Brooks Bookkeeping and Accounting Services is a Black woman-owned and operated bookkeeping and tax firm dedicated to empowering and supporting entrepreneurs and small business owners in transforming their lives and building the business of their dreams. We do this through a holistic approach encompassing financial education, financial coaching and organization, culturally competent personal development, and virtual programming such as workshops and training.
Essential Updates on the Beneficial Ownership Reporting Requirement!
Hey Reader!
Happy New Year! I hope you had a wonderful holiday season. As we dive back into the grind, I wanted to update you on an important regulatory change: the Corporate Transparency Act passed by Congress in 2021.
Here's What You Need to Know: Effective January 1, 2024, all entities registered in the United States, including foreign companies operating within the US, are required to report information about their beneficial owners—those individuals who hold ultimate ownership or control over the company.
This is called the Beneficial Ownership Information (BOI) Reporting Requirement. This measure was implemented to mitigate the potential misuse by entities utilizing complex ownership arrangements.
How & Where to Report: It's essential to note that this is NOT an IRS reporting. Instead, this information will be reported to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. The information must be filed electronically via the Financial Crimes Enforcement Network website.
Deadlines to Keep in Mind:
- Entities registered before January 1, 2024: You have until January 1, 2025, to complete the BOI report.
- Entities registered between January 1, 2024, and January 1, 2025: A 90-day window post-receipt of your registration notice.
- Entities registered after January 1, 2025: Ensure you file within 30 days of receiving your registration notice.
Penalties for Non-Compliance: Failure to submit the required BOI could lead to penalties, including a daily fine of $500, capping at $10,000, and a potential prison term of up to two years.
Exemptions & Further Assistance: Some entities will be exempt from filing the BOI. Check here to see if your business is exempt. You can file the BOI yourself. However, consider consulting with an attorney or the individual who helped establish your business for help filing.
Please prioritize this to ensure your business remains compliant with the latest regulations. For more information about the BOI reporting requirement, click here.
P.S. With the tax season upon us, I'm here to support you. If you're seeking guidance or assistance with tax preparation, schedule a Discovery Call with me.
Until next time,
Christian Brooks
Brooks Bookkeeping and Accounting Services
Brooks Bookkeeping and Accounting Services is a Black woman-owned and operated bookkeeping and tax firm dedicated to empowering and supporting entrepreneurs and small business owners in transforming their lives and building the business of their dreams. We do this through a holistic approach encompassing financial education, financial coaching and organization, culturally competent personal development, and virtual programming such as workshops and training.
Hi Reader, With tax season upon us, you're probably already thinking about ways to minimize your tax liability and retain more of your money next year. The good news is that there are several strategies you can implement to maximize your savings. One key strategy for lowering your tax liability is to take advantage of tax deductions and credits available to you. By identifying eligible expenses and maximizing deductions, you can effectively lower your taxable income and ultimately decrease...
Hey Reader, Hope you're doing well! Quick heads up about some good news from the IRS. The IRS is giving penalty relief for nearly 5 million taxpayers, covering the tax years 2020 and 2021. They are allocating $1 billion for this initiative, aiming to provide substantial relief to eligible individuals, businesses, and tax-exempt entities. If your assessed tax is under $100,000 and you missed those automated collection reminder notices during the pandemic, you could be eligible to have your...
Hey Reader, I hope you're doing well! Managing a business can be a lot, especially when it comes to navigating the complexities of finances. I wanted to chat with you about understanding and mastering your financial management. Think of financial management as your business's compass. It helps you navigate, plan for the future, and seize exciting opportunities that come your way. Understanding where you stand financially can make all the difference. It helps you spot those areas where you're...