Ireland-U.S. Deal May Spare Investors Global Tax Reporting Pain

Investors in certain funds in Ireland would be spared a 30 percent withholding tax and onerous reporting requirements, under a reworked offshore account-reporting agreement with the U.S.

The agreement addresses a major question for investors and fund managers that the Internal Revenue Service left unanswered in final Foreign Account Tax Compliance Act rules (T.D. 9852). The rules, released March 21, tell investors how to prove that they have been following the rules of the sweeping account-reporting regime, but Ireland was among nine countries that lacked the necessary reporting instructions for alternative funds structured as partnerships.

The ...