TAX CLIENT ALERT: Congress Passes the Foreign Account Tax Compliance Act (FATCA) as Part of the Hire Act

    View Author 19 March 2010
    On March 18, 2010, the President signed into law the Hiring Incentives to Restore Employment (“HIRE”) Act (H.R. 2847, Pub. L. No. 111-147) (the “Act”). While the principal purpose of the Act is to stimulate job creation, it also includes the Foreign Account Tax Compliance Act (“FATCA”). The principal purpose of FATCA is to prevent U.S. persons from using tax havens and tax secrecy jurisdictions to evade U.S. taxes. FATCA seeks to accomplish this objective through a series of reporting and penalty provisions that are applicable to certain foreign entities as well as to U.S. persons. These new rules can affect both U.S. persons and foreign entities in significant ways.