Navigating the Corporate Transparency Act: your guide to BOI reporting in 2024

The beneficial ownership interest (BOI) reporting requirements are new for 2024, Tax pros still have questions about how it works and who is authorized to file the reports with FinCEN on behalf of clients. Additionally, confused clients will question you about this, and in order to provide accurate answers you will benefit from a webinar We’re here to help!

Below, you’ll find a few of the top questions and answers from a recent webinar on the topic. If you choose to attend the on-demand version of this webinar, you can access the full recording and the entire list of Q&As.   

Q: Does the FinCEN ID (identifier) replace the requirement for a passport/U.S. driver’s license in the BOI report?

A: Yes, when a beneficial owner or company applicant has obtained a FinCEN identifier, reporting companies may report the FinCEN identifier of that individual in the place of that individual’s otherwise required personal information on a BOI report. With that said, when applying for the FinCEN identifier, they have to provide an acceptable identification document.

Q: Who can apply for a FinCEN identifier?

A: Anyone authorized to act on behalf of an individual may request a FinCEN identifier on the individual’s behalf on or after Jan. 1, 2024.

Q: If they have a FinCEN identifier, would that individual only need to make the changes on the LOGIN.gov and not have to worry about updating the BOI?

A: Reporting companies with a FinCEN identifier must update or correct the company’s information by filing an updated or corrected BOI report, in the required time frame.

Q: Is an exempt or nonprofit organization required to file BOI?

A: If they are exempt under §501(c), then no, they are not required to file.

To learn more about the Corporate Transparency Act and reporting the BOI with FinCEN, you can watch our on-demand webinar. NATP members can attend for free, depending on membership level! If you’re not an NATP member and want to learn more, join our completely free 30-day trial at natptax.com/explore.