A §1031 Qualified Intermediary (QI), also known as an Accommodator, is a company that facilitates Internal Revenue Code section 1031 tax-deferred exchanges.
[2] This means that the taxpayer may only use his or her current attorney, accountant, investment banker, broker or real estate agent in exceptional circumstances.
When selecting a Qualified Intermediary (QI), it is important to consider the fact that there is little regulation governing these entities.
In addition to that, it's important to make sure the QI being used is experienced and understands the tax code thoroughly.
[5] Under the agreement, the QI maintains its own records of the U.S. or foreign status of the beneficial owners of the payments and may undertake responsibility for income reporting and tax withholding.