Document Updates: Rhode Island Notification to Buyers of Withholding Tax (Cx1028)

According to Rhode Island General Law §44-30-71.3 and 280 RICR 20-10-1.11, in a sale of real property and associated tangible personal property owned by a nonresident, the buyer is required to deduct and withhold on the payments an amount equal to six (6%) percent of the total payment to nonresident individuals, estates, partnerships, or trusts, and seven (7%) percent of the total payment to nonresident corporations. Our form Cx1028, Rhode Island Notification to Buyers of Withholding Tax, discloses this requirement in the closing package. We have updated the form to match the percentages as listed in the law, namely 6% for nonresident individuals, estates, partnerships, or trusts and 7% for nonresident corporations.

These changes to Cx1028 are available on Stage servers for testing and will take effect on December 5, 2023. If you have any questions or concerns about these changes, please contact Client Support at 1.800.496.3584.

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The preceding is for informational purposes only and is not and may not be construed as legal advice. No third party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.