As we continue to diligently monitor updates and additional rulings to the Corporate Transparency Act, we want to ensure that you are kept informed. Currently, we aren’t seeing any meaningful updates, but we do have a few highlights to share.
Updates on When to File
For domestic or foreign reporting companies that were created on or after January 1, 2024, a report must be filed within 30 days of receiving notice of their registration or creation. This has been modified to 30 business days from the date of receiving the notice.
FinCEN Identifier Information
Obtaining a FinCEN Identifier will be voluntary and if an individual does seek to receive one, he or she will have to fill out an application that will take approximately 20 minutes to complete.
Additional information on the FinCEN identifier:
- A unique identifier will be assigned by FinCEN to an individual or reporting company upon request; which can then be used as an alternative to providing PII (Personally Identifiable Information) on BOI (Beneficial Ownership Information) report
- Exclusive – FinCEN will only issue one per individual
- Must be kept up to date (Example: if you move, that needs to be updated and specific timelines for updating apply)
- The Act gives Treasury the authority, through its regulations, to prescribe procedures and standards governing the FinCEN identifier.
- FinCEN solicited comments on draft instructions for application for individuals applying for FinCEN ID:
- Instructions are for individuals (either Beneficial Owners, Company Applicants or both)
- Reporting companies applying for FinCEN ID do so on BOI Report form
- Report both business address and residential address if the FinCEN ID will be used for both a Company Applicant and Beneficial Owner
- Applicants can login through login.gov for this process
Clarification For Exempt Not-for-Profits
Not-for-profits are filed on the state level before obtaining a 501(c)3 exemption from the federal government. As this is a rather lengthy process to obtain the designation from the federal government, it will be the expectation that those entities comply with the 30-day timeline for reporting to FinCEN. Once the 501(c)3 federal designation is obtained, at that point, not-for-profit entities may request that FinCEN withdraw their initial reporting.
Company Applicant Information
Existing companies are not required to submit company application information. A company applicant is the individual who directly files the document that creates the entity, or in the case of a foreign reporting company, the document that first registers the entity to do business in the United States. The company applicant can also be defined as the individual who is primarily responsible for directing or controlling the filing of the relevant document by another.
As we continue to track updates, please make sure you are signed up to receive our informative client alerts. We will be hosting an in-depth webinar in July and will be sending the invitation shortly.