The Internal Revenue Service this week released Announcement 2012-42 (the Announcement), which postpones until 2014 the need for foreign hedge funds and private equity funds to request Foreign Account Tax Compliance Act (FATCA) information and documentation from their investors. In effect, the IRS has delayed implementation of the FATCA tax reporting rules until 2014. The Announcement also postpones to 2017 the earliest date on which non-compliant investors will be subject to 30% withholding on the gross proceeds from the sale of US stock and securities.

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