“Fifteen percent of the sale price was sitting with the IRS. The ITIN was the key to getting most of it back.”
Background
When a non-resident sells U.S. real estate, the buyer must withhold 15% of the gross price. Rafael’s actual gain was far smaller than the withholding, but a refund can only be claimed on a return, and a return needs a taxpayer number.
What we did
We filed the W-7 with the 1040-NR and the withholding certificate (Form 8288-A) attached, verified his passport on video from São Paulo, and tracked the case through the IRS.
Outcome
The ITIN was issued in ten weeks and the refund of the excess withholding followed. Rafael now has a number he can use for future U.S. purchases and rental filings.
