2002 IRS Individual Forms Fill-in Form[962]

Document Sample
2002 IRS Individual Forms Fill-in Form[962] Powered By Docstoc
					Form   8288                                        U.S. Withholding Tax Return for
(Rev. August 2000)
                                                  Dispositions by Foreign Persons of                                                                 OMB No. 1545-0902
Department of the Treasury
Internal Revenue Service
                                                     U.S. Real Property Interests
                 Complete Part I or Part II. Also complete and attach Copies A and B of Form(s) 8288-A.
                                     (Attach additional sheets if you need more space.)
Part I           To Be Completed by the Buyer or Other Transferee Required To Withhold Under Section 1445(a)
 1     Name of buyer or other transferee responsible for withholding (see page 4)                                        Identifying number


       Street address (apt. or suite no., or rural route. Do not use a P.O. box.)


       City or town, state, and ZIP code                                                                                 Phone number (optional)
                                                                                                                         (      )
 2     Description and location of property acquired




 3     Date of transfer                                      4    Number of Forms 8288-A attached                        5     Amount realized on the transfer

 6     Check applicable box.                                                                                             7     Amount withheld
    a Withholding is at 10%
    b Withholding is of a reduced amount
                 To Be Completed by a Corporation, Partnership, Trust, or Estate Subject to the Provisions of
Part II
                 Section 1445(e)
 1     Name of corporation, partnership, or fiduciary responsible for withholding (see instructions)                     Identifying number

       Street address (apt. or suite no., or rural route. Do not use a P.O. box.)


       City or town, state, and ZIP code                                                                                 Phone number (optional)
                                                                                                                         (      )
 2     Description of U.S. real property interest transferred or distributed




3      Date of transfer                                       4    Number of Forms 8288-A attached


5      Check all applicable boxes.                                                                                       6     Total amount withheld
    a Withholding is at 10% or 35%
    b Withholding is of a reduced amount
    c Large trust election to withhold at distribution
                 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge
                 and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Sign
Here
                      Signature of withholding agent, partner, fiduciary, or corporate officer                    Title (if applicable)                         Date
                                                                                                 Date                                        Preparer’s social security number
Paid             Preparer’s                                                                                              Check if self-
                 signature                                                                                               employed
Preparer’s       Firm’s name (or                                                                                         EIN
Use Only         yours if self-employed)
                                                                                                                         ZIP code
                 and address
For Paperwork Reduction Act Notice, see instructions.                                              Cat. No. 62260A                              Form   8288     (Rev. 8-2000)
Form 8288 (Rev. 8-2000)                                                                                                                                   Page   2

General Instructions                                  Withholding, to report and pay over the withheld        Transferor. For purposes of this withholding,
                                                      amounts. Do not use Forms 8288 and 8288-A               this means any foreign person that disposes of a
Section references are to the Internal Revenue        for these distributions. See Regulations section        U.S. real property interest by sale, exchange,
Code unless otherwise noted.                          1.1445-8.                                               gift, or any other disposition.
                                                                                                              Withholding agent. For purposes of this return,
Purpose of Form                                       When To File                                            this means the buyer or other transferee who
A withholding obligation is generally imposed on      A transferee must file Form 8288 and transmit           acquires a U.S. real property interest from a
the buyer or other transferee (withholding agent)     the tax withheld to the IRS by the 20th day after       foreign person.
when a U.S. real property interest is acquired        the date of transfer.                                   Foreign person. A nonresident alien individual, a
from a foreign person. The withholding obligation                                                             foreign corporation that does not have a valid
                                                         You must withhold even if an application for a
also applies to certain partnerships, foreign and                                                             election under section 897(i) to be treated as a
                                                      withholding certificate is or has been submitted
domestic corporations, and the fiduciary of                                                                   domestic corporation, a foreign partnership, a
                                                      to the IRS on the date of transfer. However, you
certain trusts and estates. This withholding                                                                  foreign trust, or a foreign estate. A resident alien
                                                      do not have to file Form 8288 and transmit the
serves to collect tax that may be owed by the                                                                 individual is not a foreign person.
                                                      withholding until the 20th day after the day the
foreign person. Use this form to report and
                                                      IRS mails you a copy of the withholding                 U.S. real property interest. Any interest, other
transmit the amount withheld.
                                                      certificate or notice of denial. But if the principal   than an interest solely as a creditor, in:
Note: You are not required to withhold if any of      purpose for filing the application for a
the Exceptions (which begin on this page) apply.                                                                 1. Real property located in the United States
                                                      withholding certificate was to delay paying the         or the Virgin Islands.
                                                      IRS the amount withheld, interest and penalties
Amount To Withhold                                    will apply to the period after the 20th day after          2. Certain personal property associated with
                                                      the date of transfer.                                   the use of real property.
Generally, you must withhold 10% of the amount
realized on the disposition by the transferor (see    Installment payments. You must withhold the                3. A domestic corporation, unless it is shown
Definitions on this page).                            full amount at the time of the first installment        that the corporation was not a U.S. real property
                                                      payment. If you cannot because the payment              holding corporation during the previous 5 years
   See Corporations, Partnerships, Trusts, and                                                                (or during the period in which the transferor held
Estates Subject to Section 1445(e) on page 3          does not involve sufficient cash or other liquid
                                                      assets, you may obtain a withholding certificate        the interest, if shorter).
for information about when withholding at 35%
is required. Also see Withholding certificate         from the IRS. See the instructions for Form                A U.S. real property interest does not include:
issued by the IRS on page 3 for information           8288-B, Application for Withholding Certificate            1. An interest in a domestically controlled real
about applying for reduction or elimination of        for Dispositions by Foreign Persons of U.S. Real        estate investment trust (REIT).
withholding.                                          Property Interests, for more information.
                                                                                                                 2. An interest in a corporation that has
Joint transferors. If one or more foreign persons                                                             disposed of all its U.S. real property interests in
and one or more U.S. persons jointly transfer a
                                                      Where To File                                           transactions in which the full amount of any gain
U.S. real property interest, you must determine       Send Form 8288 with the amount withheld, and            was recognized as provided in section
the amount subject to withholding in the              Copies A and B of Form(s) 8288-A to the Internal        897(c)(1)(B).
following manner.                                     Revenue Service Center, P.O. Box 21086, DP                 3. An interest in certain publicly traded
   1. Allocate the amount realized from the           8731 FIRPTA Unit, Philadelphia, PA 19114-0586.          corporations, partnerships, and trusts.
transfer among the transferors based on their                                                                    See Regulations sections 1.897-1 and -2 for
capital contribution to the property. For this        Forms 8288-A Must Be Attached                           more information. Also see Transferred
purpose, a husband and wife are treated as            Anyone who completes Form 8288 must                     property that is not a U.S. real property
having contributed 50% each.                          also complete a Form 8288-A, Statement of               interest on page 3.
   2. Withhold on the total amount allocated to       Withholding on Dispositions by Foreign Persons          Amount realized. The sum of the cash paid or
foreign transferors.                                  of U.S. Real Property Interests, for each person        to be paid (not including interest or original issue
   3. Credit the amount withheld among the            subject to withholding. Copies A and B of Form          discount), the fair market value of other property
foreign transferors as they mutually agree. The       8288-A must be attached to Form 8288. Copy C            transferred or to be transferred, and the amount
transferors must request that the withholding be      is for your records.                                    of any liability assumed by the transferee or to
credited as agreed upon by the 10th day after            After receipt of Form 8288 and Form(s)               which the U.S. real property interest is subject
the date of transfer. If no agreement is reached,     8288-A, the IRS will stamp Copy B of Form               immediately before and after the transfer.
credit the withholding by evenly dividing it          8288-A to show receipt of the withholding and           Generally, the amount realized for purposes of
among the foreign transferors.                        will forward the stamped copy to the foreign            this withholding is the sales or contract price.
                                                      person subject to withholding at the address            Date of transfer. The first date on which
Who Must File                                         shown on Form 8288-A.                                   consideration is paid or a liability is assumed by
A buyer or other transferee of a U.S. real               You are not required to furnish a copy of Form       the transferee. However, for purposes of
property interest, and a corporation, partnership,    8288 or 8288-A directly to the transferor. To           sections 1445(e)(2), (3), and (4), and Regulations
or fiduciary that is required to withhold tax, must   receive credit for the withheld amount, the             sections 1.1445-5(c)(1)(iii) and 1.1445-5(c)(3), the
file Form 8288 to report and transmit the amount      transferor generally must attach the stamped            date of transfer is the date of distribution that
withheld. If two or more persons are joint            Copy B of Form 8288-A to a U.S. income tax              creates the obligation to withhold. Payment of
transferees, each is obligated to withhold.           return (e.g., Form 1040NR or 1120-F) or                 consideration does not include the payment
However, the obligation of each will be met if        application for early refund filed with the IRS.        before passage of legal or equitable title of
one of the joint transferees withholds and                                                                    earnest money (other than pursuant to an initial
transmits the required amount to the IRS.             Penalties                                               purchase contract), a good-faith deposit, or any
                                                                                                              similar amount primarily intended to bind the
Publicly traded partnerships, publicly traded         Under section 6651, penalties apply for failure to
                                                                                                              parties to the contract and subject to forfeiture.
trusts, and REITs. Distributions from a publicly      file Form 8288 when due and for failure to pay
                                                                                                              A payment that is not forfeitable may also be
traded partnership are generally subject to the       the withholding when due. In addition, if you are
                                                                                                              considered earnest money, a good-faith deposit,
withholding requirements of section 1446 and          required to but do not withhold tax under section
                                                                                                              or a similar sum.
are not subject to the withholding requirements       1445, the tax, including interest, may be
of section 1445. See Rev. Proc. 89-31, 1989-1         collected from you. Under section 7202, you
C.B. 895. Distributions from a trust that is          may be subject to a penalty of up to $10,000 for        Exceptions
regularly traded on an established securities         willful failure to collect and pay over the tax.        You are not required to withhold if any of the
market and distributions from a real estate           Corporate officers or other responsible persons         following applies:
investment trust (REIT) are subject to section        may be subject to a penalty under section 6672             1. Purchase of residence for $300,000 or
1445 and its regulations. However, for such           equal to the amount that should have been               less. One or more individuals acquire U.S. real
partnerships and trusts, generally the method of      withheld and paid over to the IRS.                      property for use as a residence and the amount
paying over and reporting the withholding to the                                                              realized (sales price) is not more than $300,000.
IRS is governed by section 1461 and its               Definitions                                             A U.S. real property interest is acquired for use
regulations and the deposit rules in Regulations      Transferee. Any person, foreign or domestic,            as a residence if you or a member of your family
section 1.6302-2. Use Form 1042, Annual               that acquires a U.S. real property interest by          has definite plans to reside in the property for at
Withholding Tax Return for U.S. Source Income         purchase, exchange, gift, or any other                  least 50% of the number of days the property is
of Foreign Persons, and Form 1042-S, Foreign          disposition.                                            used by any person during each of the first two
Person’s U.S. Source Income Subject to                                                                        12-month periods following the date of transfer.
                                                                                                              Do not take into account the number of days the
Form 8288 (Rev. 8-2000)                                                                                                                                     Page   3
property will be vacant in making this                    Late notice of false statement. If after the          For rules that apply to foreclosures, see
determination. No form or other document is            date of transfer you receive a notice that a           Regulations section 1.1445-2(d)(3).
required to be filed with the IRS for this             statement that an interest in a corporation is not
exception; however, if you do not in fact use the      a U.S. real property interest is false, see Late
property as a residence, the withholding tax may       notice of false certification above.                   Liability of Agents
be collected from you.                                    Generally, no withholding is required on the        If the transferee or other withholding agent has
   This exception applies whether or not the           acquisition of an interest in a foreign corporation.   received (a) a transferor’s certification of
transferor (seller) is an individual, partnership,     However, withholding may be required if the            nonforeign status, or (b) a corporation’s
trust, corporation, or other transferor. However,      foreign corporation has made the election under        statement that an interest is not a U.S. real
this exception does not apply if the actual            section 897(i) to be treated as a domestic             property interest, and the transferee’s or
transferee (buyer) is not an individual, even if       corporation.                                           transferor’s agent knows that the document is
the property is acquired for an individual.                                                                   false, the agent must provide notice to the
                                                          4. Transferor’s nonrecognition of gain or
                                                                                                              transferee or other withholding agent. If the
   2. Tranferor not a foreign person. You              loss. You may receive a notice from the
                                                                                                              notice is not provided, the agent will be liable for
receive a certification of nonforeign status from      transferor signed under penalties of perjury
                                                                                                              the tax that should have been withheld, but only
the transferor, signed under penalties of perjury,     stating that the transferor is not required to
                                                                                                              to the extent of the agent’s compensation from
stating that the transferor is not a foreign person    recognize gain or loss on the transfer because of
                                                                                                              the transaction.
and containing the transferor’s name, address,         a nonrecognition provision of the Internal
and identification number (social security number      Revenue Code (see Temporary Regulations                   If you are the transferee or withholding agent
(SSN) or employer identification number (EIN)). If     section 1.897-6T(a)(2)). You may rely on the           and you receive a notice of false certification or
you receive a certification, the withholding tax       transferor’s notice unless (a) only part of the        statement from your agent or the transferor’s
cannot be collected from you unless you knew           gain qualifies for nonrecognition, or                  agent, you must withhold tax as if you had not
that the certification was false or you received a     (b) you know or have reason to know that the           received a certification or statement. But see
notice from your agent or the transferor’s agent       transferor is not entitled to the claimed              Late notice of false certification above.
that it was false. The certification must be           nonrecognition treatment.                                 The terms “transferor’s agent” and
signed by the individual, a responsible officer of        No particular form is required for this notice.     “transferee’s agent” mean any person who
a corporation, a general partner of a partnership,     By the 20th day after the date of transfer, you        represents the transferor or transferee in any
or the trustee, executor, or fiduciary of a trust or   must send a copy of the notice of                      negotiation with another person (or another
estate.                                                nonrecognition (with a cover letter giving your        person’s agent) relating to the transaction, or in
   A foreign corporation electing to be treated as     name, address, and identification number) to the       settling the transaction. For purposes of section
a domestic corporation under section 897(i) must       address listed under Where To File on page 2.          1445(e), a transferor’s or transferee’s agent is
attach to the certification a copy of the              See Temporary Regulations section 1.1445-9T(b)         any person who represents or advises an entity,
acknowledgment of the election received from           for more information on the transferor’s notice of     a holder of an interest in an entity, or a fiduciary
the IRS. The acknowledgment must state that            nonrecognition.                                        with respect to the planning, arrangement, or
the information required by Regulations section                                                               completion of a transaction described in sections
                                                          5. Withholding certificate issued by the IRS.
1.897-3 has been determined to be complete. If                                                                1445(e)(1) through (4).
                                                       A withholding certificate may be issued by the
the acknowledgment is not attached, you may            IRS to reduce or eliminate withholding on                 A person is not treated as an agent if the
not rely on the certification. Keep any                dispositions of U.S. real property interests by        person only performs one or more of the
certification of nonforeign status you receive in      foreign persons. Either a transferee or transferor     following acts in connection with the transaction:
your records for 5 years after the year of             may apply for the certificate. The certificate may        1. Receiving and disbursing any part of the
transfer.                                              be issued if:                                          consideration.
   You may also use other means to determine              a. Reduced withholding is appropriate                  2. Recording any document.
that the transferor is not a foreign person. But if    because the 10% or 35% amount exceeds the
you do, and it is later determined that the                                                                      3. Typing, copying, and other clerical tasks.
                                                       transferor’s maximum tax liability,
transferor is a foreign person, the withholding tax                                                              4. Obtaining title insurance reports and reports
may be collected from you.                                b. The transferor is exempt from U.S. tax or        concerning the condition of the property.
                                                       nonrecognition provisions apply, or
   Late notice of false certification. If, after the                                                             5. Transmitting documents between the
date of transfer, you receive a notice from your          c. The transferee or transferor enters into an      parties.
agent or the transferor’s agent that the               agreement with the IRS for the payment of the
                                                       tax.                                                      6. Functioning exclusively in his or her
certification of nonforeign status is false, you do                                                           capacity as a representative of a condominium
not have to withhold on consideration paid                An application for a withholding certificate        association or cooperative housing corporation.
before you received the notice. However, you           must comply with the provisions of Regulations         This exemption includes the board of directors,
must withhold the full 10% of the amount               sections 1.1445-3 and 1.1445-6 and Rev. Proc.          the committee, or other governing body.
realized from any consideration that remains to        2000-35, 2000-35 I.R.B. 211. In certain cases,
be paid, if possible. You must do this by              you may use Form 8288-B to apply for a                 Corporations, Partnerships, Trusts,
withholding and paying over the entire amount of       withholding certificate. The IRS will normally act
each successive payment of consideration until         on an application by the 90th day after a              and Estates Subject to Section
the full 10% has been withheld and paid to the         complete application is received.                      1445(e)
IRS. These amounts must be reported and                   If you receive a withholding certificate from the   Withholding is required on certain distributions
transmitted to the IRS by the 20th day following       IRS that excuses withholding, you are not              and other transactions by domestic or foreign
the date of each payment.                              required to file Form 8288. However, if you            corporations, partnerships, trusts, and estates. A
   3. Transferred property that is not a U.S.          receive a withholding certificate that reduces         domestic trust or estate must withhold 35% of
real property interest. You acquire an interest        (rather than eliminates) withholding, there is no      the amount distributed to a foreign beneficiary
in property that is not a U.S. real property           exception to withholding, and you are required         from a “U.S. real property interest account” that
interest. A U.S. real property interest includes       to file Form 8288. Attach a copy of the                it is required to establish under Regulations
certain interests in U.S. corporations, as well as     withholding certificate to Form 8288. See When         section 1.1445-5(c)(1)(iii). A foreign corporation
direct interests in real property and certain          To File on page 2 for more information.                that has not made the election under section
associated personal property (see Definitions on          6. No consideration paid. The amount                897(i) must withhold 35% of the gain it
page 2).                                               realized by the transferor is zero (e.g., the          recognizes on the distribution of a U.S. real
   No withholding is required on the acquisition       property is transferred as a gift and the recipient    property interest to its shareholders. Certain
of an interest in a domestic corporation if (a) any    does not assume any liabilities or furnish any         domestic corporations are required to withhold
class of stock of the corporation is regularly         other consideration to the transferor).                tax on distributions to foreign shareholders.
traded on an established securities market, or            7. Options to acquire U.S. real property                No withholding is required on the transfer of
(b) the transferee receives a statement by the         interests. An amount is realized by the grantor        an interest in a domestic corporation if any class
corporation that the interest is not a U.S. real       on the grant or lapse of an option to acquire a        of stock of the corporation is regularly traded on
property interest, unless you know that the            U.S. real property interest. However, withholding      an established securities market. Also, no
statement is false or you receive a notice from        is required on the sale, exchange, or exercise of      withholding is required on the transfer of an
your agent or the transferor’s agent that the          an option.                                             interest in a publicly traded partnership or trust.
statement is false. A corporation’s statement
                                                          8. Property acquired by a governmental
may be relied on only if it is dated not more than
                                                       unit. The property is acquired by the United
30 days before the date of transfer.
                                                       States, a U.S. state or possession or political
                                                       subdivision, or the District of Columbia.
Form 8288 (Rev. 8-2000)                                                                                                                                    Page   4
   No withholding will be required with respect to        2. The property is distributed either in             Taxpayer Identification Number (ITIN), you must
an interest holder if the entity or fiduciary          redemption of stock under section 302 or in             provide it on Form 8288. If you do not already
receives a certification of nonforeign status from     liquidation of the corporation under sections 331       have an ITIN, you must apply for one before
the interest holder. An entity or fiduciary may        through 341.                                            filing Form 8288. If you have applied for an ITIN
also use other means to determine that an                 Similar rules apply in the case of any               but you have not yet received it when you file
interest holder is not a foreign person, but if it     distribution to which section 301 applies and           Form 8288, write “Applied For” in the Identifying
does so and it is later determined that the            that is not made out of the earnings and profits        number box. See Form W-7, Application for IRS
interest holder is a foreign person, the               of the corporation.                                     Individual Taxpayer Identification Number, for
withholding may be collected from the entity or                                                                more information.
fiduciary.                                                No withholding or reduced withholding is
                                                       required if the corporation receives a withholding      Lines 2. Enter the location and a description of
                                                       certificate from the IRS.                               the property, including any substantial
Section 1445(e)(1) Transactions
                                                                                                               improvements (e.g., “12-unit apartment
Partnerships. A domestic partnership that is not       Section 1445(e)(4) Transactions                         building”). In the case of interests in a
publicly traded must withhold tax under section                                                                corporation that constitute a U.S. real property
1446 on effectively connected income of its            No withholding is required under section
                                                                                                               interest, enter the class or type and amount of
foreign partners and must file Form 8804,              1445(e)(4), relating to certain taxable distributions
                                                                                                               the interest (e.g., “10,000 shares Class A
Annual Return for Partnership Withholding Tax          by domestic or foreign partnerships, trusts, and
                                                                                                               Preferred Stock XYZ Corporation”).
(Section 1446), and Form 8805, Foreign                 estates, until the effective date of a Treasury
                                                       Decision under section 897(e)(2)(B)(ii) and (g).        Lines 4. Copies A and B of each Form 8288-A
Partner’s Information Statement of Section 1446
                                                                                                               should be counted as one form.
Withholding Tax. A publicly traded partnership
                                                       Section 1445(e)(5) Transactions                         Part II, line 3. If you are a domestic trust or
generally must withhold tax under section 1446
on distributions to its foreign partners and must      The transferee of a partnership interest must           estate or you make the large trust election, enter
file Forms 1042 and 1042-S. Because a                  withhold 10% of the amount realized on the              the date of distribution.
domestic partnership that disposes of a U.S. real      disposition by a foreign partner of an interest in
property interest is required to withhold under        a domestic or foreign partnership in which at
                                                       least 50% of the value of the gross assets              Paperwork Reduction Act Notice. We ask for
section 1446, it is not required to withhold under
                                                       consists of U.S. real property interests and at         the information on this form to carry out the
section 1445(e)(1).
                                                       least 90% of the value of the gross assets              Internal Revenue laws of the United States.
Trusts and estates. If a domestic trust or estate                                                              Section 1445 generally imposes a withholding
disposes of a U.S. real property interest, the         consists of U.S. real property interests plus any
                                                       cash or cash equivalents. However, no                   obligation on the buyer or other transferee
amount of gain realized must be paid into a                                                                    (withholding agent) when a U.S. real property
separate “U.S. real property interest account.”        withholding is required under section 1445(e)(5)
                                                       for dispositions of interests in other partnerships,    interest is acquired from a foreign person.
For these purposes, a domestic trust is one that                                                               Section 1445 also imposes a withholding
does not make the “large trust election”               trusts, or estates until the effective date of a
                                                       Treasury Decision under section 897(g). No              obligation on certain partnerships, foreign and
(explained below), is not a REIT, and is not                                                                   domestic corporations, and the fiduciary of
publicly traded. The fiduciary must withhold 35%       withholding is required if, no earlier than 30 days
                                                       before the transfer, the transferee receives a          certain trusts and estates. This form is used to
of the amount distributed to a foreign person                                                                  report and transmit the amount withheld.
from the account during the tax year of the trust      statement signed by a general partner under
or estate in which the disposition occurred. The       penalties of perjury that at least 50% of the              You are required to provide this information.
withholding must be paid over to the IRS within        value of the gross assets of the partnership does       Section 6109 requires you to provide your
20 days of the date of distribution. Special rules     not consist of U.S. real property interests or that     taxpayer identification number. We need this
apply to grantor trusts. See Regulations section       at least 90% of the value of the gross assets           information to ensure that you are complying
1.1445-5 for more information and how to               does not consist of U.S. real property interests        with the Internal Revenue laws and to allow us
compute the amount subject to withholding.             plus cash or cash equivalents. The transferee           to figure and collect the right amount of tax.
                                                       may rely on the statement unless the transferee         Failure to provide this information in a timely
   Large trust election. Trusts with more than         knows it is false or the transferee receives a          manner, or providing false information, may
100 beneficiaries may make an election to              false statement notice pursuant to Regulations          subject you to penalties. Routine uses of this
withhold upon distribution rather than at the time     section 1.1445-4.                                       information include giving it to the Department of
of transfer. The amount to be withheld from each                                                               Justice for civil and criminal litigation, and to
distribution is 35% of the amount attributable to      Specific Instructions                                   cities, states, and the District of Columbia for
the foreign beneficiary’s proportionate share of                                                               use in the administration of their taxes.
the current balance of the trust’s section             Lines 1. In Part I, enter the name, address, and
1445(e)(1) account. This election does not apply       identifying number of the buyer or other                   You are not required to provide the
to any REIT or to any publicly traded trust.           transferee responsible for withholding under            information requested on a form that is subject
Special rules apply to large trusts that make          section 1445(a). Do not enter the name,                 to the Paperwork Reduction Act unless the form
recurring sales of growing crops and timber.           address, and identifying number of a title              displays a valid OMB control number. Books or
                                                       company, mortgage company, etc. unless it               records relating to a form or its instructions must
   A trust’s section 1445(e)(1) account is the total                                                           be retained as long as their contents may
                                                       happens to be the actual buyer or transferee.
net gain realized by the trust on all section                                                                  become material in the administration of any
1445(e)(1) transactions after the date of the              In Part II, enter the name, address, and
                                                                                                               Internal Revenue law. Generally, tax returns and
election, minus the total of all distributions made    identifying number of the corporation,
                                                                                                               return information are confidential, as required
by the trust after the date of the election from       partnership, or fiduciary responsible for
                                                                                                               by section 6103.
such total net gain. See Regulations section           withholding under section 1445(e). Do not enter
1.1445-5(c)(3) for more information.                   the name, address, and identifying number of a             The time needed to complete and file these
                                                       title company, mortgage company, etc. unless it         forms will vary depending on individual
Section 1445(e)(2) Transactions                        happens to be the actual entity responsible for         circumstances. The estimated average times are:
A foreign corporation that distributes a U.S. real     withholding under section 1445(e).                                            Form 8288       Form 8288-A
property interest must generally withhold 35% of       Caution: The IRS will contact the person or             Recordkeeping        5 hr., 16 min.   2 hr., 52 min.
the gain recognized by the corporation. No             entity listed on line 1 to resolve any problems
withholding or reduced withholding is required if      that may arise concerning underwithholding              Learning about
the corporation receives a withholding certificate     and/or penalties.                                       the law or the
from the IRS.                                                                                                  form                 5 hr., 8 min.      30 min.
                                                         Name and address. If you are a fiduciary, list
Section 1445(e)(3) Transactions                        your name and the name of the trust or estate.          Preparing and
                                                       Enter the home address of an individual or the          sending the
Generally, a domestic corporation that                 office address of an entity.                            form to the IRS      6 hr., 39 min.     34 min.
distributes any property to a foreign person that
holds an interest in the corporation must                 Identifying Number. For a U.S. individual, this        If you have comments concerning the
withhold 10% of the fair market value of the           is a social security number (SSN). For any entity       accuracy of these time estimates or suggestions
property distributed if:                               other than an individual (e.g., corporation, estate,    for making these forms simpler, we would be
                                                       or trust), this is an employer identification           happy to hear from you. You can write to the
  1. The foreign person’s interest in the              number (EIN).                                           Tax Forms Committee, Western Area Distribution
corporation is a U.S. real property interest under                                                             Center, Rancho Cordova, CA 95743-0001. Do
section 897, and                                         If you are a nonresident alien individual who is
                                                       not eligible for a social security number and you       not send the forms to this address. Instead, see
                                                       have already obtained an IRS Individual                 Where To File on page 2.