The IRS has changed its procedure with respect to the withholding tax documentation on the sale of US real estate by non-US persons. (Often a withholding tax of 10% of the selling price applies at the time of sale).

Unless a US taxpayer number for the seller is provided on the documentation submitting the tax to the IRS, the IRS will send a somewhat alarming letter to the seller stating the IRS cannot issue a formal receipt for the tax. This may unnecessarily concern the seller, since proof of the tax payment is possible by other means.

Alternatively, any seller that does not have a US taxpayer number can apply for one with IRS Form W-7 that is submitted along with the tax.

The US House of Representatives has approved the repeal of US estate tax and the US Senate will take up the legislation when it reconvenes in September. Significant changes to present law are very likely.