Qi Agreement Validity
The IRS did not plan to change the applicability of kyc facilities approved in the 2017 IQ, WP and WT agreements. Therefore, an IQ, WP or WT reference institution may consider an authorized kyc facility to be an integral part of its agreement, as long as the installation does not apply to the business (or the company branch, if any). Added: 12-19-2017 A6. An application for a GCC should include: a) LETTER of application CGC (mandatory for filing an application). b) Organigram (compulsory for submitting an application). c) Proposed sampling plan (may be submitted after an application has been submitted). (a) THE GCC`s letter of application must take into account all the requirements set out in Section 10.02 (B) of the IQ Agreement and Section 8.02 (C) of the WP Agreement, in a manner that indicates that all proposed undertakings are included in the GCC. The application letter must also list the FATCA, entity IDENTIFIANTs and IIC identifiers of all IQs under the same common ownership or WP-EIN of all WPs with the same sponsorship unit, including commonly owned QIs or WPs with the same sponsorship unit that do not intend to be part of the CGC. In this list, it is necessary to specifically determine which companies wish to be included in the CGC. For companies that do not plan to be part of the CGC, it should be noted that they intend to conduct the periodic review and certify it separately and intend to request that the periodic review be discontinued.
If the compliance unit wishes to exclude from the consolidated periodic audit certain companies that are supposed to be part of the CGC, the letter of application must include the full amount to be reported for accounts held by foreign account holders and the payments to be reported for accounts held by U.S. account holders during the audit year. per company, for each company within the CGC. The letter of application also contains a statement acknowledging that the proposed compliance unit is jointly responsible for the obligations and commitments of an entity within the consolidated compliance group regarding the obligations of the entity arising from the IQ or WP agreement. The declaration should be signed by the head of the proposed compliance entity. If the entity is a WP and the proposed compliance entity is not the sponsoring entity, the letter of application should include a description of the relationship between the proposed compliance entity and the WPs in the proposed CGC and why the proposed compliance entity should be considered for compliance entity status. b) Provide an organization chart for all IQs under the same common property or a list of all WPs with the same sponsoring entity for Chapter 4 purposes. c) A proposed sampling plan includes sample size, strata and distribution of sampling units across proposed strata. The design model should, in general, be based on the Safe Harbor method described in Appendix II, Section II.
A. 3 of the current qi chord (Rev. Proc. 2017-15, 2017-3 I.R.B. 437). As part of the use of the Safe Harbor method as the basis for the proposal, several substrates are held within the three prescribed layers (1) of all accounts of direct account holders that are not taxpayers` money; (2) accounts of direct account holders who are not exempt; (3) Accounts held by indirect account holders may be proposed, as well as methods for assigning other samples. The sampling plan should also include demographic statistics such as the number of sampling units (IQ accounts or WP partners), the total amounts to be reported for the accounts of foreign account holders or partners, include the total number of payments to be reported for the accounts of U.S. account holders or partners, the full deduction of Chapter 3 , the entire deduction from Chapter 4, the total withholding (if any) and the standard deviation of a calculated exposure amount (30% of the applicable amount reduced from the effective withholding) on an strata basis.