Our Form 8288-B was filed before closing but the IRS has not answered yet. Do we still send the withholding money right away?
The seller is from France and the closing agent filed Form 8288-B because the default FIRPTA amount looks far above the actual likely tax. The application was filed before closing, but we still have no IRS response. Now everyone is stuck on whether the money must be remitted immediately anyway or whether the pending certificate changes that timing.
I want a practical answer about what happens in this in-between period. If the statutory amount is still withheld but payment timing changes while the certificate is pending, the file needs to reflect that clearly so no one treats the deal like it is in default by accident.
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