IRS issues Revenue Procedure 2022-43 presenting the 2023 Qualified Intermediary Agreement

Revenue Procedure 2022-43 sets forth the final qualified intermediary (QI) withholding agreement (QI agreement) entered into by the Internal Revenue Service and certain foreign persons under Treas. Reg. § 1.1441-1(e)(5) and (6). The QI agreement currently in effect in Rev. Proc. 2017-15, 2017-3 I.R.B. 437, expires on December 31, 2022 (the 2017 QI Agreement). This Revenue Procedure will apply beginning January 1, 2023, with a six-year term (the 2023 QI Agreement). In general, the QI agreement allows certain persons to enter into an agreement with the IRS to simplify their obligations as withholding agents under chapters 3 and 4 and as payors under chapter 61 and section 3406 for amounts paid to their account holders. The QI agreement also allows certain foreign persons to act as qualified derivatives dealers (QDDs) and assume primary withholding and reporting responsibilities on dividend equivalent payments made in a principal capacity for purposes of section 871(m). Additionally, the 2023 QI Agreement allows foreign persons to enter into the agreement for purposes of the withholding and reporting required under sections 1446(a) and (f) with respect to their account holders holding interests in publicly traded partnerships. 

Revenue Procedure 2022-43 will be in IRB: 2022-52, dated 12/27/2022.