I Consider It My Mission to Take Full Responsibility—All the Way to the End

When Japanese owners sell real estate in Hawaii, approximately 22.5% of the sale proceeds are withheld by the IRS and the Hawaii State Tax Office as federal and state taxes.

Recently, a couple who had owned their vacation home for many years sold it through me. Because I had thoroughly explained the process to them in Japanese before the sale, they weren’t surprised when only about 70% of the proceeds were immediately available in cash.

Since their property had never generated income, they didn’t have a Taxpayer Identification Number (ITIN) and had never filed a U.S. tax return. In preparation for the sale, I informed the escrow company of their situation and began working closely with a Japanese-speaking accountant to support them through the ITIN application process.

Because their ITINs had not yet been issued at the time of closing, we submitted Form 8288 to the IRS and Hawaii State Department with the status listed as “ITIN applied for.” In the following year, we filed a tax return through the accountant to claim their refund. By then, the ITINs had been issued, allowing the accountant to match the refund request with the original Form 8288 and complete the process.

For many Japanese sellers, this procedure can be time-consuming, and refunds are issued via paper checks, not through direct deposit into Japanese bank accounts. Typically, these checks are mailed to our office address for secure handling.

In the past, if the check was issued with “C/O Fogarty Realty Inc.” included, I could deposit it into our company account and transfer the funds to the owner in Japan. However, regulations have recently tightened, and this is no longer permitted. Still, owners can continue to use our office address as the mailing destination.

If the seller has a local bank account in Hawaii, I can assist by personally taking the check to their bank for deposit.

A Recent Case
Mr. and Mrs. O sold their property and received four refund checks:

$80,000 each from the IRS (approx. ¥12 million)
$38,000 each from the Hawaii State Tax Office (approx. ¥6 million)
The two checks for Mr. O were marked “C/O Fogarty Realty Inc.”, so I was able to deposit them and complete the overseas transfer to Japan.

However, Mrs. O’s $80,000 IRS refund check did not include the “C/O” line, which meant I could not deposit it. I sent it via registered, tracked, and insured mail at a cost of about $100. Unfortunately, the check went missing in Los Angeles. The tracking status was never updated, and USPS gave me the runaround—first directing me online, then to the phone. After persistent follow-up, I finally received a claim number, but a month passed with no resolution.

Then came Mrs. O’s $38,000 Hawaii state refund check—again, without “C/O Fogarty Realty Inc.” Fearing another mishap, I chose not to mail it. Fortunately, I had an upcoming trip to Japan. I declared the check at customs, carefully carried it with me, and once in Japan, sent it via registered domestic mail. Thanks to Japan’s efficiency, the check arrived in just two days, and since Mrs. O had an account with CITI Bank, it was successfully deposited.

As for the lost $80,000 check, I asked a trusted CPA to request a reissue. One month after submitting the proper paperwork, the check was reissued. This time, I shipped it by UPS (FedEx) for about $150, including a formal letter. I sent it off with fingers crossed—and four days later, it safely arrived in Japan.

I received the words from the Client
“I’ve never seen an agent go this far for their client.”

To be honest, I never imagined a check worth over ¥10 million could go missing in the mail. But this is what I do.Not just handling the sale— But seeing it through until every last dollar is safely in the client’s hands.
That’s my policy. And my commitment.

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