Certificate of Non Foreign Status FIRPTA Affidavit

Section 1445 of the Internal Revenue Code (“IRC”) [a/k/a 26 C.F.R. § 1.1445 and/or Treas. Reg. § 1.1445] provides that the Buyer(s) (“Transferee(s)”) of a U.S. real property interest must withhold tax (a/k/a FIRPTA withholding) if the Seller(s) (“Transferor(s)”) are considered foreign persons for federal income tax purposes

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IRS FIRPTA liability exists for Buyers, Sellers & Agents if withholding is not properly withheld. Therefore, if they agree to accept a certificate of non foreign status to avoid the withholding, FIRPTA Refunds can provide a service to provide independent research and review of documentation in support of the Seller(s) substantiating their claim of non foreign status. 

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This service includes exercising due diligence and may involves, for example, authenticating the documentation provided, researching tax filings and transcripts. reviewing VISA type and dates, form I-94, Social Security Cards, proof of residency, W-2 and employment history stateside, verifying meeting substantial presence test or green card exceptions. 

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Depending on the results of the research and report, Buyers, Sellers & Agents may consider accepting the certificate and not withholding FIRPTA.

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