Treasury Dept. to investors: No need to report offshore hedge fund stash
By Lawrence Delevingne
Wed Apr 13, 2011
Wealthy investors, including tax dodgers, have been given a temporary reprieve from reporting their foreign holdings, but new rules may be coming.
The government wants to know where potential tax dodgers have
hidden their cash, but not enough to make them disclose their
offshore hedge fund investments, according to a recent ruling
that received little attention outside of law firms.
"Now more than ever, the government needs revenue
and it wants to know as much as possible about the offshore
accounts of U.S. citizens," says Tom Bogle, a partner at law
firm Dechert based in Washington, DC. "Investors don't have to
report interests in offshore hedge funds now, but they are
likely to in the near future."
The Financial Crimes Enforcement Network, the U.S.
department of the Treasury's tax evasion team, issued a rule on
February 24 clarifying that investments in foreign-based
funds-including the offshore feeder vehicles of U.S.-based
managers used by tax-exempt entities...
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