House Ways & Means Members Seek FIRPTA Relief Through Regulatory Action
October 11, 2017
32 Republican and Democratic members of the House Ways and Means Committee sent a letter to Treasury Secretary Mnuchin on Oct. 11, 2017 urging Treasury to withdraw section two of IRS Notice 2007-5, which applies the Foreign Investment in Real Property Tax Act (FIRPTA) to certain liquidating distributions of a REIT. The Notice imposes a costly and unnecessary obstacle to foreign investment in U.S. commercial real estate.
The letter was led by Representatives Pat Tiberi (R-OH) and Joseph Crowley (D-NY), and was signed by 80 percent of the Ways and Means members. The broad, bipartisan support for FIRPTA relief, demonstrated by the Ways and Means letter, reflects the overwhelming consensus that has emerged around the need to remove outdated, discriminatory tax barriers to foreign investment in U.S. real estate.
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