Alaska Non-Foreign Affidavit Under IRC 1445
What this document covers
The Non-Foreign Affidavit Under IRC 1445 is a legal document used by sellers of real property to declare that they are not foreign persons under the Internal Revenue Code. This form is crucial for buyers and sellers to document compliance with tax withholding requirements when property is transferred.
Key components of this form
- Identification of the seller(s) and their roles as transferors of property.
- Detailed description of the property being sold, including its location and tax identification number.
- Affirmation that the seller(s) are not foreign persons as defined by Section 1445(f).
- Signatures of the seller(s) and the date of signing.
- Notary acknowledgment to verify the identity of the seller(s).
When to use this document
This form is used by sellers of real property to avoid tax withholding. If you are selling property and you are a non-foreign individual or entity, you need this affidavit to certify your status to the buyer to comply with Section 1445.
Who should use this form
- Individuals or entities selling real estate who are classified as non-foreign persons.
- Buyers who require documentation to eliminate withholding tax obligations.
- Real estate professionals assisting sellers and buyers in property transactions.
Steps to complete this form
- Identify all seller(s) and provide their full legal names.
- Describe the property being sold in detail, including its legal description and location.
- Enter each seller's taxpayer identification number and address.
- Declare your non-foreign status clearly in the affidavit section.
- Sign the document before a notary public and record the date of signing.
Notarization guidance
To make this form legally binding, it must be notarized. Our online notarization service, powered by Notarize, lets you verify and sign documents remotely through an encrypted video session.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes
- Failing to provide accurate taxpayer identification numbers for all sellers.
- Not describing the property sufficiently, which may lead to confusion.
- Forgetting to have the document notarized, making it invalid.
- Not updating the form if there are changes to the seller's status.
Benefits of completing this form online
- Convenience of accessing legal forms at any time, from anywhere.
- Ability to easily edit and customize the form to fit specific selling scenarios.
- Access to professionally drafted templates by licensed attorneys for reliability and compliance.
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FAQ
The address of the property being transferred (or sold) The seller or transferor's information: Full name. Telephone number. Address. Social Security Number, Federal Employer Identification Number, or California Corporation Number.
Rather, A buyer or other transferee of a U.S. real property interest, and a corporation, qualified investment entity, or fiduciary that is required to withhold tax, must file TIP Form 8288 to report and transmit the amount withheld. If two or more persons are joint transferees, each is obligated to withhold.
The IRS defines a foreign person as a nonresident alien individual, a foreign corporation not treated as a domestic corporation, or a foreign partnership, trust, or estate. A seller who is a U.S. citizen or a U.S. permanent resident (green card holder) is generally exempt from FIRPTA withholding.
The only other way to avoid FIRPTA is via a withholding certificate. If FIRPTA withholding exceeds the maximum tax liability realized on the sale of the real property, sellers can appeal to the IRS for a lower withholding amount.
FIRPTA withholding is required to be submitted to the IRS within 20 days of the closing together with IRS Form 8288, U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests, and Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property
This document, included in the seller's opening package, requests that the seller swears under penalty of perjury that they are not a non-resident alien for purposes of United States income taxation. A Seller unable to complete this affidavit may be subject to withholding up to 15%.
The Foreign Investment in Real Property Transfer Act (FIRPTA) requires any buyer of a U.S. real property interest to withhold ten percent of the amount realized by a foreign seller. 26 USC § 1445(a).
FIRPTA is a tax law that imposes U.S. income tax on foreign persons selling U.S. real estate. Under FIRPTA, if you buy U.S. real estate from a foreign person, you may be required to withhold 10% of the amount realized from the sale. The amount realized is normally the purchase price.
