New Proposed FATCA Regulations
On February 8, 2012, the Internal Revenue Service (“IRS”) and Treasury Department issued proposed regulations interpreting certain provisions of the Hiring Incentives to Restore Employment Act of 2010 (which was enacted on March 18, 2010) that are commonly referred to as “FATCA.” Also on February 8, 2012, the Treasury Department issued a joint statement with France, Germany, Italy, Spain and the United Kingdom expressing an intent to provide an intergovernmental cooperation regime which would be an alternative means to comply with FATCA. FATCA imposes a broad information reporting and withholding regime designed to combat tax evasion by US persons holding assets in non-US entities.