Great question. When you sell property, real estate agents obtain a copy of your driver's license or passport. The purpose is to determine if they need to withhold taxes from the sale of the property under Foreign Investment in Real Property Tax Act of 1980 (FIRPTA).
If the seller is entitled to a refund, s/he must file a tax return showing the actual gain/loss.
See the link below for more details.
http://www.irs.gov/businesses/small/international/article/0,,id=105000,00.html<br><br>Post edited by: steve, at: 2008/03/05 01:04