Each tax season, foreign sellers ask the same question:

“Can I get my FIRPTA withholding back?”

In many cases, the answer is yes, but only if the proper steps are taken after closing.

FIRPTA withholding paid at closing is rarely the final U.S. tax owed.

It is a prepayment toward the seller’s actual U.S. tax liability, which is determined when a U.S. tax return is filed.

To claim a refund of over withheld FIRPTA tax, a U.S. tax return must be filed, and that filing requires an Individual Taxpayer Identification Number (ITIN).

No ITIN = no refund.

Even if too much tax was withheld at closing, the IRS cannot issue a refund without a valid ITIN on file.

Because ITIN applications are processed separately from tax returns and can take several weeks or longer, waiting until the tax return is ready often results in significant refund delays.

As of 2026, the IRS has not changed FIRPTA or ITIN eligibility rules, but it has updated its internal processing procedures, including how FIRPTA returns and ITIN applications are reviewed, edited, and resolved. These procedural updates make timing, documentation, and accuracy even more important for foreign sellers expecting refunds.

At Foreign Tax CPA, we assist foreign sellers with ITIN applications, FIRPTA reporting, and U.S. tax return filings, all handled entirely in-house. We also communicate directly with the IRS when needed, helping sellers and referring professionals avoid unnecessary delays, rejections, and processing issues.

Tax season is the ideal time for foreign sellers and the real estate, title, and escrow professionals who support them, to review prior-year transactions, confirm ITIN status, and ensure FIRPTA refunds are not overlooked or delayed.