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FINCEN REPORTING


Marie

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1 hour ago, Corduroy Frog said:

most CPAs and EAs won't touch this because of the penalties

When the reporting went from paper forms to fill in and mail, to online only, they also instituted sky-high penalties for preparers who fill out forms, from client documents, in good faith, and completely true so far as they have any knowledge. At that point, I started telling clients - you do it. Not me. Nope. Nuh-uh. Not ever. Someone gives me wrong info and I have to pay? No way, no how, not ever.

So yeah, I won't touch them because of possible vicious penalties.

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  • 3 weeks later...

Starting to get mine done. Here is what I see so far.

One can have the BO's register and maintain their own data and report their FinCEN ID to whomever manages the business BOI registration/updates. I am using this method as I do not want to have to manage the BO's data. Likely removes some/all of the issues/risks of getting and managing individual data.

Must use login.gov to sign in, not id.me, so now I have both :(

Interestingly, my personal reg went through with only a business address. Meaning I "did not" open the help link and see where they state one should enter both a personal and business address for BOI usage. I also tested a UPS PMB address, and it worked fine with the PMB (failed with a # sign).

I also reviewed USPS's offering of a street address for their PO Boxes, but their contract explicitly excludes using it for a legal address.

With the ability of each BO to take on the responsibility of their own data, there is little risk on the business side, other than keeping the proper BO list correct. It also seems that a PMB will solve not only the non US issue, but for those who prefer not to, or are unable to, use their work at home address, and for those who have no physical location (such as permanent travelers). I have seen where using a registered agent address works for non US entities, so it might pass the online entry for US entities.

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On 5/23/2024 at 8:18 PM, Catherine said:

When the reporting went from paper forms to fill in and mail, to online only, they also instituted sky-high penalties for preparers who fill out forms, from client documents, in good faith, and completely true so far as they have any knowledge. At that point, I started telling clients - you do it. Not me. Nope. Nuh-uh. Not ever. Someone gives me wrong info and I have to pay? No way, no how, not ever.

So yeah, I won't touch them because of possible vicious penalties.

I agree.  I did this with the foreign accounts reporting.  I'll do the Form 8938 with the return but not the online FinCen reporting.  I plan to look into the new FinCen reporting and let my clients know about it but it will up to them to do it.

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Looking at what is already public, my only consideration is trying to allow anyone who wishes to not show their personal address, which so far, seems possible. Also making sure each person creates their own ID so they are the ones who decide what is included.

Our CA annual form almost went in last year with addresses some wanted to keep private. It is a constant battle.

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10 minutes ago, Lee B said:

I have decided to wait until October or November due to the legal challenges.

Another legal challenge has been filed in federal courts in Michigan.

I have advised my clients to wait until the fall as well.   I am not doing any of their filings, but I suspected there might be some pushback in an election year and there could be a delay in implementation from legislators or the courts.

But I did tell them to gather the information needed prior to that so the filing will be smoother.

Tom
Longview, TX

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Suggesting to wait could be a can of worms too, such as "I could not get the information in time, since you told me to wait". Maybe a no comment is best, to avoid giving any advice which could bite.

This is a "nothing burger" for most. If the persons are privacy concerned, they already have things in place to shield their personal address as much as possible. It is easy to get a compliant UPS or other virtual address if one wants (for personal), and likely the same will be or is compliant for business address (if one stretches their thinking to be comfortable stating their business records exist at the virtual address, say on a server controlled by the mailbox company - who would never give the data up anyway).

The grey of where the records are is no different than pretending electronic data meets record retention rules without having to do the things electronic record retention for compliance actually requires.

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