Form 26-19

A purchaser of realty from a foreign individual or entity in the United States must withhold 10 percent of the sales price and forward it to the Internal Revenue Service within twenty days of the date of transfer. A purchaser should assume a seller is foreign unless the purchaser obtains an affidavit to the contrary. See 26 U.S.C. § 1445; 26 C.F.R. § 1.1445–2(b)(2)(iv). This form is used if the seller is not an individual. If the seller is an individual, see form 26-20 in this chapter. No particular form is required; the following language is taken from 26 C.F.R. § 1.1445–2(b)(2)(iv).

Declaration of Nonforeign Status—Entity

Date:

Transferor:

Transferor’s Office Address:

Transferor’s U.S. Taxpayer Identification Number:

Transferee:

Property:

Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. For U.S. tax purposes, including purposes of section 1445, the owner of a disregarded entity that has legal title to a U.S. real property interest under local law will be the transferor of the property and not the disregarded entity. To inform Transferee that withholding of tax is not required on the dispo­sition of a U.S. real property interest by Transferor, I certify on behalf of Transferor that the contents of this declaration are true.

Transferor is the owner of the Property described above.

Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations).

Transferor is not a disregarded entity as defined in Treasury Regulation
§ 1.1445–2(b)(2)(iii).

Transferor understands that this certification may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained in this declaration could be pun­ished by fine, imprisonment, or both.

Under penalties of perjury I declare that I have examined this declaration and to the best of my knowledge and belief it is true, correct, and complete, and I further declare that I have author­ity to sign this document on behalf of Transferor.

   
By:
Title:

Name of Entity: