Tennessee Seller's Affidavit of Nonforeign Status

• Category: Federal - IRS
• State: Multi-State
• Control #: US-0604BG
• Format: Word; Rich Text

Description

Section 1445 of the Internal Revenue Code provides that a transferee of U.S. real property interest must withhold tax if the transferor is a foreign person. To inform the transferee that withholding of tax is not required is upon the disposition of a U.S. real property, this affidavit may be executed. The Tennessee Seller's Affidavit of Nonforeign Status is a legal document that sellers in Tennessee may be required to fill out during a real estate transaction. This affidavit serves as a declaration by the seller, affirming their non-foreign status for tax purposes in the United States. This document is important for the buyer, as well as for the Internal Revenue Service (IRS), to ensure compliance with federal tax laws. The Tennessee Seller's Affidavit of Nonforeign Status contains relevant details about the seller, property, and their tax status. It includes information such as the seller's full legal name, address, and social security number or Taxpayer Identification Number (TIN). The affidavit requires the seller to swear under penalty of perjury that they are not a foreign person as defined by the IRS. By providing this affidavit, the seller certifies that they are a U.S. citizen, U.S. resident alien, U.S. corporation, partnership, trust, or estate. It ensures that the buyer will not be responsible for withholding a certain portion of the purchase price in accordance with the Foreign Investment in Real Property Tax Act (FIR PTA). However, if the seller fails to provide the affidavit, the buyer may be required to withhold a specific percentage of the sales proceeds. While the main document is commonly referred to as the Tennessee Seller's Affidavit of Nonforeign Status, its variations may exist depending on the specific requirements of the real estate transaction. For example, some variations include an Affidavit of Nonforeign Status for LCS, partnerships, or trusts involved in the sale. These variations typically require additional information specific to the entity type. In conclusion, the Tennessee Seller's Affidavit of Nonforeign Status is a crucial document in real estate transactions within the state. It serves to confirm the seller's non-foreign status for tax purposes and ensures compliance with federal tax laws. By properly completing and submitting this affidavit, both the buyer and seller can proceed with the sale confidently, without the need for additional withholding of funds.

The Tennessee Seller's Affidavit of Nonforeign Status is a legal document that sellers in Tennessee may be required to fill out during a real estate transaction. This affidavit serves as a declaration by the seller, affirming their non-foreign status for tax purposes in the United States. This document is important for the buyer, as well as for the Internal Revenue Service (IRS), to ensure compliance with federal tax laws. The Tennessee Seller's Affidavit of Nonforeign Status contains relevant details about the seller, property, and their tax status. It includes information such as the seller's full legal name, address, and social security number or Taxpayer Identification Number (TIN). The affidavit requires the seller to swear under penalty of perjury that they are not a foreign person as defined by the IRS. By providing this affidavit, the seller certifies that they are a U.S. citizen, U.S. resident alien, U.S. corporation, partnership, trust, or estate. It ensures that the buyer will not be responsible for withholding a certain portion of the purchase price in accordance with the Foreign Investment in Real Property Tax Act (FIR PTA). However, if the seller fails to provide the affidavit, the buyer may be required to withhold a specific percentage of the sales proceeds. While the main document is commonly referred to as the Tennessee Seller's Affidavit of Nonforeign Status, its variations may exist depending on the specific requirements of the real estate transaction. For example, some variations include an Affidavit of Nonforeign Status for LCS, partnerships, or trusts involved in the sale. These variations typically require additional information specific to the entity type. In conclusion, the Tennessee Seller's Affidavit of Nonforeign Status is a crucial document in real estate transactions within the state. It serves to confirm the seller's non-foreign status for tax purposes and ensures compliance with federal tax laws. By properly completing and submitting this affidavit, both the buyer and seller can proceed with the sale confidently, without the need for additional withholding of funds.