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.
About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
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Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.