BOI filing

[spanel]

I've been looking at some software to assist clients with the upcoming reporting requirements..

Anyone have any experience with fileforms.com?

Any other suggestions?

Thanks!!

Chris

[Lion]

https://www.wolterskluwer.com/en/solutions/cch-axcess/beneficial-ownership

[TaxGuyBill]

Is there a reason why you don't want to file it directly with FinCEN? From what others have said, it is pretty quick and easy.

[spanel]

Is there a reason why you don't want to file it directly with FinCEN? From what others have said, it is pretty quick and easy.

I tried my s-corp.... I got no notification if it went through. Updates require to resubmit everything.. its a mess on their website.

[Uncle Sam]

Yes - it's quick and easy - however - you've got professional liability insurance companies claiming that by you filing on behalf of your client you are providing UPL - Unauthorized Practice of Law and are advised to stay away from doing so - or your professional liability insurance carrier won't provide coverage for such services.

[TaxGuyBill]

Yes - it's quick and easy - however - you've got professional liability insurance companies claiming that by you filing on behalf of your client you are providing UPL - Unauthorized Practice of Law and are advised to stay away from doing so - or your professional liability insurance carrier won't provide coverage for such services.

Yeah, I understand that, but why use third party software when you or the client can do it directly? If we do it, aren't we still in the same risk zone if we do it directly or use third party software? Personally, I'm just having my clients do it themselves directly on the website.

[Uncle Sam]

Where do you think that a great number of your clients know what they're answering on regulatory forms? They can trap themselves by not answering the questions properly.
Will they be conscious of when items answered on the questionnaire form change, they will be diligent in filing the changes ON TIME if at all?

[TaxGuyBill]

Where do you think that a great number of your clients know what they're answering on regulatory forms? They can trap themselves by not answering the questions properly.
Will they be conscious of when items answered on the questionnaire form change, they will be diligent in filing the changes ON TIME if at all?

All it basically asks for is name, address, Driver's License, etc. For most small businesses, it is really NOT complicated. Personally, I don't have any complicated ownership situations (tiered Partnerships, etc.).

As for filing "on time", if they are not prone to punctuality, it won't really matter if they do it themselves or have somebody else do it for them.

[Beersheba]

Also, the thing has to be re-filed in the event of ownership changes. I'm with Uncle Sam. Stay away from this $500/day penalty with no ceiling.

[Rapid Robert]

For some reason "Chicken Little" and "the sky is falling" comes to my mind this morning.

Here's what the government's position is:

"The Financial Crimes Enforcement Network (FinCEN) will not use "gotcha enforcement actions" against small businesses when it finds errors in reports of beneficial ownership information (BOI), the network's director told a congressional committee on Wednesday.

"The statute is very clear that we can only take enforcement action against willful violations," FinCEN Director Andrea Gacki told the House Committee on Financial Services. "This is not about punishing small businesses but looking for those actors that are willfully evading the requirements.""

https://www.journalofaccountancy.com/news/2024/feb/no-gotcha-enforcement-of-boi-regulations-fincen-chief-vows.html

Now of course there are "politicians" who, like Chicken Little's friends Cocky Locky, Ducky Lucky, Drakey Lakey, Goosey Loosey, Gander Lander, and Turkey Lurkey, will wail and moan, but remember that every other word they say is just dissembling. If you are part of that crowd, I guess nothing anyone says is going to help (and hope you avoid the same fate as Chicken Little).

[Rapid Robert]

"Stay away from this $500/day penalty with no ceiling."

"Penalties for willful violations are $591 a day, up to $10,000, and criminal penalties could include up to two years of prison time." (from the JofA article linked above)

[Rapid Robert]

"Updates require to resubmit everything"

Not necessarily, if you use the FinCEN identifier feature. Just that one owner needs to update their own info.

[Uncle Sam]

RE: U.S. Corporate Transparency Act: CTA is Declared Unconstitutional in U.S. District Court Case


The Corporate Transparency Act has been declared unconstitutional. On March 1, 2024, U.S. District Court Judge Liles C. Burke issued a 53-page opinion[1] granting summary judgment for the National Small Business Association and held that the Corporate Transparency Act “exceeds the Constitution’s limits on the legislative branch and lacks a sufficient nexus to any enumerated power to be a necessary or proper means of achieving Congress’ policy goals.”
As a result, Judge Burke found the CTA to be unconstitutional because it exceeds the Constitution’s limits on Congress’ power, without even reaching a decision on whether it violates the First, Fourth, and Fifth Amendments. The Court then permanently enjoined the government from enforcing the CTA against the named plaintiffs and ordered a further hearing on the award of costs of litigation.

[Rapid Robert]

From Spidell tax research news flash:

"In a press release issued on March 4, 2024, FinCEN stated that in compliance with the court’s order, it will not enforce the beneficial ownership reporting requirements against the plaintiffs, indicating that all other reporting companies are still subject to the reporting mandate.

This means that unless a business is a member of the National Small Business United, it must still comply with the reporting mandate."