08/05/2024
Beneficial Owner Information Reporting Requirement (DO NOT DISREGARD, SUBSTANTIAL PENALTIES FOR NON-COMPLIANCE)
Dear Pinnacle Accounting LLC Clients,
We’re reaching out to remind you about an important new federal regulatory requirement that may impact your business.
The Financial Crimes Enforcement Network (FinCEN) has recently introduced a new Beneficial Ownership Information (BOI) Reporting requirement.
Under this new regulatory requirement, most businesses are now required to disclose information about their beneficial owners, including their name, address, date of birth, and social security number or other government-issued identification number (ex. State issued Driver’s License number). This regulation is an effort to collect information on who the beneficial owners are for companies registered in the United States. The purpose of this new regulation is aimed at enhancing transparency and to assist FinCEN with their financial crime investigations.
The BOI Report is filed and stored with FinCEN; this is not an IRS regulation and is not directly tied to the IRS. However, other government agencies (like the IRS) can submit a request with FinCEN to get the reported information on the BOI, should they need it for their own investigations.
All existing businesses formed prior to January 1st, 2024, will need to file by December 31st, 2024, and any new business established during the 2024 calendar year, will need to file their report within 90 days of formation. Any new businesses formed/registered after January 1st, 2025, will need to file their report within 30 days of formation. In addition to the initial reporting requirement, businesses are also required to file updated BOI reports if any reporting information changes such as name, address, driver’s license, etc. of a beneficial owner. The updated filing is due within 30 days after a change occurs.
As your trusted accounting services provider, we understand the importance of compliance with regulatory requirements. Therefore, we are pleased to inform you that our firm provides a service to assist you in fulfilling this regulatory requirement. Our service includes gathering the required information, preparing the report accurately, and submitting it to FinCEN on your behalf. This will save you time and ensure that your business remains compliant with the latest regulatory standards.
PLEASE DO NOT DISREGARD this information as the penalties for non-compliance are steep. Willful violations could result in civil penalties and/or criminal penalties. Potential civil penalties include fines of $500 per day, up to $10,000, while criminal penalties could include imprisonment of up to two years.
If you would like us to provide this service on your behalf or have any questions regarding this matter, please reply to this email with a picture of a valid DL of each member of the company.
We are here to assist you every step of the way and ensure that your business remains compliant with all relevant regulations.
Thank you for your attention to this matter, and we look forward to continuing to serve you.
