Transactions subject to a FIRPTA Withholding include the following requirements:
(1) At least 3 business day prior to Closing, FOLIO requires a review and approval of any and all FIRPTA forms, (including Withholding Certificate applications). If forms are not sent for approval by FOLIO in a timely manner, and/or our requirements are not met, FOLIO will remit the FIRPTA withholdings to the IRS even if a Withholding Certificate application is sent. Once the forms are approved by our office, we require a digital copy of all the forms, including evidence of the certified mail certificate for the forms sent to the IRS.
(2) To avoid delays and any possible miscommunications, please begin sharing information with our processing team as soon as possible, including the contact information for the seller’s accountant and any seller taxpayer ID numbers (if applicable), to ensure the forms are approved by our office.
(3) If the Seller will submit a Withholding Certificate application, in addition to requiring our office’s approval of the prepared IRS forms, please ensure:
a) The Buyer must be listed as the Withholding Agent (per Application Instructions on the Form);
b) FOLIO Title’s address must be used as the address for delivery of the withholding certificate. Our address is: 8400 NW 33rd St, Suite 104B, Doral, FL 33122, c/o Nelson Taracido.
c) Required attachments and proof of mailing to the 8288B form must be remitted to our office.
(4) FOLIO has a $450 FIRPTA Handling and Processing Fee charged to the Seller on all transactions that apply for a Withholding Certificate.
(5) If there are other aspects related to FIRPTA, such as reduced withholding exceptions, or IRS Residency Affidavits, please contact us as soon as possible so we can efficiently coordinate these matters.
Should you have any questions related to FIRPTA processes, please contact our office to 786-888-6640 and speak to your Transaction Coordinator and or Ricardo Teran, Director of Business Development.