February 2024 Newsletter Practice Management

Tax season is in full swing for 2024. It wouldn’t be tax season without some new issue that needs to be reviewed carefully.
That would be the Corporate Transparency Act (CTA) – Beneficial Ownership information (BOI).
Effective January 1, 2024, the CTA requires reporting companies such as 1120 and 1120-S as well as single member LLC reporting on schedule C to report beneficial ownership information (BOI). This includes any LLC entity that has registered with the state. Any 25% owner will need to report with FinCEN some basic information:
 ·         Identify information on the reporting company:
·         Legal name, trade name, and DBA
·         Address of principal place of business
·         Jurisdiction in which the business was formed or first registered.
·         Tax ID number
·         Identifying information on beneficial owner and company applicants
·         Legal name
·         Date of birth
·         Current address
·         State or federal recognized ID number (passport, driver’s license, etc)
·         Image of state or federally recognized identification
 This information will be reported to the FinCEN BOI website. Companies registered prior to January 1, 2024 have until January 1, 2025 to file the initial report. New companies formed after January 1, 2024, have 90 days after official registration or creation to file the report. After the report is filed and a change has occurred the company has 30 days to submit changes.
 Please go to the FinCEN BOI for more information that will help you answer questions your clients will have. New information is being provided as it becomes available so visit the website often. Better yet take one of the many classes that are available by third party providers.
Welcome to the 2024 tax season.