The Internal Revenue Service has posted an updated Foreign Financial Institution Agreement on its Web site for implementing the Foreign Account Tax Compliance Act, or FATCA.

FATCA, which was included as part of the HIRE Act of 2010, requires foreign banks and other overseas financial institutions such as hedge funds to report on the holdings of U.S. citizens to the IRS, or else face stiff penalties. The law has provoked controversy abroad, but nonetheless, thousands of foreign banks have registered with the IRS and the Treasury Department through a recently established FATCA online portal to meet deadlines that began this year.

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