Screen a residential closing for federal withholding
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Record whether the file describes the transferor as a foreign person, and the price the contract states. Do not compute a withholding and do not apply a goods-and-services tax.
- What the lawyer must review
- You decide whether 26 U.S.C. § 1445 applies. Subsection (a) requires the transferee, except as the section otherwise provides, to deduct and withhold a tax equal to 15 percent of the amount realized on a disposition of a United States real property interest by a foreign person. Subsection (b)(5) applies where the transferee acquires the property for use as a residence and the amount realized does not exceed $300,000. Subsection (c)(4) substitutes 10 percent where the property is acquired for use as a residence, the amount realized does not exceed $1,000,000, and subsection (b)(5) does not apply. You read the other exceptions in subsection (b) before you apply subsection (a). The definition of foreign person was not opened as its own page. A goods-and-services withholding on new residential premises is not this section. The IRS page names Forms 8288 and 8288-A. You open the current form. The tool does not compute either tax.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Check the current court or regulator requirements, prescribed form and attachments for the intended document and filing.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.