Financial Crimes Enforcement Network (FinCEN) - Beneficial Ownership Information Reporting (BOIR) under Corporate Transparency Act (CTA)
- sallcnj19
- Nov 13, 2024
- 2 min read
The filing of Beneficial Ownership Information Reporting is a federal requirement designed to crack down on "Shell" companies. Sounds good to me but unfortunately that drag-net is going to impact all legal small businesses. Additionally, the type of information requested is sensitive and only adds another source for hackers to find valuable information about you.
At the time of this blog, forty-four (44) Members of Congress sent a letter to Ms. Janet Yellen, Secretary of U.S. Department of the Treasury and Ms. Adrea Gacki, Director FinCEN requesting a "delay in enforcement". Primary reasons stated in the letter are: "(1) amount of information requested, (2) method to calculate employment and revenue thresholds, (3) government's ability to collect this information and (4) actual impact...this information will have on accomplishing its intended goal" which is to deter the creation of "Shell" companies.
Now that we have a progressive business oriented President Elect, let's see if this BOIR will come to fruition. In the interim, here are a few things to consider and if you need assistance filing your BOIR please reach out to me (contact information at end) asap as the deadline is fast approaching.
Who has to file? Entities with less than $5 million annual revenue AND have less than 20 employees.
Who is exempt? (1) Securities Reporting Issuer (2) Governmental authority (3) Bank (4) Credit union (5) Depository institution holding company (6) Money services business (7) Broker or dealer in securities (8) Securities exchange or clearing agency (9) Other Exchange Act registered entity (10) Investment company or investment adviser (11) Venture capital fund adviser (12) Insurance company (13) State-licensed insurance producer (14) Commodity Exchange Act registered entity (15) Accounting firm (16) Public utility (17) Financial market utility (18) Pooled investment vehicle (19) Tax-exempt entity (20) Entity assisting a tax-exempt entity (21) Large operating company (22) Subsidiary of certain exempt entities (23) Inactive entity
How to file BOIR?
You can file with PDF or Online
PDF - Prepare report offline at your pace and upload in
Online – Prepare report online and submit immediately
Deadline for filing BOIR: January 01st, 2025
Penalties/Failure to comply:
$590/day; Felony Charges; Up to 2 years imprisonment.
Is this an annual or one-time filing/reporting requirement?
One-time but update filing information as it changes, for example:
Change of name
Update address
Change of UIN
Required information: Each electronic image (PDF, PNG, JPG/JPEG) max 4MB
(i) Beneficial owner (BO) and/or company applicant (CA)
(ii) Individual name
(iii) DOB
(iv) Address (of business or BO/CA?)
(v) Unique identifying number (UIN) from an acceptable identification document
a. State issued driver license
b. State/Local/Tribe issued ID
c. U.S. Passport
d. Foreign Passport (only used in lieu of not having one of the above)
(vi) Name of issuing jurisdiction of UIN
(vii) If Individual have a FinCEN ID – that can be used in lieu of UIN.
Acceptable Web browser: MS Edge, Google Chrome etc. and Adobe Acrobat Reader
Sources:
Email: sallcnj19@gmail.com
Phone: 862.275.9984
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