What we verified in “Taxes when you sell your home and FIRPTA withholding”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to the IRS, if you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 if you file a joint return with your spouse; if you receive an informational document such as Form 1099-S, you must report the sale even if the gain is excludable; and you must also report it if you cannot exclude all of the gain, using Schedule D and Form 8949.

   Sources 1 · Topic no. 701, Sale of your home (last reviewed Oct. 12, 2026): 'If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse'; 'you must report the sale of the home even if the gain from the sale is excludable'; 'Use Schedule D (Form 1040), Capital Gains and Losses and Form 8949, Sales and Other Dispositions of Capital Assets when required to report the home sale' · Checked October 29, 2026

2. According to the IRS, to qualify you must meet both the ownership test and the use test: you owned the home for at least 24 months (2 years) out of the last 5 years leading up to the date of sale, and you used it as a residence for at least 24 months of those 5 years; the two tests can be met during different 2-year periods, but both within the 5-year period ending on the date of sale; on a joint return, either spouse may meet the ownership test but both must meet the use test; generally you are not eligible if you excluded the gain from another home during the two years before the sale; and if you or your spouse are on qualified official extended duty in the Uniformed Services, the Foreign Service or the intelligence community, you may elect to suspend the five-year test period for up to 10 years.

   Sources 1 · Topic no. 701, 'Qualifying for the exclusion' and 'Suspension of the five-year test period': 'you must meet both the ownership test and the use test'; 'either you or your spouse must meet the ownership test while both you and your spouse must meet the use test individually'; 'owned the home for at least 24 months (2 years) out of the last 5 years leading up to the date of the sale, you meet the ownership test'; 'You can meet the ownership and use tests during different 2-year periods'; 'you must meet both tests during the 5-year period ending on the date of the sale'; 'not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home'; 'you may elect to suspend the five-year test period for up to 10 years' · Checked October 29, 2026

3. By statute, gross income does not include gain from the sale of property if, during the 5-year period ending on the date of sale, the taxpayer owned and used the property as a principal residence for periods aggregating 2 years or more; the excluded gain may not exceed $250,000 (with a $500,000 limitation for certain joint returns); and the exclusion applies to only one sale every 2 years.

   Sources 3 · 26 U.S.C. §121(a) and (b)(1)–(3): 'Gross income shall not include gain from the sale or exchange of property if, during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as the taxpayer'; 'principal residence for periods aggregating 2 years or more'; 'shall not exceed $250,000'; '$500,000 Limitation for certain joint returns'; 'Application to only 1 sale or exchange every 2 years' · Checked October 29, 2026

4. According to IRS Publication 523, the exclusion, whether maximum or partial, applies only to the sale of your principal residence, meaning your main home; an individual has only one main home at a time; if you own or live in more than one, a facts-and-circumstances test applies in which the most important factor is where you spend the most time, and the address on your federal and state tax returns also counts; and a single-family home, a condominium, a cooperative apartment, a mobile home and a houseboat each may be a main home.

   Sources 2 · Publication 523 (2025), 'Does Your Home Sale Qualify for the Exclusion of Gain?': 'You may take the exclusion, whether maximum or partial, only on the sale of a home that is your principal residence, meaning your main home'; 'An individual has only one main home at a time'; 'the most important factor is where you spend the most time'; 'Federal and state tax returns'; 'A single-family home, a condominium, a cooperative apartment, a mobile home, and a houseboat each may be a main home' · Checked October 29, 2026

5. According to Publication 523, the 24 months of residence (730 days) can fall anywhere within the 5-year period and do not have to be a single block of time; unlike the ownership requirement, on a joint return each spouse must meet the residence requirement individually to get the full exclusion; and the exclusion may be taken only once during a 2-year period.

   Sources 2 · Publication 523 (2025), 'Eligibility Step 3—Residence' and 'Eligibility Step 4—Look-Back': 'The 24 months of residence can fall anywhere within the 5-year period'; 'a total of 24 months (730 days) of residence during the 5-year period'; 'each spouse must meet the residence requirement individually for a married couple filing jointly to get the full exclusion'; 'You may take the exclusion only once during a 2-year period' · Checked October 29, 2026

6. According to Publication 523, if you do not meet the Eligibility Test you may still qualify for a partial exclusion if the main reason for the sale was a change in workplace location, a health issue or an unforeseeable event; a work-related move includes a new job in a work location at least 50 miles farther from the home than the old work location; and unforeseeable events include giving birth to two or more children from the same pregnancy, becoming eligible for unemployment compensation, and becoming unable to pay basic living expenses for the household because of a change in employment status.

   Sources 2 · Publication 523 (2025), 'Does Your Home Qualify for a Partial Exclusion of Gain?': 'You can meet the requirements for a partial exclusion if the main reason for your home sale was a change in workplace location, a health issue, or an unforeseeable event'; 'new job in a work location at least 50 miles farther from the home than your old work location'; 'Gave birth to two or more children from the same pregnancy'; 'Became eligible for unemployment compensation'; 'Became unable, because of a change in employment status, to pay basic living expenses for the household' · Checked October 29, 2026

7. According to Worksheet 1 of Publication 523, the partial exclusion is figured by taking the shortest of three periods (your time of residence in the 5 years before the sale, your time of ownership, or the time since the last sale on which you took the exclusion), dividing it by 730 if you count days or 24 if you count months, and multiplying the result by $250,000; on a joint return you repeat the steps for your spouse and add the two results.

   Sources 2 · Publication 523 (2025), 'Worksheet 1. Find Your Exclusion Limit', section B: 'Determine the shortest of the following 3 periods'; 'Take the smallest period from Step 1 (you may use days or months) and divide that number by 730 (if using days) or 24 (if using months)'; 'Multiply the result from Step 2 by $250,000. This is the amount of your reduced exclusion'; 'Repeat Steps 1–3 for your spouse and add the two results' · Checked October 29, 2026

8. According to Publication 523, if you are a surviving spouse who has not remarried at the time of sale, you may include any time your late spouse owned and lived in the home, even if without you, to meet the ownership and residence requirements; you may raise the exclusion from $250,000 to $500,000 if you meet all of these conditions: you sell within 2 years of your spouse's death, you have not remarried at the time of sale, neither of you took the exclusion on another home sold less than 2 years before, and you meet the 2-year ownership and residence requirements (counting your late spouse's time); and if the home was transferred to you by a spouse or ex-spouse, you count the time that person owned it as your own, but you must meet the residence requirement on your own.

   Sources 2 · Publication 523 (2025), 'Surviving spouses' and 'Separated or divorced taxpayers': 'you may include any time when your late spouse owned and lived in the home, even if without you, to meet the ownership and residence requirements'; 'You may take the higher exclusion if you meet all of the following conditions'; 'You sell your home within 2 years of the death of your spouse'; 'You haven't remarried at the time of the sale'; 'Neither you nor your late spouse took the exclusion on another home sold less than 2 years before the date of the current home sale'; 'You meet the 2-year ownership and residence requirements'; 'you can count any time when your spouse owned the home as time when you owned it. However, you must meet the residence requirement on your own' · Checked October 29, 2026

9. According to Publication 523, to figure gain or loss you need the selling price, the amount realized and the adjusted basis: subtract selling expenses (such as the commission you pay your agent) from the selling price to get the amount realized; subtract from that the adjusted basis, which starts with what you paid for the home and rises with the cost of additions and improvements, to get your gain or loss; if the number is negative you sold at a loss, which you cannot deduct, but you owe no tax on the money you received; and it is wise to keep basis records until 3 years after the due date of the return for the year you sold.

   Sources 2 · Publication 523 (2025), 'Figuring Gain or Loss', 'Worksheet 2' and 'Reporting Your Home Sale': 'you must know the selling price, the amount realized, and the adjusted basis. Subtract the adjusted basis from the amount realized to get your gain or loss'; 'A positive number indicates a gain; a negative number indicates a loss'; '(sale price minus selling expenses)'; 'Sales commissions (for example, payment to the seller'; 'You add the cost of additions and improvements to the basis of your property'; 'you sold your home at a loss'; 'need to pay any tax on the money you received from selling your home'; 'keep these records until 3 years after the due date for your tax return for the year in which you sold your home' · Checked October 29, 2026

10. According to Publication 523, you need to report the sale if you have taxable gain you cannot fully exclude, if you received a Form 1099-S (in which case you report it on Form 8949 even with no taxable gain) or if you choose to report the gain; if none of those three is true, you do not need to report the sale on your return; gain that cannot be excluded is reported on Form 8949 and Schedule D; if you have taxable gain, you may have to increase your withholding or make estimated tax payments; and a nonresident or resident alien without an SSN who is not eligible for one may be issued an ITIN, which is requested with Form W-7.

    Sources 2 · Publication 523 (2025), 'Reporting Gain or Loss on Your Home Sale': 'You have taxable gain on your home sale'; 'You received a Form 1099-S. If so, you must report the sale on Form 8949 even if you have no taxable gain to report'; 'If NONE of the three bullets above is true'; 'you must generally report it on Form 8949, Sales and Other Dispositions of Capital Assets, and Schedule D (Form 1040), Capital Gains and Losses'; 'you may have to increase your withholding or make estimated tax payments'; 'you may be issued an individual taxpayer identification number (ITIN)' · Checked October 29, 2026

11. According to the Instructions for Form 1099-S, the form is generally filed by the person responsible for closing the transaction, who is the person listed as the settlement agent on the Closing Disclosure; that person must request your taxpayer identification number (TIN) no later than closing, on Form W-9 for U.S. persons (including resident aliens); if they file the 1099-S, they must furnish you a statement; and they may skip filing on the sale of a residence for $250,000 or less ($500,000 if the certification says the seller is married) when the seller gives a written certification, signed under penalties of perjury, that the home is the seller's principal residence and that the full gain is excludable, although they are not required to obtain that certification.

    Sources 4 · Instructions for Form 1099-S (12/2026), 'Exceptions', 'Who Must File' and 'Statements to transferors': 'Generally, the person responsible for closing the transaction'; 'the person responsible for closing the transaction is the person listed as the settlement agent on that Closing Disclosure'; 'TIN no later than the time of closing'; 'you may request a TIN on Form W-9'; 'you must furnish a statement to the transferor'; 'Sale or exchange of a residence (including stock in a cooperative housing corporation) for $250,000 or less if you received an acceptable written assurance (certification) from the seller that such residence is the principal residence'; 'The certification must be signed by each seller under penalties of perjury'; 'You are not required to obtain the certification. However, if you do not obtain it, you must file and furnish Form 1099-S' · Checked October 29, 2026

12. By statute, the exclusion does not apply to the portion of the gain allocated to periods of nonqualified use: periods after January 1, 2009 during which the property was not the principal residence of the taxpayer or the taxpayer's spouse, with exceptions such as the part of the 5-year period that comes after the last date the property was used as the principal residence.

    Sources 3 · 26 U.S.C. §121(b)(5): 'Subsection (a) shall not apply to so much of the gain from the sale or exchange of property as is allocated to periods of nonqualified use'; 'preceding January 1, 2009'; 'during which the property is not used as the principal residence of the taxpayer'; 'which is after the last date that such property is used as the principal residence of the taxpayer' · Checked October 29, 2026

13. According to Publication 523, the exclusion does not apply to gain from depreciation adjustments attributable to periods after May 6, 1997, and if you did not deduct depreciation you must decrease your basis by the amount you could have deducted; if the part used for business or rental is within the home, such as a rented spare bedroom, you do not need to allocate gain between the business part and the part used as a home.

    Sources 2 · Publication 523 (2025), 'Determine any depreciation amounts you may need to recapture' and 'Property Used Partly for Business or Rental': 'apply to any gain from depreciation adjustments attributable to periods after May 6, 1997'; 'decrease your basis by the amount you could have deducted'; 'you do not need to allocate gain on the sale of the property between the business part of the property and the part used as a home'; 'a rented spare bedroom' · Checked October 29, 2026

14. According to the IRS's FIRPTA FAQs, the section 121 exclusion may apply to a nonresident alien who sells a U.S. personal residence; the NRA must meet the eligibility test; the maximum excludable gain on Form 1040-NR is $250,000; and because withholding on the amount realized could exceed the maximum tax on the sale, an NRA may request a withholding certificate from the IRS to provide to the buyer.

    Sources 7 · FIRPTA withholding (last reviewed Jul. 21, 2026), question 5: 'The exclusion of gain for the sale of a personal residence under IRC 121 may apply to NRAs when they sell their U.S. personal residence'; 'the maximum amount of excludable gain for NRAs that file Form 1040NR, U.S. Nonresident Alien, is $250,000'; 'NRAs would have to meet the eligibility test required for the exclusion'; 'an NRA may request a withholding certificate from the Internal Revenue Service to provide to the buyer' · Checked October 29, 2026

15. According to the IRS, if your debt is forgiven or discharged for less than the amount owed, in general the canceled amount is taxable and you must report it on your return for the year the cancellation occurred; for a debt secured by property, cancellation may occur due to foreclosure, voluntary transfer of the property to the lender, abandonment or a mortgage modification; the creditor may send you a Form 1099-C, and you should contact the creditor if it has incorrect information; if the creditor keeps trying to collect after the 1099-C, the debt may not have been canceled; the law provides exceptions in which the discharged amount is not considered canceled debt; and if you received a Form 1099-A (Acquisition or Abandonment of Secured Property), the IRS refers you to its Topic 432.

    Sources 5 · Topic no. 431, Canceled debt – Is it taxable or not? (last reviewed Sept. 24, 2026): 'In general, if your debt is canceled, forgiven, or discharged for less than the amount owed, the amount of the canceled debt is taxable'; 'you must report the canceled debt on your tax return for the year in which the cancellation occurred'; 'cancellation of the debt may occur due to foreclosure, repossession, voluntary transfer of the property to the lender, abandonment of the property, or a mortgage modification'; 'the creditor may send you a Form 1099-C'; 'Contact the creditor if you receive a 1099-C reflecting incorrect information'; 'the debt may not have been canceled and you may not have income from a canceled debt'; 'the law provides several exceptions in which the discharged amount is not considered canceled debt'; 'If you received a Form 1099-A, Acquisition or Abandonment of Secured Property , review Topic no. 432' · Checked October 29, 2026

16. According to IRS Publication 4681, qualified principal residence indebtedness is any mortgage you took out to buy, build or substantially improve your main home, secured by that home; such canceled debt could be excluded from income for discharges before January 1, 2026, up to a maximum of $750,000 ($375,000 if married filing separately), but it cannot be excluded for discharges completed or discharge agreements entered into after December 31, 2025; the insolvency exclusion applies to the extent the total of your liabilities exceeded the fair market value of all your assets immediately before the cancellation, and is claimed on Form 982 by checking the box on line 1b.

    Sources 6 · Publication 4681 (2025), 'What's New', 'Reminders', 'Qualified Principal Residence Indebtedness' and 'Insolvency': 'Qualified principal residence indebtedness is any mortgage you took out to buy, build, or substantially improve your main home. It must also be secured by your main home'; 'Qualified principal residence indebtedness can be excluded from income for discharges before January 1, 2026'; 'Qualified principal residence indebtedness cannot be excluded from income for discharges completed or discharge agreements entered into after December 31, 2025'; 'The maximum amount you can treat as qualified principal residence indebtedness is $750,000 ($375,000 if married filing separately)'; 'You were insolvent immediately before the cancellation to the extent that the total of all of your liabilities was more than the FMV of all of your assets immediately before the cancellation'; 'attach Form 982 to your federal income tax return and check the box on line 1b' · Checked October 29, 2026

17. According to Publication 523, if you went through a mortgage workout, foreclosure or other process in which a lender forgave or canceled mortgage debt on your home, you must generally report the forgiven amount as income on your return; but if you had a written agreement for the forgiveness of the debt in place before January 1, 2026, you may be able to exclude the forgiven amount from your income.

    Sources 2 · Publication 523 (2025), 'Report as ordinary income on Form 1040, 1040-SR, or 1040-NR applicable canceled or forgiven mortgage debt': 'If you went through a mortgage workout, foreclosure, or other process in which a lender forgave or canceled mortgage debt on your home, then you must generally report the amount of forgiven or canceled debt as income on your tax return'; 'if you had a written agreement for the forgiveness of the debt in place before January 1, 2026, then you may be able to exclude the forgiven amount from your income' · Checked October 29, 2026

18. According to Publication 523, if you financed the home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates) in the 9 years leading up to the sale, you may have to pay back (recapture) part of the benefit when you sell or transfer the home, by increasing your tax for the year of sale; you may owe this recapture tax even if you can exclude your gain; it is figured on Form 8828, which you must file whether you sold at a loss or a gain; and if you had a loss, you pay back none of the subsidy.

    Sources 2 · Publication 523 (2025), 'Paying Back Credits and Subsidies': 'Determine any amounts you may have received in federal mortgage subsidies in the 9 years leading up to the date of sale'; 'loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates'; 'You may have to pay this recapture tax even if you can exclude your gain from income'; 'you must file Form 8828 with your tax return whether you sold your home at a loss or a gain'; 'have to pay back any subsidy' · Checked October 29, 2026

19. According to the IRS, the disposition of a U.S. real property interest by a foreign person is subject to FIRPTA income tax withholding; persons buying from a foreign person, certain purchasers' agents and settlement officers are required to withhold 15% of the amount realized; in most cases the buyer is the withholding agent, must find out whether the seller is a foreign person and, if it fails to withhold, may be held liable for the tax; the amount realized is the sum of the cash paid, the fair market value of other property transferred and any liability assumed by the buyer or to which the property is subject; and if the property is owned by a foreign person and another person, the amount realized is allocated by each owner's capital contribution, spouses are treated as having contributed 50% each, and it cannot be allocated entirely to the U.S. spouse.

    Sources 7 · FIRPTA withholding (last reviewed Jul. 21, 2026), 'Withholding of tax on dispositions', 'Rates of withholding' and question 1: 'The disposition of a U.S. real property interest by a foreign person (the transferor) is subject to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) income tax withholding'; 'are required to withhold 15% (10% for dispositions before Feb. 17, 2016) of the amount realized on the disposition'; 'In most cases, the buyer (transferee) is the withholding agent. The transferee must find out if the transferor is a foreign person. If the transferor is a foreign person and the transferee fails to withhold, the transferee may be held liable for the tax'; 'The cash paid, or to be paid (principal only)'; 'The amount of any liability assumed by the transferee or to which the property is subject immediately before and after the transfer'; 'a husband and wife are treated as having contributed 50% each'; 'the amount realized cannot be allocated entirely to one transferor when two or more transferors own the USRPI' · Checked October 29, 2026

20. According to the IRS, for FIRPTA a foreign person is a nonresident alien individual, a foreign corporation that has not elected to be treated as a domestic corporation, a foreign partnership, a foreign trust or a foreign estate; it does not include a resident alien individual.

    Sources 8 · Definitions of terms and procedures unique to FIRPTA, 'Foreign person': 'A foreign person is a nonresident alien individual or foreign corporation that has not made an election under section 897(i) of the Internal Revenue Code to be treated as a domestic corporation, foreign partnership, foreign trust, or foreign estate. It does not include a resident alien individual' · Checked October 29, 2026

21. According to the IRS, FIRPTA withholding is generally not required, provided notification requirements are met, when the buyer acquires the property for use as a residence and the amount realized (sales price) is not more than $300,000, as long as the buyer or a family member has definite plans to reside there for at least 50% of the days the property is used during each of the first two 12-month periods, not counting days it is vacant, and the buyer is an individual; when the seller gives the buyer a certification, under penalties of perjury, that the seller is not a foreign person, with the seller's name, U.S. taxpayer identification number and home address; when the buyer receives a withholding certificate from the IRS that excuses withholding; or when the amount realized is zero; and a withholding agent is personally liable for the full amount of tax required to be withheld, plus penalties and interest.

    Sources 9 · Exceptions from FIRPTA withholding (last reviewed Jul. 15, 2026): 'The buyer (transferee) acquires the property for use as a residence and the amount realized (sales price) is not more than $300,000'; 'definite plans to reside at the property for at least 50% of the number of days the property is used by any person during each of the first two 12-month periods following the date of transfer'; 'do not count the days the property will be vacant'; 'the transferee must be an individual'; 'The seller (transferor) gives the transferee a certification stating, under penalties of perjury, that the transferor is not a foreign person'; 'U.S. taxpayer identification number, and home address'; 'The transferee receives a withholding certificate from the Internal Revenue Service that excuses withholding'; 'The amount the transferor realizes on the transfer of a U.S. real property interest is zero'; 'A Withholding Agent is personally liable for the full amount of FIRPTA withholding tax required to be withheld, plus penalties and interest' · Checked October 29, 2026

22. By statute, on the disposition of a U.S. real property interest by a foreign person, the transferee must deduct and withhold a tax equal to 15 percent of the amount realized; it does not apply if the transferor furnishes an affidavit, under penalty of perjury, stating the transferor's U.S. taxpayer identification number and that the transferor is not a foreign person, nor when the transferee acquires the property for use as a residence and the amount realized does not exceed $300,000; if the property is acquired as a residence and the amount realized does not exceed $1,000,000, the rate drops to 10 percent; and the withholding may not exceed the transferor's maximum tax liability, which the IRS determines at the request of the transferor or transferee.

    Sources 10 · 26 U.S.C. §1445(a), (b)(2), (b)(5), (c)(1) and (c)(4): 'the transferee shall be required to deduct and withhold a tax equal to 15 percent of the amount realized on the disposition'; 'United States taxpayer identification number and that the transferor is not a foreign person'; 'the property is acquired by the transferee for use by him as a residence'; 'the amount realized for the property does not exceed $300,000'; 'Reduced rate of withholding for residence where amount realized does not exceed $1,000,000'; 'shall not exceed the amount (if any) determined under subparagraph (B) as the transferor'; 'the Secretary shall determine, with respect to any disposition, the transferor' · Checked October 29, 2026

23. According to the IRS, the amount that must be withheld can be adjusted by a withholding certificate issued by the IRS; the buyer, the buyer's agent or the seller may request one; the IRS generally acts within 90 days after receipt of a complete application including the taxpayer identification numbers of all parties; a seller who applies must notify the buyer in writing, on the day of or the day before the transfer, that the certificate has been applied for; and it may be issued, for example, because the withholding would be more than the seller's maximum tax liability or because all gain is exempt from U.S. tax.

    Sources 11 · Withholding certificates (last reviewed Jul. 23, 2026): 'can be adjusted pursuant to a withholding certificate issued by the Internal Revenue Service (IRS)'; 'may request a withholding certificate'; 'within 90 days after receipt of a complete application including the Taxpayer Identification Numbers'; 'must notify the transferee in writing that the certificate has been applied for on the day of or the day prior to the transfer'; 'The amount that must be withheld would be more than the transferor'; 'The exemption from U.S. tax of all gain realized by the transferor' · Checked October 29, 2026

24. According to the IRS, the buyer reports and pays the withholding on Forms 8288 and 8288-A, generally by the 20th day after the date of the disposition; if an application for a withholding certificate (Form 8288-B) was submitted on or before the date of the disposition and is still pending, the tax must still be withheld, but it is reported and paid within 20 days after the IRS mails the certificate or notice of denial; the IRS stamps copy B of Form 8288-A and sends it to the seller, who must file a U.S. income tax return with that copy to receive credit for the tax withheld; the stamped copy is not provided if the form lacks the seller's TIN; and a seller without a TIN who is eligible for an ITIN can apply by attaching Form 8288-B to Form W-7.

    Sources 12 · Reporting and paying tax on U.S. real property interests, 'Form 8288', 'Form 8288-A' and 'Requirement for taxpayer identification numbers (TINs)': 'Generally, transferees must file Form 8288 by the 20th day after the date of the disposition'; 'the statutory withholding tax must be withheld, but does not have to be reported and paid immediately to the IRS'; 'must be reported and paid within 20 days following the day on which a copy of the withholding certificate or notice of denial is mailed to the transferee by the IRS'; 'The transferor must file a U.S. income tax return and attach the stamped Form 8288'; 'will not be provided to the transferor if the transferor'; 'you can apply for an ITIN by attaching the completed Form 8288-B to a completed Form W-7' · Checked October 29, 2026

25. According to the IRS's FIRPTA FAQs, a foreign person with no other valid reason cannot request an ITIN before entering into a contract to sell, and the IRS will deny such an application; as soon as there is a legally binding sales contract, the person may request it with Form W-7 under Exception 4; the IRS normally acts on a withholding certificate application within 90 days of receiving all necessary information; and if the ITIN is requested at the same time as the certificate, the ITIN request is processed within 10 days of receipt.

    Sources 7 · FIRPTA withholding (last reviewed Jul. 21, 2026), questions 12 and 13: 'the IRS will deny an application for an ITIN submitted prior to entering into a contract to dispose of a USRPI'; 'As soon as there is a legally binding contract for the sale of a USRPI, the foreign person/seller is eligible to request an ITIN by filing Form W-7 under Exception #4'; 'The IRS will normally act on a withholding certificate application within 90 days of receipt of all information necessary to make a proper determination'; 'the ITIN request is processed within 10 days of receipt' · Checked October 29, 2026

26. According to the IRS, the VITA and TCE programs offer free basic tax return preparation to qualified individuals; many sites serve people who generally make about $70,244 or less, people with disabilities and limited-English-speaking taxpayers, although each site may set its own limit; volunteer training includes maintaining the privacy and confidentiality of taxpayer information; and you find a site with the IRS locator tool or by calling 800-906-9887.

    Sources 13 · Free tax return preparation for qualifying taxpayers: 'offer free basic tax return preparation to qualified individuals'; 'People who generally make about'; '70,244 or less'; 'individual VITA sites may establish their own'; 'Limited English-speaking taxpayers'; 'This training includes maintaining the privacy and confidentiality of all taxpayer information'; 'use the VITA Locator Tool or call 800-906-9887' · Checked October 29, 2026

27. According to the IRS, Low Income Taxpayer Clinics (LITCs) assist low-income individuals who have a tax dispute with the IRS and provide education to people who speak English as a second language; they can represent you before the IRS or in court on audits, appeals and collection matters; services are free or for a small fee; and they are completely independent of the IRS.

    Sources 14 · Low Income Taxpayer Clinics (last reviewed Apr. 2, 2026): 'assist low income individuals who have a tax dispute with the IRS'; 'provide education and outreach to individuals who speak English as a second language (ESL)'; 'LITCs can represent you before the IRS or in court on audits, appeals, tax collection matters, and other tax disputes'; 'Services are provided for free or for a small fee'; 'completely independent of the IRS' · Checked October 29, 2026