New Fed Reporting rule for corporate transparency

[Rideski]

I had heard something about this somewhere and didn't pay much attention. Never got a communication from the city or state, or the feds for that matter. But a chamber of c that I'm in posted a note about it.

Is this really a thing? How many of you did it?
https://www.fincen.gov/boi-faqs#A_1

[gravitylover]

I also found out in an offhand kinda way. Yes we have to do it. No I haven't gotten it done yet but the $591/day penalty is disgusting so I will get it done.

[toast2266]

I did it for a few different companies at the beginning of the year when the reporting first opened up. You generally only have to do it once unless you change the structure of the company. I don't recall it being a big deal; took maybe 10-15 minutes per company.

[Rideski]

As a sole proprietor/consultant I'm not encouraged to list my home address on another database but I guess I will.

I imagine they will give people with old businesses otherwise in good standing that they track down for not getting this done a 5 day get out of jail free card. But that would likely coincide with the best powder days of the year so I guess I'll get it out of the way.

[Woolly the Mammoth]

I just found out I have to do it because I'm on my HOA board. So dumb.

[Foggy_Goggles]

Sole Props are exempt as they are not Corps

For me, my CPA took care of it for way too much I'm sure. All if info is part of the Corp Registration with the state and public record anywho.

[Rideski]

Sole prop but I have an LLC filed with SOS
Seems like I'm a RCH away from a loophole.

[Core Shot]

Thx for the reminder to bend over.

Stupid regulations. But bend over we must.
Agggh. Due by year end. Or rear end.

[Bunion 2020]

Yep, accountant e-mailed me. Website was a bit of a PITA. I probably fucked it up but I filed.

[Yukonrider]

Damn, good reminder. Got a big email from my accountant about this

[Chugachjed]

https://lbblawyers.com/resource/corp...nce-is-coming/

This is a pretty good article about compliance requirements.

[Rideski]

Seems super shady that they are employing and presumably paying people to launch a social media campaign for awareness, instead of just contacting all biz owners. Send all of them an email or two, if no reply a snail mail letter, then start with the penalties if no reply. Penalties with no contact? Weird. Do I have to fix everything? Is it going to be free to file for the first 5 years and then start in with the annual fees once they have everyone located?

[toast2266]

Is it going to be free to file for the first 5 years and then start in with the annual fees once they have everyone located?

There's no annual reporting requirement.

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[irul&ublo]

Wah wah wah…takes about ten minutes


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[Rideski]

There's no annual reporting requirement.

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Yet. But there are current requirements to keep updated. Like if you move etc etc.

[toast2266]

Yet. But there are current requirements to keep updated. Like if you move etc etc.

There's not yet a requirement to offer your first born as tribute either. Are you gonna prospectively bitch about that too?

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[Rideski]

Not till they implement it.

[smmokan]

Seems super shady that they are employing and presumably paying people to launch a social media campaign for awareness, instead of just contacting all biz owners. Send all of them an email or two, if no reply a snail mail letter, then start with the penalties if no reply. Penalties with no contact? Weird. Do I have to fix everything? Is it going to be free to file for the first 5 years and then start in with the annual fees once they have everyone located?

Good thing I check the TGR Padded Room occasionally…. I haven’t heard a goddamn thing about this on social media or anywhere else. Looks like typical government BS, ugh.

[anotherVTskibum]

Seems super shady that they are employing and presumably paying people to launch a social media campaign for awareness, instead of just contacting all biz owners. Send all of them an email or two, if no reply a snail mail letter, then start with the penalties if no reply. Penalties with no contact? Weird. Do I have to fix everything? Is it going to be free to file for the first 5 years and then start in with the annual fees once they have everyone located?

Honestly, if my tax preparer hadn't provided a relevant note clipped to my return, I'm not sure I'd have noticed. A random email or letter claiming to be from the feds may or may not make it past filtering, and even if I looked at it, I might think it fell into the same category as the scum suckers who send me an official-looking letter and form every year prompting me to file my state annual report, at four times what the state charges when I do it myself.

[BmillsSkier]

When I have more time I’ll opine on this bloated, misguided CTA, that has been law for some time but only just went into effect this year.

In short, it’s information that the government already has from every law abiding taxpayer, and the ones who are trying to avoid it won’t file anyway.

I led a CLE on the Act earlier this year and from all I can tell the only people that benefit from the Act are massive service providers like CT Corporation System that will charge fees to stay on top of your filing for you (many of our clients have dozens to hundreds of LLCs that need to file and it’s not efficient to pay accountants or lawyers to stay on top of updating your reporting for each one every time a beneficial owner sells their interest, moves to a new address or any of the other required updating filing events occur) and the IRS who will now have another non compliance tool in their chest.

Bottom line, if your entity does not qualify for one of the 20 some exemptions, you, your beneficial owners and your responsible party (attorney or other agent who formed the company for you) must continually maintain current information with FINcen lest you want to risk per diem fines and or jail. Not a big deal for disregarded single member LLCs, massive pain in the ass for syndicated investment vehicles and commercial real estate owners.

/rant

[jono]

Not a big deal for disregarded single member LLCs,

...which the federal government, namely the IRS, already knows. EO 14058 should require the IRS to provide that data, not me.

[Core Shot]

A bit wonky. But not as bad as I thought once you get the hang of it.

Pro tip if you have multiple entities create a fin cen id so when you get to the beneficial owner tab you just enter the id number.

PS. Accountants and lawyers want to charge hundreds for something that takes five minutes or less once you get the hang of it.

PPS. Also save and print a copy of the submission for any future issues.

[Name Redacted]

My accountant told me to just do it myself. It took 5 mins through my payroll provider.

[BmillsSkier]

A bit wonky. But not as bad as I thought once you get the hang of it.

Pro tip if you have multiple entities create a fin cen id so when you get to the beneficial owner tab you just enter the id number.

PS. Accountants and lawyers want to charge hundreds for something that takes five minutes or less once you get the hang of it.

PPS. Also save and print a copy of the submission for any future issues.

Accountants and lawyers are too busy to deal with this kind of work. See my post above.

[HappyCamper]

Now on hold.....

Corporate Transparency Act Blocked Nationwide by Texas Court

https://news.bloomberglaw.com/ip-law...by-texas-court