- posted by Mark Schofer, CPA in the Tax Blog
As we enter 2012, the countdown to the January 1, 2013 implementation of the Foreign Account Tax Compliance Act (FATCA) is now officially under one year. FATCA is a set of laws that impose mandatory U.S. federal withholding on payments of U.S. source income to the following two types of non-complying entities:
1. Foreign financial institutions
2. Nonfinancial foreign entities
The definition of a foreign financial institution includes banks and brokerage firms. These types of organizations are commonly thought of as financial institutions. However, the definition also includes private investment funds which would include hedge, private equity and venture funds.
To read more on the Foreign Account Tax Compliance Act (FATCA) see our News & Events page.