Tax Planning 

2024 Corporate Transparency Act – Required Beneficial Ownership Information Reporting to FinCEN

May 15, 2024

Bradford Tax Institute

The Corporate Transparency Act (CTA) is upon us. It took effect on January 1, 2024, and imposes a new federal filing requirement for most corporations, limited liability companies (LLCs), and other business entities.

Corporations, LLCs, and other entities subject to the CTA are called “reporting companies.” People who form new reporting companies must file a beneficial ownership information (BOI) report with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) within 90 days of forming the company.

The owners of reporting companies created before 2024 must also file a BOI report, but they have until January 1, 2025 (but think December 31, 2024).

Some businesses are exempt from filing—for example, large operating companies with over 20 employees and $5 million in income. There are other, more narrow exemptions as well.

The BOI report must contain the name, the birth date, the address, and an ID number and image of that ID for each “beneficial owner” of the reporting company. These are the human beings who (1) own or control at least 25 percent of the company or (2) exercise “substantial control” over the company.

The BOI report is filed online at a new federal database called BOSS (an acronym for Beneficial Ownership Secure System). There is no filing fee.

Government law enforcement and security agencies will use the data from BOI reports to help combat money laundering, tax evasion, terrorism, and other crimes. It will not be available to the public.

Naturally, people have lots of questions about the BOI report filing requirements—for example:

  • Do you have to file a BOI report if you own a single rental property in an LLC? (Yes.)
  • Do you have to file 10 BOI reports if you own 10 LLCs? (Yes.)
  • Can certified public accountants, enrolled agents, and other non-lawyers file BOI reports for clients without running afoul of unauthorized practice of law rules? (Unclear.)
  • Are registered agents responsible for filing the BOI report? (No.)
  • Do the self-employed have to file? (No.)
  • Do I need to list a street address in the BOI report? (Yes.)
  • Do I need to list my Social Security number in the BOI report? (No.)
  • Do I need to list my attorney in the BOI report? (Maybe.)
  • Must I file an updated BOI report if a beneficial owner leaves the company? (Yes.)
  • Do I have to list my minor child in a BOI report? (No.)
  • Will criminals file BOI reports? (Who knows?)

I’ve provided some basic answers above. If you have further questions on the new BOI reporting, please contact our office at 800-810-1736 or [email protected].

For more guidance on the BOI report filing requirements, view our special report Big Tax Changes to Know for 2024 of 13 Answers on the New 2024 CTA Required BIO Reporting to FinCEN.

SERVICES WE OFFER RELATED TO THIS TOPIC

The information contained in this post is for general use and educational purposes only.  However, we do offer specific services to our clients to help them implement the strategies mentioned above.  For specific information and to determine if these services may be a good fit for you, please select any of the services listed below. 

The 4x4 Financial Independence Plan ℠

The Smart Tax Minimizer ℠ (For Consumers & Home-Based Businesses)

The Smart Tax Planning System for Business Owners ℠

Tax Planning

Coaching and Consulting

Need More Information?

If you have any questions regarding this article, please don’t hesitate to reach out to us at [email protected]. Alternatively, you can schedule a complimentary 15-minute consultation to inquire further and determine whether we align with your needs and expectations. We look forward to assisting you!

You May Also Like…

Investment Advisory Services are offered through Lifetime Financial, Inc., a Registered Investment Advisory. Insurance and other financial products and services are offered through Lifetime Paradigm, Inc. or Lifetime Paradigm Insurance Services. Neither Lifetime Financial, Inc. nor Lifetime Paradigm, Inc., or its associates and subsidiaries provide any specific tax or legal advice. Only guidance is provided in these areas. For specific recommendations please consult with a qualified, licensed Advisor. Past performance is no guarantee of future results. Your results can and will vary. Investments are subject to risk, including market and interest rate fluctuations. Investors can and do lose money and, unless otherwise noted, they are not guaranteed. Information provided is for educational purposes only and is not intended for the sale or purchase of any specific securities product, service or investment strategy. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER, TAX PROFESSIONAL, OR ATTORNEY BEFORE IMPLEMENTING ANY STRATEGY OR RECOMMENDATION DISCUSSED HEREIN.

This message is intended for the use of the individual or entity to which it is addressed and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, any dissemination, distribution or copying of this communication is strictly prohibited. If you think you have received this communication in error, please notify us immediately by reply e-mail or by telephone (800) 810-1736 and delete the original message.

This notice is required by IRS Circular 230, which regulates written communications about federal tax matters between tax advisors and their clients. To the extent the preceding correspondence and/or any attachment is a written tax advice communication, it is not a full "covered opinion." Accordingly, this advice is not intended and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS.