My Northern Wisconsin

Covering Ashland, Iron, Lincoln, Oneida, Price, Rusk, Sawyer, Taylor, and Vilas Counties


UNDERSTANDING BENEFICIAL OWNERSHIP REPORTING, NEW REGULATIONS FOR BUSINESSES


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By:  Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA, https://www.DavetteLynneHrabak.com

   

Due to the Corporate Transparency Act of 2020, there is a new reporting requirement pertaining to beneficial owners of certain entities who are doing business in the United States.

The Financial Crimes Enforcement Network, also known as FinCEN, has issued final regulations that became effective on January 1, 2024.  The act created new rules, the intentions of which are to protect financial systems from criminal use.  In order to pursue this goal, there are new reporting requirements for many people and entities.  If all applicable individuals and entities comply with this act, it is believed that it will protect the United States' financial systems, plus it will provide information to national security, intelligence, and law enforcement agencies.  It is designed to assist in preventing the use of shell companies, to help to prevent money laundering, and to help prevent the hiding of assets. 

This new requirement affects many entities and individuals.  Any company that is a foreign or domestic reporting company is subject to the reporting requirements.  In general, if a company was or will be created by filing a document with the Secretary of State or other similar office, that makes them subject to the Corporate Transparency Act of 2020.  Some companies are exempt if they meet one of the 23 exemptions.  However, each of these exemptions have criteria that must be met to qualify for the exemption.  Some categories may at first sound like someone is exempt until they read all of the qualifications.  This act is designed to collect information on small to mid-size businesses, as well as some larger businesses.

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SPONSOR OF FREE NEWS AND LOCAL EVENTS.  Davette Lynne Hrabak, CPA, located at 164 South Lake Avenue in Phillips, specializes in tax return preparation, business start-up services, consulting, bookkeeping, payroll, and all your accounting needs.  Call 715-339-6638 or visit Davette's website.  Follow her Facebook page.

Companies created or registered before 2024 will have the initial report due January 1, 2025.  If a reporting company is created or registered after 2023, the initial report is due within 90 days of the creation or registration date.

It should be further noted that an updated report must be filed if there is a change to a previously filed report about the reporting company or its beneficial owners.  If this occurs, it must be sent in within 30 days of the change.

Some of the information that must be reported for the reporting company’s beneficial owners and certain company applicants, is the individual’s full legal name, date of birth, street address, and unique ID number.  An image of the document showing the unique ID number must be included in the report.  Similar information about the reporting company must also be reported.

Violations for non-reporting are substantial.

The information that is available on this is evolving; therefore, it would be a good idea for anyone that has questions or feels they may be affected by this act, to look into the matter further or consult an attorney for assistance with compliance. 

If you have a business or other entity, it would be wise to look into this new reporting to see if you are someone who needs to report under it. 

The website address for FinCEN's Frequently Asked Questions Page can be found at this link.

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LEARN ABOUT JUSTIN LINDGREN, PHILLIPS SCHOOL BOARD CANDIDATE:  Justin Lindgren feels he is qualified to be a school board member because he has been a teacher and is currently working on a degree in school administration.  He feels he has the insight on both sides to see what needs to be fixed.  He is calling for change, transparency, and communication on the school board.  "I have spent the past 12 years serving both the community and the school district, and I would be honored to have the opportunity to continue this."  Learn more by reading an article with Justin's thoughts on the school board and why he is asking for your vote.
(This post was last modified: 03-27-2024, 06:32 PM by My Northern Wisconsin.)