Beneficial Ownership Information

Happy New Year everybody!  I hope that 2023 was a good year for you and I hope that 2024 will be a prosperous year for you.

With this new year comes a new reporting requirement for business owners.  The US Treasury's Financial Crimes Enforcement Network (FinCEN) is now requiring many business owners to report their ownership in businesses directly to FinCEN through the Beneficial Ownership Information (BOI) report.  This new requirement has been implemented to help combat money laundering, tax fraud and other illegal acts.  Whether or not this will be successful in combating those issues remains to be seen, but nonetheless here we are.  Below is a list of some of the key rules regarding the new BOI report:

• Most companies will be required to file the BOI report.  However, their are some organizations that are exempt from filing this report.  For a full list of those organizations that are (or are not) required to file a BOI report, see the FAQ section at https://www.fincen.gov/boi-faqs

• Any company that is required to file the BOI report that was organized prior to January 1, 2024 has until January 1, 2025 to file their initial report.

• Any company that is required to file the BOI report that was organized between January 1, 2024 and December 31, 2024 has 90 days from their creation date to file their initial report.

• Any company that is required to file the BOI report that was organized on or after January 1, 2025 will have 30 days from their creation date to file their initial report.

• The information that is needed for each owner is their Name, Date of birth, Residential Address and an Identifying Number from an acceptable identification document such as a passport, US driver's license, etc.

• A new BOI report is required any time there is a change in ownership or a change in existing ownership information (such as an address change).

• These forms can be filed online at https://boiefiling.fincen.gov/

There is much more to the new Beneficial Ownership Information Report.  I encourage each of you who own businesses (wholly or partially) to consult with your CPA to see if you need to file this new report.  You can either file the report yourself, using the above link, or have a third party file the report for you.  If you have any questions about the Beneficial Ownership Information Reporting process - please reach out to me.  I'm happy to share what I know about the reporting requirements.

The information in this blog post is for general informational purposes only and is not intended as legal, accounting, or tax advice. Tax laws can change, and the application of information may vary. Readers are strongly advised to consult with their CPA or a qualified tax professional for personalized guidance tailored to their specific situation. This blog post is not a substitute for professional advice, and we disclaim all liability for actions taken based on its content. Always consult a qualified professional for advice on your individual tax situation and business circumstances.