Tax Tip #161

Beneficial Ownership information is a new reporting requirement for most small businesses starting in 2024.

Due date for filing for businesses formed prior to 2024 is 1/1/2025.

Who is exempt: Business with gross receipts in 2023 of more than 5M & more than 20 full time US employees. Exempt organizations are also exempt from filing. 

Those who meet the definition of a beneficial owner will be required to upload one of the fol¬lowing documents: US passport, driver’s license, state government identification document.

Penalties for noncompliance: up to $500 per day or a $10K penalty. 

Filing of the form will be online at fincen.gov which is currently unavailable.