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FinCEN extends deadlines for beneficial ownership information (BOI) for hurricane victims
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FinCEN extends deadlines for beneficial ownership information (BOI) for hurricane victims

The Financial Crimes Enforcement Network (FinCEN) has issued notices extending the reporting deadlines for beneficial owner information (BOI) reports for certain reporting companies in response to Hurricane Milton, Hurricane Helene, Hurricane Debby, Hurricane Beryl, and Hurricane Francine.

To qualify, a reporting company must have a BOI reporting deadline that falls within the period beginning one day before the date the specified disaster began – as indicated by the Federal Emergency Management Agency (FEMA) – and ends 90 days after that date. Where multiple disasters with different start dates are related to the same storm, FinCEN used the earliest date.

A reporting company must also be located in an area that is designated by both FEMA as eligible for individual or public assistance and by the IRS as eligible for tax exemption.

Details

Specific relief varies by storm. Here is the relief outlined so far:

Hurricane Beryl: Victims of Hurricane Beryl will be given an additional six months to submit BOI reports, including updates or corrections to previous reports. The deadline for the reporting company to submit an initial or updated BOI report must be on or between July 4, 2024 and October 2, 2024.

Hurricane Debby: Victims of Hurricane Debby will be given an additional six months to submit BOI reports, including updates or corrections to previous reports. The deadline for the reporting company to submit an initial or updated BOI report must be between July 31, 2024 or October 29, 2024.

Hurricane Francine: Victims of Hurricane Francine will be given an additional six months to submit BOI reports, including updates or corrections to previous reports. The deadline for the reporting company to submit an initial or updated BOI report must be between September 8, 2024 or December 7, 2024.

Hurricane Helene: Victims of Hurricane Helene will be given an additional six months to submit BOI reports, including updates or corrections to previous reports. The deadline for the reporting company to submit an initial or updated BOI report must be on or between September 22, 2024 and December 21, 2024.

Hurricane Milton: Victims of Hurricane Milton will be given an additional six months to submit BOI reports, including updates or corrections to previous reports. The deadline for the reporting company to submit an initial or updated BOI report must be between October 4, 2024 or January 2, 2025.

In addition, FinCEN will work with any reporting company whose principal place of business is outside the disaster areas, but which must consult records located in the affected areas to meet the deadline. Reporting companies with principal places of business outside the affected areas seeking assistance in meeting their registration obligations should contact FinCEN at www.fincen.gov/boi.

If the IRS subsequently designates other areas affected by this natural disaster as eligible for tax filing exemption, reporting companies with principal places of business in those areas will also receive the same BOI reporting exemption from FinCEN.

Beneficial Owner Information Reports

Starting January 1, 2024, many companies were required to report information to the US government about who ultimately owns and controls them. This is the result of a 2021 law, the Corporate Transparency Act – or CTA – that requires reporting companies to file reports with FinCEN, the Financial Crimes Enforcement Network.

Companies required to report are called reporting companies. Your company may be a reporting company and must report information about its beneficial owners if your company is a corporation, limited liability company (LLC), or other entity created by filing with a secretary of state or any similar office. in the US or a foreign company incorporated under the law of a foreign country that has registered to do business in the US by filing with a Secretary of State or any similar office.

(You can learn more about reporting companies Here.)

Under the rules, a reporting company formed or registered to do business before January 1, 2024 will have until January 1, 2025 to file its initial report. This is true even if the company was created years before 2024.

A reporting company formed or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days from the receipt of the notice of formation or registration of the company to file its initial report — the clock starts running when the company receives effective notice that its creation or registration is effective or after a Secretary of State or similar office provides public notice of its creation or registration, whichever is earlier.

Reporting companies created or registered on or after January 1, 2025 will have 30 calendar days from the date of effective or public notice that the company’s creation or registration is effective to file initial reports with FinCEN.

The date of formation or registration for a reporting company is the earlier of the date on which the reporting company receives effective notice of its formation (or registration) or when a secretary of state or similar office first gives public notice, such as be through a public notice. accessible register, that the reporting company was created (or registered).

Examples of extensions

As mentioned, unlike tax returns, there is no universal fixed date for filing BOI reports. One exception is the “first” BOI reporting deadline that would apply to companies created before January 1, 2024 — that due date would normally be January 1, 2025. (Companies created in 2024 and 2025 have deadlines based on date of creation or registration). .)

Here’s how relief would work. Consider Hurricane Milton. If a reporting company with its principal place of business in an area designated by both FEMA as eligible for individual or public assistance and by the IRS as eligible for Hurricane Milton tax filing relief was created before January 1 2024, the company’s initial BOI report is no longer due on January 1, 2025, and is instead due on July 1, 2025.

A reporting company created or registered on July 25, 2024, will normally file by October 23, 2024. However, if the Hurricane Milton filing exemption applies, the company’s initial BOI report is now due by October 23 April 2025.

Foreign account reporting

The extensions were previously granted by FinCEN for filing Form 114, Report of Foreign Bank and Financial Accounts – more commonly known as FBAR.

By law, every US person who has a financial interest in, or signature or other authority over, one or more foreign financial accounts with an aggregate value of more than $10,000 must report the account to the Treasury Department annually. This report is known as FBAR.

The FBAR is an annual report generally due on April 15 (unless it falls on a weekend or holiday). It’s the same term as Tax Day. However, you don’t file an FBAR with the IRS – file electronically with FinCEN. Typically, if you can’t file by the deadline, you can get an automatic extension until October 15th.

Other Reliefs

The IRS has already extended tax filing deadlines for individuals and businesses affected by storms, including Hurricane Helene. This exemption applies to all of Alabama, Georgia, North Carolina, and South Carolina, and parts of Florida, Tennessee, and Virginia.

These taxpayers now have until May 1, 2025 to file various federal personal and business tax returns and make tax payments. This date is particularly noteworthy because it is after the traditional tax filing deadline of April 15, 2025.

ForbesFinCEN extends FBAR filing deadlines for victims of recent natural disastersForbesThe IRS is giving Southeast taxpayers affected by Hurricane Helene more time to file and payForbesAs the Corporate Transparency Act deadline approaches, FinCEN is updating the guidance