FIRPTA Nightmare: 2 days away from deadline and Title Company refuses to pay IRS

[Sandra Kim]

Hi all,

Sold a vacation home in Florida, and as a non-US resident, 15% of sales proceeds were withheld by title company for FIRPTA. I hired an accounting firm specialized in FIRPTA to handle the forms and remittance and put them in touch with title, but after closing, title company sent them a check made out to the firm instead of IRS.

Title company claims accounting firm should cash check and pay IRS themselves. Accounting FIRM says this is illegal. Got a second opinion from a CPA, who said he never heard of a title company doing this before.

Title company now suggests using their partner firm who meet their requirement, but can't provided an explanation for why they can't cut the check to the IRS.

Parties have been going back and forth at this, and 18 days since sale. Talking to a lawyer soon, but any advice from the community is appreciated. Thanks!