The Internal Revenue Service has launched a new application and account management system for certain withholding entities that enter into agreement with the U.S. to uphold these obligations.
Qualified Intermediary (QI), Withholding Foreign Partnership (WP), and Withholding Foreign Trust (WT) Application and Account Management System will automate the Financial Intermediary (FI) Program. The 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.
QIs, WPs, and WTs are foreign entities that enter into an agreement with IRS. The agreement outlines the entity’s withholding and reporting obligations under Chapters 3 of the Internal Revenue Code and the requirements of the Foreign Account Tax Compliance Act (FATCA) with respect to certain US-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, so stay informed of renewal announcements and other important updates by signing up at Qualified Intermediaries (QI) News.
The new system is the most convenient way to submit and make updates to QI, WP, or WT application, renewal, and account information. The system generates electronic notifications for changes to status, renewal reminders, and other updates; eliminating the need to contact the IRS directly in many cases.
Additional QI/WP/WT system information and resources can be found on Qualified Intermediary (QI), Withholding Foreign Partnership (WP), and Withholding Foreign Trust (WT) Application and Account Management System.