2024 Tax News and Reminders
February 13, 2023
For Businesses: Handling Meal and Entertainment Deductions
January 30, 2024
New Corporate Transparency Filing Regulations for Small Businesses
On January 1, 2024, new regulations under the Corporate Transparency Act (CTA) went into effect. Now many small businesses are required to report ownership information to the government. Passed in 2021, the CTA is designed to track illicit activity that includes tax fraud, money laundering and financing of terrorism.
New regulations require businesses, that meet certain criteria, to submit a Beneficial Ownership Information (BOI) Report to the U.S. Department of Treasury’s Financial Enforcement Network (FinCEN). The Report defines individuals associated with the business. A non-exempt entity doing business in the U.S. needs to file the report, such as corporations (both C and S), LLCs, LCPs and foreign businesses with a tax filing in any state. Some entities are exempt such as nonprofits (501(c)s), specific publicly traded companies and certain large operating companies.
Under the CTA, an individual qualifies as a beneficial owner if they directly or indirectly have a significant ownership stake in a company. They are considered a beneficial owner if they have significant influence on the reporting company’s decisions or operations, own at least 25% of the company's shares, or have a similar level of control over the company's equity. Information such as full legal name, date of birth, home address and a form of identification such as a driver’s license or passport may be required.
- Reporting companies established before January 1, 2024 have a filing deadline of January 1, 2025.
- Reporting companies created between January 1, 2024, and January 1, 2025, will have 90 days to file from either the actual notice of formation or public announcement, whichever comes first.
- Reporting companies established on or after January 1, 2025, will have 30 days from notification or public announcement of their formation to submit their first report to FinCEN.
No annual reporting is required. Companies will need to submit updates to their original filing when there are changes within their business, such as a beneficial owner changing their address or name, or re-allocation of management responsibilities within the business.
If you are a client or have questions about the BOI, please contact our office at accounting@hvandpartners.com or 914-617-7620 and we will direct your call so we can better serve you.
- Hart Vida & Partners
Westchester Office:
400 Columbus Avenue
Suite 100S
Valhalla, NY 10595
Fax: 914-666-2549
