As the deadline to report beneficial ownership information (BOI) approaches, SWACCA’s public policy team wanted to remind SWACCA members of the process for submitting BOI to the Financial Crimes Enforcement Network (FinCEN). SWACCA has been deeply engaged on FinCEN’s beneficial ownership rulemaking, including securing provisions in the initial rulemaking implementing the beneficial ownership reporting regime that ensures many SWACCA members and affiliates will be exempt from reporting their beneficial owners and advocating to ensure the beneficial ownership database can be used to pursue misclassification investigations. SWACCA has also been posting resources from FinCEN regarding the beneficial ownership reporting requirements, including: (1) initial BOI reporting guidance; (2) guidance materials regarding BOI reporting requirements; (3) frequently asked questions about BOI reporting requirements; and (4) a small entity compliance guide.
FinCEN launched the Beneficial Ownership E-Filing website on January 1, 2024, which is used for entities to report their beneficial ownership information. A reporting company created or registered to do business before January 1, 2024 will have until January 1, 2025 to file its initial BOI report or to determine they are exempt. A reporting company created or registered in 2024 will have 90 calendar days after receiving actual or public notice that its creation or registration is effective to file its BOI report. A reporting company created on or after January 1, 2025 will have 30 calendar days after receiving actual or public notice that its creation or registration is effective to file its BOI report. FinCEN also released a helpful step-by-step instruction guide for filing BOI reports.
There are exemptions to the BOI filing requirement, including: (1) tax exempt entities, including 501(c)(6) organizations; and (2) large operating companies, defined as entities that: (i) employ more than 20 employees on a full-time basis in the U.S.; (ii) filed in the previous year federal income tax returns in the U.S. demonstrating more than $5 million in gross receipts or sales of other entities owned by the entity and through which the entity operates; and (iii) have an operating presence at a physical office within the U.S. Entities do not need to report that they are exempt from BOI reporting requirements if they have always been exempt. If a company filed a BOI report and later qualifies for an exemption, the company should file an updated BOI report to indicate that it is newly exempt from the reporting requirements. An updated BOI report for a newly exempt entity will only require that the entity: (1) identify itself; and (2) check a box noting its newly exempt status.
In addition to the resources above, FinCEN will also hold events across the country to discuss the BOI reporting requirements, including: (1) September 11, 2024 at 5:30pm PT at the IRS Tax Forum in San Diego, Town and Country Resort and Convention Center, 500 Hotel Circle North, San Diego, CA 92108; (2) September 13, 2024 at 2:45pm ET at the National Public Records Association (NPRRA) 2024 Annual Conference at the Marriott Downtown, 1 Orms Street, Providence, RI 02904; (3) September 25, 2024 at 2pm ET virtually through YouTube here; (4) November 20, 2024 from 10am to 5pm at the Small Business Expo in Dallas/Fort Worth at the Mesquite Convention Center, Exhibit Hall A/B, 1700 Rodeo Drive, Mesquite, TX 75149 Booth #412; and (5) December 11, 2024 from 10am to 5pm at the Small Business Expo in Atlanta at the Atlanta Convention Center at Americas Mart, Building 2, 4th Floor, 240 Peachtree St., Suite 2200, Atlanta, GA 30303 Booth #519.