The Internal Revenue Service has begun previewing a set of draft forms to help taxpayers and banks comply with the Foreign Account Tax Compliance Act.
FATCA, which was included as part of the HIRE Act of 2010, requires foreign financial institutions, including hedge funds, to begin reporting on the bank accounts and other assets of U.S. taxpayers directly to the Internal Revenue Service. The IRS recently unveiled new regulations designed to ease the impact of the controversial new law and streamline the procedures for nonresident U.S. taxpayers and dual citizens (see
The IRS released draft versions of four forms that will be used for FATCA compliance: Draft Form