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Role of the Responsible Officer (RO) and the new QI Agreement requirements

The old QI Agreement (Rev. Proc. 2014-39), in effect from 1 July 2014 to 31 December 2016 for the first time contained elevated compliance requirements. QIs are required to appoint a “Responsible Officer” (RO). ROs is responsible for the QIs compliance with all obligations under the QI Agreement. The ROs is also required to make certification of internal controls to the IRS regarding the QI’s requirements under the QI Agreement.

Certification of Internal Controls and Periodic Review

For most QIs, the first Certification of Internal Controls will be due in 2018 (the exact date depends on the year selected for the periodic review). ROs must certify as to the efficacy of the QI’s internal controls – both for the QI’s obligations under the QI Agreement and its FATCA requirements - for the entire certification period (for most QIs, the first certification period is 30 June 2014 through 31 December 2017).

Why EY?

EY has long been a leading advisor and service provider for Qualified Intermediaries, with a strong global network of professionals with a variety of backgrounds in the legal requirements, tax operations, systems and controls. Our team includes former IRS counsel officers and IRS exam personnel, such as John Staples, Tara Ferris, Phil Garlett, and Todd Larsen with responsibility for the IRS QI program and guidance, as well as leaders in the QI audit community and former industry participants.