Purpose: This IRM contains instructions for processing Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons, Form 8288-C, Statement Of Withholding Under Section 1446(f)(4) on Dispositions by Foreign Persons of Partnership Interests, and Form 8805, Foreign Partner’s Information Statement of Section 1446 Withholding Tax to the International Web Applications (INTLWebApps). It also includes instructions for processing Forms 1040-NR, U.S. Nonresident Alien Income Tax Return (Estate or Trust) to the Non-Master File (NMF).

Audience: Ogden Submission Processing Tax Examiners with the responsibility for reviewing, editing and transcribing Form 8288-A, Form 8288-C, and Form 8805 into the INTLWebApps system and reviewing and editing Form 1040-NR. In addition, Austin Submission Processing Center uses this IRM to credit verify Form 8288-A.

Policy Owner: The Director Submission Processing is responsible for the policies in this IRM.

Program Owner: The Code & Edit/ERS IMF Section of the Paper Processing Branch of Submission Processing is responsible for the procedures and updates related to this IRM.

Primary Stakeholders: Submission Processing (SP) and Large Business and International (LB&I).

Program Goals: Ensure all necessary action is taken on return and attachments to ensure correct input and posting of the return data.

Submit IRM deviations in writing following instructions from IRM 1.11.2.2.4, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Code and Edit (C&E) processing IRMs.

Ogden, Kansas City, and Paper Processing Branch, BMF Code and Edit and Error Resolution System (ERS) identified and developed topics for BMF Consistency.

A ♦ (diamond) before and after the subsection title shows BMF Consistency subsections.

Text in normal print is the common process for BMF returns. The text in BOLD print is form specific and applies to this IRM only.

The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate. Its job is to protect taxpayers’ rights by striving to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights (TBOR). TAS offers free help to taxpayers, including when taxpayers face financial difficulties due to an IRS problem, when they are unable to resolve tax problems they haven’t been able to resolve on their own, or when they need assistance to address an IRS system, process, or procedure that is not functioning as it should. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.

TAS uses Form 12412, Operations Assistance Request (OAR), to start the OAR process of referring a case to the Wage and Investment (W&I) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19, Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Advocating With Operations Assistance Requests (OARs).

Refer taxpayers to the TAS when the contact meets TAS criteria or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps can’t be taken to resolve the taxpayer's issue the same day.

The definition of "same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution" :

When making a TAS referral, use Form 911, and forward to TAS following your local procedures.

See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for more information.

BMF Identification (ID) Theft is increasing. If a case is found with attachments or correspondence showing the taxpayer is a victim of "ID Theft" , give the entire case to the manager/lead.

The manager/lead will expedite the case to the Planning and Analysis (P&A) staff for referral to one of the Submission Processing (SP) BMF ID Theft liaisons. The taxpayer must show that they are a victim of "ID Theft" ; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam), or Fraud review.

Taxpayers may send tax return information via fax as part of return perfection even when submitting a signature. In circumstances where contact with the taxpayer has been made and documented, faxed signatures are acceptable.

Contact the taxpayer by telephone or correspondence. Follow local procedures to decide which method of contact to use.

Indicate the fax paragraph on the approved Correspondence Action Sheet to inform the taxpayer of the fax option.

Use the following resources to make sure you are speaking with the taxpayer or authorized representative before disclosing any tax information:

Before leaving any messages on a taxpayer's answering machine, review:

The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98) Section 3705(a), gives identification requirements for all IRS employees working tax-related matters.

All IRS employees who communicate by telephone, face-to-face, or any other method of correspondence with taxpayers or their personal representatives on tax-related matters must give (at a minimum) the following information:

When a taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every attempt to resolve the taxpayer's inquiry. If unable to resolve the issue, refer the inquiry using established procedures to the manager.

Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves. They should provide their badge identification (ID Card) number only if they are answering telephones which are routinely used to give tax or account information.

It is not necessary to repeat the badge identification (ID Card) number on a subsequent contact, when the nature of an employee's work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either telephone or in-person)their badge identification (ID Card) number on the first contact.

IRC 6103 establishes the taxpayer's (T/P's) right to privacy of tax information. You must provide correct information to the correct T/P or authorized representative (check Command Code (CC) CFINK on the Integrated Data Retrieval System (IDRS) for the Power of Attorney (POA).

Taxpayer return information must remain confidential as provided for in IRC 6103, Confidentiality and disclosure of returns and return information. IRC 7431 provides civil damages for unauthorized disclosure of returns and return information. IRC 7213 and IRC 7213A provide criminal penalties for unauthorized disclosure or unauthorized inspection of returns and return information and require employees be discharged from duty if charged and convicted of these offenses.

When calling a taxpayer or authorized representative, and before disclosing any tax information, follow IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Before leaving any messages on a taxpayer’s answering machine, review IRM 10.5.1.6.7.2, Answering Machine or Voicemail and IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance.

For more information on General Disclosure Guidelines refer to IRM 21.1.3, Operational Guidelines Overview and for full discussions refer to IRM 11.3.1, Introduction to Disclosure through IRM 11.3.40, Disclosures Involving Trust Fund Recovery Penalty Assessments.

Issue correspondence to resolve any conditions causing the return to be unworkable or unprocessable.

If the return is incomplete and doesn't appear to be a return meant for filing or is a conduit for providing information (e.g., indicates payment only), give the return to the lead. The lead must determine the correct course of action. The lead researches for a Transaction Code (TC) 150 and any other information necessary to determine if the return should continue processing, is an amended return, or must be routed to another function. An incomplete return could include any of the following:

Examine the return for all unprocessable conditions before initiating correspondence.

Edit marks are edited on the return for transcription to the Automated Data Processing (ADP) System through Integrated Submission and Remittance Processing (ISRP). Enter edit marks in brown, red, orange, purple, or green pencil or pen.

Only edit items on the return that are for transcription except where specific instructions require editing of a non-transcribed item. Leave lines blank if the entry would be a zero amount unless otherwise instructed.

Do not obliterate, alter, or erase the original entry on a return when deleting or correcting an entry. Always exercise care to ensure that the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who may work with the return later.

Do not re-edit edit marks entered by other areas, such as Collections, Entity or Accounts Management, except to place the marks in the correct area or to perfect for legibility.

Photocopied Returns - Re-edit or underline any valid, black edit marks. See IRM 3.21.25.9.1 Correspondence Imaging Inventory (CII) Returns.

For a description of specific edit marks, see the table below:

Foreign buyers (transferees) and/or sellers (transferors) of U.S. real property interests and interests in partnerships engaged in a U.S. Trade or business need identifying numbers to obtain reduced withholding or pay tax. Here’s guidance for those who need to request Individual Taxpayer Identification Numbers (ITINs).

Foreign buyers and sellers of U.S. real property interests need Taxpayer Identification Numbers (TINs) to request reduced tax withholding when disposing of the property interest, and to pay any required withholding. Individuals who do not qualify for Social Security Numbers (SSN) may obtain Individual Taxpayer Identification Numbers (ITINs) to meet the requirement to supply a TIN.

The IRS implemented new procedures, effective December 17, 2003, to strengthen controls on ITINs and ensure the numbers are issued for tax administration purposes only. To help your qualifying clients obtain ITINs without undue burden, see the instructions for Form W-7 and Form W-7 (SP) and the information below, which describes how the new process impacts FIRPTA (Foreign Investment in Real Property Tax Act) processing.

TINs required for withholding (Form 8288 and Form 8288-A) - Treasury Decision 9082 (effective August 5, 2003) requires all buyers and foreign sellers of U.S. real property interests to provide their TINs, names and addresses on withholding tax returns, applications for withholding certificates, notice of non-recognition, or elections under sections 897(i) when disposing of a U.S. real property interest. For transfers of partnership interests occurring on or after January 1, 2018, the TINs, names and addresses of all buyers and foreign sellers must also be provided on withholding tax returns. See Notice 2018-29 and Treasury Decision 9926. The buyer withholds tax under IRC 1445 or IRC 1446(f)(1) and remits it to the IRS on Form 8288, U.S. Withholding Tax Return for Certain Dispositions by Foreign Persons, and Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons.

TINs required for amounts withheld under section 1446(f)(4) (Form 8288-C), - Requires the Withholding Agents (Partnerships) EIN, the Partners (Transferor) U.S. TIN and the Buyers(Transferee’s) U.S. TIN. If the TIN is missing research IDRS Command Codes NAMES or NAMEE and update Form 8288-C if found. If you are still unable to find a TIN, correspond using Correspondence Action Sheet (CAS) Letter 3302. However, when a phone number is present, call the taxpayer and ask them to FAX the information to you. If the telephone number is an international number do not call, but correspond.

TINs required for requests for reduced withholding (Form 8288-B) - A seller looking to reduce or eliminate the FIRPTA withholding amount must file a Form 8288-B, Application for Withholding Certificate for Disposition by Foreign Persons of U.S. Real Property Interests. Since Form 8288-B requires a TIN, a seller and/or buyer who does not qualify for an SSN may apply for an ITIN by attaching Form 8288-B to Form W-7 and mailing the documents to:

Requesting an ITIN to meet FIRPTA TIN requirements - To obtain an ITIN number for FIRPTA purposes the foreign person must complete Form W-7 or Form W-7 (SP). Select Box "h" (other) in the "Reason you are submitting Form W-7" section of Form W-7, and Exception 4 (explained in the instructions). Write "Exception 4" in the write-in area to the right of Box h (other).

ITIN requests to claim reduced withholding (Form 8288-B) - The IRS will only issue ITINs based on applications that are complete and demonstrate a tax need for the numbers. If the IRS rejects the ITIN application, Form 8288-B will not be processed. The IRS ITIN Unit will notify the applicant by mail that the Form W-7 was not processed and the FIRPTA Unit in Ogden Accounts Management Campus (OAMC) will send Letter 3793 (SC/CG) to the buyer and foreign seller with instructions to complete Form W-7 and reapply. This letter will include instructions to resolve the issue outlined in the ITIN rejection letter. When reapplying, the applicant must include a copy of Letter 3793 SC/CG with Form W-7 to be considered under Exception 4. If the reason for rejection cannot be resolved, then the buyer must file Form 8288 and Form 8288-A and remit the 10 or 15 percent tax.

ITIN requests to pay withholding on Form 8288 and Form 8288-A:

Foreign Investment in Real Property Tax Act (FIRPTA) and Foreign Partnership information statements (Form 8288-A and Form 8805) are stored on an Enterprise Tier II SUN system known as the "INTLWebApps" application. The INTLWebApps application is not a Master File program and does not interface with IDRS, Master File, or Non-Master File.

The INTLWebApps application consists of three applications. They are:

You must request access to each database contained within INTLWebApps that you intend to use. Use the Business Entitlement Access Request System (BEARS) to request access to the required sub-applications (entitlements).

After submitting a BEARS request, all users must complete the EUP portal self-registration process by visiting https://eup.eps.irs.gov/EUP/welcome and clicking on the Register for EUP access link.

The user will access INTLWebApps via the internet by visiting https://intlwebapps.web.irs.gov/INTLWebApps

Please refer to Job Aid Foreign Investment Real Property Tax Act (FIRPTA) NSA Data Base 19801-001 for guidance on entering Form 8288-A, 8288-C and Form 8805 data, or when performing credit verifications.

The information captured in the FIRPTA Database is used to:

Logging into the FIRPTA database will give you the option to:

Logging into the Project 1446 database will give you the option to:

Refer to IRM 3.21.15, International Returns and Document Analysis - Foreign Partnership Withholding, and/or IRM 3.21.261, International Returns and Documents Analysis - Foreign Investment in Real Property Tax Act (FIRPTA) for instructions related to any attachments. The title of the subsection is "Routing Guide for Attachments."

Prior to Integrated Submission and Remittance Processing (ISRP) the Batch Block Tracking System (BBTS) routing should be setup. The Batch work is forwarded to the FIRPTA unit. The FIRPTA unit will:

Every Form 8288 must have one set (Copy A and B) of Form 8288-A attached to it for each number of Form 8288-A listed on Line 5 of Form 8288. (Line 4 for prior years.)

When calling the taxpayer or authorized representative, and before disclosing any tax information, follow IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Before leaving any messages on a taxpayer’s answering machine, review IRM 10.5.1.6.7.2, Answering Machine or Voicemail and IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance.

If more than one seller is listed on a Form 8288-A, correspond for the required information using Correspondence Action Sheet (CAS) Letter 3104C. However, when a phone number is present, call the taxpayer and have them FAX the information to you. If the telephone number is an international number do not call but correspond. If no response is received, and you are able to complete it with the information available, photocopy a set of Forms 8288-A for each additional taxpayer, edit the name of each seller listed by crossing out the additional sellers, and dividing the amount realized and withholding tax equally between the number of sellers. If there is no reason to believe the mailing address is different, use the same address. The result will be a set of Form 8288-A for each taxpayer. See IRM 3.21.25.15.3.

If Form 8288-A is not completely filled out, then correspond for the required information using Correspondence Action Sheet (CAS) Letter 3104C. However, when a phone number is present, call the taxpayer and have them FAX the information to you. If the telephone number is an international number do not call but correspond. If no response is received, then review Form 8288 attachments for the information and dummy it onto Form 8288-A. If unable to locate the information, process as is by following the steps in paragraphs 1 through 13.

Loose Forms 8288-A with green check mark edited on the top right margin of Form 8288-A: Some taxpayers may send FIRPTA payments to deposit activity areas without a Form 8288. It’s possible the Form 8288-A is a response to our correspondence requesting the missing form. Attach the Form 8288-A to its parent Form 8288, if found. If not found, transship the loose Form 8288-A to OAMC BMF INT'L unit.

Loose Forms 8288-A: AUSPC ITIN function will at times transship to OSPC copies of Form 8288-A with the assigned ITIN number written in red ink. Research the Form 8288-A on the pending wall to see if there is a Form 8288-A awaiting to be mailed. If so, follow the IRM procedures in IRM 3.21.25.15.2. If not, then draft FIRPTA Quick Note 3302 SC/CG (addressed to withholding agent) and select checklist item, "Other" Write the following narrative in the open paragraph field: "We are returning the attached loose Form 8288-A. Please complete Form 8288 and/or Form 8288-A (Copy A and B) and attach the withholding payment to it and mail it to the Internal Revenue Service, Ogden, UT 84201."

Partnerships complete Part IV of Form 8288. These returns must have a Form 8288-C Copy A attached. Only one Form 8288-C copy A can be attached and processed per one Form 8288. Partnerships sendForm 8288-C Copy B to the transferee and Copy C is for the partnership’s records.

If more than one Form 8288-C with more than one transferee is attached to Form 8288 or if Form 8288 is missing, correspond for the missing Form 8288 using Correspondence Action Sheet (CAS) Letter 3104C. If a phone number is present, call the taxpayer and have them FAX the information to the IRS. If the telephone number is an international number do not call, but correspond. If no response is received, continue processing and input Form 8288-C into the INTLWebApps FIRPTA Form 8288-C screen. Leave an explanation in the remarks field.

If Form 8288-C is missing or incomplete, then correspond for a complete Form 8288-C using Letter 3302. However, if a phone number is present, call the taxpayer and ask them to FAX the information to IRS. If the telephone number is an international number do not call, but correspond. If no response is received, review the Form 8288 attachments and prepare a "dummy" Form 8288-C following steps 1-10.

When calling the taxpayer or authorized representative, and before disclosing any tax information, follow IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Before leaving any messages on a taxpayer’s answering machine, review IRM 10.5.1.6.7.2, Answering Machine or Voicemail and IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance.

Partnership (Withholding Agent) and Partner (Buyer) are the same on Form 8288 and Form 8288-C:

Partnership/Withholding Agent on Form 8288-C and Form 8288 are not the same.
Take the following steps:

Any foreign individual or entity that has sold a U.S. Real Property Interest (USRPI) must file a U.S. income tax return to claim the credit or refund of the FIRPTA tax withheld. The return can be a Form 1040, Form 1040-NR (Individual or Estate or Trust), Form 1120-F, Form 990-T, or Form 8804.

FIRPTA credit verifications identified in Code and Edit require verification within 48 hours of receipt. FIRPTA credit verifications received from another function (Rejects, Error Resolution (ERS), Accounts Management, etc.) also require verification within 48 hours and returned to the originator on Form 3210. Document the credit verification amount on Form 13698, and update the Form 8288-A INTLWebApps database "Credit Verification" section of the Form 8288-A screen with the:

Electronically-filed IMF Form 1040-NR with credits from Form 8288-A will be systemically suspended in the Error Resolution System (ERS) for FIRPTA credit verification. The ERS Rejects/Suspense Unit will verify the credit within 48 hours of receipt in suspense inventory and document the credit verification by updating the Form 8288-A Database “Credit Verification” section of the Form 8288-A screen with:

In general, the date of transfer sets the tax period for Form 8288 and should match the tax period on the seller’s return (e.g., Forms 1040-NR, 1120-F).

Never verify more FIRPTA credit than what appears in the Form 8288-A Database. If the taxpayer claims less credit on the return, then verify only up to the amount claimed.

Verification Procedures: Generally, you must:

After all action has been taken, complete the credit verification slip, Form 13698 and staple it to the front of the income tax return, (for electronically filed returns, please see the second Note below). The following information must be entered on Form 13698:

The w/h agent information on the paper Form 8288-A may differ from the Database, because the Database shows the Form 8288 buyer information, whereas the Form 8288-A may show the title company information. Either way it appears is correct. Continue to verify the credit.

If a verification request is received for Form 8805 credits claimed on Form 1040-NR, Form 8804, Form 990-T, Form 1040-NR Estate or Trust, and Form 1120-F under IRC 1446, the following steps should be taken:

Upon verification the information must be annotated on the credit verification slip. The following information must be entered:

If there is a discrepancy between the credits being claimed on the return and the Database information, return to originator.

Inform the originator that correspondence is needed with the PARTNERSHIP/WITHHOLDING AGENT.

If after research is completed and credits cannot be verified, return the income tax return to the originator, annotated with the following: "THERE ARE NO CREDITS AVAILABLE," TE Profile Number and current date.

Form 8805 data is transmitted to the Martinsburg Computing Center (MCC) for posting to the Information Returns Master File (IRMF).

Forms 8805 has its own DLN and is processed in OSPC. The DLN begins with "60546" . Form 8805 was previously processed at the PSPC and the DLN began with 98546.

Forms 8805 submitted with Forms 8804 are detached from Form 8804, batched, numbered (60546 DLN), and forwarded to the FIRPTA unit at the OSPC for processing to the INTLWebApps application.

If Form 8804-C, Certificate of Partner-Level Items to Reduce Section 1446 Withholding or a Statement under Treasury Regs 1.1446-6 is attached to Form 8805, then detach it from the Form 8805 and transship it to:

Internal Revenue Service
4-F23.142 Examination Branch
2970 Market St.
Philadelphia, PA 19104

Transship the form only after entering"Y" in the "8804-C CERT" field, otherwise, if no Form 8804-C is attached to the Form 8805, then the "8804-C CERT" field on the IRMF 8805 record entry screen will remain with a Default" N" in the field.

The Form 8805 menu identified as IRMF Form 8805 (TP 200412 and Subsequent) will appear on the Project 1446 menu screen as "Option 7" to record the data.

To improve data entry efficiency, the computer will store the foreign partners information into a partner table. The computer will import the name and address of the foreign partner into the Form 8805 record if it has been previously established. If not previously established, then you will need to enter it.

Compare the imported data from the partners table against the paper Form 8805 to ensure that the most current foreign partner information is recorded. If different, then delete the incorrect information and enter the correct information.

Special procedures are required for beneficiaries of foreign estates or trusts to claim credits that flow through to them from the estate or trust. The estate or trust must issue the beneficiary a Form 8805 with a completed Schedule T. The beneficiaries must attach a copy of the form to their return to claim the section 33 credit for IRC 1446 withholding tax paid by the partnership.

Form 8804 is processed under Program Code 11340 and through MFT "08" .

This subsection provides coding and editing instructions for the NMF Form 1040-NR, U.S. Nonresident Alien Income Tax Return (Estate or Trust) to the Non-Master File (NMF). These returns are filed to report income received by foreign Estates or Trusts.

Form 1040-NR Estate or Trust is processed under:

Batch Block Tracking System (BBTS) routing Sub-Program 75702:

All Form 1040-NR Estate or Trust returns are processed to the Non-Master File (NMF) database at the Kansas City Submission Processing Center (KCSPC).

Each Estate or Trust return must have an Employer Identification Number (EIN). If a Social Security or Individual Tax Identification Number (SSN or ITIN) appears at the top of the return instead of an EIN, then verify if the Form 1040-NR was filed by a Nonresident Alien (NRA) individual by reviewing the characteristics listed in IRM 3.21.25.20.3. If the return is a true Estate or Trust return, and a valid EIN is not present and not found through IDRS research, route the return to Entity for research and EIN assignment. However, if the return does not exhibit the characteristics of an Estate or Trust return, the Form 1040-NR was filed by a NRA and needs to be processed on the Individual Master File (IMF). Transship the IMF NRA 1040-NR return to the Austin Submission Processing Center (AUSPC). Prepare Form 3210, Document Transmittal and mail to:

Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215 U.S.A.

If Form 1040-NR-EZ is received for an Estate or Trust, take the following actions to ensure the taxpayer’s information can be processed: