U.S.A.: IRS publishes updated QI/WP/WT FAQs
On 8 December 2017, the Internal Revenue Service (IRS) published updated Qualified Intermediaries/Withholding Foreign Partnerships/Withholding Foreign Trusts Frequently Asked Questions (FAQs).
The updated FAQs provide clarifications about the following points:
- The possibility for a Qualified Intermediary (QI) to apply for Qualified Derivatives Dealer (QDD) status prior to expiration of its QI agreement;
- The effective date applicable to QDD status applications submitted in 2017;
- The conditions under which a foreign reverse hybrid entity that is a non-financial foreign entity (NFFE), and receives personal services income, may submit application or renewal to be a Withholding Foreign Partnership (WP);
- The conditions under which a QI may apply for a waiver of the periodic review requirement;
- The application of the independence standard for an external reviewer of a QI, WP, or Withholding Foreign Trust (WT) for periodic review years prior to 2018.
We continue to monitor the situation and will provide further information as it becomes available.