Final Proposed FATCA Regulations Issued

March 29, 2012
The IRS and U.S. Treasury recently proposed regulations addressing the implementation of the Foreign Account Tax Compliance Act (FATCA), providing detailed guidance on U.S. account identification, withholding and information reporting requirements that foreign financial institutions, other non-financial foreign entities and U.S. withholding agents are subject to under FATCA. In 2010 and 2011, Treasury and the IRS issued preliminary guidance for implementing FATCA in a series of notices, and took into consideration public comments to the notices when developing the final proposed regulations. This update claries the proposed regulations, which make some progress toward eliminating, reducing or delaying the impact of FATCA on many investment funds and financial institutions — though for entities not exempt, the burdens associated with FATCA will remain.