We here at Wolfley Accounting would like to give you a heads-up about a change to the reporting of businesses to the Internal Revenue Service that you need to know. Below is an explanation of what has passed and what needs to be done to continue as a business. The following links are available so that you can explore and easily find the forms you need.
The Bipartisan Corporate Transparency Act 2021
The bipartisan Corporate Transparency Act was enacted in 2021 to help combat illicit finance and is requiring companies doing business in the U.S. to report all information regarding the individuals that control them. The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has started accepting applications. Follow the link to file your Beneficial ownership information to fill out and submit the report needed.
Filing for this act is simple, quick, secure and free to comply with. The deadlines for these reports are as follows:
- Existing businesses, started before January 1, 2024, must complete the report by January 1, 2025.
- Newly created or registered companies, started after January 1, 2024, will have 90 days from receiving actual public notice of the company’s creation/registration to comply and submit the report.
The Beneficial ownership information is not needed annually. You will only need to do this once, per business, unless you have information to update or correct over time. Below is the information that is needed to file your Beneficial Ownership Information.
- Name;
- Date of birth;
- Address; and
- ID number, either from a non-expired U.S. driver's license, U.S. Passport, or identification number provided by your state (territory or possession), local government, or Native American Tribe.
o If none of these documents are available, or exist, please refer to your non-expired foreign passport. (An image of this document must be submitted)
You must also submit the name and address of the business. Businesses created/started after January 1, 2024, must also submit information about the individuals that formed them (“Company Applicants”).
In addition, FinCEN will be providing assistance to the smaller businesses, in completing the report with the Small Entity Compliance Guide that will provide a walkthrough in plain language.
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