United States: Updated FAQs, certifications and periodic reviews (QI / WP / WT)

Updated FAQs 9 and 10 appear under the “Certifications and Periodic Reviews” topic.

Certifications and periodic reviews (QI / WP / WT)

The IRS today updated a set of “frequently asked questions” (FAQs) as qualified intermediary (QI), withholding foreign partnership (WP), and withholding foreign trust (WT) guidance regarding periodic review of certifications.

The updated FAQs 9 and 10 (text of which is reproduced below) appear under the “Certifications and Periodic Reviews” topic. Read the FAQs (updated 22 February 2022).
 

Q9. When is the deadline for QI/WP/WT entities, with a periodic certification due date of July 1, 2022, to select the periodic review year of their certification?

A9.  All QI/WP/WT entities with a periodic certification due date of July 1, 2022, which includes entities with an agreement effective date later than 1/1/2018 and earlier than 1/2/2019, must select the periodic review year of their certification period by July 1, 2022. This includes those entities selecting 2021 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 2019 for its periodic review year, complete Parts I, II, and III of the certification and submit its waiver application by July 1, 2022. 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 2019 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 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: 02-22-2022

 

Q10. What are the due dates for submitting  QI/WP/WT Periodic Certifications covering a 3 full calendar year certification period ending December 31, 2021?

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 2019 or 2020 for its periodic review and that has a certification period ending December 31, 2021 is July 1, 2022.

According to those same sections noted above, the certification due date for a QI/WP/WT that selected 2021 for its periodic review is December 31, 2022.

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 2019 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 2019 as its periodic review year. If the entity encounters difficulty selecting a year other than 2019, 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: 02-22-2022

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. 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. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.