FATCA 2.0 For Funds And Securitization Vehicles

Introduction

On February 8, 2012, the United States Internal Revenue Service ("IRS") and Department of the Treasury ("Treasury") issued long awaited proposed regulations under the so-called "FATCA" provisions in sections 1471 through 1474 of the Internal Revenue Code. The proposed regulations and a number of prior IRS notices have clarified many, although not all, uncertainties about how FATCA will apply in practice. At the same time as it issued the proposed regulations, Treasury released a joint statement along with France, Germany, Italy, Spain and the United Kingdom announcing an agreement to explore an intergovernmental approach to FATCA implementation that would allow affected foreign financial institutions in each country to provide the information required under FATCA to that country's tax authorities rather than to the IRS.