Happy Friday!
I’ve had panicked small business owners asking what the FINcen BOI is & if it’s going to affect them filing their taxes. FINcen is separate from the IRS.
FINcen stands for Financial Crimes
Enforcement Network (FinCEN). FinCEN is a bureau of the U.S. Department of the Treasury. In 2021, Congress enacted the Corporate Transparency Act. This law creates a beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures
As of January 1, 2024, a majority of companies will have to report to the FINcen the beneficial owners (the individual who owns or controls the company.) Beneficial owners are those that control or have an interest of 25% or more of said company.
???? Your company may be a reporting company and need to report information about its beneficial owners if your company is:
1. A corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe ; or
2. A foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing.
???? Twenty-three types of entities are exempt from the beneficial ownership information reporting requirements. These entities include publicly traded companies, nonprofits, and certain large operating companies.
Reporting companies will have to report beneficial ownership information electronically through FinCEN’s website:
????The system will provide the filer with a confirmation of receipt once a completed
report is filed with FinCEN.????
✅If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025, to report BOI.
✅If your company was created or registered on or after January 1, 2024, and before January 1, 2025, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective,
whichever is earlier.
✅If your company was created or registered on or after January 1, 2025, you must file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective.
✅Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.
???????? A person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. That person may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000.
Although this information came straight from www.FINcen.gov/boi PLEASE DO YOUR DUE DILIGENCE to see if your company qualifies as a reporting company!
