This has not received much PR except within professional financial circles.
Effective Jan 1, 2024 basically any type of entity that is registered with any US state has year to report to the US Treasury FinCen unit (not to be confused with IRS) the beneficial owner of said entity. The US, up to now, had no federal requirement to report the beneficial ownership information. Though some US states and some EU entities have had this requirement for years.
https://www.fincen.gov/boi
The .gov says it is necessary to do this to prevent money laundering and reduce terrorism but the real reason to make tax evasion difficult and perhaps pick up some extra money since the fine for non-compliance is $10,000.
In addition once reported if there are any changes these also need to be reported. The only exception are 501(c)3 entities registered as a public charity. There is a "carve out" for entities that report this already due to SEC, FDIC, FSLIC and other alphabet entities. Since they are already doing this it is not exactly a carve out.
So if anyone has small LLC, S Corp or other personal business entity even potentially a partnership that is registered with a state you too may have the pleasure of registering it with FinCen. Basically if you do any business with an entity that uses a federal TIN instead of a social security # you should consult the rules.
If you have more than one entity to report I suggest you get a Fin Cen # for yourself (think social security # Mk2.) to simplify the process. You have to upload a state or federal ID for each beneficial owner in PDF form (yeah what could go wrong with that :rolleyes1:).
If the parties have a FinCen# then it is much simpler and all you have to do is add the FinCen #.
A link to more detailed information.
https://www.fincen.gov/sites/default/files/shared/BOI_Small_Compliance_Guide_FINAL_Sept_508C.pdf
The only good news here is that you have until 12/31/24 , year, to complete the task.
Oh, joy...
Off to read the rules and get my FinCen #, just as soon as I remember my TIN.
Quote from: NT2C on January 08, 2024, 01:50:04 PMOh, joy...
Off to read the rules and get my FinCen #, just as soon as I remember my TIN.
Don't worry. Big brother is your friend