(E) Exception for already existing individual accounts, previously documented as held by foreign persons. a participating IFF, which has previously received documents from an account holder to determine the account holder`s foreign person status, to fulfill its obligations under its IQ, WP or WT agreement with the IRS, or to comply with its obligations as U.S. payers under Chapter 61, is not required to carry out the electronic search referred to in paragraph (c) (5) (iv) (C) of this Section, or the electronic search referred to in point (c)(iv)(3) of this Section. Section for this account. In addition, an PARTICIPATING IFF with a U.S. payer is not required to perform the electronic search referred to in paragraph (c) (5) (iv) (C) of this Section or the extended verification described in paragraph (c) (5) (iv) (D) (3) of this Section for an account for which its paying agent is U.S. for. The payer has received prior documentation to determine the account holder`s status as a foreign person in accordance with Chapter 61. However, the participating IFF is required to proceed with the client advisor request described in subsection (c) (5) (iv) (D) (2) of this section if the account is a quality account, as described in paragraph (c) (5) (iv) (D) of this section. For the purposes of this subsection( (c) (5) (iv) (E), a participating IFF has documented the foreign status of account holder in accordance with Chapter 61, where the participating FI (or its paying agent, which is a U.S. payer) has kept a record of the documents necessary under Chapter 61 to determine a person`s foreign national status and the account has received a declaration of payment under Section 3406(b) to the in a previous year; which has been duly reported.
this year. In the case of a participating IFE, which is an IQ, WP or WT, the participating IFF has documented the foreign status of an account holder under its IQ, WP or WT agreement (depending on its applicability) if the participating IFF has met the relevant documentation and reporting requirements of its agreement regarding an account holder who, within one year, fulfilled the relevant documentation and reporting conditions of its agreement, in which its agreement was in force, received an amount to be declared. (5) Verification. A participating IFF shall be required to adopt a compliance program as described in paragraph (f) of this Section, under the authority of the competent delegate, who shall regularly certify to the IRS, on behalf of the FFI, the compliance of the participating IFF with the requirements of the FFI Agreement. If the IRS detects doubts about compliance with participating IFFs, the IRS may request additional information to verify compliance with the requirements of the FFI Agreement referred to in Paragraph (f)(4) of this Section. (iv) hardware errors are defined. A major error is the inability of the participating FIF to meet the requirements of the FFI Agreement where the omission results from an intentional act of one or more staff members of the Participating FIF (its representative, sponsor or FI compliance) to circumvent the requirements of the FFI Agreement, or if an error is attributable to a failure of the Participating FI; conduct sufficient internal controls for the participating LFI. to meet the requirements of this Section. .