Understanding IRS Beneficial Ownership Interest Requirements

If you have a small business that operates as an S-corporation or limited liability company, you might need to share details about who really owns it with the government. New rules, like the Corporate Transparency Act (CTA), require businesses to report their "beneficial owners" to FinCEN (Financial Crimes Enforcement Network). These reporting requirements are part of an effort to ensure ownership transparency and fight terrorism.  

The reporting deadline is December 31, 2024. Your accountant may have contacted you to charge you to file the report, but you can easily do so on your own in about 20 minutes through the following link: BOI E-FILING (fincen.gov). Just have your license and tax ID handy when completing it.  

You may have heard that the courts have ruled the beneficial ownership requirements unconstitutional. While that is true, FinCEN is taking the position that only parties to that lawsuit are relieved of the reporting requirement. The rest of us still need to comply.

The stakes of non-compliance are steep. The penalties are $591.00 per day, a criminal fine of up to $10,000.00 & possible imprisonment of up to two years

My practice focuses on civil and criminal tax issues. If you have any questions you can reach me at 504-680-6057