FATCA

The Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 as part of a broader effort to prevent U.S. persons investing in offshore entities from evading U.S. income tax. It requires non-U.S. entities to provide the IRS with information on their U.S. accountholders and investors and imposes 30% withholding on payments of U.S. source investment income to foreign entities that fail to comply. Implementing regulations were proposed in February 2012 and are expected to be finalized later this year.