Question

Which provision of the purchase and sale agreement describes the circumstances under which the closing agent must withhold or not withhold taxes to pay to the Internal Revenue Service?

Answer 1

Answer:

seller Citizenship and FIRTPA

Explanation:

The provision that ultimately decides this would be the seller Citizenship and FIRTPA. This is because a percentage of every sale is taxed and must go to the Internal Revenue Service, but a closing agent is only responsible for withholding taxes from investors that do not have Citizenship in the US. This is because they are not in the system and do not have any responsibilities towards the US government.