The new FIN-CEN info reporting requirement

[RWG1950]

Read in the Wall Street Journal this A.M. that 47% of business owners aren't even aware of this new requirement and many others
are somewhat aware of it but think it does not apply to them.
Haven't paid much attention to this as I no longer prepare business returns but the non-compliance penalties are quite harsh.
Are 1 person schedule "C" filers exempt from this ?
Thanks for comments.

[Rapid Robert]

"Are 1 person schedule "C" filers exempt from this ?"

Depends on whether they are an SMLLC or not. If required to file something with the secretary of state (or equivalent, I don't know the precise language), then not exempt. If just a plain sole proprietor with no registration or filing with the state, then exempt.

If someone follows the standard advice to consult an attorney before forming a legal entity, this should not be a problem for new businesses, which have only a 90 day window. Pre-existing businesses have until Jan 1 2025 to file, so still plenty of time to be educated.

[Beersheba]

There has been discussion about this before, and the wisdom at the time seemed to dictate that CPAs and tax preparers should avoid the liability that comes with the unending penalty of $500/day.. My guess is that if these LLCs are really harboring crooks, they will absolutely not file anyway. I think the drafters of this legislation are out-of-touch with reality.

[Rapid Robert]

Snaggletooth has made his feelings known previously.

But there is an obvious conclusion that I think is still being missed:

"if these LLCs are really harboring crooks, they will absolutely not file anyway."

A-ha! Then they will know who to focus on to look for criminal activities -- the ones that didn't file!!!!! Goal accomplished!

[JON]

What I want to know is why does Ultra Tax have an input page for the BOI, when I agreed with my insurance carrier please do nothing(I like)?? I was waiting for my clients hoping more clarification would be coming out before the year end.