Hi everyone ! I hope you are enjoying the holiday season so far. Before you know it, it will be 2024 !
Speaking of 2024, are you aware that small business owners have been tasked with an annoying new reporting requirement ? The US Treasury Department has a division called the Financial Crimes Enforcement Network (FinCEN). This division has been directed to create and enforce a rule that requires domestic and foreign business entities to disclose identifying information about who owns and controls the business (who are the beneficial owners?). The report is entitled the Beneficial Ownership Information (BOI) report.
There is much conversation going on in the CPA community about whether or not we can and should help our clients with this. The overall consensus at the moment is that we should not get involved, because it would likely be considered the "unlicensed practice of law" for those CPAs like me that are not attorneys. Accordingly, I will direct you to a nearby law firm that has attorneys that focus on tax and related matters. But first, here is a quick overview:
Attached is the full guide from FinCEN for small businesses, and it is pretty lengthy !
The highlights are:
For businesses in existence prior to 1/1/2024, the report is due no later than 1/1/2025
For businesses formed during 2024, the report is due within 90 days of creation
See Chapter 1, page 2, for a flowchart to determine if you have a filing requirement
See Chapter 1, page 4, for an extensive list of the types of companies that may be exempt from the requirement
The penalties for not complying with the requirement are stiff
For help and further guidance if needed, please reach out to McGuire, Wood & Bissette Law Firm:
Beth Lane Attorney
Phone 828-254-8800 Fax 828-641-9155 Website mwblawyers.com