FinCEN Issues Final Rules for the Use of Identifiers When Reporting Beneficial Owner Information
The Corporate Transparency Act was established in 2021, authorizing FinCEN to collect certain types of Beneficial Ownership Information (BOI) from corporations, partnerships, LLCs, and similar entities. For an additional review of the FinCEN reporting requirements as enacted by the Corporate Transparency ACT, read our blogs on the regulation and additional guidance.
FinCEN identifiers were finalized on November 8, 2023. As reported in previous publications, entities must report specific information regarding their Beneficial Ownership interest.
Reports should include the following information on owners:
- Date of birth
- A distinctive identifying number alongside the relevant jurisdiction of issuance of an acceptable identification document
According to FinCEN’s Small Entity Compliance Guide, FinCEN will issue a FinCEN identifier to an individual or reporting entity after the above reporting information has been submitted in a BOI report. Once obtained, entities can use the Identifier number in lieu of submitting the full set of information in subsequent years. This allows for streamlined BOI reporting for the years after.
FinCEN is a separate reporting agency from the IRS that historically only required compliance from businesses with foreign assets. Several companies with no international business will now need to report to FinCEN for the first time, which may be frustrating and confusing for many small businesses. If you have any questions regarding FinCEN or other International business matters, please contact our Global Business Services team.
Charlie Petelka, is a Tax Consultant in the firm’s Global Business Services practice and is responsible for assisting clients and adding depth in all areas of the firm’s international tax consulting services, including preparing client calculations, international forms, IC-DISC tax returns, and transfer pricing documentation.