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.

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