Stroock Special Bulletin
"Gunboat Diplomacy? Treasury Releases Model FATCA Intergovernmental Agreement"
It's getting hard to ignore the dreadnought on the horizon – The Foreign Account Tax Compliance Act ("FATCA") – as the first phases of the regime begin in 2013. The successive deadline extensions appear to have finally run out, leaving governments, practitioners, and taxpayers with the formidable task of implementing and complying with FATCA's provisions. The newly-released model intergovernmental agreement provides an important touchstone for understanding the obligations of foreign financial institutions ("FFIs") and non-financial foreign entities under the new regime.
This Stroock Special Bulletin provides an overview and commentary on the new FATCA model intergovernmental agreement, which significantly modifies certain obligations under FATCA for FFIs in countries that enter into the agreement with the U.S.