Foreign Financial Institutions Applying for Qualified Intermediary Status or Other Withholding Status Subject to New FATCA Registration Deadlines

The IRS has announced that, beginning December 31, 2013, the Qualified Intermediary ("QI"), Withholding Foreign Partnership ("WP") and Withholding Foreign Trust ("WT") Agreements, under which certain foreign financial institutions agree to act as withholding agents with respect to U.S. taxes, will be expanded to incorporate such financial institutions' obligations under FATCA. As a result, existing QI, WP and WT agreements currently in effect will expire on December 31, 2013. The IRS indicated that the revised agreements are expected to be published no later than July 15, 2013.

Foreign financial institutions that desire QI, QP, or WT status may register for FATCA pursuant to the IRS online web portal commencing July 15, 2013, but must first file an application for such QI, WP, WT status. In order to register for FATCA on July 15th, such applications must be received by the IRS on or before May 3, 2013. Applications for QI, WP or WT status received on or prior to November 15, 2013 will be processed in time to permit FATCA registration through the online portal prior to December 31, 2013, according to the IRS.

See: Guidance for Applicants for QI/WP/WT Status and FATCA Registration (links externally to IRS website).