Group Urges IRS to Combine FATCA Hedging, Holding Company Exceptions

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The Internal Revenue Service should combine exceptions for holding companies and hedging/finance companies into one category of exemption under the Foreign Account Tax Compliance Act, the Organization for International Investment says in a recent letter. IRS continues to work to finalize regulations under the law, which requires foreign financial institutions to report U.S.-owned accounts to the agency or face, in some cases, a 30 percent withholding tax. OII says the exceptions set out under the rules (REG-121647-10) IRS proposed in February are too restrictive to reflect the way multinational corporations conduct their business.