Financial Services Group Seeks FATCA Exceptions for Insurance Contracts

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A major financial services and insurance group asks the government to provide broad exceptions to the reporting required by the Foreign Account Tax Compliance Act. The letter comes as IRS and the Treasury Department continue to struggle to implement the controversial law, which requires foreign financial institutions to report U.S.-owned accounts to U.S. tax authorities or face, in some cases, a 30 percent withholding tax. In a letter released by Treasury, the Hartford Financial Services Group addresses many of the concerns that have been raised about FATCA in the insurance context.