From Ellen Zornes, Executive Director: This is information that will affect most of our businesses. Please read…
Thank you, Cindy, for sharing with us.
My name is Cindy Turner and I’m the owner of Steadfast Accounting and Tax here in Columbia. We just wanted to give business owners here in Adair and surrounding counties some information regarding the reporting requirements for FinCEN. The deadline for this reporting, December 31, 2024, is fast approaching.
FinCEN is the U.S. Treasury’s Financial Crimes Enforcement Network which protects our financial system. They are requiring most business owners, including small businesses, to file a report with them regarding Beneficial Ownership. Here are a few answers to some of the questions you may have about FinCEN. You can also go to fincen.gov for more information.
1. What companies have to file? A “reporting company” are corporations, limited liability companies (LLCs), and any other business that registered with the secretary of state to start their business. The size of the company has no bearing on whether or not you are required to file. If you file a Schedule C, Schedule E, or Schedule F and you registered with the Kentucky Secretary of State (SOS) to start your business, and you file an annual report with the SOS, you will have to file with FinCEN. If you are not registered with the SOS but file a Schedule C, E or F and you are not a corporation or LLC, you don’t have to file with FinCEN.
2. What is Beneficial Ownership information (BOI)? Beneficial Ownership information is identifying information about the individuals who directly or indirectly own or control your company. This includes name, date of birth, address, identifying numbers such as driver’s license or passport, along with a photo ID. You will also need the company’s legal name, and any trade names or DBA’s, company address, and the company’s identification number.
3. When do I have to file my BOI report? If your company existed before January 1, 2024, your report must be filed by December 31, 2024. If your company was formed in 2024, you must file your report within 90 calendar days of formation. Beginning in 2025, this changes to within 30 days of formation for new businesses.
4. Where do I file my report? You can file you report by going to FinCEN’s BOI E-filing website (https://boiefiling.fincen.gov) or by using a third party provider such as an attorney, accountant, or other service provider to submit the information to FinCEN.
5. What if I don’t file my report with FinCEN? As specified in the Corporate Transparency Act, a person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. However, this civil penalty amount is adjusted annually for inflation, currently $591. A person who willfully violates the BOI reporting requirements may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.
This is just a brief summary of some of the questions related to FinCEN reporting. You can find more information at (https://www.fincen.gov/boi-faqs). If you would like for us to file your BOI report, please contact us at our Columbia office at (270) 634-1503 or our Lebanon office at (270) 692-5555 to schedule an appointment. Unfortunately, we cannot answer any questions over the phone.
(Ellen Zornes, Executive Director — Columbia-Adair County Chamber of Commerce)