New FIRPTA EFTPS Rule: IRS Payments Must Be Electronic by 9:30:2025 – Image 2
icon September 18, 2025
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FIRPTA Withholding Certificate, Real Estate, Taxes

🚨 NEW IRS RULE ALERT — Effective September 30, 2025 🚨

Starting September 30, 2025, the IRS will require all FIRPTA withholding payments to be made electronically through EFTPS (Electronic Federal Tax Payment System). Paper checks will no longer be accepted for FIRPTA transactions.

In this video, we explain:

  • What FIRPTA is and who it applies to
  • How the new EFTPS requirement changes the process
  • Step-by-step on how to submit FIRPTA withholding payments online
  • What buyers, sellers, and real estate professionals must do before the deadline
  • How to avoid delays, rejections, and penalties under the new rule

Whether you are a foreign seller of U.S. real estate, a buyer withholding FIRPTA tax, or a closing agent, this update is critical to ensure compliance and avoid IRS issues.

📅 Deadline: September 30, 2025 — EFTPS will be mandatory.

📌 Resources Mentioned

📢 About Freedomtax Accounting

We are a licensed accounting firm certified by federal government to provide tax services to individuals and businesses in all 50 U.S. states, helping clients with tax planning, IRS compliance, bookkeeping, and FIRPTA withholding filings.

Subscribe to our channel for more updates on IRS rules, FIRPTA, and tax strategies for real estate transactions.

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⚠️ DISCLAIMER

This video is intended for education purposes and should not be taken as legal, financial or tax advice.  You should consult with a professional about your unique situation before acting on anything discussed in these videos.  Freedomtax Accounting and Multiservices Inc., Freedom Insurance Financial Inc., Freedom Realty Source Inc., and Freedom Immigration International Inc. are providing educational content to help small business owners and individuals become more aware of certain issues and topics, but it cannot give blanket advice to a broad audience.  Things are always changing, therefore, this channel may not contain the most up-to-date information.  Neither Freedomtax Accounting and Multiservices Inc., Freedom Insurance Financial Inc., Freedom Realty Source Inc., and Freedom Immigration International Inc. nor its members can be held liable for any use or misuse of this content.

TRANSCRIPTION

Starting September 30th, 2025, one small IRS rule is about to cause big headaches for foreign real estate sellers. And if you’re not ready, it could cost you thousands in penalties. Welcome to Freedom Group channel, your trusted source for clear answers on taxes, real estate, and more.

Freedom Group is made up of three companies that have served the community for over 20 years. We provide complete support for business and personal needs from taxes and accounting to insurance, financial planning, and real estate. If you’re a new business owner or handling a real estate deal involving a foreign seller, this video is a must-watch.

Let’s talk about what’s happening. Starting September 30th, 2025, the IRS will only accept FERPTA withholding payments electronically through the Electronic Federal Tax Payment System, or EFTPS. This change may seem like a modern upgrade, but it’s already causing problems.

In case you’re new to FERPTA, that’s the Foreign Investment in Real Property Tax Act. It requires up to 15% of the sales price of U.S. real estate sold by a foreigner to be withheld and sent into the IRS. That payment must now be made electronically through EFTPS.

No more checks and no more paper forms. And here’s where it gets tricky. EFTPS wasn’t designed for real estate deals, and especially not for foreign users.

Let’s break down the six biggest challenges you need to know about. Number one, PIN delays are already happening. To activate an EFTPS account, you need a special PIN, and the IRS sends it through regular U.S. mail.

They say it takes five to 10 business days, but in reality, it often takes much longer or never arrives at all. And without the PIN, you can’t make your payment. And if you’re late, the IRS adds penalties and interest.

No exceptions. Number two, a U.S. mailing address is required. Foreign sellers must have a U.S. mailing address to receive the PIN.

That means relying on attorneys, title agents, or even relatives, which introduces risks, delays, and miscommunication. It also complicates privacy and compliance, especially for non-resident sellers who aren’t familiar with the U.S. mailing systems. Number three, EFTPS enrollment is complicated.

This isn’t a simple signup. You’ll need a valid U.S. taxpayer identification number or ITIN, a U.S. address, and you’ll need to understand how to verify your identity using U.S. tax forms. Number four, the IRS deadlines are tight with no flexibility.

FERPTA requires the payment to be submitted within 20 days of the closing date. That’s a hard deadline, and the IRS has no leeway. So if you don’t have your EFTPS account fully set up in time, you’re out of luck.

The penalties hit immediately. Number five, limited IRS support for international users. Need help from the IRS? Good luck if you’re outside the U.S. Support is limited, slow, and not well-equipped to handle international address changes, PIN reissues, or non-U.S. identification issues.

We’ve seen cases where foreign sellers were left with no way to pay on time even though they tried to comply. And number six, navigation and language barriers. The EFTPS website isn’t exactly user-friendly, especially if you don’t speak fluent English or understand U.S. tax law.

There’s no international help desk, no multilingual support, and zero guidance for real estate-specific scenarios. So what can you do to protect yourself or your clients? Here’s our advice. Start early.

If you’re a foreign seller, open your EFTPS account before your property is even listed. Use a trusted U.S. mailing address, preferably one managed by a professional who understands FERPDA. Work with experienced professionals.

Title companies and agents may help, but ultimately, buyers and sellers are responsible for making sure the payment is made on time. Don’t wait until the closing date. The IRS clock starts ticking fast, and it doesn’t stop.

At Freedom Group, we’ve helped thousands of clients navigate complex U.S. tax law and real estate issues. If you’re buying or selling U.S. property as a foreign national or advising someone who is, let us help you stay compliant and avoid costly delays. Schedule a consultation with us today using the link in the description.

And while you’re here, don’t forget to like this video, subscribe, and turn on notifications so you never miss an important update. For more info on how FERPDA works or how to avoid common pitfalls in international real estate deals, check out our next video right here. We’ve linked it on the screen.

Go watch that next, and we’ll see you there. – End of Translation

SUMMARY

IRS Rule Change Explained

Beginning September 30, 2025, the IRS will only accept FIRPTA withholding payments electronically through the Electronic Federal Tax Payment System (EFTPS). No more checks, no more paper forms. This may sound like a modernization step, but for foreign real estate sellers, it’s a rule packed with red tape.

Fact: FIRPTA (Foreign Investment in Real Property Tax Act) requires up to 15% of the sales price of U.S. property sold by a foreign person to be withheld and paid to the IRS. Now, that payment must flow through EFTPS.

Six Challenges Foreign Sellers Face

  1. PIN Delays – EFTPS requires a mailed PIN, often delayed for weeks or lost completely. Without it, no payment can be made.
  2. U.S. Mailing Address Required – Foreign sellers must rely on U.S. attorneys, agents, or relatives to receive PIN mail, risking delays and privacy issues.
  3. Complicated Enrollment – Registration demands a U.S. address, ITIN, and tax identity verification. It’s far from simple.
  4. Tight Deadlines – FIRPTA payments must be submitted within 20 days of closing—no extensions, no exceptions.
  5. Poor IRS Support – International users often struggle to get help with PIN reissues or address changes. Many miss deadlines despite trying.
  6. Navigation and Language Barriers – EFTPS isn’t user-friendly, and it lacks multilingual support or real estate-specific guidance.

How to Protect Yourself or Your Clients

Foreign sellers need to start early. The IRS isn’t forgiving about late payments. Here’s what you can do:

  • Set up EFTPS before listing your property.
  • Use a trusted U.S. mailing address, ideally handled by professionals.
  • Work with experts who understand both FIRPTA and IRS deadlines.
  • Don’t wait until closing—once the deal closes, the 20-day countdown begins.

Why Work with FREEDOMTAX ACCOUNTING

For over 20 years, FREEDOMTAX ACCOUNTING has guided thousands of clients through complex U.S. tax law and international real estate transactions. Our team knows the pitfalls foreign sellers face under FIRPTA and how to avoid penalties.

We provide complete support for taxes, insurance, and real estate compliance. If you’re buying or selling U.S. property as a foreign national—or advising someone who is—schedule a consultation today. Don’t risk costly delays or IRS fines.

Learn More

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About FREEDOMTAX ACCOUNTING

For more than two decades, FREEDOMTAX ACCOUNTING has helped individuals and businesses handle tax compliance, accounting, insurance, and real estate challenges with clarity and professionalism. We are more than a tax firm—we are your partners in navigating complex financial systems with confidence and peace of mind.

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