Tax and financial advice from the Silicon Valley expert.

FinCEN gives more time to file 2024 beneficial ownership information reports for new entities

Effective January 1, 2024, businesses that are incorporated or are registered with a Secretary of State (such as LLCs, LLPs, and LPs) and aren’t publicly traded will be required to file a beneficial ownership information report with the Financial Crimes Enforcement Network (FinCEN.) See this blog post for some details. http://www.michaelgraycpa.com/posts/new-federal-report-for-many-small-businesses-carries-big-potential-penalties/

The due date for the report for new entities was supposed to be 30 days after creation. FinCEN was inundated with complaints that isn’t enough time, considering the complexity of the new requirements.

In response, FinCEN has issued proposed regulations extending the due date for new entities created during 2024 to 90 days after creation. After 2024, the 30-day deadline will apply.

Here is a link to the proposed regulations issued by FinCEN. https://public-inspection.federalregister.gov/2023-21226.pdf

Certain groups, including the American Institute of Certified Public Accountants, are asking to postpone the reporting requirement until 2025. Considering our dysfunctional Congress and the upcoming election, it seems unlikely the requirement will be postponed.

See your business attorney about preparing to file this report during 2024.

Tax and financial advice from the Silicon Valley expert.