MFA Submits Comments to IRS in Response to Proposed Rules Implementing FATCA

On April 30, MFA submitted a comment letter to the IRS in response to the Service’s proposed rules to implement certain provisions of the Foreign Account Tax Compliance Act (FATCA).  In our letter, we encouraged the IRS to: (1) amend certain of its proposed requirements to allow investment funds registered in an FATF compliant-jurisdiction and that do not have the type of investors that raise tax evasion concerns to be eligible for deemed compliant status; (2) provide guidance clarifying how investment funds can delegate day-to-day FATCA compliance responsibilities; and (3) ensure that the government to government model agreements being negotiated provide sufficient flexibility that investment funds in relevant jurisdictions would be able to rely on those agreements.