With Cleer Tax in your corner, never worry about being caught off guard with new reporting requirements.
Cleer Tax has been helping companies like yours with foreign bank account reporting requirements for years, so we’re uniquely positioned to be able to support with the new (confusing and onerous) FinCEN Beneficial Ownership Reporting regulations. Our expert teams knows how to navigate them so you’re compliant and can avoid steep penalties.
Under FinCEN’s updated rule, reporting responsibilities are focused on corporations, LLCs, or entities formed by filing with the secretary of state or similar offices. This is a change from the previous rule, which included all corporations, LLCs, and partnerships.
Starting January 2024, exemptions include large operating companies, tax-exempt organizations like 501(c)(3) entities, and inactive companies meeting specific criteria, such as no recent ownership changes or minimal financial activities.
A beneficial owner is now more clearly defined as someone like a senior officer (CEO, CFO), someone with authority to appoint or remove key officers, a significant decision-maker, or anyone with substantial control over the company.
The individual responsible for the initial filing or registration of the company, such as an attorney or accountant, is identified as the ‘company applicant.’ This reporting is necessary for companies created in the U.S. on or after January 1, 2024.
The information will include the company name, address and tax ID number. The Beneficial Owner information that will be collected will include names, addresses, date of birth, an identification number from an official document such as a U.S. driver’s license or a passport and a copy of the identification document. More information can be found on the FinCEN website here.