IRS updates FAQs on QI/WP/WT

On 20 March 2019, the U.S. Internal Revenue Service (“IRS”) updated its Frequently Asked Questions (“FAQs”) on Qualified Intermediaries (“QI”), Withholding Foreign Partnerships (“WP”) and Withholding Foreign Trusts (“WT”) (Link). Questions 18 in the section “Certifications and Periodic Reviews” has been updated to support users in understanding the respective requirements:

  • Question 18: When is the deadline for QI/WP/WT entities, with a certification date of July 1, 2019, to select the periodic review year of their certification?
  • Answer 18: All QI/WP/WT entities with a certification due date of 1 July 2019, which includes entities with an effective date later than 1/1/2015 and earlier than 1/2/2016, must select the periodic review year of their certification period by 1 July 2019. This includes those entities selecting 2018 as their periodic review year. This FAQ does not apply to termination certifications. If a QI/WP/WT entity is applying for a waiver of the periodic review when making its periodic certification, it must select 2016 for its periodic review year, complete Parts I, II, and III of the certification and submit its waiver application by July 1, 2019. However, the entity will not be required to perform a periodic review if its waiver application is approved.The IRS will notify the entity when a request for a waiver of the periodic review is approved or denied. If such request is denied with less than six months remaining before the certification due date, including any extensions, the entity will be granted a six month extension from the date of denial of the waiver to complete the periodic review and resubmit the certification. At that time, if the entity wants to select a year other than 2016 as its periodic review year, the entity should contact the FI Team at The resubmitted certification should include a completed Part IV and Part VI (if applicable). QI/WP/WT entities should consult Publication 5262, Qualified Intermediary, Withholding Foreign Partnership, and Withholding Foreign Trust Application & Account Management User Guide (PDF) before beginning their certification on the system to verify that their account login credentials are up to date and for login assistance, if needed. QI/WP/WT entities should also consult the IRS FAQ homepage for Qualified Intermediaries, Withholding Foreign Partnerships, and Withholding Foreign Trusts under the heading Certifications and Periodic Reviews (Link).

Question 20 in the section “FATCA Certifications” has also been updated:

  • Question 20: What are the certification requirements of a sponsoring entity with a certification period ending 31 December 31, 2017?
  • Answer 20: For purposes of completing the certifications required for the certification period ending December 31, 2017, a sponsoring entity may rely on the rules provided in the notice of proposed rulemaking (REG-103477-14) published on January 6, 2017, in the Federal Register (82 FR 1629).

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