(Reuters) - The U.S. Treasury Department on Wednesday gave foreign financial institutions 10 extra days to register with the U.S. government, under a new law to combat offshore tax dodging by Americans that goes into effect on July 1.
The deadline was postponed to May 5 from April 25, the department said in a statement.
Under the Foreign Account Tax Compliance Act (FATCA), foreign banks, insurers and investment funds must send the Internal Revenue Service information about Americans' and U.S. permanent residents' offshore accounts worth more than $50,000.
Institutions that fail to comply could effectively be frozen out of U.S. markets.
Treasury also said countries that have FATCA agreements "in substance" with the United States will be seen as complying with the law, even if the agreements are not finalized by December 31, 2014.
This decision increased to 45 from 26 the number of countries that have "intergovernmental agreements" with the United States, which allow a country's financial institutions to comply with FATCA via their domestic regulators.
The list of countries with such pacts is expected to grow in the coming weeks as additional agreements in substance are reached, the Treasury Department said.
(Reporting by Patrick Temple-West; Editing by Kevin Drawbaugh and Richard Chang)
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