To Our Valued Business Clients:

I want to make you aware of a new business reporting requirement for all entities that were created by the filing of a document with a secretary of state or any similar office in the United States. It is the Beneficial Ownership Information Reporting Rule and it is under the control and direction of the Financial Crimes Enforcement Network of the U.S. Department of the Treasury.

To summarize, all existing entities will have to report their businesses and their beneficial owners before 1/1/25. Any newly created entities will have 90 days to report. This is a one time filing and not an annual filing. All entities will be required to report any changes to the business or their owners. The report is required to be submitted on line through the Financial Crimes Enforcement Network website. As noncompliance with this agency is considered a financial crime, the civil penalties for noncompliance are up to $500 per day. The individual who doesn’t comply may be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000.

Due to the fact that this requirement is not in any way affiliated with the IRS or the E-Filing system that is used to prepare Income Tax Returns, we are unable to prepare this form for you. We will, however, have a detailed frequently asked questions section available via the link below to assist you. For detailed information or to file you can go directly to the fincen website at https://www.fincen.gov/boi.

I hope this information is helpful to you as it our continued goal to assist you in maintaining compliance in this ever changing environment.

Sincerely,
Kelli J Walsh, CPA