QI, WP, WT application and account management system | KPMG | GLOBAL

QI, WP, WT application and account management system

QI, WP, WT application and account management system

The IRS today 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.

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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

Background

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. 

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