QI/FATCA Agenda March 2010
Audit Year 2009
The audit report of the audit year 2009 has to be submitted to the IRS latest by June 30, 2010. However, an extension
to submit the audit report until December 31, 2010 can be requested. The external auditor may submit the request of extension
to the IRS directly not later than June 30, 2010. Please note that the external auditor should be engaged before this date.
According to the QI Agreement (Revenue Procedure 2000-12) two external audits have to be conducted under its six years term. The Audit
Guidance for External Auditors of Qualified Intermediaries (Revenue Procedure 2002-55) characterizes the audit as a three phase audit process.
In Phase 1 of the audit the auditor is required to perform and report the results of so called „Agreed Upon Procedures (AUP)“, which are
specified in the Audit Guidelines. Phase 2 and 3 of the audit include possible further provisions based on the IRS analysis of the reported
results of the Phase 1 basic fact finding.
The audit requirements also apply for renewed agreements according to the Qualified Intermediary Agreement Renewal Instrument to Effect the
Second Agreement.
Thus, year 2009 would be an audit year for the following Qualified Intermediaries:
- Qualified Intermediaries with renewed agreements that entered into force on January 1, 2007 requiring the third and sixth year as audit year
- Qualified Intermediaries with renewed agreements that entered into force on January 1, 2008 requiring the second and fifth year as audit year
- Qualified Intermediaries with renewed agreements that entered into force on January 1, 2009 requiring the first and forth year as audit year
- Banks, with new Qualified Intermediary Agreements that entered into force on January 1, 2008 (first audit year under the terms of the agreement)
- Banks, with new Qualified Intermediary Agreements that entered into force on January 1, 2005 (second audit year under the terms of the agreement)
- Qualified Intermediaries that are based in the Principality of Liechtenstein (special regulation for 2009)
Beside the comprehensive QI audit the Audit Guidance allow certain modifications of the audit process:
| QI Audit |
Applicable for all Qualified Intermediaries |
| QI Modified Audit |
Applicable for Qualified Intermediaries with Reportable Amounts not exceeding USD 5 mio; simplified reporting; reduced
sample size |
| Correspondance Audit |
Applicable only in certain special cases (e.g. PAI) |
| Consolidated Audit |
Applicable for two or more Qualified Intermediaries, if they are members of a group under common ownership with
uniform practices, procedures and shared systems, subject to uniform monitoring and control with regard to execution of the QI
Agreement and corresponding audit years |