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Millions of Dollars in Discrepancies in Tax Withholding Required by the Foreign Investment in Real Property Tax Act Are Not Being Identified or Addressed

Report Information

Date Issued
Report Number
2020-40-014
Report Type
Audit
Joint Report
Yes
Participating OIG
Treasury Inspector General for Tax Administration
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0
View Report

Recommendations

The Commissioner, Large Business and International Division, should develop a process to identify Forms 1099-S for which the buyer of U.S. property from a foreign individual did not file Form 8288 to report and pay FIRPTA withholding from the sale of the property.

The Commissioner, Large Business and International Division, should take actions to address the reporting and payment noncompliance of the buyers TIGTA identified that did not file Form 8288 or remit withholding reported on the 278 Forms 1099-S.