Form 8288 is processed to the BMF under:

If the DOT on Form 8288 is 12/12/2005 or prior, transship the return to the Kansas City Submission Processing Campus (KCSPC), Non-Master File (NMF) Accounting Section for processing to the Automated Non-Master File (ANMF) system. These returns will be assigned a "09641 Document Locator Number (DLN)" and processed as a NMF return.

There is no official extension form for Form 8288.

The Return Due Date (RDD) for Form 8288 is 20 days after the Date of Transfer (DOT), or 20 days from the withholding certificate date (if applicable).

All Form 8288 returns with a DOT of 12/13/2005 or later will be processed at the Ogden Submission Processing Campus (OSPC) as a "Non-Remittance" return.

See Exhibit 3.21.261-8 for Prior Year Conversion for Form 8288, February 2016 revision.

New IRC 1446(f) was added by section 13501 of “the Tax Cuts and Jobs Act,” P.L. 115-97 (the “Act”), which was enacted on December 22, 2017. Section 13501 of the Act also added new section 864(c)(8). On April 2, 2018, the Department of the Treasury and the Internal Revenue Service released Notice 2018-29, 2018-16 I.R.B. 495, which provides temporary guidance under IRC 1446(f) regarding the disposition of a partnership interest that is not publicly traded and announces an intent to issue regulations under IRC 1446(f). On May 13, 2019, the Department of the Treasury (Treasury Department) and the Internal Revenue Services (IRS) issued proposed regulations under IRC 1446(f) (84 FR 21198). On November 30, 2020, the Treasury Department and the IRS published final regulations (TD 9926) in the Federal Register (85 FR 76910) under IRC 1446(f). The Treasury Department and the IRS have determined that, until other guidance, or forms and instructions have been issued under IRC 1446(f), transferees required to withhold under IRC 1446(f)(1) must use the rules in IRC 1445 and the regulations thereunder for purposes of reporting and paying over the tax. The forms specified in those rules include 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.

Internal Revenue Code 1445 and IRC 897 regulations provide the authority for withholding of tax on dispositions of certain U.S. Real Property Interests (USRPI) by a foreign seller and taxation of nonresident alien individuals and foreign corporations on sales or other dispositions of U.S. real property interests.

New IRC 1446(f) was added by section 13501 of the Tax Cuts and Jobs Act, P.L. 115-97, which was enacted on December 22, 2017. Section 13501 of the Act also added new section 864(c)(8). On April 2, 2018, the Department of the Treasury and the Internal Revenue Service released Notice 2018-29, 2018-16 I.R.B. 495, which provides temporary guidance under IRC 1446(f) regarding the disposition of a partnership interest that is not publicly traded. It also and announced an intent to issue regulations under IRC 1446(f) regarding the disposition of a partnership interest that is publicly traded and not publicly traded. IRS and Treasury issued proposed regulations under new IRC 1446(f) on May 13, 2019, and final regulations on November 30, 2020, which apply to transfers occurring on or after January 29, 2021.

Policy statements for Submission Processing are contained in IRM 1.2.12, Service Wide Policies and Authorities, Policy Statements for Submission Processing Activities.

The Director, SP Office is responsible for monitoring operational performance for the Submission Processing campus.

The Operations Manager is responsible for monitoring operational performance for their operation.

The team manager/lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

The team employees must follow the instructions in this IRM and maintain updated IRM procedures.

Program Goals: Code & Edit is tasked with timely and accurately reviewing and editing all paper returns.

Program Reports: The Monitoring Section under Submission Processing Program Management /Process Assurance monitors the inventory and timely processing of the returns.

Program Effectiveness: The program goals are measured by the following reviews:

Annual Review: The processes included in this manual are reviewed annually to ensure accuracy and promote consistent tax administration.

Acronyms and a glossary of terms can be found in Exhibit 3.21.261-12.

The following job aids have been developed to assist tax examiners in their work:

Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC include willful attempts to evade or defeat the income tax. Criminal tax violations also include the willful failure to collect or pay over tax and false claims for refunds based on bogus return information.

If CI has stamped the return, do not send for further CI action.

For returns with refund claims ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, do the following:

Because of the repetitive nature of the Code and Edit (C&E) function, C&E Tax Examining technicians often recognize income tax return data which is outside of the norm for data found on similar returns for each income tax return type. If C&E finds return characteristics not meeting Audit Code or Exam referral criteria it deems suspicious, CI is available to review the referral.

If a suspicious return is found, do the following:

If the return fits other criteria (e.g., Frivolous Argument), take proper action.

The primary goal in identifying tax returns for examination is to promote the highest degree of voluntary compliance. Examination gives support and helps Submission Processing (SP) with any questionable return found during processing. Exam has a vast multitude of programs and tolerance criteria already found in several IRM sections. SP can refer any questionable return to Exam, unless prohibited by instructions currently found in several IRMs.

BMF 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.

The National Taxpayer Advocate reached agreements with the Commissioners of the Wage and Investment (W&I) Division, Small Business Self/Employed (SB/SE) Division, Tax Exempt Government Entities (TE/GE) Division, Criminal Investigation (CI), Appeals, and Large Business and International (LB&I) that outline the procedures and responsibilities for the processing of Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).

The SLAs are found at https://irsgov.sharepoint.com/sites/TAS/SitePages/SLA.aspx.

Remove returns marked as "Protective Claim" , "Protective Claim for Refund," or similar statement from the batch and route to Accounts Management (AM). Notate "Protective Claim" in the remarks box of Form 4227, Intra-SC Reject or Routing Slip.
Internal Revenue Service
Attn: BMF INTL AM Dept. - 3-L08.154
2970 Market St.
Philadelphia, PA 19104

Notate "Protective Claim" in the remarks box of Form 4227.

Compliance functions secure returns from the taxpayer and prepare returns if the taxpayer does not provide them.

Compliance notates:

When the taxpayer doesn’t file a required return, IRC 6020(b) is the authority for the IRS to prepare the return.

These returns are identified by the notation: "PREPARED AND SIGNED UNDER THE AUTHORITY OF SECTION 6020(b) OF THE INTERNAL REVENUE CODE" which is in the center bottom of Page one of the return.

These returns are identified by the notations: "TC 59X" or "ICS" .

These returns are identified by the notation: "SFR" or "SUBSTITUTE FOR RETURN" on Page one.

These returns are identified by the notation: "Process as Original" on Page one of the return with a Form 13133, Expedite Processing Cycle, attached with the "Delinquent Return" box checked.

Businesses use frivolous arguments for expressing dissatisfaction with the substance, form or administration of the tax laws by trying to illegally avoid or reduce tax liabilities. See IRM 25.25.10, Frivolous Arguments, and Exhibit 3.21.261-6, Potential Frivolous Arguments for Examination Review.

Review the return to determine whether it appears to be a frivolous return.

Do not consider the following as frivolous:

Correspondence Imaging Inventory (CII) is an inventory system for scanning all Account Management (AM) receipts into digital images and working the cases from those images.

"CII" returns show a "CII Image-Do not correspond for Signature" stamped below the signature line or a "CII" annotation on the front of the return.

Verify all edit marks on a "CII" return.

Follow these instructions when you receive a Form 8288CII return for processing:

Edit marks are edited on the return for transcription to the Automated Data Processing (ADP) System through Integrated Submission and Remittance Processing (ISRP) system. 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 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 perfect for legibility.

Photocopied Returns - Re-edit or underline any valid, black edit marks. See IRM 3.21.261.10.1, Correspondence Imaging Inventory (CII) Returns, and IRM 3.21.261.15, Re-Entry Document Procedures.

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

Action Codes are used to indicate whether correspondence, research or some other action is needed. The Action Code sets the suspense period for the return and places the return in the workable or unworkable suspense inventory.

Requests for adjustment of another return:

If the attachment does not include the taxpayer's name, address or TIN, enter this information on the attachment.

If the taxpayer writes a question or requests help on the return itself, check with your manager.

If a tax authorization is attached to correspondence (Form 2848 or Form 8821), review the correspondence to determine if other requests are involved:

Other Unrelated Attachments:

Always include the following information when forwarding documents to other functions:

If an attachment is removed because most of the information is unrelated to the Form 8288 being processed:

Review all attachments to the return before the return can be considered processable.

Follow the general guidelines below for each attachment. The table contains routing instructions for specific forms and/or documents attached to Form 8288:

Numbered Form 8288: Reject any numbered Form 8288 return which has a Date of Transfer (DOT) of 12/12/2005 or prior.

Rejection Action:

Unnumbered Form 8288: Transship all unnumbered Form 8288 returns with a Date of Transfer (DOT) of 12/12/2005 to KCSPC NMF.

Transshipping Action:

Form 3893, Re-entry Document Control, is used to reinput a return that has not posted to an account or module.

If more than one return is in the batch and only the top Form 3893 has an entry in Box 1 (Alpha/Numeric block control no.), edit all returns using current processing instructions and keep all returns clipped together.

Circle the CCC "G" if present.

Do not edit CCC "G" on amended returns.

Do not send Letter 1382C, Penalty Removal Request Incomplete, if a request for reasonable cause is attached.

If the return is not edited according to current processing instructions, circle any Action Codes, Computer Condition Codes and any other edit marks no longer applicable. Re-edit according to current processing instructions.

If the return is edited according to current processing instruction, ensure the information from Form 3893 is edited on the return.

Examine returns with any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.

A received date must be present on all Re-input returns:

When more information is still needed to make the return processable, prepare Form 3696approved, Correspondence Action Sheet or Form 4227, Intra-SC Reject or Routing Slip, for the proper action (e.g., correspondence, research, etc.).

When perfection is not possible, attach Form 4227 noting, "PERFECTION NOT POSSIBLE" and return to initiator.

Form 13596, Reprocessing Returns, is used to reprocess a return to the correct account or module that had previously posted to the wrong account or module.

Circle CCC "G" if present.

Do not edit CCC "G" on amended returns.

Do not send Letter 1382C, Penalty Removal Request Incomplete, if a request for reasonable cause is attached, because this responsibility belongs to the customer service representative initiating the re-entry document.

If the return is not edited according to current processing instructions circle any Action Codes, Computer Condition Codes and other edit marks no longer applicable. Re-edit according to current processing instructions.

If the return is edited according to current processing instructions, ensure the information from Form 13596 is edited on the return.

Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.

A received date must be present on all reprocessed returns:

Circle out the Green Rocker or green check and edit marks that may indicate a receipt of remittance.

When more information is still needed to make the return processable prepare an approved Correspondence Action Sheet or Form 4227, Intra-SC Reject or Routing Slip, for the proper action (e.g., correspondence, research, etc.).

Use the following formats when editing dates:

The month value edited must be in the range 01-12.

The day value edited must be in the range 01-31.

Always edit the tax period.

The name control consists of the first four characters of the transferee’s (buyers) last name, or the first four characters of the business entity name.

All Name Controls are to be underlined.

Edit the Name Control as follows:

If the incorrect transferee (buyer) appears on Form 8288 Line 1a (e.g., Title Company) but the Form 8288-A or settlement agreement (if attached) has the correct transferee, then edit the correct transferee name and TIN to Form 8288 Line 1a and Line 1b. In addition, edit the Form 8288-A or the Form 8288-C withholding agent box with the correct transferee information, including the transferee address, and enter or update the Form 8288-A or Form 8288-C record in the INTLWebApps with the correct transferee (buyer) information.

Entries in this field may be either,

The valid characters are Numeric (0-9).

Form 8288 Only: When the entered TIN is an SSN, ITIN or IRSN, then a TIN Type indicator of "0" must be edited immediately to the right of the TIN. If the TIN entered is an EIN, the TIN Type field is to be left "blank" .

If more than one TIN is entered in a field, then research the first TIN using IDRS to make sure it matches the name, and:

Be sure to edit the correct TIN Type indicator after each TIN. See IRM 3.21.261.19.3.1.

If multiple TINs are listed on Form 8288 Line 1b because of multiple transferees (buyers) also being listed, then research the first TIN on IDRS to identify the correct TIN for the first listed transferee. Subsequently, circle out the TINs and the names pertaining to the other transferees, leaving only the TIN number and name pertaining to the first listed transferee.

An SSN with a "V" at the end is BMF and not IMF. To reduce the number of Unpostables, C&E FIRPTA employees will need to research IDRS to see if the "V" tape is established. If the "V" is not established, route the return to Entity.

An "in-care-of" name can be identified by the words "in care of" or the symbols "c/o" or "%" (percent).

Ensure the "in-care-of" name is located above the street address.

Determine a change in the in-care-of name by any of the following:

Both domestic (U.S.) and foreign addresses should include:

When editing either the mailing or location address information, remember the following guidelines:

Perfect the address when the mailing address (Street or P.O. Box) is not easily identified.

A business may have two addresses. One is the mailing address and the other is the location address or physical location of the business.

Perfect the address as follows:

The U.S. Postal Service established new address requirements for Army Post Office (APO), Fleet Post Office (FPO), Diplomatic Post Office (DPO) addresses. If the old address appears (i.e., APO New York, NY 091XX), convert to the new state code abbreviation based on the ZIP Code (i.e., the previous example would be converted to APO AE 091XX). Consider APO/DPO/FPO addresses as domestic addresses. Refer to conversion chart below:

This is a 35-character field. Valid characters are alpha (a-z) and numeric (0-9).

A foreign (international) address is any address that is not in the 50 states, the District of Columbia or any of the U.S. Possessions.

Consider returns with Army Post Office (APO)/Diplomatic Post Office (DPO)/Fleet Post Office (FPO) addresses as domestic addresses. See IRM 3.21.261.18.6, Entity Perfection - Domestic Address.

Route returns with a foreign address to Ogden Submission Processing Campus (OSPC) for processing. Prepare Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform the taxpayer IRS sent the return to Ogden.

Consider returns with addresses in the following U.S. Possessions as foreign addresses for processing purposes. Edit the same way as domestic addresses.

All other foreign addresses are edited the same as a domestic address with the following exceptions:

This is a 22-position field for which an entry must be present.

The valid characters are alpha (a-z).

Research the ZIP Code directory to determine the city and/or state if:

If the address is a foreign address which includes a Province designation.

A state must be present for all U.S. addresses.

Valid characters are alpha (a-z).

If the State name is spelled out, do not edit the two-digit state code. ISRP will enter the two-digit state code.

If the address is a foreign address ISRP will automatically enter a period blank in the state field.

When the State is missing or illegible, research attachments and/or ZIP Code directory, if not found research IDRS.

These are 12-position fields for which entries must be present for U.S. addresses.

The valid characters are alpha (a-z) and numeric (0-9).

The U.S. ZIP Code must have at least five and may have up to twelve characters.

If the address is a U.S. address and the ZIP Code is missing or incomplete,

A foreign postal code may include both alpha and numeric characters. See Job Aid 2324-002 for proper placement.

U. S. and Australian addresses must include Numeric Postal Codes.

These are 12-position fields for which entries may or may not be present.

Valid characters are numeric (0-9) or blank.

Entries must be zero or a significant entry. No negatives are allowed.

Entries are to be transcribed in dollars and cents.

The tax period for a Form 8288 is based on the Month and Year of the Date of Transfer, found on Line 3. Therefore, if the Date of Transfer is 02/05/2024, then the tax period will be 202402. See IRM 3.21.261.19.9 (6).

Edit the proper tax period in accordance with the Date of Transfer. Editing is required on EVERY RETURN.

The initial tax period being processed to the BMF under MFT 17 is tax period ending 12/31/2005. This tax period will be valid for any Form 8288 reflecting a Date of Transfer of 12/13/2005, or subsequent.

Edit the tax period in "YYYYMM" format on Form 8288, and to the right of the form title. See Figure 3.21.261-4.

Figure 3.21.261-4

Editing the Tax PeriodThis figure illustrates the editing of the tax period on a current Form 8288. (Rev. January 2023) The tax period is derived from the Date of Transfer, located on Line 3. The following entries appear in this figure; The Date of Transfer (DOT) and the Tax Period. The DLN in the top right corner of Form 8288 is 00140-346-000-16-4.The tax period is edited to the right of the tax form title appearing at the top of the page. The tax period is written in YYYYMM format. The edited tax period reads 202412.Line 1a name is Sarah Raven.Line 1b TIN is 00-0765432.Line 1c street address reads Topaz Court.Line 1d city, state and ZIP reads Anytown, USA 01230.Line 1e is blank.Line 2 description reads 12- unit apartment building, Anytown, USA. Line 3 DOT is 12/07/24. The year and month of the DOT is used to determine the tax period. The year 24 is circled in red and the entire year 2024 is edited to the right of the circled year.Line 4 is blank.Number of Forms 8288-A or 8288-C attached is 1.A received date of 12-21-2024 is stamped on the return.

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A tax period should end on the last day of a month unless otherwise specified.

Form 8288 is a withholding tax return filed by the transferee (buyer) when a USRPI is purchased from a foreigner. As a result of this uniqueness in processing, there will never be Filing Requirements appearing on CC INOLE for Form 8288, MFT 17.

For more instructions see IRM 3.21.261.18.1.

The transferee (buyer) must complete Form 8288 and Form 8288-A after the transfer of the USRPI or interest in the partnership has taken place. This requires the transferee to complete Part I, Part II or Part III of Form 8288. The Part number can be found on the left margin Form 8288, and just above the part completed by the transferee. The editing of this field has an impact on the tax calculation.

If Part I is completed, then edit a "1" in the outside left margin next to the Part I box. See Figure 3.21.261-5a. Edit CCC "X" . See IRM 3.21.261.17 (3).

If Part II is completed, then edit a "2" in the outside left margin on the middle of the page next to the Part II box. See Figure 3.21.261-5b. Edit CCC "X" . See IRM 3.21.261.17 (3).

If Part III is completed, then edit a "3" in the outside left margin on the middle of the page next to the Part III box. Edit CCC "X."

If Part IV is completed, then edit a "4" in the outside left margin on the middle of the page next to the Part IV box. Edit CCC "X."

If Part V is completed, it is not necessary to edit the part number or a CCC.

If Part I, Part II, Part III, Part IV, and Part V of Form 8288 are blank then research all attachments (e.g., 8288-A, Withholding certificate) for the missing information. If the missing information can be found, then edit the required information to Part I.

Figure 3.21.261-5a

Editing Part IThis figure illustrates the editing of the PART I number on a current Form 8288. This figure displays Part I, Part II and Part III of Form 8288. The DLN of the return appears in the upper right corner of the return. It reads as: 00140-062-00024-4The tax period 202312 is edited and to the right of the title of Form 8288.An IRS received date stamp of 01032024 is present.Line 1a name is Pine Ash Advertising. The name control Pine is underlined in red.The TIN in box 1b is 00-1234567The address on Line 1c is 278 Maple Ave.The City, State, and Postal Code on Line 1d, reads Anaheim, CA 92803Line 1e is blank CCCX is edited on the bottom left side of Line 2.The description and location of the property acquired on Line 2, reads as 827 Cypress Ave Reno, NV 89510.The Date of Transfer on Line 3, reads as 12/28/2023.Line 4 is blank.Line 5 Number of Forms attached is 1.Edited to the left of Part I is the number 1Line 6 has an amount of 1,000,000 which is underlined and has 15% edited to the right of the line.Line 7b has an amount of 150,000Line 8 has an amount of 150,000.

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Figure 3.21.261-5b

Editing Part IIThis figure illustrates the editing of the PART II number on a current Form 8288. This figure displays Part II of a current Form 8288. The DLN in the upper right corner of the return reads: 00140-009-00024-4The tax period 202312 is edited to the right of the title of Form 8288.Line 1a name is Pine Ash Advertising. The name control Pine is underlined in red.Line 1b TIN is 00-1234567.Line 1c address is 278 Maple Ave.Line 1d city, state, and ZIP is Anaheim, CA 92803.Line 1e is blank.Line 2 description and location of property, reads as 827 Cypress Ave Reno, NV 89510.Computer Condition Code Xis edited in the left margin at the bottom of Line 2.The received date stamp is 01-03-2024.Line 3 Date of Transfer is 12/28/2023.Line 5 Number of 8288-A or 8288-C attached is 1.Line 4 is blank.The number 2 Part number is edited in the left margin and to the left of the words Part II.Line 10 has the amount of 1,000,000 which is underlined and with 15% edited to the right of the amount.Line 11b has the amount of 150,000.Line 12 has the amount of 150,000.

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Figure 3.21.261-5c

Editing Part IIIThis figure illustrates the editing of the PART III number on a current Form 8288. This figure displays Part III of a current Form 8288. The DLN in the upper right corner of the return reads 00140-009-000-24-4.The tax period 202312 is edited to the right of the title of Form 8288.Line 1a name is Pine Ash Advertising. The name control Pine is underlined in red.Line 1b TIN is 00-1234567.Line 1c address is 278 Maple Ave.Line 1d city, state, and ZIP is Anaheim, CA 92803.Line 1e is blank.Line 2 description and location of property, reads as 827 Cypress Ave Reno, NV 89510.Computer Condition Code Xis edited in the left margin at the bottom of Line 2.Line 3 Date of Transfer is 12/28/2023.Line 4 is blank.Line 5 number of attached 8288-A or 8288-C is 1.Line 13 has the amount of $1,000,000 and is underlined and 10% edited to the right of the amount.Line 14 has the amount of $100,000.Line 15 has the amount of 100,000.The number 3 is edited in the left margin and to the left of Part III

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Figure 3.21.261-5d

Editing Part IVThis figure illustrates the editing of the PART IV number on a current Form 8288. This figure displays the top part of Form 8288 (lines 1-5) and Part IV of a current Form 8288. The DLN in the upper right corner of the return reads 00140-009-000-24-4.The tax period 202312 is edited to the right of the title of Form 8288.Line 1a name is Pine Ash Advertising. The name control Pine is underlined in red.Line 1b TIN is 00-1234567.Line 1c address is 278 Maple Ave.Line 1d city, state, and ZIP is Anaheim, CA 92803.Line 1e is blank.Line 2 description and location of property, reads as 827 Cypress Ave Reno, NV 89510.Computer Condition Code Xis edited in the left margin at the bottom of Line 2.Line 3 Date of Transfer is 12/28/2023.Line 4 Date of withholding certificate is 01/01/2023.Line 5 number of attached 8288-A or 8288-C is 1.Line 16a number of distributions is 1.Line 16b total amount of distributions is $10,000.Line 16c is blank.Line 17 Transferee’s liability is $100,000.Line 18 total amounts withheld is $10,000.The number 4 is edited in the left margin and to the left of Part IV

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A nine-character Taxpayer Identifying Number (TIN) must be included on Line 1b of all Form 8288 submitted for processing.

The valid characters are numeric (0-9).

The TIN may be either:

Check attachments and/or initiate research if the Taxpayer Identifying Number (TIN) provided is other than nine digits, missing, invalid, or indeterminate.

Circle out an invalid or illegible TIN.

If pending, applied for, etc. is indicated in the TIN area, research for the TIN.

If no TIN is found, edit CCC "U" and forward to Entity for research.

If multiple TINs are listed on Form 8288 Line 1b because of multiple transferees (buyers) also being listed, then research the first TIN on IDRS to identify the correct TIN for the first listed transferee. Subsequently, circle out the TINs and the names pertaining to the other transferees, leaving only the TIN number and name pertaining to the first listed transferee.

For filers other than individuals, the name control consists of the first four characters of the filer's (corporation, partnership, trust, etc.) name. See IRM 3.21.261.18.2 and Name Control Job Aid Document 7071 (IMF) or Document 7071A (BMF).

For individuals, the name control consists of the first four letters of the filers LAST name.

Valid characters are:

Do not include THE in the name control when "THE" is followed by more than one word.

Underline the name control.

If the incorrect transferee (buyer) appears on Form 8288, Line 1, see IRM 3.21.261.18.2 for specific instructions.

Address information for the Transferee (buyer) is provided on Line 1c and 1d.

Research return attachments to complete or perfect the information provided by the filer if it is incomplete or illegible. Valid characters are alpha (a-z) and numeric (0-9).

Refer to the following subsections to perfect the address:

This is a 10-position field for which an entry may or may not be present.

Valid characters are, "Numeric 0-9" , and "blank."

If present, underline the complete telephone number (include area code). A toll-free number is considered a valid number to underline.

This is a 35-position field (including blank spaces) for which an entry must be present.

Valid characters are Alpha (a-z), Numeric (0-9), Hyphen (-) and Slash (/).

Underline the description of the U.S. Real Property or transferred partnership interest appearing on Line 2. The description of the USRPI should appear in the format of a street address. Do not include the City, State and ZIP Code. See Figure 3.21.261-7.

Figure 3.21.261-7

Editing the USRPI or U. S. Real Property Description or Partnership InterestThis figure illustrates the editing of the U.S. real property or Partnership Interest description shown on, Line 2 of a current Form 8288. The description appears as 2920 Cedar Blvd., Buffalo, NY 14240 and it appears on Line 2. The property description is underlined in red.The DLN of the return appears in the upper right corner of the return reads: 00140-213-00022-4The tax period 202312 is edited and to the right of the title of Form 8288.Line 1a name is Acacia Inc. The name control Acac is underlined in red.Line 1b TIN is 00-1212121.Line 1c address is 1526 E Alder AveLine 1d City, State, and Postal Code on Line reads Atlanta, GA 30304.Line 2 Description and location of the U.S. real property interest acquired, transferred, or distributed, or description of transferred partnership interest. reads as Residential Property at 2920 Cedar Blvd., Buffalo NY 14240. The address 2920 Cedar Blvd is underlined in red.A received date is present with the date of 01092024.CCC X is edited in the margin on the left of Line 2 near on the bottom row.

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This is an eight-position field for which an entry must be present.

Valid characters are Numeric 0-9.

Edit in MMDDYYYY format. Editing is required on EVERY RETURN.

This is an eight-position field for which an entry must be present.

Valid characters are Numeric 0-9.

Edit in MMDDYYYY format.

When a withholding certificate (approved or rejected) is attached, the date on the withholding certificate letter will change the due date of the Form 8288 return from 20 days from the date of transfer to 20 days from the date of the withholding certificate.

The following table contains a list of withholding certificate letters.

Edit the reduced withholding and bypass indicator "1" when an "Approved" certificate is attached to Form 8288. See IRM 3.21.261.19.13 and IRM 3.21.261.19.16

The tax period for a Form 8288 is based on the Month and Year of the Date of Transfer, found on Line 3. See IRM 3.21.261.19.1.

The initial tax period being processed to the BMF under MFT 17 is tax period ending 12/31/2005. This tax period will be valid for any Form 8288 reflecting a Date of Transfer of 12/13/2005, or subsequent.

If the Date of Transfer is incorrect or missing on Line 3 or the DOT is a future date, then research the attached Form 8288-A, or other documents (settlement statement if present) for the date of transfer. If a withholding certificate is attached, research the withholding certificate information located in the Form 8288-B section of the INTLWebApps system for the original date of transfer and edit it to line 3 of Form 8288 and line 1 of Form 8288-A. Leave an action trail when the date of transfer is found using the INTLWebApps.

If the DOT or correct DOT cannot be found and you do not have a telephone number for the transferee (buyer), then correspond (CAS 3104C) with the transferee (buyer) (withholding agent) for the DOT. If a telephone number is found call the taxpayer for the DOT.

If Form 8288 and Form 8288-A show different dates of transfers, then "line through" the DOT on Form 8288-A and edit the DOT from Form 8288 above it.

This is a three-position field for which an entry must be present.

Valid characters are, Numeric 0-9. If the count is written in alpha characters, change it to a numeric number. Maximum number to enter is "999."

Always verify the entry on Line 5 by counting the attached Form 8288-A or Forms 8288-C.

This is a 12-position field for which an entry must be present on Line 6 (Part I), Line 10 (Part II), or Line 13 (Part I) of Form 8288. Only one entry is allowed in Line 6, Line 10, or Line 13.

Valid characters are Numeric 0-9.

The entry in Line 6, Line 10, or Line 13 cannot be a negative entry.

If Part I is completed, and there is an amount on Line 6 underline the amount on Line 6 and edit the correct percentage as listed below:

If Part II is completed, and there is an amount on Line 10, underline the amount on Line 10 and edit the correct percentage as listed below:

If Part III is completed, and there is an amount on Line 13, underline the amount on Line 13 and edit “10%” to the right of the amount on Line 13.

If Part I is completed, and Line 6 is blank, research the attached Form 8288-A or any other attachments for the amount realized. The amount realized can be found in box 3 of Form 8288-A, or the withholding certificate (if any). Edit this amount to Line 6 and underline it. Then edit the correct percentage as listed below:

If Part II is completed, and Line 10 is blank, research the attached Form 8288-A or any other attachments for the recognized gain or amount realized amount. The recognized gain is in box 2 and the amount realized in box 3 of Form 8288-A. Edit the gain amount or the amount realized to Line 10 and underline it. Then edit the correct percentage as listed below:

If Part III is completed, and Line 13 is blank, research the attached Form 8288-A or any other attachments for the amount realized. The amount realized can be found in box 3 of Form 8288-A. Edit the amount realized to Line 13. Underline the amount on Line 13 and edit “10%” to the right of the amount on Line 13.

If you are unable to locate the "Amount Realized or the Amount Subject to Withholding" on Form 8288 or Form 8288-A or any other attachments, edit CCC "U" and prepare correspondence action sheet Letter 3104C to correspond for the missing information.

If Part I, Part II, or Part III is completed, and Line 6, Line 10, or Line 13 do not match up with the amount realized in box 3 of Form 8288-A, research Form 8288, Form 8288-A, and attachments to determine the correct amounts. Edit the correct amounts on Form 8288 and Form 8288-A where needed. If you are unable to determine the correct "Amount Realized or the Amount Subject to Withholding" on Form 8288 or Form 8288-A or from any other attachments, edit CCC "U" and prepare correspondence action sheet Letter 3104C to correspond for the missing information.

If one or more foreign persons and one or more U.S. persons jointly transfer a USRPI and there is some indication either the amount realized or the amount withheld was not properly reported, you must determine the amount subject to withholding in the following manner.

This is a 12-position field for which an entry must be present on Line 7a or Line 7b of Part I, Line 11a, Line 11b, or Line 11c of Part II, or Line 14a of Part III on Form 8288. Only one entry is allowed in Line 7a or 7b , Line 11a, Line 11b, or Line 11c, or Line 14a.

Valid characters are Numeric 0-9.

The entry in Line 7a or Line 7b, Line 11a, Line 11b, or Line 11c, or Line 14a cannot be a negative entry.

If Line 6 has a value and Line 7a, 7b, and 7c are blank, research the attached Form 8288-A or any other attachments for the withholding tax liability. The withholding tax liability amount will generally equal the amount on Line 8 or box 4 of Form 8288-A, or the withholding certificate (if any). Edit this amount to Line 7a, 7b, or 7c.

If Line 10 has a value and Line 11a, Line 11b, Line 11c, and Line 11d are blank, research the attached Form 8288-A or any other attachments for the withholding tax liability. The withholding tax liability amount will generally equal the amount on Line 12 or box 4 of Form 8288-A, or the withholding certificate (if any). Edit this amount to Line 11a, 11b, 11c, or 11d.

If Line 13 has a value and Line 14a and Line 14b are blank, research the attached Form 8288-A or any other attachments for the withholding tax liability. The withholding tax liability amount will generally equal the amount on Line 14b or box 4 of Form 8288-A, or the withholding certificate (if any). Edit this amount to Line 14a or 14b.

If you are unable to locate the withholding tax liability on Form 8288 or Form 8288-A or any other attachments, edit CCC "U" and prepare correspondence action sheet Letter 3104C to correspond for the missing information.

If Part I, Part II, or Part III is completed, and Line 7a, 7b, or 7c, Line 11a, 11b, 11c, or 11d, or Line 14a or 14b do not match up with the federal income tax withheld in box 4 of Form 8288-A, research Form 8288, Form 8288-A, and attachments to determine these are the correct amounts. If they are not, edit the correct amounts to Form 8288 and Form 8288-A where needed, but only if you can determine without a doubt the amounts are correct.

If you are unable to determine the correct withholding tax liability or amount withheld on Form 8288 or Form 8288-A or from any other attachments, edit CCC "U" and prepare correspondence action sheet Letter 3104C to correspond for the missing information.

This is a one-position field for which an entry may or may not be present.

Valid characters are:

Follow the table below when an approved withholding certificate is attached to Form 8288 and Parts I, II or III were not filled out correctly:

Reduced Withholding when Form 8288 Part I is completed:

Reduced Withholding when Form 8288 Part II is completed:

Reduced Withholding when Form 8288 Part III is completed:

Only partnerships will fill out Part IV of Form 8288 and attach a Form 8288-C.

A partnership will submit a Form 8288 and Form 8288-C to report a distribution payment on behalf of the transferee (buyer). The partnership will continue making payments until the full 10 percent of the total amount realized plus any applicable interest paid.

Line 18 is the only line transcribed to ISRP in this part of the form.

Valid characters are Numeric 0-9.

A Form 8288-C must be attached when Part IV of Form 8288 is filled out. Follow the instructions in the table below:

This part of Form 8288 is not processed by Submission Processing. It is filled out by the transferee (buyer) to claim a refund on excess withholding reported on Part IV of Form 8288 by the partnership. The transferee (buyer) is still required to file a Form 8288, Part III to report the withholding tax on a partnership transfer. Ogden Accounts Management department will work these claims.

Follow the steps below when a Form 8288 with Part V is received.

This is a one-position field for which an entry may or may not be present.

The valid characters are 1 and Blank.

The BPI is edited in the outside right margin of Part I, Line 8, Part II, Line 12, or Part III, Line 15.

Definition:

Figure 3.21.261-8a

Usage of Bypass and Reduced Withholding Indicator - SubstantiatedThis figure illustrates the editing of current Form 8288 when a valid withholding certificate is attached. Completed Form 8288, Part II - Withholding Certificate attached.The DLN of the return appears in the upper right corner of the return. It reads as: 00140-059-00011-4The tax period 202309 is edited and to the right of the title of Form 8288.Form 8288 Line 1a name reads Alder, Birch and Elm Partners The name control Alde is underlined in red.Line 1b TIN is 00-2345678.Line 1c address is PO Box 1856.Line 1d City, State, and Postal Code is Atlanta, GA 30304.Line 1e is blank.Computer Condition Code Xis edited in the left margin at the bottom of Line 2.Line 2 Description and location of the U.S. real property interest acquired, transferred or distributed or description of transferred partnership interest reads: 126 Fir Ave Atlanta, GA 30304 126 Fir Ave. is underlined in red.A received date stamp is present with the date of 01092024.Line 3 Date of Transfer reads: 09242023Line 4 Date of withholding certificate is 12282023 and written in red.Line 5 Number of Forms 8288-A or 8288-C attached is: 1Edited to the left of Part II is the number 2.Line 10 Amount subject to withholding reads: $20,000.00 which is underlined with edited 15% to the right of the line.Line 11d checkbox is checked Line 11d Withholding at an adjusted amount is $1,000.00Line 12 Total Amount Withheld is $1,000.00.Bypass Indicator 1 is edited to the right outside margin of Part II, Line 12.A valid certificate is present with the words Internal Revenue Service on the left side. On the right side is a column that reads in the following order:Department of TreasuryDate of the Withholding Certificate: 12/28/2023Taxpayer Identification Number: 00-2345678Contact Person: Ash BirchContact Identification Number: 0007654321

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Figure 3.21.261-8b

No Withholding Certificate - Not SubstantiatedThe top part (a.k.a. Part I) of the figure illustrates the editing of a current Form 8288 when NO withholding certificate is attached. The DLN of the return appears in the upper right corner of the return. It reads as: 00140-015-00012-4A received date stamp is present with the date of 01102024The tax period 202312 is edited in red and to the right of the title of Form 8288.Line 1a name is Hemlock Inc. The name control Heml is underlined in red.Line 1b TIN is 00-7654321.Line 1c address is 5023 Elm St.Line 1d City, State, and Postal Code is Atlanta, GA 30304.Line 2 Description and location of the U.S. real property interest acquired, transferred or distributed or description of transferred partnership interest reads: Commercial Bldg. with land in Wilmington De. Commercial Bldg. is underlined in red.Computer Condition Code X is edited in the left margin at the bottom of Line 2.Line 3 Date of Transfer reads: 12/28/23 {The year 23 is circled in red and the full year is edited to the right to read as 2023.Line 4 Date of withholding certificate is 01-05-24. It is circled in red.Line 5 Number of Forms 8288-A attached reads: 1Edited to the left of the Part I is the number 1.Line 6 Amount subject to withholding is $20,000.00 which is underlined with edited 15% to the right of the line.Line 7c checkbox is checked and circled in red.Line 7c withholding at an adjusted amount is $100.00.Line 8 Amount Withheld is: 100.00Edited to the left of the Part II is the number 2.Line 10 amount subject to withholding is $20,000.00 which is underlined with edited 15% to the right of the line.Line 11d checkbox is checked and is circled in red.Line 11d withholding at an adjusted amount is $1,000.00.Line 12 amount withheld is $1000.00.This bottom part (a.k.a. Part II) of the figure illustrates the editing of Form 8288 claiming a Large Trust Election (LTE). A LTE must pay a 21 percent FIRPTA tax. Line 3 reads: Date of Transfer 12/28/23 {The year 23 is circled in red and the year is edited in its entirety to the right of the year to read as 2023.No Reduced withholding or Bypass Indicator is edited because the tax on Line 6 ($1000) is less than 21 percent of Line 5c, amount subject to withholding at 21 percent (20000) and no reduced withholding certificate is attached. Note: The entry of $20000 on Line 5d indicates ta withholding certificate should be attached, but since it isn't, the reduced withholding indicator is not edited and the amount is arrowed up to Line 5a since the LTE checkbox on Line 5e is marked.

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Figure 3.21.261-8c

Sample of a Reduced Withholding CertificateThis figure displays a sample of Letter 3310(SC/CG), Approved Reduced Withholding Certificate. The contents of the certificate are as follows: Printed in the upper left corner of the certificate are the words Internal Revenue Service.Printed in the upper right corner of the certificate is Department of the Treasury.Below it, is a line that reads, Date of the Withholding Certificate.Below the date is a line that reads Taxpayer Identification Number (TIN).Below the TIN number is the File Number.Below the file number appears the Contact Person name.Below contact person name is the contact identification number.Below the contact identification number is the contact telephone number and contact hours of the IRS employee.The certificate begins with the salutation, Dear.The first paragraph has three fill in fields. The first field is for the description of the USRPI being sold. The second field is for the name of the transferor (seller), and the third field is for the transferee (buyer) name. The first paragraph template reads:We received your Form 8288-B, Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests. This Form 8288-B is for the disposition of the U.S. real property interest described as [ ]. The transferor (seller) of the described property is [ ] and the transferee (buyer) is [ ].The second paragraph has two fill in fields. The first field is for the name of the transferor (seller), and the second field is for the reduced withholding tax amount the transferee (buyer) must pay. The second paragraph template reads:This letter is your approved withholding certificate and legal notification that the required withholding amount for [ ] tax liability for the disposition of the U.S. real property interest described above would exceed their maximum tax liability. Therefore, we reduced the required withholding to [$ ]. We also determined that substitution of the reduced withholding amount would not jeopardize the collection of the tax imposed on any gain reported from the disposition of the U.S. real property interest.The third paragraph is a reminder for the transferee (buyer) to file the return and remit the money. It reads:As a reminder, this withholding certificate doesn’t eliminate the requirement to file a United States income tax return to report this transaction.The last paragraph is the ending paragraph and it reads:If you have any questions, please call the contact person whose name, telephone number and hours appear above. If the number is outside your local calling area, there will be a long-distance charge to you. Or you may write to us at the address shown at the top of this letter.

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Only one line can contain an entry.

This is a 12-position field for which an entry must be present.

Valid characters are, Numeric 0-9.

The total tax line cannot be negative.

If Form 8288, Part I is completed then Line 7a must be 10 percent for dispositions prior to February 17, 2016 and certain post-February 16, 2016 dispositions (see IRM 3.21.261.1.1.1, first "Note" ) of Line 6, or 15 percent for dispositions after February 16, 2016 of the amount on Line 6, unless an approved withholding certificate is attached. An approved withholding certificate reduces the 10 or 15 percent tax to an amount less than 10 or 15 percent (including "0" ).

If the entry is incorrect or not legible, do the following:

If Form 8288, Part II is completed then Line 11a must be 10 percent of the amount on Line 10, Line 11b must be 15 percent of the amount on Line 10, or Line 11c must be 21 percent (35 percent for dispositions prior to January 1, 2018) of the amount of Line 10, unless an approved withholding certificate is attached (Line 11d is checked or C&E has checked Line 11d, or a significant entry greater than zero on older Forms 8288 revised before February 2017 is present). An approved withholding certificate reduces the 15 percent, 10 percent, or 21 percent (35 percent for dispositions prior to January 1, 2018) tax to an amount less than 15 percent, 10 percent, or 21 percent (35 percent for dispositions prior to January 1, 2018) (including "0" ).

FIRPTA Tax Discrepancy - Part II

If the entry is incorrect or not legible, do the following:

If Form 8288, Part III is completed then Line 14a must be 10 percent of Line 13, unless Line 14b is checked.

If the entry is incorrect or not legible, do the following:

This is a one-position field for which an entry may or may not be present.

No editing is necessary. ISRP will enter "1" if checkbox is checked on Line 9, Part II.

A signature (withholding agent/transferee (buyer), partner, fiduciary, or corporate officer) and jurat is required for all returns except the following:

Do not correspond for a signature on "CII" returns with a Form 13596, Reprocessing Returns, attached. See IRM 3.21.261.10.1 Correspondence Imaging Inventory (CII) Returns, for processing instructions.

If a signature is missing correspond:

Follow the instructions in paragraph (3) above, when the Entity information is the only thing present on the form, and there are no attachments containing tax data.

If the jurat is altered or stricken (crossed out), see IRM 3.21.261.9.6, Frivolous Arguments for frivolous return instructions. See Exhibit 3.21.261-6.

Accept a "signature declaration" (a signature with jurat obtained through IRS correspondence) if attached to the return.

Tax examiners are not handwriting experts. Section 301.6064-1 of the Regulations allows IRS to presume the signature on a return, statement or other document is the true signature of the person who signed the document.

Correspond one time for the signature. If you do not receive a reply after the prescribed suspense period, edit as follows:

A signature may or may not be present; do not correspond if not present.

Do not correspond for a missing signature on any return prepared by a Compliance function.

Do not question any signature on the return. Internal Revenue (IR) Regulations Section 301.6064-1 allows the Service to presume the signature on the return, statement or other document is the true signature of the person who signed the document.

A constructive signature (that is, a signature on an accompanying check, letter, etc.) is not acceptable unless the signature follows a perjury statement containing the same language as the jurat of the tax return.

ISRP will transcribe the entry. The Preparer Tax Identification Number (PTIN) is located to the right of the Preparer's Signature at the bottom of Form 8288.

A Preparer Tax Identification Number (PTIN) is a valid entry in the Preparer's PTIN area at the bottom of Form 8288. The PTIN is nine digits beginning with the alpha "P" (e.g., PXXXXXXXX) and followed by eight numbers.

Valid characters are numeric (0-9) and alpha "P" only.

If the entry in the PTIN area is an invalid number, or does not begin with a "P" , or is an SSN number, then circle-out the number.

The Preparer's EIN must be a nine-digit numeric number. The EIN is entered in NN-NNNNNNN format. The EIN cannot be all zeros or all nines.

Circle the EIN if all zeros or all nines.