Why is the FIRPTA Affidavit Form Essential for Real Estate Transactions?
The FIRPTA Affidavit Form is a legal document used to determine whether withholding tax applies when a foreign individual or entity sells U.S. real estate. It provides critical details about the seller's residency status, tax obligations, and any potential exemptions. The form is typically required by the IRS to ensure compliance with FIRPTA regulations, which are designed to prevent foreign sellers from avoiding tax liabilities on property sales.
