Hedge Funds Politics & Regulation

Treasury Dept. to investors: No need to report offshore hedge fund stash


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.”