Original Message:
BEWARE: Buying A U.S. Timeshare From A Foreign National Without An EIN (by Jon L.):
I recently wanted to buy a time share on Marco Island, FL. After paying the deposit, the closing papers included an I.R.S. form 8288. Unknown to me, the seller was a foreign national who didn't have a taxpayer ID (EIN). When that condition occurs, the I.R.S. makes the buyer responsible for the seller's taxes.
The title company finally tried to minimize the risk the buyer took on a transaction like this. I suppose most times the title company forwards the taxes to the I.R.S. But what an incredibly vulnerable position that puts the buyer in. If for whatever reason(clerical error), the title company doesn't forward the taxes to the I.R.S., they come after the buyer, not the title company, to immediately pay the taxes plus penalty, with a threat of imprisonment.
I refused to finalize this transaction, lost my deposit, and learned a lesson on buying real estate.
Hope you ask if the seller has a taxpayer ID number.
Jon