How New FATCA Regs Affect Private Investment Funds

6 June 2012

On February 8, 2012, the IRS issued long-awaited proposed regulations under the Foreign Account Tax Compliance Act withholding and reporting regime. The FATCA rules are relevant to foreign and U.S. private investment funds: foreign funds generally will be treated as foreign financial institutions (FFIs), and both foreign and U.S. funds that invest in the United States will need to contend with the FATCA withholding rules.