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Certificate of Non Foreign Status FIRPTA Affidavit

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

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. 

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. 

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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