I discuss the Foreign Account Tax Compliance Act and comparable provisions in the Tax Extenders Bill in this podcast. This sweeping legislation, if enacted, would impose a 30% withholding tax on payments from any U.S. source to any foreign financial institution (including private equity and hedge funds) and to most other persons, unless such foreign persons agree to enter into an agreement with the IRS to provide detailed information about their U.S. account holders.
The House of Representatives has already passed the legislation. I highlight issues and concerns regarding this legislation including potentially increasing the cost of capital in the U.S. and violating U.S. tax treaties.
This podcast highlights issues discussed in greater detail in my article titled "Foreign Account Tax Compliance: Problems and Complications."
Tuesday, January 26, 2010
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