close
Share with your friends

IRS provides FAQ on certifications, periodic reviews for QI / WP / WT

IRS provides FAQ on certifications, periodic reviews fo

The IRS provided a new “frequently asked question” (FAQ) as guidance for qualified intermediary / withholding foreign partnership / withholding foreign trust (QI/WP/WT) entities with a certification date of 1 July 2019 and concerning when they can select the periodic review of their certification.

1000

Related content

The FAQ (added 20 March 2019) is available on the IRS website:
 

Q18. When is the deadline for QI/WP/WT entities, with a certification date of July 1, 2019, to select the periodic review year of their certification?

All QI/WP/WT entities with a certification due date of July 1, 2019, which includes entities with an effective date later than 1/1/2015 and earlier than 1/2/2016, must select the periodic review year of their certification period by July 1, 2019.  This includes those entities selecting 2018 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 2016 for its periodic review year, complete Parts I, II, and III of the certification and submit its waiver application by July 1, 2019.  However, 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, if the entity wants to select a year other than 2016 as its periodic review 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 consult Publication 5262, Qualified Intermediary, Withholding Foreign Partnership, and Withholding Foreign Trust Application & Account Management User Guide before beginning their certification on the system to verify that their account login credentials are up to date and for login assistance, if needed.  QI/WP/WT entities should also consult the IRS FAQ homepage for Qualified Intermediaries, Withholding Foreign Partnerships, and Withholding Foreign Trusts under the heading Certifications and Periodic Reviews.

© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.KPMG International Cooperative (“KPMG International”) is a Swiss entity.

Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. 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 KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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.

Connect with us

 

Want to do business with KPMG?

 

Request for proposal