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 an individual. If the seller is not an individual, see form 26-19 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—Individual
Date:
Transferor:
Transferor’s Home Address:
Transferor’s Social Security 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. To inform Transferee that withholding of tax is not required on my disposition of a U.S. real property interest, I affirm that the contents of this declaration are true.
I am not a nonresident alien for purposes of U.S. income taxation.
I understand that this certification may be disclosed to the Internal Revenue Service by Transferee and that any false statement I have made here 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.
[Name of transferor]
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Include acknowledgment if the declaration is to be recorded. |