Q.I. & FATCA

Qualified Intermediary U.S. & FATCA.

It is almost enforced by the I.R.S. these days to obtain Qualified Intermediary (Q.I.) status as an intermediary. Obtaining this status is relatively easy since it is "only" an agreement with the I.R.S. However, the consequences of the Q.I. status can have a major impact on an organization, in addition, the FATCA regulations have been added as of 2010. Where previously there was some leniency with the I.R.S. regarding possible ambiguities, this has been tightened to stricter supervision.
The implementation to obtain and maintain Q.I. status can have quite an impact on an organization and is costly enough for most parties. The challenge is to correctly implement the agreements associated with the Q.I. agreement regarding identification, withholding and reporting and make adjustments as needed. As a Q.I. you want to avoid the risk of incurring extra costs as a result of fines or extra audits, among other things because the process from client identification to reporting to the I.R.S. is not (no longer) set up correctly. Extra costs or valuable employee time can be prevented by setting up the process correctly and making timely adjustments where necessary.

Memorandum for Secretary Mnuchin

14-10-2020; the " Memorandum for Secretary Mnuchin" from the Department of Treasury (US) states, among other things, regarding international Tax compliance:
Notably, TIGTA's report revealed that the IRS processes failed to identify 1,919 withholding agents with reporting discrepancies, amounting to over $182.7 million. Additionally, our review uncovered 366 withholding agents who claimed tax credits totaling $506 million more than what was reported on the Forms 1042-S.

We can help

Our consultants can also support your organization in the implementation or recalibration of the Q.I. process. Support is also available in the process from Client Onboarding (including documentation) to revenue settlement and timely delivery of accurate 1042 reporting. Our experts have years of operational experience in this area and know where the challenges and pitfalls lie.

Why choose The Reclaim Company?

High ratio of successful reclaimed withholding tax

Our specialists not only ensure successful recoveries, they take the entire process out of your hands.

High level of expertise

With our specialists boasting years of experience in navigating the complexities of this environment and possessing comprehensive global knowledge, we are well-equipped to alleviate you from the burdensome procedures.

Attractive pricing

A fully outsourced service, at a attractive and transparent rate.

Always up to date

Our specialists are always up to date on the latest developments in recoveries.

You stay informed

Our specialists handle the cumbersome process for you, while keeping you informed of the status and any developments along the way.

Less risk

Thanks to efficient methods of our specialists, you run less risk.

More information?

Contact Pjotr van der Veer at

p.vanderveer@thereclaimcompany.com | +31 (0)348 418 557

or fill out the contact form