With the exception of the taxpayer identification number, the real estate reporting rules are no different for foreign sellers than for non-foreign sellers.
A foreign seller may have a social security number or an employer's identification number already assigned. If so, that is the number to be used for Form 1099-S.
A foreign sellers who is an individual should apply for an Individual Taxpayer Identification Number (ITIN) on Form W-7. The ITIN is to be used solely for tax purposes and is not to be used for employment or immigration purposes.
Please click here to view the Form W-7 and the accompanying instructions. (32K Adobe PDF)
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If the foreign seller does not have a taxpayer identification number or an ITIN has not been received at the time the input sheet is completed, write the word "foreign" in the box reserved for the seller's taxpayer identification number.
The foreign seller may be subject to FIRPTA withholding requirements or applicable State FIRPTA withholding laws. However, FIRTPA withholding and 1099-S reporting are independent of each other.
All foreign sellers are subject to real estate reporting regardless of FIRPTA withholding unless they are exempt under the 10990-S reporting exceptions.
How to Fill Out the Input Sheet
Who is Subject to the Reporting Requirements
Which Transactions are Subject to the Reporting Requirement
Sales of Principal Residences
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