Dmitri V. Semenov
Ernst & Young
The Foreign Account Tax Compliance Act (FATCA), which became law as part of the Hiring Incentives to Restore Employment (HIRE) Act on 18 March 2010 (P.L. 111-147), introduced expansive new withholding and information reporting rules aimed at ensuring that US persons with financial assets outside the US are paying US tax. While FATCA applies to certain payments made on or after 1 January 2013, alternative fund managers and their service providers are already taking active steps related to evaluation of its impact.