NSCC PROPOSED RULE CHANGE FILING โ MODIFICATION TO THE RULES & PROCEDURES OF NATIONAL SECURITIES CLEARING CORPORATION IN CONNECTION WITH THE IMPLEMENTATION OF SECTION 1446(F) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (SR-NSCC-2021-009)
Under IRC section 1446(f), if the foreign partner has gain on the sale or exchange of a partnership interest, the purchaser/transferee of the partnership interest must withhold 10% of the amount realized on that sale or exchange, unless the transaction qualifies for a full or partial exception.
To meet the withholding, payment, and reporting requirements under IRC section 1446(f) for transfers of interests in partnerships other than PTPs, taxpayers must use Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests, and Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests,
I am going to be the first Ape to admit this is not my area of expertise. But my gut wonders if this is an angle to put people or entities on the IRS radar if they lie on these forms?
In the broader sense, and this is even more speculation, we know a criminal investigation is underway from the FOIA denial. Could the IRS be a part of that in a broader context as a way to 'get in' for prosecution, much like they were leveraged to bring down Al Capone?
