 | Total amount withheld / tax to pay the IRS | $72,000 |
Line 7a (× 10%) and line 7c (reduced rate with an IRS withholding certificate) stay blank here — Marcus is in the standard 15% lane. The figure on line 8 is what his payment must match to the penny.
Step 5 — Complete Form 8288-A for Sofia. A separate 8288-A names Sofia, her foreign address, her TIN (an ITIN if she has one), the $480,000 amount realized, and the $72,000 withheld. Copies A and B of that 8288-A get attached to Form 8288. Copy C stays in Marcus's file. (Per the instructions, the IRS will stamp Copy B and mail it back to Sofia — that stamped copy is her proof of withholding when she files a U.S. return to reconcile the tax.)
The 20-day deadline — and what it costs to miss
This is the trap. The instructions are explicit: "A transferee must file Form 8288 and transmit the tax withheld to the IRS by the 20th day after the date of transfer." Both the form and the money are due by day 20 — filing without paying, or paying without filing, doesn't satisfy the rule.
In Marcus's case, the transfer was June 12, 2026, so his Form 8288, both 8288-A forms (Copies A and B), and the $72,000 must be at the IRS by July 2, 2026 (the 20th day after June 12). There is no automatic extension for FIRPTA withholding the way there is for income tax returns.
The buyer — not the seller — is on the hook. Under IRC §6651, penalties apply for failure to file Form 8288 when due and for failure to pay the withholding when due, plus interest accrues on the unpaid amount. Worse, under IRC §7202, a willful failure to collect and pay over the tax can trigger a penalty of up to $10,000 (and §7202 is a criminal statute). If Marcus never withheld at all, the IRS can pursue him for the full $72,000 the seller's tax should have covered — even though Sofia got the money. Sources: Instructions for Form 8288 (Rev. January 2026).
Why "I'll just net it on my tax return" doesn't work
The withholding is a standalone obligation due 20 days after closing. It is not something the buyer reconciles on their own Form 1040. The buyer's only job is to collect, report on 8288/8288-A, and remit on time. The seller later reconciles the $72,000 against their actual U.S. tax liability and may get a refund — but that's a separate process on the seller's side.
How Form 8288 transmits Copies A and B of Form 8288-A
Form 8288 is a "transmittal" — it carries the per-seller 8288-A statements to the IRS. Here is the copy logic that trips people up:
| Copy of 8288-A | Where it goes | Purpose |
|---|---|---|
| Copy A | Attached to Form 8288, sent to the IRS | IRS's record of the withholding |
| Copy B | Attached to Form 8288, sent to the IRS | IRS stamps it and mails it to the foreign seller as proof of credit |
| Copy C | Kept by the buyer (withholding agent) | Buyer's own records |
So the buyer mails both Copy A and Copy B to the IRS with Form 8288. The seller does not receive their 8288-A directly from the buyer — the IRS validates it first by stamping Copy B and forwarding it to the seller's address shown on the form. That stamped copy is what lets the seller claim the withholding against their U.S. tax. Source: Instructions for Form 8288 (Rev. January 2026).
- The buyer is the withholding agent and is legally liable — not the seller, not the title/closing company.
- 15% of the gross sales price is the default rate; $300,000-or-less residence sales are exempt and $300,001–$1,000,000 residence sales drop to 10%.
- $480,000 × 15% = $72,000 — that figure goes on line 6 (amount), 7b (rate), and 8 (total to pay).
- File Form 8288, attach Copies A and B of each 8288-A, and pay by the 20th day after the date of transfer.
- Late filing/payment triggers §6651 penalties + interest, and willful non-collection can add up to $10,000 under §7202.
- Mail the package to the Ogden Service Center, P.O. Box 409101, Ogden, UT 84409.
Where to mail it and how to pay (Ogden processing)
FIRPTA returns are centralized in Ogden, Utah. Per the instructions, you "send Form 8288 with the amount withheld, and Copies A and B of Form(s) 8288-A" to:
Ogden Service Center
P.O. Box 409101
Ogden, UT 84409
Confirm the current address on the Form 8288 instructions before mailing — the IRS occasionally updates service-center routing.
For the payment itself, the form and the check (or an electronic payment via EFTPS) travel together to Ogden so the $72,000 is credited to the correct return. Make the payment for the exact line 8 amount; an underpayment leaves the buyer exposed for the shortfall plus penalties. If the buyer needs a Tax Identification Number to file (many foreign sellers and some foreign buyers do), the return can be filed while an ITIN application is pending — don't let a missing ITIN push you past the 20-day clock.
Why the buyer — not the closing agent or seller — is liable
This is the single most expensive misunderstanding in FIRPTA. The statute names the transferee (buyer) as the withholding agent. The IRS states plainly that "in most cases, the buyer (transferee) is the withholding agent" and "is liable if they fail to withhold" (IRS FIRPTA Withholding).
A title company or escrow officer may prepare and mail Form 8288 as a courtesy, but the legal duty — and the penalty if it goes wrong — sits with the buyer. If the closing agent forgets, or the buyer accepts a "the seller says they're a U.S. person" assurance that turns out to be false, the IRS pursues the buyer. That's why a careful buyer:
- Gets the seller's foreign/non-foreign status in writing (a non-foreign affidavit if the seller claims U.S. status);
- Confirms in the closing instructions exactly who is filing Form 8288 and remitting the funds;
- Keeps Copy C of every 8288-A and proof the package reached Ogden by day 20.
If the buyer wants to reduce the withholding below 15% — because the seller's actual tax will be far lower than $72,000 — that's done before closing by applying for a withholding certificate on Form 8288-B, not by guessing on Form 8288. See our guide on reducing withholding for that path.
Frequently asked questions
Is the 20-day deadline calendar days or business days?
Calendar days. The instructions say "the 20th day after the date of transfer," with no business-day adjustment built into that core rule. For a June 12, 2026 closing, day 20 is July 2, 2026. Because there's no automatic extension, treat the date of transfer as the start of a hard 20-day countdown.
Does the 15% apply to my profit or the whole sales price?
The whole amount realized — generally the gross sales price — not the seller's gain. That's why FIRPTA withholding often far exceeds the seller's actual tax, and why sellers frequently file to reclaim part of it. In the worked example, 15% of the full $480,000 is $72,000, regardless of what Sofia paid for the condo.
What if the buyer is also foreign — do they still file Form 8288?
Yes. The withholding obligation attaches to the transferee regardless of the buyer's own nationality or residency. A foreign buyer is still the withholding agent and must obtain a TIN to file. The duty is about the seller being foreign, not the buyer.
Can I send Form 8288 without the 8288-A forms and mail those later?
No. Copies A and B of Form 8288-A for every foreign seller must be attached to Form 8288 when you file. Filing the 8288 without the 8288-A statements is an incomplete return, and the seller won't get the stamped Copy B that lets them claim the credit.
The seller got their money — can the IRS really come after me, the buyer, for the tax?
Yes. If you fail to withhold, the law makes you liable for the tax that should have been withheld, plus penalties and interest under §6651, and willful failure can add up to $10,000 under §7202. The seller receiving the funds does not relieve the buyer’s liability — that liability shift is the entire point of FIRPTA.
Where do I send the form and the payment?
Both go together to the Ogden Service Center, P.O. Box 409101, Ogden, UT 84409. Payment can be made by check with the return or electronically through EFTPS. Always confirm the address against the current Form 8288 instructions before mailing.
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All figures verified against the IRS Instructions for Form 8288 (Rev. January 2026), About Form 8288, and the IRS FIRPTA Withholding page as of June 2026.