Qualified Special Representative Agreement (QSR)

A Qualified Special Representative Agreement (QSR) is a written agreement between a qualified intermediary and a foreign person that meets the requirements of section 1441(d) of the Internal Revenue Code (IRC). The QSR allows the qualified intermediary to act as the foreign person's agent for purposes of withholding and reporting taxes on payments made to the foreign person.

The QSR must be in writing and signed by both the qualified intermediary and the foreign person. The agreement must include the following information:

• The name, address, and TIN of the qualified intermediary.
• The name, address, and TIN of the foreign person.
• The type of payments that are subject to withholding under section 1441(a) of the IRC.
• The rate of withholding that will be applied to the payments.
• The manner in which the qualified intermediary will remit the withheld taxes to the IRS.

The QSR must be filed with the IRS on Form 8268 within 20 days after the date the agreement is signed.

The QSR is a valuable tool for foreign persons who receive payments from U.S. sources. It can help to ensure that the correct amount of taxes are withheld and reported, and it can also help to avoid penalties for failure to withhold taxes.

If you are a foreign person who receives payments from U.S. sources, you should consider entering into a QSR with a qualified intermediary. This can help to ensure that you are in compliance with U.S. tax laws.