b'requirements of investors. A non-U.S. investor who invests in a Regulation S offering should be required to certify in their subscription agreement that they have inquired and are in compliance with the rules of their own country regarding investment in a U.S. securities offering.Before making an offer to foreign investors or stepping foot on foreign soil to solicit investors for a U.S. securities offering under Regulation D or Regulation S, you should make sure the offering is compliant with the laws of that country. Failure to do so could result in severe, unexpected penalties, suchasarrestandincarcerationintheforeigncountry.DONTGET LOCKED UP ABROAD! U.S. Tax Laws; FIRPTA Under the U.S. Foreign Investors in Real Property Tax Act of 1980 (FIRPTA), the issuer must withhold a certain percentage of any distribution to non-U.S. persons. The withholding amount must be remitted to the IRS on the investors behalf, prior to sending funds to any non-U.S. person. The amount of tax due from a non-U.S. person depends on the terms of the tax treaty between their country and the U.S, if there is one. The non-U.S. person will have to obtain a U.S. taxpayer identification number and file a U.S. tax return in order to obtain a refund of the withheld tax, if any is due per the treaty.However, for countries without a U.S. tax treaty or where the tax treaty does not qualify the investor for a refund, the tax paid will simply be their cost of doing business in the U.S.76'