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Texas Non-Foreign Affidavit Under IRC 1445

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NON-FOREIGN AFFIDAVIT UNDER
INTERNAL REVENUE CODE
SECTION 1445(b)(2)

STATE OF IDAHO )
COUNTY OF )

I/WE, , the "Seller(s)", being first duly sworn, state under penalties of perjury:

1. That I/WE am/are the Transferor(s) of the property located at , in the City of , County of , State of Idaho, and described as follows:

District
Section
Block
Township
Range
or Parcel Number

2. That my/our United States taxpayer identification number is/are:

Seller: Tax ID:
Address:
City State Zip
Seller: Tax ID:
Address:
City State Zip
Seller: Tax ID:
Address:
City State Zip
Seller: Tax ID:
Address:
City State Zip

3. That I/WE am/are not a "foreign person" as that term is defined in Section 1445(f) of the Internal Revenue Code.

This affidavit is given to , the "transferee(s) or Buyer(s)" of the property described in paragraph 1 above for the purpose of establishing and documenting the non-foreign affidavit exemption to the withholding requirement of Section 1445 of the Internal Revenue Code.

Seller
Date
Seller
Date
Seller
Date
Seller
Date

Sworn to and Subscribed before me this the day of , 20

My Commission Expires:

NOTARY PUBLIC

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What the Texas Non-Foreign Affidavit Under IRC 1445 Is

The Texas Non-Foreign Affidavit Under IRC 1445 is a sworn statement used in Texas real estate transfers to certify that the transferor is not a foreign person for purposes of withholding under Internal Revenue Code section 1445. The affidavit documents taxpayer identification, residency or citizenship status, and facts about the U.S. real property interest so the buyer or withholding agent can determine whether FIRPTA withholding is required. Closing agents and buyers commonly rely on the affidavit to justify withholding decisions and to support tax and closing-file retention.

Why this affidavit matters in Texas real estate closings

Completing an accurate non-foreign affidavit prevents automatic FIRPTA withholding when a seller qualifies as a U.S. person, documents the buyer's reliance under IRC §1445, and reduces the risk of post-closing withholding liability or IRS inquiry.

Why this affidavit matters in Texas real estate closings

Primary parties who prepare or rely on the affidavit

Typical users include title companies, closing agents, sellers, buyers, and tax professionals who handle withholding determinations.

  • Title companies and closing agents — gather and verify the affidavit to determine whether withholding applies.
  • Property sellers — provide their legal name, SSN or ITIN, and attest under penalty of perjury to non-foreign status.
  • Buyers and lenders — rely on a valid affidavit to avoid withholding and to document due diligence.

Who may sign and the role they play

Seller (Individual)

An individual seller attests to U.S. citizen or resident alien status, provides SSN or ITIN, full legal name, current mailing address, and signs under penalty of perjury; mismatched TINs can trigger backup withholding under IRC §3406.

Title Agent

A title or closing agent collects the affidavit, verifies identity documentation, records reliance details in the closing file, and retains the affidavit to support withholding choices and potential IRS inquiries.

Required information and essential fields

Seller name: Full legal name as on government ID
Taxpayer ID: SSN or ITIN; numeric format only
Property details: Legal description or address of property
Effective date: Date of transfer in MM/DD/YYYY format
Signature: Seller signature and date under penalty of perjury
Notary block: Notary acknowledgment when required

Penalties and risks for incorrect affidavits

Withholding liability: Buyer may be liable for tax not withheld
Information return penalties: IRC §6721 penalties may apply for incorrect returns
Intentional disregard: Higher penalties for intentional disregard of rules
Backup withholding: Incorrect TIN can trigger 24% backup withholding
Delay to closing: Incomplete affidavits can postpone settlement
IRS inquiry: Missing records increase audit and assessment risk

Common mistakes to avoid when preparing the affidavit

  • Using an informal printed template without required fields or a notary block can make the affidavit unacceptable to title companies and buyers.
  • Entering an incorrect or missing SSN/ITIN may trigger backup withholding or delay closing while the payer requests corrected documentation.
  • Failing to sign under penalty of perjury or omitting the date can invalidate the affidavit and leave the buyer exposed to withholding obligations.
  • Relying on an unsigned electronic copy without proper eSignature authentication or retention metadata can create enforceability and auditability issues.

Step-by-step: completing the Texas Non-Foreign Affidavit Under IRC 1445

Follow these steps to complete the affidavit accurately and preserve evidence for the withholding determination.

  • 01
    Gather IDs: Collect government-issued ID and proof of TIN documentation.
  • 02
    Complete fields: Enter legal names, TIN, property description, and effective date.
  • 03
    Sign and notarize: Sign under penalty of perjury before a notary if required.
  • 04
    Retain copy: Keep the original or certified copy in the closing file.

Where the affidavit goes and how it’s used

Understanding the routing and role of the affidavit helps buyers, sellers, and closing agents manage withholding and documentation responsibilities.

  • Provide to title: Deliver original affidavit to the title company at closing.
  • Buyer reliance: Buyer documents reliance to avoid FIRPTA withholding.
  • Record retention: Retain affidavit with closing and tax records.
  • IRS support: Affidavit supports position in an IRS inquiry.

Configuring an online workflow to collect and store the affidavit

Set up an online workflow to capture signatures securely, validate signer identity, store an audit trail, and apply retention metadata for closing and tax compliance.

Workflow field name and settings Configuration
Signature capture field (visible and required) Require handwritten or typed signature with timestamp
Tax ID input field (masked) Enforce numeric format and minimum length validation
Notary acknowledgement section Enable remote or in-person notarization options
Authentication and verification Use email plus SMS code or KBA for higher assurance

Digital signing, integrations, and technical prerequisites

Use a platform that supports secure eSignatures, audit trails, identity verification, and exportable signed PDFs for closing files.

  • File formats: PDF and DOCX supported for signed records
  • Integrations: Connectors include Salesforce, NetSuite, Google Workspace
  • Retention metadata: Attach tags for secure archiving and retrieval

Timing and filing expectations related to withholding and reporting

Provide and verify the affidavit at closing to reduce withholding obligations; reporting and remittance obligations are governed by IRS procedures.

Affidavit at closing:

Present the completed affidavit to the title company or buyer before or at closing

Buyer withholding decision:

Buyer uses affidavit to determine whether to withhold under IRC §1445

Reporting requirements:

Buyers or withholding agents follow IRS rules for reporting and remitting withheld tax

Recordkeeping:

Retain affidavit and supporting documents in the closing file for IRS review

Corrected documentation:

Promptly correct and replace affidavits if errors are discovered before final reporting

Key milestones in the affidavit and withholding lifecycle

A sequential view of milestones helps teams coordinate document collection and tax reporting at each stage of the transaction.

01

Pre-Closing Verification

Collect identity and TIN documentation before scheduling settlement.

02

Affidavit Execution

Seller signs affidavit under penalty of perjury; notarize if required.

03

Closing Delivery

Provide original affidavit to title company and buyer at closing.

04

Post-Closing Retention

Store signed affidavit in closing files and tax records for the retention period.

Real-world examples of affidavit usage in closings

These short examples show how organizations use affidavits to speed closings and document withholding decisions.

Martin Properties

Martin Properties used online affidavits to close remote residential sales without in-person document exchange.

  • Reduced turnaround time to meet closing deadlines.
  • I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently.

Optica Ventures LLC

Optica Ventures standardized affidavits across deals to ensure consistent withholding decisions.

  • Centralized collection improved review speed and reduced exceptions.
  • The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers.

eSignature vendor comparison for affidavit workflows

Basic vendor pricing and feature availability for eSignature platforms commonly used to collect affidavits and retain signed records.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Trial varies Trial varies Trial varies Trial varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently asked questions about the Texas Non-Foreign Affidavit Under IRC 1445

Answers to common questions about use, signing, notarization, and potential complications when collecting affidavits in Texas real estate transactions.


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