What happens if the buyer doesn't withhold FIRPTA tax? Or if I (the foreign seller) don't file a return?
I sold a property two years ago through my LLC and I just found out that the buyer never withheld FIRPTA tax. Nobody at closing mentioned it. I also haven't filed a U.S. tax return for the sale. Am I in trouble? Is the buyer in trouble? What penalties are we looking at?
I'm trying to figure out if I should come forward voluntarily or just hope the IRS doesn't notice. The sale was for $350K and my gain was about $80K. I'm a citizen of Nigeria.
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