{"id":225349,"date":"2023-06-07T15:00:05","date_gmt":"2023-06-07T15:00:05","guid":{"rendered":"https:\/\/www.markperlbergcpa.com\/new-fincen-reporting-requirements-for-atlanta-businesses-part-2\/"},"modified":"2023-06-07T15:00:05","modified_gmt":"2023-06-07T15:00:05","slug":"new-fincen-reporting-requirements-for-atlanta-businesses-part-2","status":"publish","type":"post","link":"https:\/\/prosperlcpa.com\/blog\/2023\/06\/new-fincen-reporting-requirements-for-atlanta-businesses-part-2\/","title":{"rendered":"New FinCEN Reporting Requirements for Atlanta Businesses (Part 2)"},"content":{"rendered":"<div class=\"pme-content\">\n<p>Memorial Day doesn\u2019t always mean rest for the small business owner \u2014 depending on what kind of industry you\u2019re in.<\/p>\n<p>There\u2019s often a lot of hustle around national holidays (special promotions, big sales, holiday weekend shopping). And debt ceiling deals to make, apparently, since that\u2019s what our government was working on over the weekend. Some notables in repealing nondefense spending:<\/p>\n<ul>\n<li>2 year debt ceiling suspension<\/li>\n<li>Added work requirements for some people aged 50\u201354 receiving food stamps via the Supplemental Nutrition Assistance Program (SNAP).<\/li>\n<li>$20 billion of the over $80 billion pulled back from what was doled out to the IRS for increased enforcement last summer<\/li>\n<li>Environmental review process changes to help speed up energy projects.<\/li>\n<li>No more unilateral extensions on student loan repayment<\/li>\n<\/ul>\n<p>What a way to spend a holiday weekend.<\/p>\n<p>Even with any \u201cextra\u201d in your arena, I hope you had a moment to enjoy some beginning-of-summer weather and something off the barbecue.&nbsp;<\/p>\n<p>A few weeks ago, I promised a part two on the FinCen reporting requirements. And today, I\u2019m going to deliver.<\/p>\n<p>As of next year, thousands of small companies will have to start reporting information on their owners, thanks to the Financial Crimes Reporting Network (FinCEN). The agency looks to fight financial criminals, and therefore wants small companies and corporations to share information in the spirit of saving us all from the crooks.<\/p>\n<p>Before I share too much, let me say: This is something you\u2019ll want to make sure you pay attention to. There are some exemptions, so read on to know if your business falls in that purview.<\/p>\n<p>And if it does, my team and I can help with the nuances of it for your Atlanta business. When you\u2019re ready for that, we\u2019re right here:<br \/><span style=\"background-color:white;\"><strong><a href=\"https:\/\/calendly.com\/mark-perlberg-cpa\">calendly.com\/mark-perlberg-cpa<\/a><\/strong><\/span><\/p>\n<p><span style=\"background-color:white;\">So, what does that look like for next year, and what do you need to know?&nbsp;<\/span><\/p>\n<p><span style=\"background-color:white;\">Let\u2019s have a look.<\/span><\/p>\n<p><span class=\"text-huge\"><strong>New FinCEN Reporting Requirements for Atlanta Businesses (Part 2)<\/strong><\/span><br \/><span class=\"text-small\"><i>\u201cWith great power comes great responsibility.\u201d \u2013 Uncle Ben, \u201cSpider-Man\u201d<\/i><\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">If you don\u2019t know about this new requirement popping up for scads of small businesses, it might come as a bit of a surprise \u2014 which is why we\u2019re going to look at it today.<\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">A few weeks ago, we quickly overviewed this reporting requirement. Let\u2019s look at a few more details about what exactly the feds want to know.<strong>&nbsp;<\/strong><\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\"><strong>\u2018Corrupt actors\u2019<\/strong><\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">To refresh your memory: FinCEN looks to implement parts of the Corporate Transparency Act that govern the access to beneficial ownership information, or BOI. The reporting regulations kick in next January 1. <i>They require most small corporations, LLCs, and similar entities created in or registered to do business in the U.S. to report information about their beneficial owners.<\/i> The information will go into a database that helps track \u201ccriminals, corrupt actors and anyone trying to hide ill-gotten gains in the United States\u201d to the inspection of law enforcement here and in other countries.&nbsp;<\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">The feds claim that the states (the level of government where shell companies register, if they register with anybody) can\u2019t currently do enough to track international bad guys who might be setting up shop.<\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\"><strong>Who do they want?<\/strong><\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">So, they want information on beneficial owners. Who exactly is that?&nbsp;<\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">In general, <i>a beneficial owner directly or indirectly exercises \u201csubstantial control\u201d over a company \u2014 or owns or controls 25% or more of the \u201cownership interests\u201d of the reporting company.&nbsp;<\/i><\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">\u201cSubstantial control\u201d can involve all the company\u2019s senior officers or anybody directing or with most of the influence over big decisions for the company. \u201cOwnership interests\u201d can include simple shares of stock and equity as well as more complex debt instruments and trusts.<i>&nbsp;<\/i><\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">You\u2019ll have to report four pieces of information about each of your company\u2019s beneficial owners via a FinCEN website:&nbsp;<\/span><\/p>\n<ol>\n<li><span style=\"font-family:Georgia, serif;\">Their name,<\/span><\/li>\n<li><span style=\"font-family:Georgia, serif;\">Birthdate,<\/span><\/li>\n<li><span style=\"font-family:Georgia, serif;\">Residential address,<\/span><\/li>\n<li><span style=\"font-family:Georgia, serif;\">And a unique identifying number and issuing jurisdiction from an acceptable identification document (and an image of the document).&nbsp;<\/span><\/li>\n<\/ol>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">These documents include a valid driver\u2019s license or government-issued ID, which includes a U.S. passport. If you don\u2019t have any of those, your reporting company can use the ID number from a non-expired passport issued by a foreign government.&nbsp;<\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">Reporting companies created after next January 1 will have to provide these four pieces of information and document images for company applicants. An \u201capplicant\u201d can be whoever files the document that creates or first registers the reporting company and whoever is primarily responsible for directing or controlling the filing of the document.&nbsp;<\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">No reporting company will have more than two applicants (for example, the founder and the filer of documents).&nbsp;<\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\"><strong>Does my company need to report?<\/strong><\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">The rule identifies two types of reporting companies: domestic and foreign.&nbsp;<\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\"><i>A domestic reporting company<\/i> is a corporation, limited liability company (LLC), or any entity created by the filing of a document with a secretary of state or any similar office under the law of a state or Indian tribe.<\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\"><i>It\u2019s the same for a \u201cforeign reporting company\u201d<\/i> except that it\u2019s formed under the law of a foreign nation and is registered to do business in any state or tribal jurisdiction.<strong>&nbsp;<\/strong><\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">FinCEN expects reporting companies will also include limited liability partnerships, limited liability limited partnerships, business trusts, and most limited partnerships.&nbsp;<\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\"><i>Twenty-three types of entities are exempt:<\/i> certain types of banks and credit unions; some securities brokers and other types of companies registered with the SEC; some companies associated with insurance; and public accounting firms and some utilities. (You can see a list and more details<\/span><span style=\"color:windowtext;font-family:Georgia, serif;\">&nbsp;<\/span><a href=\"https:\/\/www.federalregister.gov\/documents\/2022\/09\/30\/2022-21020\/beneficial-ownership-information-reporting-requirements\"><span style=\"color:#1155CC;font-family:Georgia, serif;\">here<\/span><\/a><span style=\"font-family:Georgia, serif;\">.)&nbsp;<\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">(Many of these, by the way, are already regulated by the government and already disclose their BOI information.<\/span><span style=\"color:#333333;font-family:Georgia, serif;\">)<\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">Reporting companies created or registered before January 1, 2024, will have just until New Year\u2019s Day 2025 to file their initial reports. Companies created or registered after January 1, 2024, will have 30 days after receiving notice of their creation or registration to file.&nbsp;<\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">Observers have said that<i> roughly<\/i> <i>32 million reporting companies are anticipated in the first year of reporting.<\/i><strong>&nbsp;<\/strong><\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">Yeah, that\u2019s a lot.<\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\"><strong>Is the database safe?<\/strong><\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">Naturally, you\u2019re probably concerned about how safe this database is. Generally, FinCEN can release your BOI \u201cunder specific circumstances\u201d to:&nbsp;<\/span><\/p>\n<ul>\n<li><span style=\"font-family:Georgia, serif;\">U.S. Federal, state, local, and Tribal government agencies;<\/span><\/li>\n<li><span style=\"font-family:Georgia, serif;\">Foreign law enforcement agencies, judges, prosecutors, central authorities, and competent authorities;<\/span><\/li>\n<li><span style=\"font-family:Georgia, serif;\">Financial institutions using your info for due diligence; and<\/span><\/li>\n<li><span style=\"font-family:Georgia, serif;\">The U.S. Department of the Treasury.<i>&nbsp;<\/i><\/span><\/li>\n<\/ul>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">FinCEN says the IT system will be cloud-based and \u201cwill meet the highest Federal Information Security Management Act (FISMA) level\u201d \u2014 which basically admits that a breach would have \u201ca severe or catastrophic adverse effect.\u201d<strong>&nbsp;<\/strong><\/span><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"font-family:Georgia, serif;\">You can\u2019t argue with that, no matter how you may feel about the new regulations.<\/span><span style=\"background-color:white;color:#2A2A2A;\"><i><strong>&nbsp;<\/strong><\/i><\/span><\/p>\n<p style=\"margin-left:0cm;\">&nbsp;<\/p>\n<p style=\"margin-left:0cm;\"><span style=\"color:black;\">It\u2019s natural that you\u2019d have more questions on this FinCEN reporting requirement and now would be the time to sort out the details as they pertain to your company. So, don\u2019t hesitate to get something scheduled with me to talk this over.<\/span><\/p>\n<p><strong><a href=\"https:\/\/calendly.com\/mark-perlberg-cpa\">calendly.com\/mark-perlberg-cpa<\/a><\/strong><\/p>\n<p style=\"margin-left:0cm;\"><span style=\"color:black;\">I\u2019m here for you and your Atlanta business.&nbsp;<\/span><\/p>\n<p style=\"margin-left:0cm;\">&nbsp;<\/p>\n<p style=\"margin-left:0cm;\"><span style=\"color:black;\">All the best,<\/span><\/p>\n<p style=\"margin-left:0cm;\"><strong>Mark Perlberg<\/strong><\/p>\n<p style=\"margin-left:0cm;\">&nbsp;<\/p>\n<\/p>\n<\/div>\n<style>.pme-content {\n\tfont-size: 1.2em\n}<\/p>\n<p>.text-tiny {\n\tfont-size: .7em\n}<\/p>\n<p>.text-small {\n\tfont-size: .85em\n}<\/p>\n<p>.text-big {\n\tfont-size: 1.4em\n}<\/p>\n<p>.text-huge {\n\tfont-size: 1.8em\n}<\/p>\n<p>.marker-yellow {\n\tbackground-color: #fdfd77\n}<\/p>\n<p>.marker-green {\n\tbackground-color: #63f963\n}<\/p>\n<p>.marker-pink {\n\tbackground-color: #fc7999\n}<\/p>\n<p>.marker-blue {\n\tbackground-color: #72cdfd\n}<\/p>\n<p>.pen-red {\n\tcolor: #e91313\n}<\/p>\n<p>.pen-green,\n.pen-red {\n\tbackground-color: transparent\n}<\/p>\n<p>.pen-green {\n\tcolor: #180\n}<\/p>\n<p>.pme-content blockquote {\n\toverflow: hidden;\n\tpadding-right: 1.5em;\n\tpadding-left: 1.5em;\n\tmargin-left: 0;\n\tfont-style: italic;\n\tborder-left: 5px solid #ccc\n}<\/p>\n<p>.pme-content .image img {\n\tdisplay: block;\n\tmargin: 0 auto;\n\tmax-width: 100%\n}<\/p>\n<p>figure.image {\n    text-align: center;\n}<\/p>\n<p>.pme-content figcaption {\n\tcolor: #333;\n\tbackground-color: #f7f7f7;\n\tpadding: .6em;\n\tfont-size: .75em;\n\toutline-offset: -1px\n}<\/p>\n<p>.pme-content .image-style-align-left {\n\tfloat: left\n}\n.pme-content .image-style-align-right {\n\tfloat: right\n}\n.pme-content .image-style-align-center,\n.pme-content .image-style-align-left,\n.pme-content .image-style-align-right,\n.pme-content .image-style-side {\n\tmax-width: 50%\n}<\/p>\n<p>.pme-content .image {\n\tposition: relative;\n\toverflow: hidden;\n\tclear: both;\n\ttext-align: center\n}<\/style>\n","protected":false},"excerpt":{"rendered":"<p>Memorial Day doesn\u2019t always mean rest for the small business owner \u2014 depending on what kind of industry you\u2019re in. There\u2019s often a lot of hustle around national holidays (special promotions, big sales, holiday weekend shopping). And debt ceiling deals to make, apparently, since that\u2019s what our government was working on over the weekend. Some notables in repealing nondefense spending: 2 year debt ceiling suspension Added work requirements for some&#8230; <a class=\"more-link\" href=\"https:\/\/prosperlcpa.com\/blog\/2023\/06\/new-fincen-reporting-requirements-for-atlanta-businesses-part-2\/\">Read More<a><\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[],"tags":[],"class_list":{"0":"post-225349","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"entry"},"_links":{"self":[{"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/posts\/225349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/comments?post=225349"}],"version-history":[{"count":0,"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/posts\/225349\/revisions"}],"wp:attachment":[{"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/media?parent=225349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/categories?post=225349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/tags?post=225349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}