Jan
Corporations, LLCs, and other entities subject to the CTA are called “reporting companies.” People who form new reporting companies after January 1, 2024 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). The fine for not filing a BOI before the appropriate deadline is up to $500. Per. Day.
The BOI report must contain the following information for the reporting company:
• Complete current U.S. address (not a P.O. Box number),
• State, Tribal, or foreign jurisdiction of formation, and
• Taxpayer identification number (TIN) of the entity (such as an Employer Identification Number (EIN) or Social Security Number of a single member LLC). If a foreign reporting company has not been issued a TIN, report a tax identification number issued by a foreign jurisdiction and the name of such jurisdiction.
The following information about each beneficial owner and company applicant must be reported. Beneficial Owners are the human beings who (1) own or control at least 25 percent of the company or (2) exercise “substantial control” over the company.
• Full legal name,
• Date of birth,
• Complete current address (not a P.O. Box number), and
• A unique identifying number and issuing jurisdiction from, and image of, one of the
following non-expired documents:
– U.S. passport.
– State driver’s license.
– Identification document issued by a state, local government, or tribe.
– If an individual does not have any of these documents, a foreign passport may be used.
The BOI report is filed online at www.fincen.gov/boi, a new federal database called BOSS (an acronym for Beneficial Ownership Secure System). There is no filing fee.
As this is a new requirement, people have lots of questions about the BOI report filing, so we’ve tried to answer the most common questions below:
• 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?
As the IRS has not made it’s position clear on whether or not Enrolled Agents will be able to assist in the preparation of the BOI, our official position here in the office on the matter is that Matt, Ryan, and Stacie will not assist until more thorough explanations of liability can be disseminated.
As always, if you have additional questions or need clarification on the guidelines for filing, please contact our office at 301-371-5104 or office@lincolntax.com.