SECTION 1. PURPOSE AND SCOPE

.01 Purpose . This revenue procedure provides guidance for entering into a qualified intermediary (QI) withholding agreement with the Internal Revenue Service (IRS) under §1.1441–1(e)(5) of the income tax regulations. ¹ Section 3 of this revenue procedure provides the application procedures for becoming a QI and Section 4 provides the final qualified intermediary withholding agreement (“QI withholding agreement”). The objective of the QI withholding agreement is to simplify withholding and reporting obligations for payments of income (including interest, dividends, royalties, and gross proceeds) made to an account holder through one or more foreign intermediaries.

.02 Scope . This revenue procedure applies to persons described in §1.1441– 1(e)(5)(ii)(A) and (B)–foreign financial institutions, foreign clearing organizations, and foreign branches of U.S. financial institutions and U.S. clearing organizations. The principles of this agreement may, however, be used to conclude QI withholding agreements with foreign corporations described in §1.1441–1(e)(5)(ii)(C) seeking to become a QI to present claims of benefits under an income tax treaty on behalf of shareholders and to other persons that the IRS may accept to be qualified intermediaries as authorized under §1.1441–1(e)(5)(ii)(D). This revenue procedure does not apply to a foreign partnership seeking to qualify as a withholding foreign partnership. See §1.1441–5(c)(2)(ii). The IRS and Treasury will, however, consider applying the principles of the QI withholding agree

1 All citations to income tax regulations in this revenue procedure are to the regulations as amended by T.D. 8734 (62 FR 53387), T.D. 8804 (63 FR 72183), and T.D. 8856 (64 FR 73408).

ment provided in this revenue procedure to a foreign partnership acting on behalf of its partners in appropriate circumstances. A person that is not within the scope of this revenue procedure may seek QI status by contacting the Office of the Assistant Commissioner (International) at the address or telephone number in Section 3.01 of this revenue procedure.