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New federal business filing with FinCEN: What you need to know

todayFebruary 7, 2024 2

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ROCHESTER, N.Y. (WROC) — For small business owners out there: there’s a new federal filing you should be on the lookout for. It’s a basic — and free to do — filing for the Financial Crimes Enforcement Network, or FinCEN, a division of the Treasury.

It’s due before January 1, 2025, and if you need to file and don’t, the civil and criminal penalties are significant: $500 per day per entity, and a possibility of up to two years in jail.

This new law was passed in 2020, to crack down on foreign money laundering.

If you have a business that was incorporated before the start of 2024, you need to file this “beneficial ownership” file before year’s end.

If you make a new business this year, the filing is due within 90 days; and if you make any changes, those need to be re-filed within 30 days.

Senior Attorney with Evans Fox LLP Tracy Jong says that you can likely do this file yourself, but if you are unsure, you can always reach out to your attorney, or her firm.

She says you only need basic information for FinCEN if you qualify; things like a DBA, identification, social security number, etc.

As for whether or not you have to file:

Your business is exempt if your business generates more than $5 million a year in revenue, and you have 20 or more full-time workers, and you have a working place of business in the country.

There are other about two dozen exemptions including non-profits.

“It really falls (to) a lot of the small businesses, even smaller businesses, the 5 million dollar threshold, depending on the industry you’re in,” Jong said. “I wish you only had to meet one of the criteria, but you need to meet all three.”

Jong says the enforcement mechanism is unknown at this point, but suggests that everyone file given the penalties.

Dave Young is a local CPA. He says even though not all CPAs or filing services can do this for you, but while you are filing your taxes, it can be a good idea to get this new FinCEN filing out of the way.

“If you do file early, just remember that any changes you’ve got to make within 30 days,” Young said. Jong says those changes can be as mundane as a personal name change or a personal address change.

Jong also says that with any new type of filing, come scammers. She says she has already seen scams searching for information using this filing, and reminds people that the federal government will almost never ask you for your information.

Come 2025, these new filings will be within 30 days of incorporation.

​ ROCHESTER, N.Y. (WROC) — For small business owners out there: there’s a new federal filing you should be on the lookout for. It’s a basic — and free to do — filing for the Financial Crimes Enforcement Network, or FinCEN, a division of the Treasury.

It’s due before January 1, 2025, and if you need to file and don’t, the civil and criminal penalties are significant: $500 per day per entity, and a possibility of up to two years in jail.

This new law was passed in 2020, to crack down on foreign money laundering.

If you have a business that was incorporated before the start of 2024, you need to file this “beneficial ownership” file before year’s end.

If you make a new business this year, the filing is due within 90 days; and if you make any changes, those need to be re-filed within 30 days.

Senior Attorney with Evans Fox LLP Tracy Jong says that you can likely do this file yourself, but if you are unsure, you can always reach out to your attorney, or her firm.

She says you only need basic information for FinCEN if you qualify; things like a DBA, identification, social security number, etc.

As for whether or not you have to file:

Your business is exempt if your business generates more than $5 million a year in revenue, and you have 20 or more full-time workers, and you have a working place of business in the country.

There are other about two dozen exemptions including non-profits.

“It really falls (to) a lot of the small businesses, even smaller businesses, the 5 million dollar threshold, depending on the industry you’re in,” Jong said. “I wish you only had to meet one of the criteria, but you need to meet all three.”

Jong says the enforcement mechanism is unknown at this point, but suggests that everyone file given the penalties.

Dave Young is a local CPA. He says even though not all CPAs or filing services can do this for you, but while you are filing your taxes, it can be a good idea to get this new FinCEN filing out of the way.

“If you do file early, just remember that any changes you’ve got to make within 30 days,” Young said. Jong says those changes can be as mundane as a personal name change or a personal address change.

Jong also says that with any new type of filing, come scammers. She says she has already seen scams searching for information using this filing, and reminds people that the federal government will almost never ask you for your information.

Come 2025, these new filings will be within 30 days of incorporation. Read More NewsRochesterFirst  

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