Sec. 1445 Withholding Increases to 15 Percent

IRS Updates Tax Rules for Foreigners Disposing of U.S. Property Interests
Bloomberg BNA

T.D. 9751, RIN 1545-BN22, 81 Fed. Reg. 8398 (Feb. 19, 2016):

IRS issues regulations updating withholding rate for foreign persons disposing of U.S. property interests. Discussion: The IRS issued regulations reflecting changes made by the Protecting Americans from Tax Hikes Act (PATH Act) (Pub. L. No. 114-113), related to the taxation of, and withholding on, foreign persons that dispose of U.S. real property interests. The final and temporary regulations increased the withholding rate under certain subsections of §1445 from 10% to 15%, to conform to the legislative changes. Prior to enactment of the PATH Act, the withholding rate under these subsections was 10% of either the amount realized or the fair market value of the property interest, as applicable. The new rate applies to dispositions after February 16, 2016. The regulations provide that certain filings described in §1445 should be mailed to the address specified in the instructions for Form 8288, under the heading “Where To File.”