The U.S. Department of the Treasury and the Internal Revenue Service announced a 6 month extension to the the start of the Foreign Account Tax Compliance Act (FATCA). The new deadline is July 1, 2014.
FATCA was enacted by Congress in 2010 to target non-compliance by U.S. taxpayers using foreign accounts. It has been criticized by financial institutions as onerous and costly to implement. Under FATCA foreign financial institutions (FFIs) including foreign banks, hedge funds and other financial institutions are required to report on the holdings of U.S. citizens and dual citizens to the IRS, or else face stiff penalties.