Notice 2022-23 Proposed Amendments to the QI Agreement!

On May 3, 2022, the Internal Revenue Service (IRS) published Notice 2022-23 which sets forth the proposed amendments to the Qualified Intermediary (QI) agreement in Rev. Proc. 2017-15 that will permit a QI to assume withholding and reporting responsibilities for purposes of Code sections 1446(a) and (f). The QI agreement currently in effect and as provided in Notice 2017-15 will expire on December 31, 2022. Notice 2022-23 sets forth the proposed changes to the QI agreement that applies to a QI effecting a transfer of interest in a publicly traded partnership (PTP) or receiving a distribution made by a PTP on behalf of an account holder of the QI. The Treasury Department and IRS intend to publish a revenue procedure that incorporates the provisions in Section 4 (proposed changes to the QI agreement) of Notice 2022-23 and additional requirements for QIs under sections 1446(a) and (f) into the revised QI agreement that is to apply beginning with the 2023 calendar year. Treasury and IRS request comments related to Section 4, particularly with respect to the procedures of proposed section 8.07, which outlines section 6031 reporting responsibility with respect to partners holding PTP interest. They also request comments with respect to additional compliance procedures that they should add to section 10 (Compliance Procedures) of the QI agreement for purposes of sections 1446(a) and (f) and to Appendices I (the factual information to be provided by a QI) and II (statistical sampling procedure that a QIs reviewer may use for a periodic review) of the QI agreement.


Those wishing to comment must do so either electronically or in writing by May 31, 2022. Comments must include a reference to Notice 2022-23. The preferred way to comment is electronically via the Federal eRulemaking Portal at www.regulations.gov, where the commenter should type IRS-2022-0010 in the search field on that homepage. Commenters are also able to do so by mail to: Internal Revenue Service, CC:PA:LPD:PR (Notice 2022-23), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.


Check out Notice 2022-23 here:

https://www.irs.gov/pub/irs-drop/n-22-23.pdf


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