In accordance with Section 5.10 (B) of the 2017 IQ Agreement, a qi that is a financial institution, insurance company or broker or securities dealer has reason to realize that documents provided by a direct account holder are unreliable or inaccurate, in accordance with point 1.1441-b(3). Point 1.1441-7 (b) (3) Points of Reference No. 1.1441-7 (b) (9) (i) for the validity of a contractual right based on documentary astentations, which provides that the evidence is unreliable or inaccurate if the retention service has a postal or permanent residence address for the direct account holder (whether the written evidence is written) that is not in the applicable contractual country or if the deposit does not have a permanent residence address for the account holder, a requirement that was also included in the 2014 qi agreement. A1. Yes, yes. Section 10.07 of the qi agreement provides that an IQ may request that the periodic verification requirement be dropped when it is an IQ that does not act as a QDD and meets the other requirements of Section 10.07. In accordance with Communication 2020-2, 2020-3 I.R.B 327, an IQ that is a QDD is not required to conduct a periodic review of its QDD activities for a certification period that ends in a calendar year before 2023. However, an IQ that is a QDD (whether or not it was QDD) can continue to perform a regular audit of its qi activities, which are not QDD activities for those years. Thus, the IRS will allow an IQ that is a QDD and has a certification period ending in a calendar year before 2023, to request the abandonment of the periodic review if it otherwise meets the requirements of Section 10.07 of the IQ Agreement regarding its non-QDD activities. (If an IQ has no qi activity, it must apply for a waiver.) To apply for a waiver, the IQ should supplement Parts I, II and III (periodic assessment) of the certification, taking into account its QDD activities and non-QDD activities (with the exception of Part III, which takes into account only non-QDD activities) and, in Part A (Step 1 of 3 – Waiver Authorization), activate the box entitled “Qi is a FFI that does not act as QDD.” See FAQ Q9 under Certifications and Periodic Assessments for the Year to indicate the year of periodic verification for a qi waiver application. Update: 30.04.2020 A11.
In accordance with Section 4.05(A) (1) of the 2017 Qi Agreement, a qi is required to obtain certification from any trust partnership or trust that is the subject of joint account processing, demonstrating that the partnership or trust has maintained at any time, during the certification period, a status authorized in Chapter 4 of Chapter 4 under Section 4.05(A) (1) of the IQ agreement.