The latest attempt to combat tax evasion – the Foreign Account Tax Compliance Act – came into effect on 1 July, but many law firms are struggling to understand their obligations under the complex legislation. Neil Hodge finds out what the Act means for firms and their clients, and the next steps they should take
FATCA is this summer’s top acronym thanks to the wide-sweeping new US rules that came into force on 1 July. The Foreign Account Tax Compliance Act compels any organisation outside the US that handles client money to, in effect, report the financial details of all US account holders to the Internal Revenue Service (IRS). The legislation affects financial institutions such as banks and fund managers, but also trust companies and even law firms.
