👋 Certificate of Non-Foreign Status FIRPTA Affidavit
(FIRPTA Affidavit)
Under Section 1445 of the Internal Revenue Code, buyers of U.S. real property must withhold FIRPTA tax when the seller is considered a foreign person.
A Certificate of Non-Foreign Status allows the seller to certify that they are not a foreign person, which — if properly relied upon — eliminates the FIRPTA withholding requirement.
⚠️ Why This Matters
FIRPTA liability can extend beyond the seller.
If withholding is not properly handled, buyers, closing agents, and other parties may be held responsible for the tax, along with penalties and interest.
👉 Accepting a Certificate of Non-Foreign Status without proper review can create significant risk.
🧠 Our Due Diligence Approach
FIRPTA Refunds provides independent review and verification services to help determine whether a Certificate of Non-Foreign Status can be reasonably relied upon.
This may include:
-
Authentication of supporting documentation
-
Review of prior tax filings and IRS transcripts
-
Analysis of visa status and entry/exit history (Form I-94)
-
Verification of Social Security number and employment history
-
Evaluation of U.S. residency status, including the substantial presence test
-
Review of green card status or applicable exceptions
👉 This is a fact-specific determination that requires careful analysis.
⚠️ Not a Routine Form
A Certificate of Non-Foreign Status is not simply a form to be signed and accepted.
It is a legal certification that must be supported by facts and documentation. Improper reliance can result in:
-
Failure to withhold required FIRPTA tax
-
IRS penalties and interest
-
Liability exposure for multiple parties in the transaction
🧾 How We Help
FIRPTA Refunds assists buyers, agents, and closing professionals by:
-
Performing independent due diligence
-
Identifying risk factors and documentation gaps
-
Providing informed guidance on whether reliance may be appropriate
-
Supporting proper documentation within the transaction
🔗 Related: Buyer’s Affidavit (BRUSA)
This affidavit is different from the Buyer’s Residential Use Affidavit (BRUSA), which relates to reduced withholding based on intended residential use.
👉 See FIRPTA Buyer’s Affidavit (BRUSA) for more information.
👉 Reduce Risk Before You Rely on an Affidavit
If you are considering accepting a Certificate of Non-Foreign Status, proper review is essential. A copy should be retained in the closing file as part of the permanent transaction record.