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ARTICLE · 01 SEPTEMBER 2026

FIRPTA Withholding Certificate Processing Times Are Finally Improving

Altro LLP
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For Canadian and other non-U.S. sellers of U.S. real estate, the FIRPTA withholding regime has historically meant waiting months or even years to recover excess tax withholdings. Recent improvements in IRS processing times are making Form 8288-B withholding certificate applications an increasingly effective tool for accelerating the return of substantial funds.

United StatesTax
Avi Guttman
Avi Guttman

For many Canadian and other non-U.S. sellers of U.S. real estate, one of the most frustrating aspects of the FIRPTA regime has not been the tax itself, but the wait.

Under the Foreign Investment in Real Property Tax Act (“FIRPTA”), a buyer is generally required to withhold 15% of the gross sale price when purchasing U.S. real estate from a non-U.S. seller. In many cases, however, the seller’s actual U.S. capital gains tax liability is significantly lower than the amount withheld.

That is where Form 8288-B, Application for Withholding Certificate, becomes invaluable.

What Is an 8288-B Application?

An 8288-B application allows a foreign seller to ask the IRS to reduce the required FIRPTA withholding to the seller’s estimated maximum tax liability. Rather than remitting the full withholding amount to the IRS at closing, the funds can remain in escrow while the IRS reviews the application.

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