Page 52 - Withholding Taxes for Foreign Entities

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
5. Applications for blanket withholding certifi- c. Date of transfer; 2000-35, available at IRS.gov/pub/irs-irbs/
cates, and d. Location and general description (if irb00-35.pdf.
There are four major types of security ac-
6. Applications on any other basis. an interest in real property); ceptable to the IRS. They are:
The applicant must make available to e. Class or type and amount of the inter- • Bond with surety or guarantor,
the IRS, within the time prescribed, all est in a U.S. real property holding cor- • Bond with collateral,
RECORDS information required to verify that rep- poration; and • Letter of credit, and
resentations relied upon in accepting the agree- f. Whether in the 3 preceding tax years • Guarantee (corporate transferors).
ment are accurate, and that the obligations as- (1) U.S. income tax returns were filed The IRS may, in unusual circumstances and
sumed by the applicant will be performed relating to the U.S. real property inter- at its discretion, accept any additional form of
pursuant to the agreement. Failure to provide est and, if so, when and where those security that it finds to be adequate.
requested information promptly usually will re- returns were filed and, if not, why re- For more information on acceptable security
sult in rejection of the application, unless the turns were not filed, and (2) U.S. in-
IRS grants an extension of the target date. come taxes were paid relating to the instruments, including sample forms of these in-
struments, see section 6 of Revenue Procedure
U.S. real property interest and, if so, 2000-35.
Categories (1), (2), and (3). Use Form the amount of tax paid.
8288-B to apply for a withholding certificate. 4. Provide full information concerning the ba- Category (5) applications. A blanket with-
Follow the instructions for the form. holding certificate may be issued if the trans-
sis for the issuance of the withholding cer- feror holding the U.S. real property interests
Categories (4), (5), and (6). Do not use Form tificate. Although the information to be in- provides an irrevocable letter of credit or a guar-
8288-B for applications under categories (4), cluded in this section of the application will antee and enters into a tax payment and secur-
(5), and (6). For these categories, follow the in- vary from case to case, the rules shown ity agreement with the IRS. A blanket withhold-
structions given here and under the specific cat- under the specific category provide gen- ing certificate excuses withholding concerning
egory. eral guidelines for the inclusion of appro- multiple dispositions of those property interests
All applications for withholding certificates priate information for that category. by the transferor or the transferor's legal repre-
must use the following format. The information The application must be signed by the indi- sentative during a period of no more than 12
must be provided in paragraphs labeled to cor- vidual, a responsible officer in the case of a cor- months.
respond with the numbers and letters set forth poration, a general partner in the case of a part- For more information, see section 9 of Reve-
below. If the information requested does not ap- nership, or a trustee, executor, or equivalent nue Procedure 2000-35.
ply, place “N/A” in the relevant space. fiduciary in the case of a trust or estate, or a
1. Information on the application category: duly authorized agent (with a copy of the power Category (6) applications. These are non-
of attorney, such as Form 2848, attached). The
standard applications and may be of the follow-
a. State which category (4, 5, or 6) de- person signing the application must verify under ing types.
scribes the application, penalties of perjury that all representations are
Agreement for payment of tax with non-
b. If a category (4) application: true, correct, and complete to that person's conforming security. An applicant seeking to
knowledge and belief. If the application is
i. State whether the proposed based in whole or in part on information provi- enter into an agreement for the payment of tax
agreement secures (A) the trans- ded by another party to the transaction, that in- but wanting to provide a nonconforming type of
feror's maximum tax liability, or formation must be supported by a written verifi- security must include the following in the appli-
(B) the amount that would other- cation signed under penalties of perjury by that cation.
wise have to be withheld; and party and attached to the application. 1. The information required for category (4)
ii. State whether the proposed Send applications to the: applications, discussed earlier.
agreement and security instru- 2. A description of the nonconforming secur-
ment conform to the standard for- Ogden Service Center ity proposed by the applicant.
mats. P.O. Box 409101
2. Information on the transferee or transferor: Ogden, UT 84409 3. A memorandum of law and facts establish-
ing that the proposed security is valid and
a. State the name, address, and TIN of enforceable and that it adequately pro-
the person applying for the withhold- Category (4) applications. If the application tects the government's interest.
ing certificate (if this person does not is based on an agreement for the payment of Other nonstandard applications. An ap-
have a TIN and is eligible for an ITIN, tax, the application must include: plication for a withholding certificate not previ-
he or she can apply for the ITIN by at- • Information establishing the transferor's ously described must explain in detail the pro-
taching the application to a completed maximum tax liability, or the amount that posed basis for the issuance of the certificate
Form W-7 and forwarding the pack- otherwise has to be withheld; and set forth the reasons justifying the issuance
age to the address given in the Form • A signed copy of the agreement proposed of a certificate on that basis.
W-7 instructions); by the applicant; and
b. State whether that person is the trans- • A copy of the security instrument proposed Amendments to Applications
by the applicant.
feree or transferor; and
Either the transferee or the transferor may
c. State the name, address, and TIN of enter into an agreement for the payment of tax. An applicant for a withholding certificate may
all other transferees and transferors of The agreement is a contract between the IRS amend an otherwise complete application by
the U.S. real property interest for and any other person and consists of two nec- sending an amending statement to the address
which the withholding certificate is essary elements. Those elements are: shown earlier in Withholding Certificates. There
sought. • A detailed description of the rights and ob- is no particular form required, but the amending
3. Information on the U.S. real property inter- ligations of each, and statement must provide the following informa-
tion.
est for which the withholding certificate is • A security instrument or other form of se- • The name, address, and TIN of the person
sought. State the: curity acceptable to the Commissioner or providing the amending statement specify-
a. Type of interest (such as interest in his delegate. ing whether that person is the transferee or
real property, in associated personal For more information on the agreement for transferor.
property, or in a domestic U.S. real the payment of tax, including a sample agree- • The date of the original application for a
property holding corporation); ment, see section 5 of Revenue Procedure withholding certificate that is being amen-
b. Contract price; ded.
Page 50 Publication 515 (2020)