Article 1.03 of the Revenue Procedure 2014-39 provides that an IQ that guarantees an application for Quality ASSURANCE status before 31 July 2014 and is approved during the 2014 calendar year may act as quality assurance under Tax Procedure 2000-12 (as amended) until 30 June 2014, as if the Agreement on the Quality Assurance of that IQ were to enter into force on 1 January. 2014 and expires June 30, 2014. The IRS allows a company that submits an IQ status claim at any time during the 2014 calendar year if that request is approved by the IRS by the end of 2014 to act as an IQ under the previous IQ agreement from January 1, 2014 to June 30, 2014, as if the IQ agreement were in effect during that period. Thus, an IQ does not have to apply before July 31, 2014 to benefit from this retroactive compensation (as described in section 1.03 of Tax Procedure 2014-39). The IRS will specify in its approval letter for an IQ how such an IQ can inform the IRS that it will act as an IQ for the entire 2014 calendar year. See also IRS Qualified Intermediaries News, issue 2014-03, which is supplemented and amended by this issue. Section 1.02 of the 2014-39 Revenue Procedure provides that a non-issue central bank may enter into an after-sales quality assurance agreement. An issuing central bank that is not required to register on the registration portal to obtain the status of a participating FI or a registered BF classified as compliant (as described in sections 1.02 and 3.02 of the 2014-39 revenue process) must apply for or renew its IQ agreement by submitting an application or application for renewal to the Foreign Intermediaries Program at the address specified in section 3.01 of Revenue Procedure 2014-39 Send. A central bank described in the preceding sentence that renews its quality assurance agreement no later than July 31, 2014 will have a quality assurance agreement with an effective date of June 30, 2014. If this IQ is extended after July 31, 2014, the effective date of the IQ agreement will be the renewal date specified in the IRS Notice of Approval. An issuing central bank that is not required to obtain the status of a participating IFF or a registered FFI classified as compliant and that requests IQ status has an IQ agreement with an effective date of the date on which an IQ-EIN is issued to it. This email applies to certain companies that are applying for or have entered into the revised Qualified Agent (QI) contract published in Revenue Procedure 2014-39, 2014-29 I.R.B.
151. Foreign financial institutions and foreign branches of U.S. financial institutions may enter into an agreement with the IRS to be a qualified intermediary. An IQ is entitled to certain simplified retention and reporting rules. In general, there are three main areas where intermediaries with IQ status receive such simplified treatment….