IRS Releases Long-Awaited QI Agreement Under Foreign Account Tax Compliance Act

The Internal Revenue Service released Revenue Procedure 2014-39, providing a long-awaited updated qualified intermediary agreement under the Foreign Account Tax Compliance Act.

The June 27 release of the QI agreement comes just days before reporting and withholding requirements under the law take effect July 1.

The revenue procedure also provides further guidance for QI registration and renewal under FATCA.

Enacted in 2010, the law requires foreign financial institutions (FFIs) to report U.S. accounts to the IRS or face, in some cases, a 30 percent withholding tax on their U.S.-source income.

Non-Financials Acting as QIs.

According to a June 27 ...