REALTORS® want the Senate to pass H.R. 1677 or
companion legislation to help correct the problems associated with identity
theft and providing the sellers? social security number on Foreign
Investment in Real Property Tax Act (FIRPTA) affidavits that go to the
This fix would allow for smoother transactions for the
buyer/seller and tax collection for the IRS.
This fix would not alter the intent of FIRPTA.
Minimal costs or loss of revenue with this fix.
This fix would be taking a preemptive measure to help combat
the problem of identity theft.
The current program unfairly puts burden on the buyer.
If a seller is fearful of identity theft and does not properly fill
out the form with his taxpayer identification number, then the
buyer is responsible for this mistake. This fix would
eliminate the fear of identity theft, therefore putting the burden
back on the seller to provide his taxpayer identification
Over the past several years as identity theft has become more of a
concern for everyone, sellers have grown increasingly uneasy with providing
their taxpayer identification numbers. The concern has become so
great that some sellers are refusing to provide the required non-foreign
affidavit to the buyer or are providing an affidavit with the seller's
taxpayer identification number removed. This creates a dilemma for
buyers' who may be liable for the sellers' tax liability from the sale of
the real property if they do not receive a fully completed sellers'
On April 17, 2007 the House passed H.R. 1677, The Taxpayer Protection
Act by a vote of 407-7. Included in H.R. 1677 was the FIRPTA fix that
C.A.R. has been working on. C.A.R. has been working diligently with
NAR and House Ways & Means staff on getting a FIRPTA fix introduced
that would allow the seller to provide the non-foreign affidavit to a
settlement provider instead of the buyer. As you know, this has been
a long standing issue that has had trouble gaining traction in
Thanks to the help and efforts of Congressman Mike Thompson (D-CA),
C.A.R. was able to get language attached as an amendment to H.R.
1677. H.R. 1677 was voted out of the Ways & Means Committee on
March 28th with the FIRPTA amendment attached. H.R. 1677
was introduced by House Ways & Means Chairman Rangel (D-NY) and
Oversight Subcommittee Chairman Lewis (D-GA).
C.A.R. and NAR are still working on some minor changes to the
language. However, these changes will have to be in the Senate
version of the bill as H.R. 1677 was put on the House calendar under
suspension rules, which means no amendments were allowed.