This Non-Foreign Affdavit Under Internal Revenue Code 1445 is for a seller of real property to sign stating that he or she is not a foreign person as defined by the Internal Revenue Code Section 26 USC 1445. This document must be signed and notarized.
Title: Understanding the Anaheim California Non-Foreign Affidavit Under IRC 1445: Types, Requirements, and Importance Introduction: The Anaheim California Non-Foreign Affidavit Under IRC 1445 is an essential document for individuals involved in real estate transactions within the city of Anaheim, California. By complying with this affidavit, buyers and sellers can ensure that all necessary tax requirements are met while avoiding any potential penalties or delays. Types of Anaheim California Non-Foreign Affidavit Under IRC 1445: There are two main types of non-foreign affidavits under IRC 1445 that may be applicable in Anaheim, California. These types are: 1. Non-Foreign Affidavit for U.S. Citizens and Resident Aliens: This affidavit is typically used when both the buyer and seller involved in a real estate transaction are U.S. citizens or residents. It verifies their taxpayer identification numbers (Tins), acknowledges their status as U.S. persons, and confirms their eligibility for exemption from the Foreign Investment in Real Property Tax Act (FIR PTA). 2. Non-Foreign Affidavit for Non-Resident Aliens: This type of affidavit is required when a non-resident alien is involved in a real estate transaction in Anaheim, California. It verifies the seller's foreign status, records their taxpayer identification number (TIN) or employer identification number (EIN), and confirms their eligibility for FIR PTA tax withholding. Requirements and Details: 1. Purpose of the Affidavit: The Anaheim California Non-Foreign Affidavit Under IRC 1445 serves the purpose of assisting in the proper withholding and payment of taxes associated with real estate transactions. It ensures compliance with the Internal Revenue Code (IRC) Section 1445, which establishes the regulations for the withholding of taxes on dispositions of U.S. real property interests by foreign persons. 2. FIR PTA Guidelines: The FIR PTA guidelines state that, in certain cases, the buyer of U.S. real property interests from a foreign person must withhold a portion of the total purchase price and remit it to the Internal Revenue Service (IRS) as an estimated payment of the foreign person's tax liability. The non-foreign affidavit helps determine if FIR PTA tax withholding is necessary or if an exemption applies. 3. Information Required in the Affidavit: The Anaheim California Non-Foreign Affidavit Under IRC 1445 typically includes the following information: a. Full legal names of the buyer(s) and seller(s) b. Social Security Numbers (SSNs) or individual taxpayer identification numbers (ITIN's) of the buyer(s) and seller(s) c. Statement confirming U.S. residency status or foreign status, as applicable d. Verification of the property address, sale price, and closing date Importance of Compliance: Complying with the Anaheim California Non-Foreign Affidavit Under IRC 1445 is crucial for both buyers and sellers involved in real estate transactions. Failure to submit the required affidavit or withholding the appropriate taxes can result in penalties, delays in closing, or potential legal ramifications. By carefully adhering to the affidavit guidelines, individuals can ensure a smooth transaction process while fulfilling their tax obligations. Conclusion: The Anaheim California Non-Foreign Affidavit Under IRC 1445 is a vital document necessary for real estate transactions involving U.S. citizens, resident aliens, or non-resident aliens in Anaheim, California. Whether you are a buyer or seller, complying with the specific requirements of the affidavit ensures proper tax withholding and enables a successful transfer of property ownership. Stay informed and seek guidance from legal professionals or tax advisors to navigate the process smoothly and avoid any potential issues.
