On December 7, 2009, U.S. House Ways and Means Committee Chairman Charles B. Rangel (D-New York) introduced H.R. 4213, the Tax Extenders Act of 2009 (the “Bill”). As its name suggests, the Bill is aimed at extending certain tax provisions set to expire at the end of the year. Importantly, the Bill also includes, with certain modifications, the Foreign Account Tax Compliance Act of 2009 (“FATCA”), which was introduced at the end of October 2009 in the U.S. House and Senate.[1] The FATCA provisions introducing a new 30% withholding tax on withholdable payments made to foreign financial institutions that fail to comply with specified reporting requirements, and FATCA’s proposed repeal of the U.S. bearer bond exception, had significant ripple effects in the global capital markets. We summarize below the Bill’s amendments to those provisions, many of which are intended to address issues in the original FATCA provisions raised by market participants.
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