1. IRS Issues Extension for QI/WP/WT Agreement Renewals (and QDD Applicants) Due Date
The deadline of 3/31/17 for submitting a qualified intermediary (QI)/ foreign withholding partnership (WP)/foreign withholding trust (WT) request for renewal as well as for submitting a new application is fast approaching.
In order to allow time for these entities to become better acquainted with the new Qualified Intermediary, Withholding Foreign Partnership, and Withholding Foreign Trust Application and Account Management System (QI/WP/WT System), as well as to gather all information necessary to prepare and submit a renewal application, the Internal Revenue Service will grant an Effective Date of 1/1/17 for all properly submitted and approved renewal applications, including renewals containing a request for qualified derivatives dealer (QDD) status, submitted by 5/31/17.
Additionally, because a QDD is a new entity type, all new QI Applications that also contain a request for QDD status submitted by 5/31/17 that are approved will be granted an Effective Date of 1/1/17.
For new withholding foreign partnerships, new withholding foreign trusts, and new QIs that are not applying for QDD status, the 3/31/17 new application deadline for a 1/1/17 Effective Date is still in effect.