Qi Agreement Termination

All existing IQs must renew their qi agreements through the qi/WP/WT Application and Account Management System Portal portal by March 31, 2017 for their agreements to take effect on January 1, 2017. This portal will also be used by first-time applicants as QIs, including authorized entities applying for QDD and existing QIs that apply as QDD. A link to a system user manual (Publication 5262) effectively serves as a guide on IRS Form 14345, requesting qualified intermediaries, retaining foreign partnerships or retaining Foreign Trust status. Q2. Can I extend my IQ, WP or WT agreement regarding my FATCA registration? No, you need to renew the IQ/WP/WT system. QIs, WPs or WTs that have a FATCA registration account cannot renew their agreement in the FATCA registration system because this part of the registration request has been removed. Q1. When do I need to be certified? If your email address is correct in the system, you will be informed by email and Message Board that your deadline for submitting the certification is open and that the due date must be sent. For accounts terminated by the entity or IRS, the certification period begins immediately and is due six months after termination. Q6.

How can I certify my consolidated compliance group if I don`t have an account yet? You can certify a retention partnership (WP) to consolidate the compliance group into the IQ/WP/WT system by creating an account without an agreement with the IRS. After you create your login information, select that there is no withholding agreement on the Feature Information page. Then answer “Yes” that you create this account only for the WP compliance feature. On the home page of your account, you can then request the creation of a consolidation group for compliance and certification. Q1. Can I change my entity type (QI, WP or WT)? Q2. What are the use or extension questions I need to answer? Q3. How can I process my application or extension? Q4. Is there a limit to the number of branches that can be added to my account? Q5. What happens when a file download error message appears? Q6. Why has my application or renewal status been changed incompletely? Q7.

How can I withdraw my application or extension? Q8. How can I make my IQ, WP or WT chords? On December 30, 2016, the U.S. Internal Revenue Service (IRS) adopted the 2017-15 Income Calculation Procedure, which defines the Final Agreement on Qualified Intermediaries (IQ) (the 2017 Qi Agreement) and the 2017-16 Income Calculation Procedure, which defines the updated agreement on foreign financial institutions (2017 agreement). These agreements are used by non-U.S. financial institutions and non-U.S. branches of U.S. financial institutions that have agreed with the IRS to act as a U.S. watchdog. The IQ agreement deals with withholding in accordance with the rules of the internal income code1, section 1441/Chapter 3. The qi agreement also sets out the rules for QIs who wish to become qualified derivatives traders (QDDs) within the meaning of the new rules under Section 871 (m) that will come into force in 2017. The FFI agreement covers withholding under the Foreign Account Tax Compliance Act (FATCA) /Chapter 4 Rules applicable to institutions domiciled or branches established in countries that do not have a “Model 1 Intergovernmental Agreement” with the United States. Q1.

What is the IQ/WP/WT system? The IQ/WP/WT system is a secure web platform on which users can apply to become IQ, WP or WT, renew or terminate an existing qi, WP or WT agreement and manage their IQ, WP or WT information online. To access the login page, go to the qi/WP/WT landing page.

About the Author