FIRPTA Gone Wrong: Misapplied Payments and Practitioner Response

FIRPTA withholding is often straightforward in theory—but in practice, it frequently breaks down. Payments are misapplied, Forms 8288 and 8288-A are processed incorrectly or delayed, and practitioners are left trying to reconcile transactions that no longer match IRS records. When this happens, the issue is no longer compliance—it is resolution.

This program focuses on how practitioners respond when FIRPTA withholding goes wrong. Participants will review the core framework under IRC §1445, including withholding requirements, reporting obligations, and the roles of the parties involved in a transaction. The emphasis, however, is on real-world problems: identifying misapplied or missing payments, understanding why these issues occur, and determining how to fix them.

The program will walk through practical strategies for tracing payments, resolving discrepancies with the IRS, and reconstructing transaction records when documentation is incomplete. Participants will also learn how to manage client expectations, coordinate with withholding agents and closing professionals, and address delays in processing Forms 8288-A.

This is a practical, problem-focused program designed for practitioners who are dealing with FIRPTA issues after the transaction has closed and the numbers do not tie.

Learning Objectives (NASBA)
Upon completion of this program, participants will be able to:
-Identify FIRPTA withholding requirements under IRC §1445, including the roles of withholding agents and reporting obligations.
-Determine common causes of misapplied or uncredited FIRPTA payments and recognize discrepancies in Forms 8288 and 8288-A processing.
-Apply procedures for tracing and reconciling FIRPTA withholding payments with IRS records.
-Evaluate available corrective actions and strategies for resolving payment issues with the IRS.
-Assess practitioner responsibilities in managing documentation, client communication, and coordination with third parties during FIRPTA issue resolution.

2 IRS CE/2 NASBA CPE*

Only available for TPP unlimited CE subscribers.

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*Self-Study recording not available for NASBA CPE credit.

IRS Program #: 7Q3WU-T-00888-26
CTEC Course #: 6248-CE-00234