---
title: "FIRPTA withholding file note (United States)"
url: "https://ailawframework.com/precedents/residential-conveyancing-and-property/us-firpta-withholding-file-note"
type: "precedent"
site: "AI Law Framework"
id: "a9-us-firpta-withholding-file-note"
area_id: "A9"
kind: "memo"
ai_level: "yellow"
version: 1
task_ids: ["A9-T1-R1", "A9-T1-R8", "A9-A20260923-2"]
law_stated_as_at: "2026-10-22"
---

# FIRPTA withholding file note (United States)

> An internal note of the IRS page's 15 percent withholding when a foreign person disposes of a U.S. real property interest, including joint owners, a grantor trust, and the residence discussion.

Canonical page: https://ailawframework.com/precedents/residential-conveyancing-and-property/us-firpta-withholding-file-note  
Law stated as at: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Memo. An internal or advice memo.
- Practice area: [Residential Conveyancing & Property](https://ailawframework.com/precedents/residential-conveyancing-and-property.md)
- Jurisdictions: United States
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the authority it cites, for United States.

## When to use it

Use when a US purchase file needs a record of whether the buyer must withhold on a disposition by a foreign person. Do not use it as a tax return, as Form 8288, or as advice that an exception applies before the lawyer has completed the tests.

## Used for these tasks

- [Review the contract of sale and draft the buyer's issues report](https://ailawframework.com/practice/residential-conveyancing-and-property/review-the-contract-of-sale-and-draft-the-buyer-s-issues-report.md)
- [Build the pre-settlement checklist and adjustment worksheet](https://ailawframework.com/practice/residential-conveyancing-and-property/build-the-pre-settlement-checklist-and-adjustment-worksheet.md)
- [Compare the transfer and mortgage drafts to the contract names and title](https://ailawframework.com/practice/residential-conveyancing-and-property/compare-the-transfer-and-mortgage-drafts-to-the-contract-names-and-title.md)

## How AI may be used

A tool may insert the price, the owner names, and the citizenship statement from documents the lawyer has already put in the file.

**AI may:**

- Add the cash, other property, and liability lines once the lawyer has written the amounts
- Flag a joint-owner file in which one spouse is assigned 100 percent of the amount realized
- List which residence-test facts are still blank

**AI must not:**

- Must not state a withholding rate other than the 15 percent the IRS page states as the general rate
- Must not state the reduced percentage for the band between $300,000 and $1 million
- Must not prepare Form 8288, Form 8288-A, or Form 8288-B
- Must not tell the client the transaction is exempt

**The lawyer checks:**

- The seller's status as a foreign person is tied to a document, or marked unknown
- Joint sellers, including spouses, are allocated by the capital-contribution method the IRS page states
- Any residence exception is applied only after the lawyer has checked the dollar test and the 50 percent day test on the IRS page
- The note says section 1445 itself was not opened

## Authorities

- [Internal Revenue Service, FIRPTA withholding (page on withholding of tax on dispositions of U.S. real property interests)](https://www.irs.gov/individuals/international-taxpayers/firpta-withholding)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/residential-conveyancing-and-property/us-firpta-withholding-file-note and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*