New Mexico Non-Foreign Affidavit Under IRC 1445
Overview of this form
The Non-Foreign Affidavit Under IRC 1445 is a legal document used by sellers of real property to confirm they are not foreign persons, as defined by the Internal Revenue Code. This affidavit serves to help the buyer avoid withholding taxes during the sale of the property, which is typically required for foreign sellers. By completing this form, sellers provide assurance regarding their identity, facilitating a smoother transaction process.
What’s included in this form
- Identification of the seller(s) including tax identification numbers.
- Description of the property being sold, including its address and legal description.
- A declaration of non-foreign status under the Internal Revenue Code.
- Details regarding to whom the affidavit is given, typically the buyer(s).
- Signature lines for the seller(s), along with a space for notarization.
Common use cases
This form is required when a seller of real property needs to prove to the buyer that they are not a foreign entity. It is often used in real estate transactions in the United States to comply with tax withholding regulations set forth in the Internal Revenue Code. If you are selling a property and want to avoid withholding taxes that would apply to foreign sellers, you should complete this affidavit.
Who needs this form
- Property sellers who are United States citizens or residents.
- Sellers looking to affirm their non-foreign status under IRS guidelines.
- Real estate professionals involved in transactions requiring proof of the seller's residency status.
Steps to complete this form
- Enter the names of the seller(s) and their tax identification numbers.
- Provide the complete address and legal description of the property being sold.
- Declare that the seller(s) is/are not a foreign person according to the Internal Revenue Code.
- Indicate the name of the buyer(s) who will receive the affidavit.
- All seller(s) should sign and date the form in the designated areas.
- Submit the form to a notary public for authentication.
Is notarization required?
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.
Mistakes to watch out for
- Failing to accurately fill in all seller and property information.
- Not providing the correct tax identification numbers.
- Omitting signatures or dates from the affidavit.
- Not getting the affidavit notarized before submitting it.
Why use this form online
- Convenient access to downloadable templates that can be filled out and customized.
- Easy editing features allow you to modify the form as needed.
- Reliable content drafted by licensed attorneys, ensuring compliance with legal requirements.
- Time-saving option to avoid lengthy paperwork processes.
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FAQ
What Is a Certification of Non-Foreign Status? With a Certification of Non-Foreign Status, the seller of real estate is certifying under penalty of perjury, that the seller is not foreign. Therefore, the seller and the transaction will not have the withholding requirements.
The disposition of a U.S. real property interest by a foreign person (the transferor) is subject to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) income tax withholding. FIRPTA authorized the United States to tax foreign persons on dispositions of U.S. real property interests.
FIRPTA Certificate: Certification of Non-Foreign Status - FIRPTA is the Foreign Investment in Real Property Act and Form 8288. It was developed to ensure that foreign sellers of U.S. property be subject to U.S. tax on the sale.
You or a member of your family must have definite plans to reside at the property for at least 50% of the number of days the property is used by any person during each of the first two 12-month periods following the date of transfer.
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%.
A: The buyer must agree to sign an affidavit stating that the purchase price is under $300,000 and the buyer intends to occupy. The buyer may choose not to sign the form, in which case withholding must be done.
The disposition of a U.S. real property interest by a foreign person (the transferor) is subject to income tax withholding (IRC section 1445). The transferee is the withholding agent.If the transferor is a foreign person and you fail to withhold, you may be held liable for the tax.
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).
