The IRS announced the launch of a new application and account management system for certain withholding entities that enter into agreement with the United States to uphold these obligations.
The system—Qualified Intermediary (QI), Withholding Foreign Partnership (WP), and Withholding Foreign Trust (WT) Application and Account Management System—will automate the IRS’s financial intermediary program. The IRS reports that the management system is a secure web-based platform for users to apply to become a QI, WP, or WT, renew or terminate an existing agreement, and manage their information online. The system will generate electronic notifications for changes to status, renewal reminders, and other updates; eliminating the need to contact the IRS directly in many instances.
Read the IRS release
Qualified intermediaries (QIs), withholding foreign partnerships (WPs), and withholding foreign trusts (WTs) are foreign entities that enter into agreements with IRS that outlines the entity’s withholding and reporting obligations under Chapters 3 of the Code and the requirements of the Foreign Account Tax Compliance Act (FATCA) with respect to certain U.S.-source income paid to the entity’s account holders, partners, and/or beneficiaries.
The IRS requires existing QIs, WPs, and WTs to renew their agreement by March 31, 2017. Agreement renewal occurs periodically, and is required based on changes to IRS regulations. Today’s IRS release states that the new system is a convenient way to submit and make updates to QI, WP, or WT application, renewal, and account information.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.