New details under beneficial ownership information (BOI) for entities that are disregarded for U.S. tax purposes are included in updated frequently asked questions (FAQs) released Wednesday by the Treasury’s top financial crimes enforcement agency.
The Financial Crimes Enforcement Network (FinCEN) said the updated FAQs also include updated information that addresses the timeframe for obtaining an Employer Identification Number (EIN) from the Internal Revenue Service (IRS).
The FAQs, according to FinCEN, were developed to answer inquiries relating to the Beneficial Ownership Information Reporting Rule and Beneficial Ownership Information Access and Safeguards Rule of the agency. Since late last year, the agency has been updating its list of FAQs, now in excess of 80 questions across 14 subject areas.
On Jan. 1, FinCEN began accepting BOI reports from many companies. According to FinCEN, under BOI, many companies (not all) are required to report information about the individuals who ultimately own or control the company (that is, who benefits from ownership).
Information filing is not annual, according to FinCEN. A report only needs to be submitted once unless the filer needs to update or correct information. Companies that are required to comply with the BOI fall into two categories: existing companies; and newly created or registered companies.
FinCEN said existing companies (those created or registered to do business in the U.S. before Jan. 1) must file by the start of next year (Jan. 1, 2025).
Beneficial Ownership Information FAQs