FinCEN ID: Your Guide To Crucial CTA Compliance
A new reporting requirement started on January 1, 2024.
This change is important for businesses in the United States. Under the Federal Corporate Transparency Act (CTA), many small limited liability companies (LLCs) and corporations need to report their beneficial ownership information (BOI). Someone must send this information to the Financial Crimes Enforcement Network (FinCEN).
It is very important to understand these new rules. Knowing what a FinCEN ID number is and how to get one is essential. This knowledge can help avoid serious penalties.
The stakes are high: non-compliance with the CTA is not a realistic option. Penalties are significant, ranging from large financial fines to potential criminal charges. To ensure your reporting company follows the new federal rules, focus on these important areas. Keep sensitive data safe.
Noncompliance is not a realistic option. Penalties for non-compliance are severe, underscoring the critical need for understanding your obligations under the CTA.
Key items on which to focus:
- Protect your information by obtaining a FinCEN ID number. This unique FinCEN identifier helps safeguard sensitive personal data.
- Learn about your requirements for filing. Understanding the specifics of who needs to file and what information constitutes beneficial ownership information (BOI) reporting is essential.
- Make timely filings and update them regularly as needed. Adhering to deadlines and ensuring your information remains current is crucial for ongoing compliance.
Crowley Law knows the new requirements well. They can help you protect your information and choose the best way to file.
Figuring out who counts as a beneficial owner to report can be complex. It often needs careful understanding of the rules. Avoid delaying until the last possible moment. Contact us at (908) 540-6901 or [email protected] for a discussion with a team member.
Protecting Your Data: The Role of a FinCEN Identifier
One concern is that the filing process requires sharing personally identifiable information (PII)about the person making the filing. Given the number of hacking incidents and penetration of government systems, this is a significant concern for filers. Let’s find another way to identify the filer to protect this sensitive information and enhance data security.
The Treasury Department, through its Financial Crimes Enforcement Network (FinCEN) website (WWW.fincen.gov), provides a helpful alternative. Individuals may file to obtain a FinCEN identification number for use in filings, allowing them to avoid repeating the disclosure of personally identifiable information. This FinCEN identifier acts as a secure proxy for your personal details.
Obtaining a FinCEN Identification Number is Simple: Your Guide to FinCEN Registration
Obtaining a FinCEN identification number is simple. This unique FinCEN ID streamlines your FinCEN registration process and enhances your data privacy for future filings.
Steps to Get a FinCEN ID:
- Simply log into the FinCEN website at https://fincen.gov/boi. You might also find direct access via fincenid.fincen.gov.
- Click on the link “Create a FinCEN ID (optional)”. This initiates the process for you to get a FinCEN ID number.
- The process includes giving specific required information about the filer. This information should include their full legal name, date of birth, current address, and phone number.
- You also need to provide a scan or clear photograph of a government-issued ID, like a driver’s license or passport. This helps FinCEN verify your identity for your FinCEN identifier number.
Getting the ID allows a reporting company or an individual beneficial owner to use the FinCEN ID. This means you no longer need to share full personal details when reporting beneficial ownership information to FinCEN. It offers a more secure and efficient way to comply.
Key Deadlines for Beneficial Ownership Information (BOI) Reporting
We now accept reports. Understanding the specific deadlines is crucial for every reporting company to ensure timely FinCEN registration and avoid penalties.
- If you created or registered your company before January 1, 2024, you need to report the beneficial ownership information. You must complete this by January 1, 2025.
- Companies that form in 2024 must report their Beneficial Ownership Information (BOI)to FinCEN. You must submit this information within 90 calendar days from the date your company either:
- Receives official confirmation that its creation or registration is effective.
- Becomes publicly aware (e.g., through a state database or public record) that its creation or registration is effective.
Whichever of these happens first. This 90-day deadline is only for companies formed in 2024. It’s a special rule for new businesses in the first year of the Corporate Transparency Act.
For companies created or registered on or after January 1, 2025, you must report within 30 calendar days of your company’s effective creation or registration.
If there are any changes to the information you submitted to FinCEN, you must update it. This includes changes in ownership, control, name, address, or identification documents of a beneficial owner. You need to submit these updates or corrections within 30 days of the change. Timely beneficial ownership information reporting and updating of this information is essential for compliance and to avoid potential penalties.
Severe Penalties for Non-Filing and Non-Compliance
Penalties for non-filing are severe. Individuals and entities who fail to file correctly, or who willfully provide false or misleading beneficial ownership information, will face severe repercussions.
- These penalties can reach up to $500 for each day that someone continues the violation or does not fix it. This civil penalty can accumulate rapidly.
- In addition, willful non-filers are subject to criminal fines of up to $10,000 and two years’ imprisonment. This highlights the serious nature of compliance under the CTA.
Crowley Law has extensive experience in government compliance programs and can help you determine your best path forward for FinCEN compliance. We understand the intricacies of the Corporate Transparency Act (CTA) and can guide you through the reporting process, ensuring your business meets all its obligations.
Contact Crowley Law for Expert FinCEN ID & CTA Guidance
Determining who qualifies as a beneficial owner and navigating the reporting requirements can be complex. Avoid delaying until the last possible moment. Contact us at (908) 540-6901 or [email protected] for a discussion with a team member who can provide tailored advice and support for your FinCEN registration and compliance needs.