For those title companies, escrow companies, and other settlement agents that don’t have it yet, here is the IRS’s official new version of the Certificate of Nonforeign Status for an entity seller. This is what a seller signs if he/she/it doesn’t want the 10 percent withholding.

CERTIFICATE OF NONFOREIGN STATUS—ENTITY SELLER

“Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. For U.S. tax purposes (including section 1445), the owner of a disregarded entity (which has legal title to a U.S. real property interest under local law) will be the transferor of the property and not the disregarded entity. To inform the transferee that withholding of tax is not required upon the disposition of a U.S. real property interest by [name of transferor], the undersigned hereby certifies the following on behalf of [name of the transferor]:

1. [Name of transferor] is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax
Regulations);

2. [Name of transferor] is not a disregarded entity as defined in section 1.1445-2(b)(2)(iii);

3. [Name of transferor]’s U.S. employer identification number is
_________; and

4. [Name of transferor]’s office address is ___________________.

[Name of transferor] understands that this certification may be disclosed to the Internal Revenue Service by transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.

Under penalties of perjury, I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete, and I further declare that I have authority to sign this document on behalf of [name of transferor].

[Signature(s) and date]

[Title(s)]”