United States: IRS updates FAQs on QI / WP / WT website, certifications and periodic reviews
The IRS updated FAQs on qualified intermediary (QI), withholding foreign partnership (WP), and withholding foreign trust (WT)
IRS updates FAQs on QI / WP / WT website, certifications and periodic reviews
The IRS updated the “frequently asked questions” (FAQs)—in particular FAQs Q9 and Q10—on the qualified intermediary (QI), withholding foreign partnership (WP), and withholding foreign trust (WT) FAQs website, under the heading “Certifications and Periodic Reviews.”
A9. All QI/WP/WT entities with a periodic certification due date of July 1, 2023, which includes entities with an agreement effective date later than 1/1/2019 and earlier than 1/2/2020, must select the periodic review year of their certification period by July 1, 2023. This includes those entities selecting 2022 as their periodic review year. This FAQ does not apply to termination certifications.
If a QI/WP/WT entity is applying for a waiver of the periodic review when making its periodic certification, it must select 2020 for its periodic review year, complete Parts I, II, and III of the certification and submit its waiver application by July 1, 2023. The entity will not be required to perform a periodic review if its waiver application is approved.
The IRS will notify the entity when a request for a waiver of the periodic review is approved or denied. If such request is denied with less than six months remaining before the certification due date, including any extensions, the entity will be granted a six-month extension from the date of denial of the waiver to complete the periodic review and resubmit the certification. At that time the entity may select a year other than 2020 as its periodic review year. If the entity encounters any issues modifying the year the entity should contact the FI Team at lbi.fi.qiwpissues@irs.gov. The resubmitted certification should include a completed Part IV and Part VI (if applicable).
QI/WP/WT entities should login to the QI system to verify their logon credentials are up to date before starting their certification. They should consult Publication 5262, Qualified Intermediary, Withholding Foreign Partnership, and Withholding Foreign Trust Application & Account Management User Guide [PDF 5.1 MB] for login assistance, if needed. QI/WP/WT entities should also reference additional FAQs under the heading Certifications and Periodic Reviews for answers to further questions.
Updated: 01-31-2023
A10. The certification due date depends on which year the QI/WP/WT selected for its periodic review, and whether the QI/WP/WT is applying for a waiver of the periodic review requirement with its periodic certification (waiver application). According to section 10.03 of the QI Agreement and section 8.03 of the WP Agreement and WT Agreement, the certification due date for a QI/WP/WT that selected 2020 or 2021 for its periodic review and that has a certification period ending December 31, 2022 is July 1, 2023.
According to those same sections noted above, the certification due date for a QI/WP/WT that selected 2022 for its periodic review is December 31, 2023.
QI/WP/WTs should also be aware that an entity applying for a waiver of the periodic review when making its periodic certification, must select 2020 for its periodic review year and complete Parts I, II, and III of the certifications. The entity will not be required to perform a periodic review if its waiver application is approved.
The IRS will notify the entity when a request for a waiver of the periodic review is approved or denied. If such request is denied with less than six months remaining before the certification due date, including any extensions, the entity will be granted a six-month extension from the date of denial of the waiver to complete the periodic review and resubmit the certification. At that time, the entity may select a year other than 2020 as its periodic review year. If the entity encounters difficulty selecting a year other than 2020, the entity should contact the FI Team at lbi.fi.qiwpissues@irs.gov. Following completion of the periodic review, the QI/WP/WT’s resubmitted certification should include a completed Part IV and Part VI (if applicable).
Updated: 01-31-2023
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