We recently saw firsthand how an IRS error can create serious consequences years after a closing, even when everything was filed correctly.
Closing took place in July 2021.
We filed 8288-B before closing; the withholding certificate was issued in June 2022.
The sellerâs return was filed that same year, and their refund was issued.
All deadlines were met. All filings were correct.
Yet in September 2025, the buyerâs paychecks were levied and her promotion blocked. The IRS had entered the transaction under the wrong year, triggering collection action against someone who owed nothing.
This case is a reminder that the IRS makes mistakes, and that the stakes in FIRPTA compliance are too high to leave to chance.
Thatâs where we come in. As FIRPTA Fixers, we donât just prepare the filings, we safeguard them. We ensure deadlines, documentation, and representation are in place, so when the IRS gets it wrong, youâre protected.
The IRS makes mistakes. A CPA protects you when they do.
