FIRPTA Certificate of Non-Foreign Status - Entity
Definition and meaning
The FIRPTA Certificate of Non-Foreign Status - Entity is a legal document designed for entities involved in the sale or transfer of U.S. real property. FIRPTA, which stands for the Foreign Investment in Real Property Tax Act, requires the buyer to withhold tax if the seller is a foreign entity. This certificate certifies that the seller is not classified as a foreign entity, thereby exempting the buyer from the withholding requirement.
How to complete a form
Completing the FIRPTA Certificate of Non-Foreign Status involves several key steps:
- Provide the name of the seller entity.
- Declare that the seller is not foreign as defined by the IRS, including confirming it is not a foreign corporation or partnership.
- Fill in the seller's U.S. Employer Identification Number (EIN).
- Include the seller's office address.
- Sign and date the form, confirming the information is accurate and complete.
Who should use this form
This form is essential for U.S. entities selling real property interests. If you are a corporation, partnership, or other entity involved in such a transaction, and you do not qualify as a foreign seller, you should complete this form. It provides the buyer with the necessary assurance that tax withholding is not required.
Key components of the form
The primary components of the FIRPTA Certificate of Non-Foreign Status - Entity include:
- Seller's name and entity type.
- Certification that the seller is not a foreign entity.
- Seller’s U.S. EIN.
- Seller’s business address.
- Signature of an authorized representative of the seller.
Legal use and context
The FIRPTA Certificate is used as a legal safeguard in real estate transactions involving U.S. entities. By certifying non-foreign status, sellers protect buyers from potential tax liabilities related to withholding requirements. This document must be presented at the time of closing to ensure compliance with IRS regulations.
Common mistakes to avoid when using this form
When completing the FIRPTA Certificate, avoid the following mistakes:
- Failing to include the seller's EIN.
- Incorrectly stating the entity’s status as foreign or non-foreign.
- Not having the certificate signed by an authorized representative.
- Submitting an incomplete form, which can delay the transaction.
Form popularity
FAQ
The purpose of this Certification is to notify Buyer of Seller's/Sellers' status under FIRPTA (Section 1445 of the Internal Revenue Code) with regard to a prospective real estate transaction involving the Property identified below.
Certification of Non-Foreign Status means an affidavit, signed under penalty of perjury by an individual General Partner of the Company, by a responsible officer of a corporate General Partner of the Company (or of the Company, if the Company is a corporation), or by the trustee, executor, or equivalent fiduciary of
In most cases, the buyer (transferee) is the withholding agent. The transferee must find out if the transferor is a foreign person. If the transferor is a foreign person and the transferee fails to withhold, the transferee may be held liable for the tax.
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.
Your FIRPTA obligations as a buyer, seller or realtor If a buyer is purchasing a property from a foreign person or entity and FIRPTA applies, the buyer is required to complete the required forms (8288 and 8288-A) and submit the applicable withholding amount to the Internal Revenue Service.
?Seller Citizenship and FIRPTA. Seller shall execute a certification (NWMLS Form 22E or equivalent) under the Foreign Investment in Real Property Tax Act (?FIRPTA?) and provide the certification to the Closing Agent within 10 days of mutual acceptance.
Certification of nonforeign status. The transferor provides a certification of nonforeign status signed under penalties of perjury that states that the transferor is not a foreign person, and provides the transferor's name, TIN, and address.
What Is a FIRPTA Affidavit? A FIRPTA affidavit, also known as Affidavit of Non-Foreign Status, is a form a seller purchasing a U.S. property uses to certify under oath that they aren't a foreign citizen. The form includes the seller's name, U.S. taxpayer identification number and home address.
