Treasury Department Releases Intergovernmental FATCA Agreement

Summary: The United States Treasury Department (Treasury) recently issued an intergovernmental agreement (Model Agreement) under the Foreign Account Tax Compliance Act (FATCA). The Treasury developed the Model Agreement in conjunction with the governments of France, Germany, Italy, Spain and the United Kingdom to resolve certain legal concerns that have been raised in connection with the FATCA compliance now required of certain non-US financial institutions and other non-US entities, including certain investment funds. A covered entity located in one of the above-listed jurisdictions (or in any other jurisdiction that may enter into a Model Agreement) that would otherwise be required by FATCA to report information to the US Internal Revenue Service (IRS) will, instead, once its own government signs the Model Agreement, comply by reporting to its government.