Beneficial Ownership Information Reporting & IRS Online Business Account
Important NEW Beneficial Ownership Information (BOI) Reporting:
- The Corporate Transparency Act was enacted in early 2021. The purpose of the Act was to reduce money laundering, the funding of terrorism and other illicit activity.
- The Act created a database of “beneficial ownership” to identify persons who beneficially own or substantially control various companies in the U.S. and non-U.S. companies registered to do business in the United States.
- A beneficial owner is any individual who exercises substantial control over the company or who owns or controls at least 25% of the company. If it is unclear who this is at your company, we suggest consulting your attorney.
- The information is to be self-reported by owners and officers of companies.
- The Financial Crimes Enforcement Network (FinCEN), a US Treasury Dept agency is overseeing enforcement.
- Non-compliant businesses may be subject to civil and criminal penalties. Fines start at $500 per day.
- Deadlines for initial reporting are as follows:
- Company formed in U.S. prior to 1/1/24 has until 1/1/25 to file first report.
- Non-U.S. company registered to do business prior to 1/1/24 has until 1/1/25 to file first report.
- Company formed in U.S. after 1/1/24 has 30 days from formation to file first report.
- Non-U.S. company first registered to do business after 1/1/24 has 30 days from registration to file first report.
- Register at https://www.fincen.gov/boi starting in January of 2024.
- This report is not part of your tax return and we cannot file it for you.
- This reporting requirement is generally required for businesses registered with a state, such as LLCs and corporations. Non-profits are generally exempt. If your business had over $5 million in year gross income, you might be exempt. In all cases, please see booklet linked below to determine if you need to file and for details. Consult an attorney if you are unsure of your filing requirements. (CPAs may interpret tax laws for you, but this requirement is not considered a tax law.)
- More information here: https://www.fincen.gov/sites/default/files/shared/BOI_Small_Compliance_Guide_FINAL_Sept_508C.pdf
IRS Business Account Online – The IRS now allows businesses to create online accounts. Visit the website below to create your business account. https://www.irs.gov/businesses/business-tax-account
- The following business types can set up business accounts:
- Sole proprietors with an EIN
- LLCs filing taxes as any of the above types.
IRS Mileage Rate – For 2024, the standard rate for deducting business mileage will be 67¢ per mile.