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2022 Twos-day Update to QI/WP/WT FAQs!

On February 22, 2022, (2/22/22), the Internal Revenue Service (IRS) updated FAQ9 and FAQ10 regarding periodic certifications of Qualified Intermediaries (QIs), Withholding Partnerships (WPs), and Withholding Trusts (WTs). Here is some key information:

  • FAQ9. QIs/WPs/WTs with a certification due date of July 1, 2022, must select the periodic review year of their certification period by July 1, 2022. This includes entities with an agreement effective date later than January 1, 2018, and earlier than January 2, 2019, but does not apply to termination certifications. These entities applying for a waiver of the periodic review must select 2019 for their periodic review year, complete Parts I, II, and III of the certifications, and submit their waiver application by July 1, 2022. These entities will not be required to perform a periodic review if their waiver application is approved.

Check out more details regarding FAQ9 here: https://www.irs.gov/businesses/corporations/qualified-intermediary-general-faqs#collapseCollapsible1645547234351

  • FAQ10. QI/WP/WT certification due dates depend on the year that the entity selected for its periodic review and whether the entity is applying for a waiver of the periodic review requirement with its periodic certification. For entities that chose 2019 or 2020 for their periodic review and that have a certification period ending December 31, 2021, then the date is July 1, 2022. For entities that selected 2021 for periodic review, then December 31, 2022, is the date. The same rules as FAQ9 apply, where the QI/WP/WT that applies for a wavier of the periodic review when making its periodic certification must select 2019 for its periodic review year and complete Parts I, II, and III of the certifications. These entities will not be required to perform a periodic review if their waiver application is approved.

Check out more details regarding FAQ10 here: https://www.irs.gov/businesses/corporations/qualified-intermediary-general-faqs#collapseCollapsible1645547234347

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2022 Twos-day Update to QI/WP/WT FAQs!

This document contains general information only and is not a substitute for accounting, tax, or any other professional advice or services. The information provided is considered accurate at the time of publishing and will not be updated with new regulation requirements.

Form 1099-K: IRS Updates to FAQ’s

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