QI/FATCA Agenda March 2010
Audit Waiver
Generally, a QI may request an audit waiver for an audit year depending on the reportable amounts received during the respective
reporting period. Excluded from the request of an audit waiver are QIs related to a group, for which the IRS has permitted a consolidated audit.
The audit waiver is granted at the discretion of the IRS.
The completed waiver request form for audit year 2009 with original signature must be received by the IRS or postmarked no later than June 30, 2010:
Internal Revenue Service
LMSB:F:QI
290 Broadway, 12th Floor
New York, NY 10007-1867 USA
Attention: Audit Waiver
It is recommended to indicate the type of waiver (Waiver #1 or Waiver #2) on the envelope in order to ensure proper processing upon receipt by the IRS.
QIs based in the Principality of Liechtenstein are not entitled to a waiver request for audit year 2009.
An audit waiver can be requested by QIs that have received reportable amounts not exceeding $ 1,000,000.
Form „Request for Waiver of the 2009 Tax Year Qualified Intermediary Audit Requirement (Reportable amounts not exceeding $1,000,000)“ must be used.
In completing the form the QI should consider the following:
The form must be legible. If the QI did not assume primary withholding responsibility, copies of received forms 1042-S from the custodian must
be provided along with a copy of the own form 1042. Any differences should be explained.
An audit waiver can also be requested by QIs that have received reportable amounts exceeding $1,000,000 but not exceeding $5,000,000,
if the QI has been audited by an external auditor for the immediately preceding audit year of the six year agreement term. A copy of the respective acceptance letter from
the IRS should be attached.
Form „Request for Waiver of the 2009 Tax Year Qualified Intermediary Audit Requirement (Reportable amounts exceeding $1,000,000 but not
exceeding $4,000,000)“ must be used.
In completing the form the QI should consider the following:
The form must be legible. Form 1042 and forms 1042-S issued by the QI should be submitted with the waiver request. If the QI did not
assume primary withholding responsibility, copies of received forms 1042-S from the custodian
must be provided as well. Any differences should be explained.