BOI & FINCEN REPORTING – The Hits Keep On Coming
I know this update has been posted before, but its important to keep in mind as we approach the middle of the year. If you formed an entity in 2024, you may have a new Federal reporting requirement coming due. If your entity was already in existence prior to January 1, 2024, your due date is still at the end of the year. Below are a few recent updates:
- Notice to Customers of Financial Institutions – This is an update that outlines why you will be providing information to both financial institutions (i.e., you bank) and to FinCen. The bottom line is you are giving reports to both because they are asking for different information and for different purposes.
- FAQ Updates – There are new FAQs since our last notice in May (the relevant additional sections are labeled below)
- A.5 – Further defines how an Indian Tribe is defined under the Corporate Transparency Act..
- C.10 – HOAs may be reportable entities if they are incorporated or a state created entity and not a 501(c)(4)
- C.11 – Outlines reporting requirements for entities formed under Tribal Law (yes, they have to do the BOI filing if they are filed as a separate company)
- C.12 – Outlines requirements for companies that were created before the Corporate Transparency Act was enacted (yes, they have to do the BOI filing)
- C.13 – Further explains that a company that ceased to exist prior to January 1, 2024 is not required to do the BOI filing.
- C.14 – If a company is created after January 1, 2024 and then ceases to exists prior to its required BOI filing date, it still has to file its BOI report
- D.17 – Further defines who are the beneficial owners of an entity formed under owned by an Indian Tribe
- F.5 – Further clarifies what are acceptable forms of ID to meet the reporting requirements
- F.13 – Further clarifies what types of Taxable ID Numbers can be used for disregarded entities
- G.3 – Provides guidance on how to get a tax identification number for a new company to do the BOI filing
- L.8 – Clarifies if a telecom company is included as an exempt public utility (i.e., not required to do the BOI filing)
- L.9 – Clarifies that a company cannot qualify as a large operating company (i.e., not required to do the BOI filing) if it has not filed its return for the previous year
Below are updates that we have shared before:
FinCen has a new reporting requirements for entities. The report submission site is active and new updates have been provided. Here are three key things to look at:
Are you subject to the filing requirements (i.e., are you a reporting company)?
If I am a reporting company, when do I have to file?
- A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report.
- A reporting company created or registered in 2024 will have 90 calendar days to file after receiving actual or public notice that its creation or registration is effective.
- A reporting company created or registered on or after January 1, 2025, will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.
Where do I file this information?
We also put together a quick memo for you to reference. If you have any questions about this topic, please make sure you reach out to your professional business advisors for assistance (business attorney, business accountant, business financial advisor, etc.).
As always, please reach out to your professional business advisors (business attorney, business accountant, etc.) for questions.
Here are a few other items of interest:
- Implementing Generative AI: The Great Experiment Within Businesses – Silvercrest (silvercrestgroup.com)
- Heading Towards the Cliff: Tax Update & Planning in Dynamic Times Part 2 | Stambaugh Ness (8/13 @ 2pm)
As always, please don’t hesitate to email myself (jsanders@mpl-law.com), Andy Miller (amiller@mpl-law.com), Christian Miller (cmiller@mpl-law.com), Erik Spurlin (espurlin@mpl-law.com), Brad Leber (bleber@mpl-law.com) or anyone in our office with questions or comments.
Please see all of our prior updates at this link or if you would like to be added to our email list, please click here.