On December 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes Act of 2015 or PATH Act, which will go into effect mid February (60 days after signing).

As a mechanism to ensure that the US Treasury Department collects tax revenues from non-US persons selling US real property, FIRPTA generally required the buyer of the subject US real property to withhold 10 percent of the purchase price and furnish this amount to the IRS as tax withheld. Accordingly, as a general matter, a non-US person who sold US real property historically received not more than 90 percent of the purchase price. The residual amount of the purchase price could be refunded upon the non-US person`s filing of a US tax return.