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DIRECTS, Helping Non-US Persons with Their US Tax Issues

At Domestic and International Real Estate Closing Tax Services (“DIRECTS”), we assist non-US persons and entities with their United States withholding and income tax obligations, largely stemming from the foreign person’s selling US real estate and earning rental income from US real estate.

For non- US persons/entities, we:

Obtain Individual Taxpayer ID Numbers (“ITIN’s”) and Employer ID Numbers (“EIN’s”); 

non-us persons and entities who earn income in the Us must obtain US tax ID number.

Prepare 8288-B/Withholding Certificates; 

for the speedy available refund on the withholding taxes imposed on non-US sellers of US real estate.

Prepare US and State Tax Returns;

foreign persons and entities earning income in the US must file US and state tax returns which DIRECTS can prepare.

Although We are Based in Palm Desert, California, We Regularly Assist Clients Throughout the Entire State of California, U.S. and Worldwide –  We regularly assist our foreign party clients, escrow companies, realtors and property managers, no matter where they are located. It is quite common for DIRECTS to work for clients who we have never had the pleasure of meeting in person.

The information you obtain at this site is not, nor is it intended to be, professional tax or legal advice.  You should consult a professional tax or legal advisor for advice regarding your individual situation. 

Who We Are

Opened in 2014 by a California tax attorney Michael W. Brooks, Domestic and International Real Estate Closing Tax Services (“DIRECTS”) is a tax preparation firm based in Palm Desert, California, focusing exclusively on the taxes owed by non-US persons and entities who sell or rent US real estate.  Both the IRS and the State of California (and many other states) require foreign persons and entities (“foreign parties”) selling or renting real estate to pay an amount directly into the IRS and the State at the time of sale or payment of rent. These required “up front” payments to the IRS/California at the time of sale or payment of rent are referred to as “withholding taxes”, but they are probably better thought of as security deposits.  At time of real estate sale, the IRS and California do not know if the foreign party owes any taxes (a tax will likely be owed if the foreign party sold or rented the U.S. real estate for a profit).  But if the foreign party does owe a tax, the IRS and the State do not want to be in the position of having to collect it from a foreign party living in a foreign country (the IRS would argue they have enough trouble collecting taxes from Americans in the U.S., how can they enforce collections of French citizens living in France?).  Foreign sellers of US Real Estate can apply for withholding certificates (IRS Form 8288-B) to obtain a release of the withholding tax (generally within 3 months of the sale), or wait well into the next calendar year to obtain a refund. 8288-B’s are an extremely valuable tool for foreign parties to receive their excess taxes back quickly. We also help foreign owners of US real estate who rent out the US real estate, and the property managers who oversee the US real estate, comply with the required US tax rules.

At DIRECTS, helping foreign parties (and escrow companies, realtors and property managers with foreign party clients) who sell and rent U.S. real state address the tax obstacles and compliance requirements imposed by the IRS, California and additional states is all we do, every day.

New Commentary

506, 2016

What is the 8288-B/ Withholding Certificate Process?

By |June 5th, 2016|Categories: 8288-B/Withholding Certificates|Comments Off on What is the 8288-B/ Withholding Certificate Process?

What is the 8288-B Process? By Michael W. Brooks Non- US sellers of US real estate are subject to a withholding tax at time of sale (either 15% or 10% of the gross sales price). [...]

1301, 2016

AN EXPLANATION OF 99.9% OF WHAT ANY ESCROW OFFICER NEEDS TO KNOW ABOUT THE 2016 CHANGE TO THE WITHHOLDING TAX LAW ON REAL ESTATE SALES BY NON-US PERSONS

By |January 13th, 2016|Categories: FIRPTA Withholding Taxes|Comments Off on AN EXPLANATION OF 99.9% OF WHAT ANY ESCROW OFFICER NEEDS TO KNOW ABOUT THE 2016 CHANGE TO THE WITHHOLDING TAX LAW ON REAL ESTATE SALES BY NON-US PERSONS

  Congress just enacted a significant change to the required withholding tax on sales of US real estate by non-US persons, effective on real estate sales closing on or after February 17, 2016. On December [...]

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Email us at info@directsllp.com or Call us at 760-346-6140 or 844-260-6140

(toll-free in US and Canada)
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