AFFIDAVIT OF NON-FOREIGN STATUS
[This Affidavit should only be used in sale transactions being closed by escrow.]
Internal Revenue Code Section 1445[1] provides that under certain circumstances, a transferee (hereinafter “Buyer”)[2] of an interest in real property located in the United States (“U.S Property”) is legally responsible to deduct, withhold, and transmit to the IRS, the applicable tax imposed upon the transferor (hereinafter “Seller”) for said transfer, if the Seller is a “Foreign Person” as defined under Federal law. A lawyer or title company may agree to assume these responsibilities for Buyer.
Provided, however, if on or before closing of the transaction, Seller furnishes Buyer with an Affidavit, given under penalty of perjury: (1) Disclosing Seller’s Taxpayer Identification Number[3]; (2) Disclosing Seller’s home address; and, (3) Stating that as of the date of closing the transaction, Seller is not a foreign person, then the Buyer is not required to deduct, withhold, or transmit, said tax.
Seller, under penalty of perjury, hereby certifies the following to be true and correct:
1. Seller’s Taxpayer Identification Number is: __________________________
2. Seller’s home address is:
3. Seller is not a foreign person as defined under federal law.
This is an important and legally binding document upon which Buyer is relying. Before signing, Seller is encouraged to secure competent legal and/or tax counsel. Buyer, or authorized qualified substitute, must retain this Affidavit for not less than five (5) years.
Seller Signature:
Date:
Print Name:
Seller Signature:
Date:
Print Name:
To Be Completed by Escrow:
Seller: Buyer:
Address of Property:
Title Company: Order No.: Escrow No:
Escrow Officer:
[1] See, 26 U.S. Code §1445 (Withholding of tax on dispositions of United States real property interests)
[2] Note: Imposition of the tax applies to a “disposition” of the Real Property, which includes, but is not limited to a sale or exchange, liquidation, redemption, gift, transfers, etc.
[3] Social Security Number “SSN“; Employer Identification Number “EIN“; Individual Taxpayer Identification Number “ITIN“; Taxpayer Identification Number for Pending U.S. Adoptions “ATIN“; Preparer Taxpayer Identification Number “PTIN“.
