
List of Approved Know-Your-Client Rules |
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For a list of countries, follow this URL: http://www.irs.gov/businesses/international/article/0,,id=96618,00.html
Welcome to the blog of inTAXicating.ca! Since 2008 we've been writing posts to help Canadians solve their tax issues with the Canada Revenue Agency. If you have any questions, or if you need assistance with any CRA matters including, but not limited to; Collections, Enforcement, Audits, Liens, Back-Filing, Assessments, Director's Liability, s160/325, Taxpayer Relief or the Voluntary Disclosure Program. If you have debt and are considering Bankruptcy or a Consumer Proposal, speak with us first. With over 10-years of CRA experience in the Collections division, our expertise is in the diagnosing and solving of the most complex tax problems.
List of Approved Know-Your-Client Rules |
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For a list of countries, follow this URL: http://www.irs.gov/businesses/international/article/0,,id=96618,00.html
Qualified Intermediary – IRS view |
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So basically, through the “know your client” rules, the IRS provides the few perks listed above – pooled rate and reduced withholding rate, and the QI must receive valid W8’s or W9’s in order to confirm to the IRS that there are no Americans pretending to be foreign and avoid paying taxes. For performing this duty for the IRS, you must also have performed 2 external audits and a yearly internal audit of the QI program. If found in violation of this agreemnt, there is a fine of up to $100,000 per offense. Make sure to keep all records in order – provide the IRS with one main contact for the QI program and have your yearly internal audits performed. Charging extra to clients for being their QI makes sense in order to cover the costs of the external audits. More to come… |