FATCA update: Today the Internal Revenue Service issued advice that reporting by specified domestic United States entities of specified foreign financial assets will not be required for taxable years beginning any earlier than 31 December 2012.

A ‘specified domestic entity’ is a defined term under Proposed Regulation 1.6038D.

FATCA provisions with respect to reporting foreign financial assets were introduced in section 6038D of the Internal Revenue Code in 2010 under the Hiring Incentives to Restore Employment (HIRE) Act.