Client Alert
| February 14, 2012
Proposed FATCA Regulations: Implications for Insurance Companies
On February 8, 2012, the U.S. Department of Treasury ("Treasury") and the U.S. Internal Revenue Service ("IRS") issued long-awaited proposed regulations relating to the Foreign Account Tax Compliance Act ("FATCA"). Enacted in 2010 as part of the Hiring Incentives to Restore Employment ("HIRE") Act, FATCA is a new reporting and withholding regime that imposes a 30 percent tax on certain payments to foreign financial institutions ("FFIs") and non-financial foreign entities ("NFFEs"), unless the affected entities satisfy certain administrative requirements. The following are two preliminary observations with regard to the application of the proposed FATCA regulations to insurance companies. A more in-depth analysis of FATCA will follow shortly.
This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent.
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