If you’ve sold property in the United States as a non-resident, you may have noticed that a large amount of tax was withheld from your payment. This happens because of a rule called FIRPTA — the Foreign Investment in Real Property Tax Act. The good news is that most foreign sellers can claim a FIRPTA refund for the extra tax they paid. At Nolly.com, we specialize in helping international clients recover this money quickly and correctly. Here’s how it works.
What Is FIRPTA?
FIRPTA is a U.S. tax law that requires buyers to withhold up to 15 percent of the sale price when a non-U.S. person sells property in the United States. The withheld amount is sent to the IRS as a tax deposit.
For example, if you sold a home for $300,000, the buyer may have withheld $45,000 under FIRPTA. However, that amount is often much higher than what you actually owe. By filing the right paperwork, you can request a refund for the difference.
Step 1: Get an ITIN
Before you can file for a refund, you need an ITIN (Individual Taxpayer Identification Number). The IRS requires it to process your claim. If you don’t already have one, Nolly.com can help you apply for an ITIN and submit your refund paperwork together. This saves time and avoids delays.
Step 2: Prepare Form 8288-B
Form 8288-B is the application for a FIRPTA withholding certificate. This form tells the IRS that you believe too much tax was withheld and that you’d like the excess amount refunded. It’s important to complete this form correctly — small errors can cause months of delay. Our specialists review every detail before submission to make sure it’s right the first time.
Step 3: File a 1040NR Tax Return
After the sale, you must also file a 1040NR tax return to report the transaction. This return includes the sale price, your expenses, and the amount withheld under FIRPTA. Based on this information, the IRS will calculate how much refund you’re owed. Most sellers recover thousands of dollars once the proper deductions are applied.
Step 4: Wait for IRS Processing
The IRS typically takes 90 to 120 days to process a FIRPTA refund. During that time, our team monitors your case and provides updates. Having accurate documents and an ITIN ready can speed up this process significantly.
Step 5: Receive Your Refund
Once approved, your refund is issued by check or direct deposit, depending on the method you select. It’s a relief for many property sellers who were surprised by how much tax was initially withheld.
Why Work with Nolly.com
FIRPTA refunds can be confusing, especially for first-time sellers. Our certified experts handle the entire process — from ITIN application to 1040NR filing. We ensure every form is correct and compliant with IRS rules.
Clients choose Nolly.com because we:
- Are IRS-Certified Acceptance Agents
- Help clients from anywhere in the world
- File all forms securely online
- Have years of experience with FIRPTA and non-resident taxes
Final Thoughts
Selling property in the U.S. doesn’t mean losing thousands in unnecessary tax. With professional help, you can recover your FIRPTA withholding and receive your money back sooner. Start your FIRPTA refund application today at Nolly.com — our experts make it fast, secure, and stress-free.
