Wholesaling a foreigner's property dealing with FIRPTA.
Hello BP Community,
I have a slight emergency with a property I am wholesaling. The seller is Canadian, and therefore he had to file for a Individual Tax Identification Number (ITIN) via 8288's and W-7 to satisfy the FIRPTA requirements with the IRS, which the seller filed today (11/30). The 8288 form was filled out with my name on it as the buyer, because technically I am for the until I assign the contract. I also got a cash offer today and called my title rep to inform her that I would be assigning today, but she informed me I could no longer assign the contract because the FIRPTA forms had already been submitted to the IRS with my name on it. She is saying that I will have to close on the property and re-sell it to my cash buyer a couple days later. There has got to be a way to get around this and just continue to assign the contract to my cash buyer and close on my original closing date of December 14th. My first idea is to have my seller go back to the IRS with a new 8288 with my cash buyers info and just amend his filing?
Any advice or experience is tremendously much appreciated. I will also be calling the IRS first thing in the morning to see what can be done, but you all know how it is dealing the IRS when it's anything above their pay grade.
Thank you all millions!
Billy Bell
Wholesale, Arizona, Tax Laws