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If a property manager for a foreign investor fails to withhold 30% of the gross receipts and has not received a W-8ECI form from the investor, the manager may be liable for the withholding tax that should have been collected. The absence of the W-8ECI form means the manager cannot properly determine the investor's tax status, which could lead to penalties or interest for failing to comply with IRS regulations. It's crucial for the manager to address this issue promptly by either obtaining the necessary documentation or consulting a tax professional for guidance.

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2d ago

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