The Financial Crimes Enforcement Network (FinCEN) has updated the beneficial ownership information (BOI) reporting FAQs on their website. Some of the latest additions are:
- Homeowners’ associations (HOAs). An HOA may or may not be subject to BOI reporting depending on the type of entity it is. For example, an HOA that is a 501(c)(4) social welfare organization may qualify for the tax-exempt entity exemption. On the other hand, an incorporated HOA that is not tax-exempt would probably be a reporting organization. (FAQ C.10)
- Entities that cease operations. A company is not required to report its BOI to FinCEN if it no longer existed as a legal entity before Jan. 1, 2024. This means the company fully completed the process of formally and irrevocably dissolving. In contrast, a company created or registered on or after Jan. 1, 2024, must report its BOI within 90 days for entities formed in 2024 and 30 days for future years. This is so even if the company dissolves in the same year it is created. (FAQs C.13 and C.14)
- New entity TINs. Where applicable, new entities should use the IRS’s online EIN application to quickly obtain a EIN number in order to timely report their BOI. (FAQ G 3)
- Disregarded entities. A disregarded entity filing a Schedule C, such as a single-member LLC, can use the individual’s SSN or EIN for BOI reporting. (An entity that is not required to have an EIN does not have to obtain one just for reporting.) (FAQ F.13)
- Are entities formed under Tribal law required to report BOI? Yes, if the entity meets the reporting company definition and does not qualify for any exemptions to the reporting requirements. While Indian Tribes have varying legal entity formation practices, some allow individuals to form legal entities such as corporations or LLCs under Tribal law with a Tribal office or agency whose routine functions include creating such entities pursuant to such filings. As a result, a legal entity created by a filing with such Tribal office or agency is a reporting company and is required to file beneficial ownership information with FinCEN, unless it qualifies for an exemption (FAQ d.11, D.17)