The “Corporate Transparency Act” is a new statute enforced by the Department of Treasury, specifically the Financial Crimes Unit (often abbreviated as “FinCEN”). This newly developed law has gained a lot of attention, due to the widespread applicability to so many individuals and businesses. Despite the hype, there is still adequate time to obtain the necessary information and file.
The FinCEN initiative is rooted in anti-money laundering efforts and applies to all companies created or registered to do business in the United States. This sweeping requirement calls for Beneficial Ownership Information, “BOI”, to be filed with FinCEN. Failing to submit within the specific timeframes as outlined in the statute could result in a fine of $500 for every day of non-compliance.
The filer should include those who are both direct and indirect filers of the company when submitting a report. These individuals must disclose identifying information such as Tax ID, full legal names (or trade names), dates of birth or dates of formation, physical addresses, and other personal identifying information.
If you feel as though you may be affected, please reach out to Legacy Planning & Probate, LLC so we may connect you with an advisor who can handle the federal reporting. You can also access FinCen’s home page for additional information, as well as their eFiling system on their website, located HERE. For a helpful visual detailing who is required to report, please visit this blog post by the Iowa State University Center of Agriculture Law and Taxation.